STOCKHOLM, Sweden, Feb. 14, 2002 (PRIMEZONE) - ForeningsSparbanken:
2001 in summary:
-- Operating profit amounted to SEK 8,039 M (9,366)
-- Operating profit, excluding nonrecurring items, amounted to SEK
8,202 M (8,178)
-- The return on equity amounted to 14.7 percent (19.7)
-- Earnings per share amounted to SEK 9.86 (12.10)
-- Net interest income rose by 11 percent to SEK 15,016 M
(13,589)
-- Net commission income decreased by 10 percent to SEK 6,072 M
(6,784 )
-- Loan losses amounted to SEK 1,337 M (1,115) and the loan loss
level was unchanged at 0.2 percent (0.2)
-- Robur's share of net mutual fund contributions rose to
20 percent (17)
-- Unchanged dividend of SEK 5.50 per share (5.50) proposed
During the fourth quarter:
-- New online savings account launched
-- Synthetic securitization of agricultural loans for slightly
over SEK 14 billion
-- Ownership in FIH raised to 67.2 percent (and further raised to
69.7 percent in February 2002)
Group Profit
The Group's operating profit for 2001 amounted to SEK 8,039 M (9,366). Profit was affected by costs of SEK 163 M associated with the cancelled merger with SEB. Thus, operating profit excluding these nonrecuring items amounted to SEK 8,202. The corresponding result in 2000 amounted to SEK 8,178 M excluding nonrecurring capital gains of approximately SEK 700 M, a VAT recovery including interest of SEK 202 M and a surplus insurance refund from Alecta (formerly SPP), which reduced expenses by SEK 286 M. For the year as a whole, profit was affected positively by FIH and Hansapank's development and the reduced cost of the state deposit guarantee, whereas equity-related income declined. Profit of associated companies was negatively affected by SpareBank 1 Gruppen in Norway and Marakanda.
The return on equity during the year was 14.7 percent (19.7). Earnings per share amounted to SEK 9.86 (12.10). Excluding nonrecurring items, the return was 14.9 percent (17.1) and earnings per share were SEK 10.06 (10.32).
For the fourth quarter of 2001, operating profit was SEK 1,677 M (1,362). The change is mainly due to the fact that the allocation to the Kopparmyntet profit-sharing fund was approximately SEK 600 M lower in the fourth quarter of 2001 than 2000 and that loan losses were slightly over SEK 200 M higher in the last quarter of 2001, partly due to country risk-related provisions of SEK 63 M for Argentina. For the full-year, the loan loss level was unchanged at 0.2 percent (0.2).
Compared with the third quarter of 2001, operating profit decreased by SEK 325 M. Income was largely unchanged in the fourth quarter compared with the third quarter of 2001, while expenses rose by approximately SEK 100 M and loan losses were slightly over SEK 200 M higher.
Income
The Group's total income amounted to SEK 23,409 M (24,003). Income for the fourth quarter amounted to SEK 5,768 M, compared with SEK 5,755 M in the third quarter of 2001 and SEK 5,857 M in the fourth quarter of 2000.
Net Interest Income
The Group's net interest income rose during the year by SEK 1,427 M or 11 percent to SEK 15,016 M (13,589). The improvement is primarily due to an increase in FIH and Hansapank's net interest income totaling approximately SEK 850 M. Spintab's net interest income rose by SEK 288 M, of which approximately SEK 100 M relates to lower loan insurance fees. In addition, the state deposit guarantee fee, which is charged to net interest income, declined by SEK 462 M.
During the fourth quarter net interest income amounted to SEK 3,815 M, compared with SEK 3,681 M in the previous quarter and SEK 3,460 M in the fourth quarter of 2000. The fourth-quarter increase is mainly due to an improvement in net interest income in FIH and Hansapank.
Net Commission Income
Net commission income for the full-year 2001 decreased by SEK 712 M or slightly over 10 percent to SEK 6,072 M (6,784). Due to lower market volume and declining stock prices, brokerage commissions fell by SEK 422 M and asset management commissions by SEK 516 M. Net commission income from payment services developed strongly during the year, rising by SEK 254 M compared with 2000.
Net commission income during the fourth quarter amounted to SEK 1,486 M, compared with SEK 1,518 M in the third quarter and SEK 1,773 M in the fourth quarter of 2000. Although stock prices rose during the fourth quarter, average prices were lower during the period, due to which asset management commissions remained at a lower level.
Net Profit on Financial Operations
Net profit on financial operations amounted to SEK 1,110 M (1,694). Profit on stock trading declined by SEK 437 M, while income from foreign exchange operations developed positively, mainly at Swedbank Markets, though also in Hansapank.
Net profit on financial operations during the fourth quarter amounted to SEK 148 M (395). In the third quarter of 2001 the corresponding profit was SEK 341 M. The lower fourth-quarter figure is mainly attributable to Swedbank Markets and FIH, where declining securities and derivatives prices adversely affected earnings.
Other Income
Other income amounted to SEK 1,063 M (1 689). During the year income from IT-services to the independent savings banks and partly owned banks in the Swedish operations developed positively, rising by approximately SEK 80 M. Real estate income in Hansapank rose by SEK 35 M due to the LTB acquisition. The 2000 figure included capital gains of approximately SEK 700 M and a VAT recovery of SEK 168 M.
Expenses
Expenses for 2001 amounted to SEK 13,894 M (13,719). In the previous year the Group reported a surplus insurance refund from Alecta, which reduced expenses by SEK 286 M.
Excluding the subsidiaries FIH and Hansapank, allocations to the Kopparmyntet profit-sharing fund, costs associated with the cancelled merger with SEB and the refund from Alecta, expenses decreased by SEK 471 M or 4 percent to SEK 11,435 M (11,906).
The total expenses for the now liquidated Danish Internet bank, Firstviewbank, amounted to SEK 216 M during the year.
Staff costs Staff costs for the year amounted to SEK 6,614 M (6,734), including charges of SEK 396 M (769) for profit-sharing allocations in the Group. The allocation to the Kopparmyntet profit-sharing fund amounted to SEK 282 M (721) during the year. The remaining provisions pertain to Hansapank's profit-sharing fund.
Change in the number of employees
Number of Group employees in terms of full-time positions.
Dec 31 Dec 31
2001 2000
Total number of employees 16,068 13,002
Of which Hansapank* 6,387 3,180
Of which FIH 150 142
* The increase in Hansapank is due to the
acquisition of LTB during the second quarter
of 2001, which added slightly over 3,000
employees.
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www.waymaker.net/bitonline/2002/02/14/20020214BIT00960/bit0002.doc The full year-end report www.waymaker.net/bitonline/2002/02/14/20020214BIT00960/bit0002.pdf The full year-end report