...Intrinsic Strengths Drive Ratings: SpareBank 1 SR-Bank (SR), SpareBank 1 SMN (SMN) and SpareBank 1 Nord-Norge (SNN) (collectively the Sparebanken) are the three largest savings banks rated by Fitch Ratings in Norways SpareBank 1 Alliance (Alliance). Fitch rates the banks individually and has not assigned any group rating. Benefits from Alliance Membership: Alliance members benefit from cost efficiencies and wider income diversification. The Sparebanken generate income through a wide range of activities including insurance, leasing, asset management, and estate agency services. Operating Environment Supports Ratings: The Sparebanken benefit from Norways relatively favourable economic prospects. Fitch expects Norway's economy to expand by 2.3% in 2014. Strong Regional Franchises Supports Earnings: Supported by their strong regional franchises, the increases in core earnings at the Sparebanken are driven by higher lending volume and higher lending rates. This results from increased capital...
