"A strong financial performance after the first full year of operation as a merged bank"
A word from the CEO
SpareBank 1 Østlandet generated post-tax profits of NOK 1,414 million in 2018. This is a strong financial performance after the first full year of operation as a merged bank.
Since the merger with Bank 1 Oslo Akershus, the Bank has seen a steady increase in the number of customers, strong growth in lending and increased profitability. The growth is broad-based and the revenue from traditional banking activities is increasing. The result after our first full year of operation as a merged bank is very positive overall. Our subsidiaries are contributing to good customer experiences and to the Group's overall positive development.
The pace in the market place is high and we are becoming a bank with regional differences that call for a bespoke approach to the market and customers. This contributes to the development of our business. We have become a bigger and more interesting bank for our customers and owners and a more attractive workplace for our employees. In addition we have raised our profile with other stakeholders.
The merged bank has long traditions with a local presence both in the Inland Region and in Oslo and Akershus. We are continuing to consolidate and strengthen our regional position. At the same time, we are becoming more digital and, in collaboration with the SpareBank 1 Alliance, we are constantly working on changes, improvements and simplifications to our self-service solutions. TheBank’s business model, with leading digital solutions combined with a well-developed network of branch offices in central hubs and towns, has proven to be a good driver for profitable growth.
The growth rate in 2018 implies that the Bank has increased its market share in line with its strategic objectives. We are constantly recruiting new customers and winning tender offers for key public-sector customers. This shows that we have teams that can collaborate well across sectors and deliver highly professional services. Our financial advisors and staff deliver good services to fulfill customers' and colleagues' needs every day.
Since sustainability was identified as a major pilar ofthe Bank's business strategy in 2017, we have intensified this focus. Both internally within the Bank and externally with customers, sustainability is becoming an integral part of our business. Green mortgages, assistance to farmers hit by climate change, discussion of climate risk at The Board of Directors and management level, inclusion of sustainability factors in risk assessments and investment decisions, a comprehensive training programme, and dialogue with customers about transition to sustainability, are among the main themes for the year.
Dialogue with customers and the market is important, so the Leadership Conference in 2018 focused on sustainability. We have also run voluntary plastic clean-up campaigns with over 10,000 participants and presented a survey reporting on sustainability efforts in the businesses in our region. The Bank’s motto for its sustainability program is ‘Creating together - sustainability in everything we do’. The Bank is working to support the UN Sustainable Development Goals and has signed up to the ‘Principles for Responsible Banking’ from the UNEP Financial Initiative. Specific goals have been set for this work in 2019, and you can read more about this in the sustainability chapter.
At the regional level, most economic indicators are showing a positive trend. The region is experiencing positive growth in housing prices, solid credit growth and low unemployment, along with good profitability and great willingness to invest in the SMEs. SpareBank 1 Østlandet’s expectations indicatorfor 2019 shows stable signs of optimism for individuals and for businesses. All in all, 2019 looks promising for the region and for the Bank.
I want to thank all my colleagues in the bank for their great efforts and contributions throughout this year. I also want to thank our customers and other partners for their work with us in the past year.
Richard Heiberg
CEO