Announcements

    Drinks

      Scope Ratings has updated its analytical report on Sandnes Sparebank, rated A- with Stable Outlook.
      WEDNESDAY, 03/05/2023 - Scope Ratings UK Ltd
      Download PDF

      Scope Ratings has updated its analytical report on Sandnes Sparebank, rated A- with Stable Outlook.

      The A- issuer rating reflects Sandnes Sparebank’s well established local savings bank franchise in south-west Norway, solid and resilient earnings capabilities as well as sound prudential metrics.

      Sandnes actively embraces developments in the area of sustainability. This includes developing further competence to evaluate and report on potential ESG risks in the loan portfolio, assisting the transition efforts of clients and upgrading the bank’s digital infrastructure.

      Following de-risking efforts and a focus on strengthening the business franchise in recent years, Sandnes’ operating performance is consistently solid. For 2022, the group reported a return on equity of 8.5% while absorbing costs related to an IT conversion project. Credit losses remain low and there is no direct exposure to the more cyclical oil and gas industry.

      The bank maintains a sound solvency position and has incorporated the expected increase of the systemic risk buffer in its capital planning. As with other Norwegian banks, Sandnes relies on market funding, including covered bonds. At the same time, liquidity metrics are maintained comfortably above requirements.

      The A- issuer rating of SSB Boligkreditt AS, a wholly owned subsidiary, is aligned with that of Sandnes Sparebank. Through the issuance of covered bonds, SSB Boligkreditt provides secured funding for its parent. The covered bonds of SSB Boligkreditt are rated AAA.

      This monitoring note does not constitute a rating action, nor does it indicate the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

      Click here to access the full report.

      Related news

      Show all
      Scope affirms AAA rating on SSB Boligkreditt’s Norwegian mortgage-covered bonds, Outlook Stable

      29/2/2024 Rating announcement

      Scope affirms AAA rating on SSB Boligkreditt’s Norwegian ...

      Spanish banks quarterly: limited challenges in 2024 as profitability drivers remain supportive

      29/2/2024 Research

      Spanish banks quarterly: limited challenges in 2024 as ...

      UK car financing review not material for large UK banks

      29/2/2024 Research

      UK car financing review not material for large UK banks

      The Wide Angle: banks need to prepare more and worry less about a digital euro

      28/2/2024 Research

      The Wide Angle: banks need to prepare more and worry less ...

      Webinar: Outlook for Italian banks. Another strong year ahead?

      27/2/2024 Research

      Webinar: Outlook for Italian banks. Another strong year ahead?

      Scope affirms Cassa Depositi e Prestiti's issuer rating of BBB+ with Stable Outlook

      23/2/2024 Rating announcement

      Scope affirms Cassa Depositi e Prestiti's issuer rating of ...