Norway’s SpareBank 1 SR-Bank has bucked the trend of diminishing shipping loan books to edge up its portfolio.
Lending to shipping and other transport ended the first quarter at NOK 9.43bn ($860m), from NOK 9.39bn three months previously.
The shipping book had shrunk NOK 4.83bn from the end of September to 31 December.
Banks had noted cash-rich shipowners repaying loans quickly during 2023.
SpareBank 1 had NOK 2m of shipping loans in the final stage of restructuring before default, up from zero in the fourth quarter.
The offshore oil and gas exploration and production portfolio stood at NOK 5.02bn, versus NOK 4.4bn three months earlier.
Oil services lending totalled NOK 3.07bn, up from NOK 2.99bn over the same period.
Net profit came in at NOK 1.19bn, down from NOK 881m a year ago.
Net interest income grew to NOK 1.73bn, compared with NOK 1.4bn.
Loan impairment provisions were stable at NOK 35m.
Net zero goal
The lender said it had adopted emission-reduction targets and restructuring plans for its industries in the first quarter, including shipping and oil and gas.
The bank will achieve net zero emissions in investment activities by 2050.
It set a target of NOK 50bn for funding sustainable activities by 2030.
At the end of the first quarter of 2024, the bank had financed around NOK 31bn of these projects.
Sparebank 1 is also moving ahead with its merger with SpareBank 1 Sorost-Norge to create Norway’s second-biggest bank behind DNB.
Clearance from the Norwegian Competition Authority was received on 17 April, the lender said on Thursday.
A new entity, SpareBank 1 Sor-Norge, should be operational by July after shareholders agreed on the deal in December.
The merger was announced last October.
