1.5 billon NOK surplus for Sparebank1 Nord-Norge

The preliminary 2016 results show a 1.54 billion NOK result for the North Norwegian bank Sparebank1 Nord-Norge. 410 of these millions will be returned to North Norwegian society in dividends.

The 2016 result is 411 mNOK better than that of 2015, and Managing Director Jan-Frode Janson refers to the positive trends in North Norwegian business, with seafood, tourism and construction being growth industries.

- If things are going well for Northern Norway, then that also provides a good framework for the region’s bank, he says. According to Janson, the bank received a constant flow of new customers in 2016, which he claims is proof that their business model is attractive.

- Good digital solutions and advisors with local knowledge who are present all over the region hits home with the customers, he says.

The 2016 surplus will benefit the entire North Norwegian region. Being the largest owner, North Norwegian society receives a 410 million NOK dividend. More than 100 mNOK is paid out this year, the remainder is set aside in various trusts.

- Our ownership model in which customers own 54 percent of the company means that this surplus provides a record-high dividend to hundreds of smaller and larger projects that help build Northern Norway, says Managing Director Jan-Frode Janson.

Even though 2016 has been a good year, there is still some uncertainty regarding future competition. The Managing Director expects the battle for customers to intensify, however, the last year’s result helps brace the company for what may come.

- We have a solid foundation on which to build and will continue our efforts to develop the regional bank, says Janson. However, continued growth will depend on several parametres, he says, and the bank puts a lot of resources into digitalization and automatization now. Janson refers to robots now carrying out tasks that people did before, and he thinks there will an increased number of such solutions.

- Nevertheless, we will keep fostering what makes us unique. We believe the best customer value is created through good digital solutions in combination with local presence, local knowledge and skilled employees whose desire is developing the region, he says.

Main figures from SNN in 2016 (2015 figures in parenthesis):

EBITDA: 1.544 mNOK (1.033 mNOK)

ROE: 12 % (9.1 %)

Reduced costs: - 2.4 % in comparison to 2015 (e.g. restructuring costs)

Dividend: Suggested cash dividend of 3.45 NOK per ECs (NOK 2)

Pure core capital: 15 % (13.9 %). The company has reached its capital target of 14.5 %.