Annual Report 2004 Page 6
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Annual Report IN 2004 WE DID IT WITH PURPOSE WILLP OWER What separates one bank from another? Interest rates, fees and products are often the same. But have you ever asked your bank what they want? Or what role they want to play? Our answer is simple. The objective of SpareBank 1 SR-Bank is to help create values for the region we are part of. Building a society is a everybody’s responsibility. In our region there are plenty of people that want to shoulder their share of work. The community spirit is more than a grand word. It is our philosophy. Everything we build, we build with a purpose. In January the moulds were ready page 12 In February they were picked as the country’s best youth-run business page 14 In March, RPT Production started bending page 16 In April, the network grew page 70 In May, Stavanger got a new stadium page 72 I J h t t d th ti hi Table of contents Page Page The SpareBank 1 SR-Bank Group 6 Primary capital certificates 63 Highlights 8 Key figures from the past five years 66 Principal figures 9 Value added statement 68 Key figures 9 Corporate governance 76 The Managing Director’s article 10 Risk and funds management The Annual Report 2004 18 in SpareBank 1 SR-Bank 81 Annual Accounts, table of contents 29 Overview of our offices 85 Profit and loss account 30 The business market division 90 Balance sheet 31 The private market division 93 Cash flow analysis 32 Our subsidiaries 100 Accounting principles 33 Human capital 102 Notes to the accounts 36 Organisational chart 108 The Auditor’s Report for 2004 62 Governing bodies 109 The Audit Committee’s report Addresses 110 for 2004 62 page 96 side 106 page 74 page 86 page 88 page 104 page 98 In June, he started the time machine had piglets Åse and Tobias In July, In August, Eirik was good as gold the mountain grew a little In September, Stavanger became In October, a University city Ryfylke was united In November, breakfast got a little better In December, SpareBank 1 SR-Bank Annual Report 2004 Page 6 The SpareBank 1 SR-Bank Group HISTORY EIENDOMSMEGLER 1 ROGALAND AS Sparebanken Rogaland, the legal name of SpareBank 1 The EiendomsMegler 1 chain is the Norwegian market SR-Bank, was established on 1 October 1976 by merging leader in real estate. EiendomsMegler 1 Rogaland AS is the 22 savings banks to become the country’s first regional largest firm in this chain, and a regional market leader. In savings bank. After 28 years of operations and merging of 2004 the company brokered approximately 5,000 dwellings a total of 39 savings banks, the bank has become from its 18 real estate offices in Rogaland and Agder. The Rogaland’s leading bank. In November 1996, Sparebanken company has 105 employees. In addition to brokering Rogaland was party to the formation of the SpareBank 1 dwellings, EiendomsMegler 1 Rogaland AS has a separate alliance, a Nordic banking and product partnership. division for business and project brokering, a separate division for the sale of new dwellings in Spain, as well as a THE GROUP division for brokering dwellings in housing co-operatives. In addition to the bank, the group consists of the finance company SpareBank 1 SR-Finans AS, the real estate SPAREBANK 1 SR-FINANS AS brokerage EiendomsMegler 1 Rogaland AS and the bank’s SpareBank 1 SR-Finans AS is the leading leasing company company for asset management, SR-Forvaltning ASA. in Rogaland, with more than NOK 1.8 billion in total The Group has 891 employees, and total assets of assets, and 22 employees. In order to strengthen the NOK 59.2 billion. company’s profile and shared identity with SpareBank 1 SR-Bank, the company changed its name from Westbroker THE BANK Finans AS in the first quarter of 2005. The company is SpareBank 1 SR-Bank is the country’s second largest co-located with the bank’s corporate market division for savings bank. The bank’s market areas are Rogaland, Stavanger and Jæren at Forus outside of Stavanger. Agder and Sunnhordland, and the bank currently has 50 branch offices in its market area. The head office is SR-FORVALTNING ASA located in Stavanger. The customer-directed activities are SR-Forvaltning ASA manages portfolios for more than organised into a private market division and a corporate 1,300 external customers, and for SpareBank 1 SR-Bank market division. and SpareBank 1 SR-Bank’s pension fund. The objective of SR-Forvaltning is to be a local alternative with a high level Private market of expertise in asset management. The company has total With 183,700 customers, SpareBank 1 SR-Bank is the assets of NOK 3 billion, and seven employees. leading private customer bank in Rogaland. In addition to private customers, the private market division serves more THE SPAREBANK 1 ALLIANCE than 8,600 small businesses and agricultural customers. The overall objective of the SpareBank 1 alliance is to The bank supplies products and services in the fields of ensure the independence and regional roots of the financing, placing of investments, payment transfer, individual banks through high levels of competitiveness, pensions, non-life insurance and life assurance. At the end profitability and solidity. of 2004, SpareBank 1 SR-Bank had 69,200 non-life insurance customers. The Norwegian banks in the alliance co-operate through the jointly owned holding company SpareBank 1 Gruppen AS. Corporate market SpareBank 1 SR-Bank holds a solid position in the In addition to Sparebanken Rogaland, the other participant corporate market. About 40% of all businesspeople in the banks are Sparebanken Nord-Norge, Sparebanken Midt- bank’s traditional market state SpareBank 1 SR-Bank as Norge and Samarbeidende Sparebanker AS (15 local their main bank. The bank is a relatively new player in the savings banks in eastern and northwest Norway). Other corporate market of the Agder counties, but has observed owners and partners through the SpareBank 1 Gruppen AS a positive market trend in this region as well. In total, the include FöreningsSparbanken AB (publ) in Sweden and the bank’s corporate market division serves approx. 4,000 Norwegian Federation of Trade Unions (LO). SpareBank 1 customers in corporate and public administration, in Gruppen AS owns the companies Bank 1 Oslo AS, addition to 8,600 small businesses and agricultural SpareBank 1 Livsforsikring AS, SpareBank 1 customers served by the private market division. Fondsforsikring AS, SpareBank 1 Skadeforsikring AS, Odin Forvaltning AS, SpareBank 1 Bilplan AS (19.9%) and First Securities ASA (33.3%). SpareBank 1 SR-Bank Annual Report 2004 Page 7 The Group management team in SpareBank 1 SR-Bank. From the left, Tore Medhus, Executive Vice President Corporate Market; Tor Dahle, Executive Group Controller; Svein Ivar Førland, Executive Vice President, Business Support, IT and Security; Arild Langberg Johannessen, Executive Vice President Human Resources; Terje Vareberg, CEO; Sveinung Hestnes, Deputy CEO, CFO; Rolf Aarsheim, Executive Vice President Retail Market, and Thor-Christian Haugland, Executive Vice President Public Relations. STRATEGY VISION SpareBank 1 SR-Bank shall be a profitable and solid bank ”SpareBank 1 SR-Bank – the recommended bank“ that is attractive for customers, capital markets, primary capital certificate owners and employees. This is to be ensured through: • A savings bank philosophy with a strong brand identity and modern operations, in which values are created locally and channelled back to the community • A clear set of priorities based on customer requirements and profitability • A market area consisting primarily of Rogaland, Agder and Sunnhordland • A considerable position in the savings and pension market • Able employees who are proud to work for SpareBank 1 SR-Bank SpareBank 1 SR-Bank Annual Report 2004 Page 8 Highlights • High profits, due to increased operating income and reduced losses • Return on equity after tax: 19.5% (15.2%) • Group profit after tax: NOK 583 million (NOK 408 million) • Net interest margin: 2.03% (2.12%) • Other operating income, net: NOK 701 million (NOK 632 million) • Operating expenses: NOK 961 million (NOK 922 million) • Net losses: NOK 81 million (NOK 250 million), 0.1% of gross lending • Gross defaults: NOK 203 mill (NOK 426 million) • Annual growth in lending in the past 12 months: 11.4% (7.5%) • Annual growth in deposits in the past 12 months: 17.0% (2.3%) • Dividend per primary capital certificate: NOK 23 (NOK 16.7) • Allocated to the endowment fund: NOK 60 million (NOK 32 million) (the figures in parentheses are for 2003) SpareBank 1 SR-Bank Annual Report 2004 Page 9 Main figures SpareBank 1 SR-Bank Group (NOK mill) 2004 2003 2002 2001 2000 Net interest income 1 129 1 095 1 050 979 934 Net other operating income 701 632 163 397 332 Total operating costs 961 922 838 785 705 Result before losses and write-downs 869 805 375 591 561 Losses and write-downs 81 236 357 169 -72 Result of ordinary activities 788 569 18 422 633 Key figures SpareBank 1 SR-Bank Group 2004 2003 2002 2001 2000 Total assets 31.12. (NOK mill) 59 198 52 642 49 538 48 471 43 624 Net loans to customers (NOK mill) 53 839 48 183 44 674 43 120 38 789 Deposits from customers (NOK mill) 33 062 28 266 27 634 24 011 22 120 Growth in loans (gross) 11 % 8 % 4 % 11 % 20 % Growth in deposits 17 % 2 % 15 % 9 % 15 % Capital adequacy ratio 11,57 12,32 10,81 12,69 11,65 Core capital ratio 9,08 9,11 7,24 7,92 8,15 Net equity and subordinated loan capital (NOK mill) 4 411 4 213 3 519 4 059 3 444 Return on equity (%) 19,5 15,2 -1,3 11,2 19,5 Cost percentage 54,5 57,0 61,8 56,9 56,2 Number of full time positions 813 829 818 807 711 Number of offices 50 52 53 53 50 Market price at the close of the year 360 269 150 205 206 Profit per primary capital certificate 37,6 27,2 -2,3 20,6 33,7 Dividend per primary capital certificate 23 16,7 8,3 15,8 17,5 Effective return on the primary capital certificate 40,0 85,0 -19,3 8,1 5,3 RISK-amount as of 1.