Rsberetning Engelsk Kompl.2001
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ANNUAL REPORT 2001 closefriendlyhelpfulcompetent SPAREBANK 1 VEST ANNUAL REPORT 2001 Contents General information about SpareBank 1 Vest/ Financial calendar 2002 3 Financial highlights 4 Main features of 2001 5 Knut Ravnå: Further steps to boost performance! 7 Senior management group 9 Directors’ report 10 Profit and loss account 16 Balance sheet 17 Statement of cash flows 18 General accounting policies 19 Notes to the accounts 23 Auditor’s report/Control Committee’s report 52 Key figures 53 ‘‘A bank for everyone’’ 59 Strong growth in estate agency activities 61 Closer corporate links 63 Primary capital certification with a historically good return 65 Major features in 2002 66 SpareBank 1 Group - facts and background 67 Elected officers, management and regions 68 Organisational structure 70 LARGEST IN THE RETAIL MARKET AND CLOSER TO THE CORPORATE MARKET: SpareBank 1 Vest is a major retail bank, but it has also experienced significant growth in the corporate market in the last few years. In this annual report the bank has sought to portray part of the breadth which its corporate clients represent, in the form of brief passages in which the companies themselves tell why exactly they chose SpareBank 1 Vest as their banking partner. We wish to thank the following businesses for their assistance: Selje Hotel, Bella Donna, Helgesen Tekniske-Bygg, Stord Boligbyggelag, FotoKnudsen and Ljones Gartneri. Published by the Information Department, SpareBank 1 Vest www.spv.no N-5020 Bergen - Tel.:+47 55 21 72 42 (Information Dept.) - Fax: +47 55 21 72 89 Project management: Jørn Lekve - Photos: Bent Synnevåg and Cathrine Dillner Hagen Design/Assistance: Anne Lise Urdal and LaserSats DTP AS Printing: Hannevik & Sundøy Grafisk AS 2 SPAREBANK 1 VEST ANNUAL REPORT 2001 SpareBank 1 Vest SpareBank 1 Vest is Norway’s fourth-largest savings bank with total assets of NOK 32.4 billion and providing employment equivalent to 813 man-labour years.The head office is in Bergen. The bank serves the retail market, trade and industry and the public sector in the counties of Hordaland and Sogn & Fjordane, with 63 branch offices. The bank’s market area comprises the regions Nordfjord, Sogn, Nordhordland Hardanger/Midthordland, West, Sunnhordland and Bergen. SpareBank 1 Vest is the dominant retail bank in its market area, with 250 000 retail customers, 10 000 commercial customers and 50 000 online customers.The bank has recorded strong growth in the commercial sector in recent years. SpareBank 1 Vest is Norway’s second-oldest bank. Its predecessor, Bergens Sparebank, was established in 1823. During the 179 years it has existed, the bank as contributed to growth and development in the West of Norway. The bank’s vision is "Focusing on Customers and Strength". The bank’s core values, as expressed in the words "local, friendly, helpful and capable" shall help SpareBank 1 Vest to reinforce its position as the largest independent bank in the region, with strong local roots. SpareBank 1 Vest is a part of the SpareBank 1 alliance, which is Norway’s fourth-largest financial services group, with aggregate total assets of roughly NOK 225 billion and 5 400 employees in a total of 360 branches. Financial Calendar 2002 The quarterly accounting results for 2002 will be published on 25 April, 8 August and 31 October. 3 SPAREBANK 1 VEST ANNUAL REPORT 2001 Financial highlights – Sparebanken Vest Group (NOKm) 2001 2000 1999 1998 1997 Profit and Loss Account Net interest and credit commissions income 787 751 719 647 619 Net operating income 186 238 281 36 171 Operating expenses 684 641 591 550 543 Profit before losses and write-down 289 348 409 133 247 Losses on loans, guarantees etc. 86 43 59 8 8 (Write-downs)/reversal of write-downs and gain/ (loss) on long-term securities (3) 33 134 (5) 11 Profit before tax 200 338 484 120 250 Balance Sheet Total assets 32 367 31 098 26 255 23 619 21 345 Loans to and receivable from customers 28 762 26 272 22 348 20 297 18 182 Securities 1 812 2 534 2 615 1 961 1 968 Deposits from and debt to customers 19 349 17 782 15 742 14 629 12 598 Subordinated loan capital and equity 2 571 2 768 2 267 1 959 1 891 Key rations (%) Net interest and credit commission income as % of average total assets 2.50 2.70 2.91 2.86 2.99 Profit before tax as % of average total assets 0.63 1.22 1.96 0.54 1.21 Return on equity after tax 6.39 12.03 20.36 4.36 12.18 Loan loss ratio 0.29 0.16 0.26 0.04 0.04 Change in gross loans to receivable from customers 9.53 17.48 10.06 11.38 10.53 Change in deposits from and debt to customers 8.81 12.96 7.61 16.12 (2.72) Net capital base (NOK) 2 192 2 370 1 948 1 774 1 812 Capital adequacy ratio 9.93 11.93 11.43 11.21 12.87 Core capital ratio 9.68 10.25 10.82 9.94 10.84 Dividend per primary capital certificate (NOK) 9.50 12 22 5 13 Primary capital certificate price at year-end (NOK) 118 130 213 134 229 Return on primary capital certificates 0.00 (28.64) 62.69 (35.81) 41.21 RISK amount at 1.1.2001 (NOK) 89.09 45.81 69.12 Further information appears in the summary of main figures and definitions on page 55 Total assets Net interest Profit after tax (NOK bn) Net interest and credit commission income (NOKm) (NOKm) 787 35 32,4 800 751 400 31,1 719 358 30 700 647 350 26,2 619 23,6 600 300 25 21,3 239 500 250 20 400 200 178 15 137 300 150 10 200 100 68 5 100 50 0 0 0 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 4 SPAREBANK 1 VEST ANNUAL REPORT 2001 Main features of 2001 ■ 2001 was far from a satisfactory year for SpareBank 1 Vest, in terms of accounting results. ■ The return on equity was 6.4%, while the target was 12%. ■ This resulted in a dividend of NOK 9.50 per primary capital certificate, the maximum dividend permitted under current regulations. ■ The pre-tax profit was NOK 200m, against NOK 338m in the previous year. NOK 15m of the profit for the year was allocated to gifts for the public benefit. ■ The poorer performance compared with 2000 was largely due to the downturn in the stockmarkets both before and after the terror attacks on the USA on 11 September 2001, as well as the negative contribution arising from the bank’s shareholding in SpareBank 1 Gruppen AS and higher loss provisions. ■ Total assets at year-end amounted to NOK 32.4bn, reflecting annual growth of 4%. Deposits and accounts payable to customers rose by 8% to NOK 19.3bn. Gross lendings and receivables from customers rose by 9% to NOK 29.1bn.The funding ratio was 67.1% at year-end, against 67.7% at the start of the year. ■ The bank’s core activities have performed well, with growth in both sales and the number of customers. The number of retail customers showed a net increase of 7 500, while the number of corporate clients rose by 1 000, and there were 18 000 new online customer. ■ At year-end the bank’s customer base totalled 260 000, of whom 210 000 had SpareBank 1 Vest as their main bank. ■ In 2001 SpareBank 1 Vest reinforced its position as the market leader in the counties of Hordaland and Sogn & Fjordane. But the long-term effect on profits was not enough to enable the bank to reach its target figures for the year. ■ The bank considers its prices to be competitive, and comparisons with other banks made by the media show that the public at large regard our terms and conditions as very good. ■ SpareBank 1 Vest is well placed to realise its goals in 2002.The bank has a large customer base, a sound capital base, a good reputation in the market, a broad range of products, a loyal and capable workforce, and strong local roots which will be utilised to an even greater extent to place the focus on increased sales to both existing and new customers. A number of initiatives will be developed and implemented to reinforce sales activities based on the bank’s core values, vision, goals and strate- gies. ■ SpareBank 1 Vest expects to reap the benefits of increased efficiency and lower costs as a result of the programme that has recently been started to improve efficiency. ■ With the groundwork that has been done, 2002 should be a far better year for SpareBank 1 Vest than 2001. ■ The bank’s target is a return on equity of 11.5% in 2002. 5 6 SPAREBANK 1 VEST ANNUAL REPORT 2001 KNUT RAVNÅ: Further steps to boost performance! In 2002 SpareBank 1 Vest will be employees who feel that their work is results. As a consequence of this, our control focusing on strengthening the sales challenging. In other words, we have sound system is designed to be more in line with the culture and reducing costs. In particular, foundations, says Knut Ravnå, adding that the strategic basis of our business, and to facilitate there will be a greater emphasis on key personnel of the future will need a high its implementation within the bank’s customer satisfaction and job satis- level of expertise and strong inter-personal operations.