Presentation of results for first half of 2010 and Q2/2010
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Annual Report 2009
[01.08.10] Annual Report with notes to the financial statements 2009
Board of Directors’ Report for 2009 – SpareBank 1 Gruppen AS
[01.07.10] Download report here
Results Q1-2010: Solid results and effective action
[28.04.10] The SpareBank 1 Group had a pre-tax profit for first quarter 2010 of NOK 131.3 million (86.8*), giving a return on equity of 8.8%.
The results are characterised by:
- Significantly improved profits for SpareBank 1 Livsforsikring, as a result of better interest profits
- Reduced profits for SpareBank 1 Skadeforsikring caused by many winter claims
- Increasing capital under management giving better profits for ODIN Forvaltning
Solid balance sheet. Core and capital adequacy for the SpareBank 1 Group were 14.6% and 20.3% respectively in first quarter 2010
“All in all we are very pleased with the results, which show that we have continued focus on operations,” says Kirsten Idebøen, CEO of SpareBank 1 Gruppen AS. “Even so, we found that a tough winter affected profits for the general insurance company, while the life insurance company has delivered figures marked by good risk results and financial returns.”
The offensive continues
Kirsten Idebøen stresses that all the product units have solid underlying operations and the results of the ongoing profitability programme are now being gradually reflected in the figures. ” The SpareBank 1 Group and SpareBank 1 Alliance are also working on a number of targeted measures in the market and product area so as to meet the ever more challenging competitive picture”
SpareBank 1 has a clear position as the local bank for the whole of Norway – something we will be fully exploiting in the future. We are also working hard to meet new customer needs, particularly by being present in the channels where the customer wishes to meet us,” says Kirsten Idebøen.
SpareBank 1 Skadeforsikring (general insurance): Good operations and solid financial returns
The pre-tax profit for SpareBank 1 Skadeforsikring was NOK 36.3 million for Q1 2010, compared with NOK 48.1 million for the same period last year. The insurance profits are somewhat lower than in 2009, due to increased claims frequency in several product groups in Q1 2010.
Combined ratio at the end of Q1 was 108.6% (100.6%). Financial income was NOK 97.6 million at the end of Q1. This is an increase of NOK 28.1 million compared with the same period last year, due to better returns in the equity market.
SpareBank 1 Livsforsikring (life insurance): Solid results and good buffers
SpareBank 1 Livsforsikring achieved a pre-tax profit of NOK 91.9 million for the first quarter, compared with NOK 24.2 million for the same period last year. Total buffer capital, including profit so far this year, represented 13.0% of the technical insurance reserves at the end of Q1 2010. This corresponds to an increase of 7 percentage points compared with Q1 2009. The securities adjustment reserve was NOK 545.2 million at the end of Q1 2010, compared with zero at the same time last year. The value adjusted return for customer portfolios with guarantees (excluding property value change) was 2.0%.
ODIN Forvaltning: 9 of 11 self-managed equity funds better than the benchmark portfolio
ODIN Forvaltning achieved pre-tax profits of NOK 14.4 million for the first quarter, against a loss of NOK 7.5 million after the first three months of last year. The capital under management has increased by NOK 2.4 billion to NOK 30.4 billion during the first quarter.
Market share for the equity funds rose from 11.6% at year end to 11.8% at the end of March 2010. At the end of Q1 2010, 9 out of the 11 self-managed equity funds have a better return than the benchmark portfolio for the preceding 12 months.
* Comparison figures for the group exclude Bank 1 Oslo Group.
Preliminary accounts for 2009 – Presentation of results from SpareBank 1 Gruppen AS by Kirsten Idebøen, CEO
Results Q3-2009: Solid advance for SpareBank 1 Gruppen
SpareBank 1 Gruppen had a pre-tax profit as at Q3 2009 of MNOK 973.7 (314.4), yielding a return on equity of 18.6%. In Q3 in isolation, earnings were MNOK 432.4 (17.4).
The results are characterised by:
- Strong investment and risk result in the life insurance company. Substantially strengthened buffer capital
- Very good financial return and good results in the P & C insurance company
- Increased capital under management in ODIN Forvaltning
- Higher net interest income in Q3 and good financial income in Bank 1 Oslo
“We are very pleased with the results, where a focus on operations and a favourable financial market have contributed to the numbers,” says Kirsten Idebøen, CEO of SpareBank 1 Gruppen AS. “At each quarterly presentation we have emphasised the fact that the competitive picture is now changing, with the need for sound operations and the building of buffers more important than ever. At the same time we are working hard to meet new customer needs, with the right products through a range of channels.”
Idebøen underscores that all the major production units have contributed to overall results in Q3 as well, but again it is life and P & C insurance in particular that are delivering solid earnings. “We are working determinedly to improve earnings for the next quarters as well, including through a dedicated profitability programme with a full-year effect of MNOK 450, to conclude at the end of 2010,” Idebøen says.
SpareBank 1 Skadeforsikring (P & C insurance): Good operations and solid financial returns
The pre-tax profit for SpareBank 1 Skadeforsikring was MNOK 506 as at Q3 2009, as opposed to MNOK 237 the same period last year. The insurance result was somewhat lower than in 2008, due to several major claims in Q1 2009. Financial income was MNOK 406 (112) at the end of Q3 2009, owing to good, stable returns on the fixed income portfolio, and improved results in the equities portfolio. The combined ratio at the end of Q3 was 95.1% (94.3%)
Bank 1 Oslo – group: Higher net interest income in Q3 and good financial income
Bank 1 Oslo had a pre-tax profit as at Q3 of MNOK 155, as opposed to MNOK 60 the corresponding period last year. The earnings advance is chiefly due to higher revenue from financial investments. Loan losses were MNOK 91 (15) as at Q3, of which MNOK 31 (32) in Q3. Gross non-performing and impaired loans amounted to 2.0% (1.2%) of gross loans after nine months in 2009.
SpareBank 1 Livsforsikring (life insurance): Solid results and adequate buffers
SpareBank 1 Livsforsikring attained a pre-tax profit of MNOK 311 as at Q3, as opposed to a loss of MNOK 343 the same period last year. In all, buffer capital, including earnings year-to-date, amounted to MNOK 2,098, equivalent to 13.7% (5.8%) of the technical insurance reserves. Value-adjusted return on customer portfolios with guarantee (excl. change in value construction) was 7.1%. The securities adjustment return as at Q3 was MNOK 238.
ODIN Forvaltning: 9 of 11 self-managed equity funds beat the benchmark index
ODIN Forvaltning achieved a pre-tax profit as at Q3 of MNOK 18. This is an improvement over the previous quarters in 2009, but a decline of MNOK 67 compared to the same period last year. Assets under management grew by NOK 6.3 billion to NOK 25 billion in the past 12 months. 9 of 11 self-managed equity funds had better returns than the benchmark index as at 30 September 2009.
Results Q2-2009: Solid performance by SpareBank 1 Gruppen
- SpareBank 1 Gruppen AS posted a pre-tax profit for the first half-year of MNOK 541 (297). The Q2 profit in isolation was MNOK 441 (197).
- The H1 profit represents a return on equity of 12.3% (7.9%) p.a.
- The group’s financial strength has been further bolstered. Capital and core capital adequacy ratios at the half-year mark are 14.6% (13%) and 9.9% (9%), respectively.
“Good financial returns and a solid focus on operations contributed to a good result in demanding economic times,” says Kirsten Idebøen, CEO of SpareBank 1 Gruppen AS. “To meet the hardening competition in the next six months we will implement a broad restructuring programme to create further and necessary operating improvements in the group. The restructuring programme will improve profitability by MNOK 450 by 31 December 2010 through a combination of streamlining, cost-cutting and measures to strengthen the revenue side.
“The group has made great progress compared with the same period in 2008. Nevertheless, we believe it is essential to strengthen our results in the years to come, in order to withstand both volatile markets and the requirements the competitive situation will make of us,” says Idebøen.
SpareBank 1 Skadeforsikring (P&C insurance): Solid financial return
Pre-tax profit for SpareBank 1 Skadeforsikring totalled MNOK 233 in the first half-year of 2009, compared with MNOK 179 at the same time last year. The insurance result is somewhat lower than in 2008 due to more major claims in the first quarter of 2009. Financial income came to MNOK 228 (100) at the end of H1 2009, thanks to a stable and healthy return on the interest rate portfolio, and improved profit in the equities portfolio. Combined ratio in Q2 2009 came to 95.6% (93.8%).
Bank 1 Oslo – group: Strong financial return and lower costs
Bank 1 Oslo recorded a H1 pre-tax profit of MNOK 81, against NOK 66 million for the corresponding period of last year. The main reasons for the improved performance are higher income from financial investments and lower operating costs.
During the period the wholly owned subsidiary EiendomsMegler 1 Oslo/Akershus posted a pre-tax profit of MNOK 3, compared with a loss last year of MNOK 13. The improvement is the outcome of a completed profitability programme, and a revenue growth rate of 20% in H1 2009.
SpareBank 1 Livsforsikring (life insurance): Sound profits and good buffers
SpareBank 1 Livsforsikring achieved a pre-tax profit of MNOK 230 in the first half-year, against a loss of MNOK 8 for the same period last year. Overall, the buffer capital, including the profit so far this year, totalled MNOK 1,748, equal to 11.7% (8.2%) of the insurance provisions. Value-adjusted return on customer portfolios with guarantee is 4.1% YTD.
ODIN Forvaltning: 9 of 11 equity funds better than benchmark index
ODIN Forvaltning achieved an H1 pre-tax profit of MNOK 2, against MNOK 59 for the same period last year. The main reason for the drop in assets under management in self-managed equity funds is due to weak equity markets – along with lower new equity fund subscriptions. During the period 9 of 11 self-managed equity funds did better than their benchmark indices.
Board of Directors’ Report for 2008 – SpareBank 1 Gruppen
This is SpareBank 1 Gruppen
SpareBank 1 Gruppen is one of the largest providers of financial products and services in the Norwegian market. The banks in the SpareBank 1 Alliance distribute SpareBank 1 Gruppen’s products and collaborate in key areas such as brands, work processes, expertise development, IT operations and system development.
SpareBank 1 Gruppen AS is a holding company that, through its subsidiaries, provides general and life insurance and fund management, in addition to direct banking business in the counties of Oslo, Akershus and Hedmark.
SpareBank 1 Gruppen AS is owned by Sparebanken Hedmark (12%), SpareBank 1 Nord-Norge (19,5%), SpareBank 1 Midt-Norge (19,5%), SpareBank 1 SR-Bank (19,5%), Samarbeidende Sparebanker AS (19,5%) and the Norwegian Federation of Trade Unions (LO)/affiliated unions (10 %).
SpareBank 1 brand awareness has increased the last years, and SpareBank 1 is now among the two most familiar financial brands in Norway. SpareBank 1’s Internet bank also scores well in independent surveys. At the end of the year 2008, the E-bank had 600,000 contractual relationships.
The SpareBank 1 Alliance’s main goal is to ensure the individual bank’s independence and regional foundation through strong competitiveness, profitability and financial soundness. At the same time, the SpareBank 1 Alliance is a satisfactory competitive alternative nationally and on a Nordic level.
The SpareBank 1 Alliance in Norway’s total assets amounted to approx NOK 583 billion (pr Des 2008).
The SpareBank 1 Alliance comprises approximately 350 offices and branches all over Norway. SpareBank 1 Gruppen’s products are distributed through almost 380 offices that cover every county in Norway. In total, the Alliance has approximately 6,300 employees. 1,300 of these are employed by SpareBank 1 Gruppen AS and its subsidiaries.
SpareBank 1 Gruppen AS owns companies that provide general insurance, life insurance, fund management and other financial products and services to SpareBank 1 banks and their customers, as well as to members of the Norwegian Federation of Trade Unions. Accordingly, the distribution of these products mainly takes place through the SpareBank 1 banks and through agreements with the Norwegian Federation of Trade Unions and its affiliated unions. In addition, SpareBank 1 Gruppen AS has its own banking operations in Oslo and Akershus through Bank 1 Oslo AS.
As the parent company of a finance group, SpareBank 1 Gruppen AS has these subsidiaries:
- SpareBank 1 Skadeforsikring AS,
- SpareBank 1 Livsforsikring AS,
- Bank 1 Oslo AS,
- ODIN Forvaltning AS,
- SpareBank 1 Medlemskort AS
- SpareBank 1 Utvikling
- SpareBank 1 Gruppen Finans Holdning AS
- ARGO Securities AS
- SpareBank 1 Gruppen AS also owns 24.5 % of FIRST Securities ASA, a brokerage house.
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The Annual Report 2005
The Annual Report 2004
The Annual Report 2003
The Annual Report 2002
The Annual Report 2001
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