Solid performance in the third quarter for Kommunalbanken
The result for the third quarter gave net interest revenues of NOK 384 million, an increase of NOK 52 million compared to the same period last year. Accumulated net interest revenues so far this year amount to NOK 1,058 million, compared to NOK 851 million in the same period last year.
Published Wednesday, November 30, 2011 by Therese Murberg
- The growth in net interest revenues mirrors the increased volume of both loans to customers and surplus liquidity, as well as better margins on loans and management of surplus liquidity, says CFO Petter Skouen. The result mirrors solid performance in spite of increasing unrest in the financial markets and macroeconomic uncertainty.
- I would like to emphasize that the result, which in the third quarter gave us a deficit of NOK 147 million, is largely due to the result being influenced by the accounting effect on financial hedging instruments, which will be reversed in two years.
Lending activity
Our lending increased by NOK 8.8 billion (4.6 percent) in the
third quarter to NOK 200.9 billion. In comparison our lending
portfolio increased by NOK 1.9 billion (1.1. percent) in the same
period last year. Cumulative lending growth this year is NOK 17.1
billion (9.3 percent), compared to 20.0 billion (16.2 percent) in
the same period last year.
Due to the turmoil in the financial markets in addition to a flatter interest curve. Kommunalbanken has experienced an increase in requests from customers for fixed interest periods. This quarter, fixed rate loans have increased by NOK 3.9 billion, both in the form of new loans and from existing floating rate loans.
We still expect heavy demand for fixed rate loans, as long as financial markets are insecure and the interest curve is relatively flat.
Assets
Eligible capital constituted NOK 6.6 billion per 30 September
2011, and core capital NOK 4.7 billion. Assets under management
have increased by NOK 46.3 billion to NOK 354.0 billion since the
turn of the year. The increase assets under management is largely
due to changes in currency exchange rates.
Core capital ratio per 30 September 2011 was 9.01 percent, compared to 8.39 percent per 30 September 2010. Total capital ratio was 12.48 percent, compared to 9.85 percent in the same period last year.
For more information:
- CEO Petter Skouen: tel. + 47 98 24 70 10
- Communications Director Kjell G. Pettersen: tel. + 47 98 24 70 12
