The following information is disclosed in connection with the financial accounts for 2011: 

  • Announcement to Oslo Stock exchange dated 8 April 2011 notified recognition of an unrealised gain on the Group's shareholding in the company Front Exploration AS (FrontX) of NOK 189 million. 

Subsequent to a review and evaluation of the shareholding in FrontX and in order to take account of factors involving risk and caution, the unrealised gain on the shareholding has been written down by NOK 128 million as of 31 December 2011.  

  • The Financial Supervisory Authority of Norway (FSAN) issued a letter dated 22 November 2011 requesting Norwegian banks and finance institutions specifically to evaluate the level of collective write-downs for impaired value on loans.  This was due to the expected impact of the international debt crisis and expectations of a lower rate of growth in a number of countries.

The bank has very low individual losses reported in 2011, but has decided, on the background of the letter from the FSAN, to increase its collective write-downs for impaired value on loans and guarantees in Q4 2011. 

  • As a result of the two above-mentioned factors, the Group's pre-tax result after loan losses for Q4 in isolation will be close to zero.
     
  • The bank's core operations remain good, and the Group's annual pre-tax result after loan losses for 2011 will be in the region of NOK 770 million.  This constitutes a return on equity of approx. 10 %.   The group's Tier 1 capital ratio is very good.

Contact persons at SpareBank 1 Nord-Norge
CEO Hans Olav Karde +47 90 15 19 81
CFO Rolf Eigil Bygdnes: +47 90 51 97 74



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Source: SpareBank 1 Nord-Norge via Thomson Reuters ONE
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