August 9, 2011
Managing Director Ilkka Hallavo: Favourable development in housing loans
In the first half of 2011, Sampo Bank Group's business developed favourably, despite the tough competitive situation in the market. Profit before tax was at a moderate level, EUR 48 million.
- We saw positive development as net interest income increased 3% from the level a year ago. Net interest income has continued to strengthen steadily in the second quarter. Growth in business volumes has increased the fee income by 7%, says Sampo Bank plc's Managing Director Ilkka Hallavo.
We have experienced particularly good performance in housing loans, increasing housing loans volumes by 7 % from the year-earlier level. Growth is based on a healthy, competitive pricing. Lending to small and medium-sized corporates has increased over 4 %. In addition the upward trend in the business volumes was reflected to the number of eBanking customers, increasing the number of users to 489 000. Sampo Bank´s Mobile Banking app has been downloaded 36 000 times.
Bank's loan impairment charges have increased and this is mainly due to two corporate customers. Personal customer's ability to pay has remained good in all the time and corporate customers as a whole have a solid financial standing.
Despite of continuing turmoil in European financial markets, Sampo Bank Group and Danske Bank Group's capital adequacy is very strong. Danske Bank Group ranked to the sixth place among the top 10 European banks in the stress test exercise conducted recently by European Banking Authority EBA. At the end of June, Sampo Bank Group´s solvency was 13.8 %. Moreover, Sampo Bank Group has no exposure at all to government bonds of so-called PIIGS countries.
- Because of its strong financial standing Sampo Bank is a very safe and reliable partner for both personal and corporate customers to build their economic well-being, during uncertain times as well, states Hallavo.
Interim Report (PDF)
For further information:
Ilkka Hallavo, Managing Director, Sampo Bank. Tel.: +358 10 546 8057
Pekka Kainulainen, CFO, Sampo Bank. Tel.: +358 10 546 7807
Timo J. Anttila, Head of Communications, Sampo Bank. Tel: +358 10 546 8002