2013-02-06 08:07:22 -

SpareBank 1 SMN posted a profit of NOK 1,077m kroner in 2012, an increase of NOK
53m over the previous year. SMN's financial position also strengthened.

The Board of Directors recommend the Supervisory Board to set a cash dividend of
NOK 1.50 per equity certificate for 2012. In light of higher solvency
requirements, the Board of Directors' recommendation entails a lower payout
ratio for cash dividend and gifts for non-profit causes than in previous years.
An allocation of NOK 30m to non-profit causes is proposed for 2013.

The  preliminary annual accounts reflect a strong income trend on ordinary
operations, increased lending margins, low loan losses, good return on financial
assets and high growth in home mortgage loans and deposits alike.

"2012 was a good year for SpareBank 1 SMN. Solid   operations combined with sound,
profitable growth along with low losses enable the bank to continue to deliver
good performances. SpareBank 1 SMN has increased its market share among both
households and firms in Trøndelag and in Møre and Romsdal", says Group CEO Finn
Haugan at SpareBank 1 SMN.

Accounts 2012 - highlights:
·      Profit before tax: NOK 1,355m (1,236m in 2011)
·      Profit after tax: NOK 1077m (1,024m)
·      Return on equity: 11.7% (12.8%)
·      Growth in lending: 10.2% (8.6%)
·      Growth in deposits: 9.2% (11.9%)
·      Loan losses: NOK 58m (27m)
·      Tier 1 capital ratio: 11.3% (10.4%)
·      Earnings per equity certificate (EC): NOK 5.21 (6.06)
·      Proposed dividend: NOK 1.50 per EC (1.85)

New capital plan
The Board of Directors of SpareBank 1 SMN has adopted a new capital plan which
is based on a new common equity tier 1 ratio target of at least 12.5% by the end
of 2015. This is in keeping with expected governmental requirements. In 2012 the
Bank has strengthened its financial position and at year-end the common equity
tier 1 ratio stood at 10.0%.

Lending margins increased through 2012, and are continuing to do so in the
current year. This is also a natural consequence of increased risk weights and
capital requirements in the Norwegian financial industry.

High customer activity at the bank and the subsidiaries EiendomsMegler 1 Midt-
Norge and SpareBank 1 SMN Regnskap in addition to higher development costs for
the SpareBank 1 collaboration have resulted in higher costs compared with the
previous year. Reduced cost growth will receive high priority in 2013. The
ambition is to bring the growth below three per cent. Measures are planned and
partially implemented, including a radical transfer of resources towards active
customer-facing activities.

Strengthened market position
Overall growth in lending to the retail segment was 13.7% over the last 12
months compared with a general growth in credit to households, according to
Statistics Norway, of 7.2% in the same period. SpareBank 1 SMN shows strong
growth throughout its market area. A total of 12,800 new retail customers joined
the bank in 2012.

SpareBank 1 SMN maintains a strong position in the corporate market with lending
growth of 5.3% over the last 12 months. This compares with a general credit
growth, according to Statistics Norway, of 5.0%. Growth in lending to corporates
edged down in the fourth quarter of 2012, and we expect moderate growth in 2013.

Low losses
The bank has low losses and a low default rate, as reflected both in the
region's economy and the bank's portfolio quality. Net losses measure only
0.06% of total lending. Provision for collectively assessed impairment write-
downs has been raised by NOK 5m as a result of some uncertainty regarding
exposure in individual lines of business.

Commission income and other operating income rose by 24% to NOK 1139m in 2012.
The bank's subsidiaries show continued solid progress. The largest of them -
EiendomsMegler 1 Midt-Norge, SpareBank 1 SMN Finans and SpareBank 1 SMN Regnskap
- are strengthening their market position and profitability.

At end-2012 SpareBank 1 SMN's total assets came to NOK 138bn, including loans
transferred to the co-owned SpareBank 1 Boligkreditt and SpareBank 1
Næringskreditt.

Healthy regional and national economy
"Continued turbulence in international financial markets is increasing the
uncertainty in the national and the regional economy. Again in 2012 we saw no
clear indications that Trøndelag or Møre and Romsdal will be particularly
affected by the crisis in the euro area, and there are few signs in our region
to suggest major changes in the risk picture in 2013", says Finn Haugan.

Trondheim, 6 February 2013.

Contact persons at SpareBank 1 SMN:
Group CEO Finn Haugan on +47 900 41 002
Executive Vice President, Finance, Kjell Fordal on +47 905 41 672
Executive Vice President, Corporate Communications, Hans Tronstad on
+47 941 78 322


About SpareBank 1 SMN
SpareBank 1 SMN is the region's leading financial services group. It leads the
retail and corporate market, and is positioned in 43 localities across the
region's municipalities with a total of 51 offices.

We aim to be the recommended bank for customers in Trøndelag and in Møre and
Romsdal. Being a local, independent savings bank we feel a special
responsibility for stimulating growth and prosperity in the region. We base our
business on closeness to our customers, good accessibility, a full product range
and comprehensive financial advisory services.

Our head office is in Trondheim. The Group employs about 1,200 staff and
includes the following subsidiaries: SpareBank 1 SMN Finans, EiendomsMegler 1
Midt-Norge, Allegro Finans and SpareBank 1 SMN Regnskap. It is the largest
shareholder in BN Bank with a 33% stake.

SpareBank 1 SMN is one of six owners of SpareBank 1 Gruppen. For further
information, visit our website at www.smn.no.

 quarterlyreport.smn.no/2012/

4th Quarter 2012: 
 hugin.info/144/R/1675813/545967.pdf

Presentation: 
 hugin.info/144/R/1675813/545974.pdf

Supplementary information: 
 hugin.info/144/R/1675813/545969.pdf



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Source: SpareBank 1 SMN via Thomson Reuters ONE
[HUG#1675813]