Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q4 2021 Earnings Presentation
49 slides from Sparebank 1 Nord-norge's earnings presentation, Feb 10, 2022
Slide 1: 4Q 2021
4Q 2021 Tromsø, 10 February 2022 Liv B. Ulriksen, CEO Bengt Olsen, CFO
Slide 2: Highlights
C1) Highlights SpareBank NORD-NORGE
Slide 3: Highlights YTD
Highlights YTD The obvious choice for people and businesses «Better than anyone else, we shall understand and do what’s important for people and businesses in Northern Norway» Main bank retail 38 % * Main bank SME 41 % * Real estate agency 36 % Accounting 20 % Secured financing 20 % *Adj. for the de
Slide 4: Strong financial results
Strong financial results cET1 Return on equity capital Cost/income Group 18,7 % 15,8 % 15,1% 12,9% 13,0 % 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 43,1% 412% 398% 40,0% 40,6% 2017 2018 2019 2020 2021 SpareBank (1) NORD-NORGE
Slide 5: Subsidiaries – results before tax
Subsidiaries – results before tax 5
Slide 6: Outlook
2 } Outlook SpareBank NORD-NORGE
Slide 7: Unique position - great potential
Unique position - great potential SpareBank 1 Nord-Norge har en unik posisjon og besitter ikke- kopierbare fortrinn - i en landsdel med et stort og urealisert potensial for verdiskaping.
Slide 8: Sound economical growth
Sound economical growth Norway Northern 2019 2020 2021 Norway 8
Slide 9: Status and outlook in Northern Norway
Status and outlook in Northern Norway 9
Slide 10: Ambitions for growth and increased market share
Ambitions for growth and increased market share Expected growth for SpareBank 1 Nord-Norge in 2022 Retail market: 4-6 % Corporate market: 6-9 % Corporate growth within companies and industries with an expected low negative impact of Coronavirus. 10
Slide 11: Financial status
(3 } Financial status SpareBank NORD-NORGE
Slide 12: Group financial highlights and key figures
Group financial highlights and key figures *) Cost/Income ex the Helgeland-deal and cancellation of a pension scheme was 36.5 % in Q4 and 38.3 % for 2021 12
Slide 13: Quarterly development
Quarterly development *) Cost/Income ex the Helgeland-deal and cancellation of a pension scheme was 36.5 % in Q4 and 38.3 % for 2021 13
Slide 14: Result before tax - last quarter
Result before tax - last quarter 14
Slide 15: Net interest income - Group
Net interest income - Group 15
Slide 16: Low losses
Low losses Net losses in % of Net losses gross lending incl. interm. loans Retail Corporate 16
Slide 17: Lending growth
Lending growth Retail Corporate 17
Slide 18: Retail Market
Retail Market Retail (excl. Commission com.loans loans 18
Slide 19: Corporate Banking
Corporate Banking Lending growth Development in lending margin (iso) 2,57% 2,56% 2,48% ——-2,46% 2,38% -2,34% 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Lending growth (12 mth) 38 109 38 410 39 495 39 832 40 067 40 822 10,9 % 95% 63% 5,1% 30.09.20 31.12.20 31.03.21 30.06.21 30.09.21 31.12.21 30.09.20 31.12.20 31.
Slide 20: Deposit growth
Deposit growth Retail Market Corporate Banking Public Market 31.12.19 31.12.20 31.12.21 20 am 31.12.19 31.12.20 31.12.21 31.12.19 31.12.20 31.12.21 Deposits gross 54% 35% SpareBank (1) NORD-NORGE
Slide 21: Development in deposit margins
Development in deposit margins Retail Corporate 21
Slide 22: Proposed record-high dividend for 2021
Proposed record-high dividend for 2021 Total dividend for 2021 NOK 7,00/EC Ex. date March 25th and pay out on April 12th A pay out ratio of 66,9 % mean that the northern Norwegian society will receive NOK 813 million Pay out ratio Dividend 22
Slide 23: Long term financial targets
Long term financial targets < 40 % C/I ratio > 12 % > 50 % ROE Dividend payout ratio 15 % CET-1 23
Slide 24: Financial outlook
24 Financial outlook ROE >12 % CET-1 Ratio: 15 % C/l< 40% Pay out ratio >50% The interest margin in Q4 is negativly effected by the SpareBank 1 Helgeland-deal and a higher funding cost in the last weeks of last year. At the same time we have a positive effect of the Nibor increase on the deposit mar
Slide 25: Why invest in SpareBank 1 Nord-Norge
Why invest in SpareBank 1 Nord-Norge 25
Slide 26: Contacts
Contacts Management Liv B. Ulriksen CEO +47 957 31 130 liv.bortne.ulriksen@snn.no Bengt Olsen CFO +47 975 89 560 bengt.olsen@snn.no Investor Relations Terje Karlstad Investor Relations +47 411 22 220 terje.karlstad@snn.no 26
Slide 27: Appendix
A) Appendix SpareBank NORD-NORGE
Slide 28: A solid bank for Northern Norway
A solid bank for Northern Norway 28
Slide 29: Development in lending margins
Development in lending margins Corporate Retail 29
Slide 30: Company structure
Company structure SpareBank 1 Boligkreditt AS SpareBank 1 SpareBank 1 Finans Nord- Eiendomsmegler 1 Nord- SpareBank 1 Gruppen AS 19,50 % | Financial services 15,92 % | Covered Bond company Næringskreditt AS Norge AS Norge AS 3,20 % | Funding/property Loan/consumer finance/leasing Real estate brokera
Slide 31: Geographical distribution of ownership
Geographical distribution of ownership Foreign holders Other Norwegian holders Holders residing in Northern Norway 31
Slide 32: The 20 largest EC holders
32 The 20 largest EC holders EC Holders Number of Ecs o Share of EC Capital PARETO INVEST AS VPF EIKA EGENKAPITALBEVIS PARETO AKSJE NORGE VERDIPAPIRFOND GEVERAN TRADING CO LTD The Northern Trust Comp, London Br MP PENSJON PK Brown Brothers Harriman & Co. State Street Bank and Trust Comp FORSVARETS P
Slide 33: Cost development - Group
Cost development - Group Cost/income Group Group operating costs 33
Slide 34: Operating expenses - Group
Operating expenses - Group 34
Slide 35: Net fee- and other operating income - Group
Net fee- and other operating income - Group 35
Slide 36: Risk exposure - Group
Risk exposure - Group Non-performing /impaired High risk 100,0% Medium risk Low risk 36
Slide 37: Changes in exposure last 12 months - Group
Changes in exposure last 12 months - Group Non-performing /impaired High risk Medium risk Low risk 37
Slide 38: Exposure distributed by size
Exposure distributed by size* 31.12.2020 31.12.2021 38 *Incl. parent bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt
Slide 39: LTV mortgage loans
LTV mortgage loans LTV is distributed by balance and 31.12.2020 is based on the market value of the collateral: • 98.6 % of the gross exposure is within 85 % of the collateral 31.12.2021 market value • Only 0.7 % of the gross exposure is higher than 100 % of the collateral market value • The figures
Slide 40: Diversified portfolio in commercial real estate
Diversified portfolio in commercial real estate 40
Slide 41: Still low oil related exposure
Still low oil related exposure Oil related exposure amounts to NOK 833 mill • The exposure represents 0.61 % of total exposure including covered bond companies • Average weighted probability of default 1.86 % • A total of NOK 28 mill are non-performing or impaired commitments • The activity within o
Slide 42: Oil related portfolio
Oil related portfolio • Exposure amounts to NOK 555 mill • Exposure amounts to NOK 250 mill • Exposure amounts to NOK 28 mill • Average weighted probability of default 2.46 % • Average weighted probability of default is 0.33% • Average weighted probability of default if 100 % • Total amount of 7 ves
Slide 43: Loan losses - Group
Loan losses - Group The Group’s annualized losses is -0.19 % (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 0.62 % of total exposure. Expected loss share: 36.70 % Commitments in step 2: 8.70 % of total exposure. Expected loss share: 3.87 %
Slide 44: Funding
Funding NOK 22 227 mill in capital market funding exclusive of SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt is important funding sources. In total NOK 35 752 mill had been transferred as of 31.12.21 Amount of gross maturities of capi
Slide 45: Ambitious goals for climate risk and sustainability
Ambitious goals for climate risk and sustainability Sustainability and climate risk are included in our business- and risk strategy A framework for the link between green lending and green capital market funding has been developed. The framework is based on important business sectors in the north, i
Slide 46: Achieving goals for sustainability
Achieving goals for sustainability • ESG-claissified portfolio aligned with EUs taxonomi* • Major contribution to the SDGs (175 mill in 2021) • Green product framework and Green Finance Framework established special for the Arctic region • 41% women in leadership positions • 24% reduction in greenho
Slide 47: SpareBank 1 Alliance
SpareBank 1 Alliance • The SpareBank 1-alliance consists of 14 banks • Operate exclusively in Norway – Norway’s most extensive branch network with approx. 350 branches • The alliance are in the forefront of incorporating SpareBank 1 Nord-Norge technological innovation into its distribution channels.
Slide 48: SpareBank 1 Alliance companies
SpareBank 1 Alliance SpareBank 1 SMN SpareBank 1 SR-Bank SpareBank 1 Samspar SpareBank 1 LO Nord-Norge Østlandet SpareBank 1 BN Bank SpareBank 1 SpareBank 1 Gruppen SpareBank 1 Alliance companies Markets Boligkreditt SpareBank 1 SpareBank 1 SpareBank 1 SpareBank 1 Fremtind Modhi Mobilitet Kreditt Næ
Slide 49: Noen som har et fint bilde til avslutning?
Noen som har et fint bilde til avslutning? 49
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