Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Sørøst-Norge — Q1 2024 Earnings Presentation
45 slides from Sparebank 1 Ostlandet's earnings presentation, Apr 24, 2024
Slide 1: Results for the first quarter of 2024
Results for the first quarter of 2024 24. APRIL 2024
Slide 2: We come together to create SpareBank 1 Sør-Norge
We come together to create SpareBank 1 Sør-Norge 2
Slide 3: A strong challenger in the Norwegian banking market
A strong challenger in the Norwegian banking market The integration for SpareBank 1 Sør-Norge is going as planned Planning the Received approval Day 1 Fully integrated integration – The Norwegian for merger Competition Authority March – October 2024 April 17, 2024 October 1, 2024 Medio 2025
Slide 4: SpareBank 1 Sør-Norge powers growth for our customers
SpareBank 1 Sør-Norge powers growth for our customers A powerful group where the A group with improved access to #1 parties strenghten each other #5 capital for households and businesses A formidable bank built on the Local and long term owners #2 'local bank' concept #6 An attractive employer with
Slide 5: Results for the first quarter of 2024
Results for the firsth quarter of 2024
Slide 6: Solid financial result contributes positively to the quarter
Solid financial result contributes positively to the quarter • Net interest income, including commission income from credit institutions, decreased by 1 percent (4 million NOK) in the quarter. • Net commission income decreased by 10 percent (-10 million NOK) in the quarter. • Income from subsidiarie
Slide 7: Good results from financial assets in the quarter
Good results from financial assets in the quarter Profit before tax (mNOK) 505 29 24 478 3 38 72 378 4 353 25 10 3 Q1 24 One-time Q1 24 Net Other Other Profit from Other Operating Q1 24 Loss One-time Q1 24 Profit cost Q4 23 Adjusted interest commision income ownership financial costs Profit cost Q1
Slide 8: Result compared to Q1 2023
Resultat compared to Q1 2023 Profit before tax (mNOK) 23 18 505 24 478 3 59 2 6 413 35 Q1 23 Profit Net interest Other Other Profit from Other Operating Q1 24 Profit Loss One-time Q1 24 Profit before loss income incl commision income ownership financial costs before loss cost Q1 24 before tax and ta
Slide 9: Development of results from the corporate and personal markets
Development of results from the corporate and personal markets Profit before tax corporate market (mNOK) Profit before tax retail market (mNOK) +28,6 % 294 +1,7 % 222 228 185 188 198 Q1 23 Q4 23 Q1 24 Q1 23 Q4 23 Q1 24 *Results excl. One-off cost 9
Slide 10: Increased volume weighted interest margin
Increased volume weigthed interest margin Margins (percentage points)1 NIBOR (percentage points)2 Lending magin Average 3M Nibor Deposit margin Average interest rate from the Central Bank Volume-weighted interest margin 4,65 4,72 4,71 2,08 4,50 3,90 4,29 1,75 1,84 3,33 1,65 3,89 1,42 1,33 3,22 1,28
Slide 11: Improved lending margins, but reduced deposit margins
Improved lending margins, but reduced deposit Corporate market (percentage points) Retail market (percentage points) Lending rate corporate market vs. NIBOR Lending rate retail market vs. NIBOR Deposit rate corporate market vs. NIBOR Deposit rate retail market vs. NIBOR Volume-weighted interest marg
Slide 12: Cost growth adjusted for one-time costs
Cost growth adjusted for one-time costs mnok mnok 400 386 400 +5,8% 362 335 333 314 321 314 321 312 308 300 300 200 362 200 333 314 308 321 100 100 25 0 0 4 0 3 0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Operation cost excl. One-time costs One-time costs Operation cost excl. One-t
Slide 13: Key figures and financial targets
Key figures and financial targets Return on equity Cost to income CET1 Dividend (ROE) capital ratio share > 11 % < 40 % > 17 % > 50 % 40,0% 18,9% 68% 11,9% Parent bank 64 % 35.8% parent bank 19.2% if 50% of the year- DPS NOK 3,88 to-date profit is taken into account. Return Top-line Growth and Colla
Slide 14: Dividend last 2 years and price performance SOON
Dividend last 2 years og price performance SOON Dividend 2022 – Dividend 2023 – Price performance Payout in 2023 Payout in 2024 SOON in 2023-2024 Amount NOK Amount NOK Amount NOK 72 68 1,50 4,33 64 60 4,10 8,21 56 52 2,60 48 3,88 4 0 Dividend ord. Add. Dividend Total Dividend ord. Merger Payout in 2
Slide 15: Strong operational performance and high solvency
Strong operational performance and high solvency Improved top-line Reduced cost ratio High solvency RoE 558 19,1% 18,9% 11,9% 523 43,3% 38,7% 40,0% 10,4% 35,8% 483 526 40 32 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 PI from CI NII Sørøst-Norge CET1 capital ratio RoE Parent bank * Excl. One-tim
Slide 16: Good result for BN Bank. Positive results from SB1 Gruppen
Good result for BN Bank. Positive results from SB1 Gruppen Profit (mNOK) SpareBank1 SamSpar AS SamSpar AS (SB1 Gruppen) BN Bank ASA 31 1 • SpareBank 1 Gruppen's group achieved a post-tax result of 271 (272) 26 million NOK in the first quarter. The majority's share of the group's post- 2 13 tax resul
Slide 17: Well-diversified portfolio – 99 percent in stages 1 and 2
Well-diversified portfolio –99 percent in stages 1 and 2 Loss provisions in % of gross loans by tier Increased loss provisions in CM (mNOK) Stage 11 0,1% Stage 2 219 Stage 3 207 200 183 184 124 106 103 99 89 1,3% 19,9% Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 23 23 23 23 24 23 23 23 23 24 Stage 1 Stage 2 Stage
Slide 18: No material changes in the composition of the corporate market portfolio
No material changes in the composition of the corporate market portfolio Volume (engagement) per 1st quarter (BNOK) • Increased in the portfolio compared to the previous quarter from 25.2 BNOK to 25.4 BNOK Property rental 10,3 Housing cooperatives 4,8 • Marginal changes within the various industry s
Slide 19: The unemployment rate remains low, but is increasing
The unemployment rate remains low, but is increasing Unemployment 31.03.24 The development of unemployment Percent Troms 1,4 3,0 Nordland 1,6 Trøndelag 1,7 Oslo 2,5 Vestfold og Telemark Rogaland 1,8 Møre og Romsdal 1,8 Agder Innlandet 1,9 Norway 2,0 Vestland 1,9 Innlandet Rogaland Norway 2,0 1,5 Agd
Slide 20: Well positioned in an attractive region
Well positioned in an attractive region Netto innflytning til regionen1 Diversified economy2 Housing prices i Q13 Ø 3,6 % Holmestrand Health and Care Øvre Eiker Bamble 6,7 Industry Lier Retail Trade Notodden 6,5 Tønsberg Construction and Civil Engineering Færder 6,3 Sandefjord Public Administration
Slide 21: Together we create value
Together | we create i 4 J V alue Jk ULL (LL gL
Slide 22: Appendix
Appendix
Slide 23: Unchanged net interest income compared to the previous quarter
Unchanged net interest income compared to the previous quarter Improved top-line +6,8% -0,8% • Net interest income increased by 6.8 percent 548 563 558 523 530 from the same quarter in 2023, but decreased by 0.8 percent compared to the previous quarter. 483 491 523 542 526 • The decrease in the quar
Slide 24: The bank has adjusted customer rates following changes in the Central Bank's interest rates
The bank has adjusted customer rates following changes in the Central Bank's interest rates 15. des. 23. mar. 4. mai 22. jun. 17. aug. 21. sept. 14. des Norges Bank 22 23 23 23 23 23 23 20. des. 29. mar. 10. mai 27. jun. 22. aug 27. sep. 09. jan. Effect new loans 22 23 23 23 23 23 24 Existing corpor
Slide 25: Decreased net interest income, while income from subsidiaries has increased
Decreased net interest income, while income from subsidiaries has increased in the quarter Net interest (percentage points) Other income (mNOK) 280 254 2,28 2,38 2,32 2,18 2,17 204 52 116 189 177 1,73 1,75 1,82 1,84 33 9 1,72 6 96 74 75 66 69 96 106 106 105 95 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2
Slide 26: Increased operating costs
Increased operating costs Operating costs ex. one-off cost (mNOK) Group Parent bank +8.0% 335 262 The increased costs in the parent bank are 314 242 mainly due to an increased number of full- time employees (net increase of 20 full-time equivalents), alliance and IT costs, as well as 262 underlying
Slide 27: Reduced cost ratio mainly due to increased income from financial and ownership interests
Reduced cost ratio mainly due to increased income from financial and ownership interests Cost ratio (exl. One timmef cost) 48,9% • The cost ratio in the parent bank is 43,3% 39,3% 43,6% 42,9% 40,0% 35.8 percent for the year, while for 38,7% 37,6% 35,8% the group it is 40.0 percent. 27,0% Q1 23 Q2 23
Slide 28: Increased return on equity and high equity ratio
Increased return on equity and high equity ratio RoE (annualized) Leverage ratio (LR) 8,3 8,4 8,5 8,5 8,6 12,5% 11,9% 10,4% 9,4% 9,8% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 2020 2021 2022 2023 Q1 24 Leverage ratio RoE adj. for one-time effects Regulatory requirement 28
Slide 29: Reduced deposits in the 1st quarter
Reduced in deposits in the 1th quarter Deposits corporate market (BNOK) Deposits retail market (BNOK) 1,1 % 36,2 37,8 37,0 37,1 37,5 -2,4 % 19,0 19,4 18,9 18,1 17,7 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 72 percent of the bank’s deposits are within the Deposit Guarantee Scheme –
Slide 30: Lending and deposit volumes with pt-, fixed and NIBOR rates
Lending and deposit volumes with pt-, fixed and NIBOR rates Loans (BNOK) Deposits (BNOK) Loans with pt rate Deposits with pt rate Loans with Nibor rate Deposits with Nibor rate Loans with fixed rates Deposits with fixed rates 104,0 104,7 105,0 105,2 105,5 55,3 57,2 55,9 55,2 55,2 89,2 90,2 90,6 90,7
Slide 31: High proportion of loans to the retail market
High proportion of loans to the retail market Loans (BNOK) Lending portfolio 1st quarter Corporate market Retail market, own balance sheet Corporate market, own balance sheet Retail market Loans transferred to SB1 Boligkreditt AS Loans transferred to SB1 Næringskreditt 0,3 % 104,4 104,6 105,0 105,2
Slide 32: No major changes in the distribution of the corporate market by sector and geography
No major changes from the previous quarter in the distribution of the corporate market by sector and geography Corporate market Other industries Geography Commercial real estate Housing cooperatives Vestfold og Telemark Other sectors Agriculture/forestry Viken Building and construction Oslo Transpor
Slide 33: Solid overweight position in favorable risk class within the corporate market portfolio
The bank has a solid overweight position in favorable risk class within the corporate market portfolio Risk profile – loans in corporate market (percent per risk class) PD < 0.5 % (risk class A-C) PD 0.5 -2.5 % (risk class D-F) PD > 2.5 % (risk class G-K) 100% 49% 46% 47% 47% 48% 36% 40% 36% 38% 37%
Slide 34: Low leverage on commercial loans secured on property (total-distributed)
Low leverage on commercial loans secured on property (total-distributed) LTV total-distributed (percent)1 Under 50 % 50-60 % 60-80 % 80-100 % Over 100 % • The average LTV on commercial loans 100% secured on property including loans transferred to SB1 Næringskreditt and housing cooperatives is 40,1 %
Slide 35: Low leverage on commercial loans secured on property (interval-distributed)
Low leverage on commercial loans secured on property (interval-distributed) LTV interval-distributed (percent)1 Under 50 % 50-60 % 60-80 % 80-100 % Over 100 % 100% 83% 83% 84% 82% 82% 8% 8% 8% 8% 9% 7% 1% 6% 2% 6% 1% 6% 2% 7% 1% 1% 1% 1% 1% 1% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 1) LTV interval-distribute
Slide 36: Retail market portfolio is stable over time, with solid overweighting in good risk classes
Retail market portfolio is stable over time, has a solid overweighting and positive trend in good risk classes Risk profile – loans in retail market (percent per risk class) PD < 0,5 % (risk class A-C) PD 0.5 -2,5 % (risk class D-F) PD > 2,5 % (risk class G-K) 100% 82% 83% 83% 82% 83% 15% 14% 14% 15
Slide 37: Low risk in the mortgage portfolio (total-distributed)
Low risk in the mortgage portfolio (total-distributed) LTV total-distributed (percent)1 Under 50 % 50-60 % 60-80 % 80-100 % Over 100 % 100% • The average LTV on the mortgage portfolio incl. loans transferred to SB1 Boligkreditt is 33% 34% 34% 32% 31% 49,5 % which is an increase of 1,3 percentage poi
Slide 38: Low risk in the mortgage portfolio (interval-distributed)
Low risk in the mortgage portfolio (interval-distributed) LTV interval-distributed (percent)1 Under 50 % 50-60 % 60-80 % 80-100 % Over 100 % 100% 80% 81% 81% 80% 79% 9% 9% 9% 9% 9% 9% 1% 9% 1% 9% 0% 9% 10% 1% 1% 1% 1% 2% 1% 2% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 1) Loan-to-value ratio for mortgages incl.
Slide 39: Good quarter for BN Bank. Positive results also from SB1 Gruppen
Good quarter for BN Bank. Positiv results also from SB1 Gruppen this quarter Profit (mNOK) SpareBank1 SamSpar AS SamSpar AS (SB1 Gruppen) BN Bank ASA 31 1 26 2 13 11 12 10 • Positive result from SpareBank 1 1 Gruppen due to good share 18 12 13 14 16 returns, as well as a lower claims ratio in the fi
Slide 40: LCR portfolio 31.03.2024
LCR portfolio 31.03.2024 Investment class (percent) LCR category (percent) State and state-guaranteed Level 1 A Covered bonds Level 1 B Municipal and county administrations Level 2 A Other • The LCR portfolio end of the year was of 9.1 4% BNOK. Credit duration of 2.5 years 17% 26% 27% • LCR of 263 (
Slide 41: Good spread in the bank's funding
Good spread in the banks funding Funding per 31.03.2024 (mNOK) Tier 1 Tier 2 • Total outstanding funding as of 31.03.2024 Senior Unsecured 5.095 4.900 amounts to 23,462 mnok comprising Senior Prefered (SP) 195 100 Senior Prefered (SP) grønt 350 • Senior debt 14,767 mnok Senior Non Prefered (SNP) 4.0
Slide 42: Development in Equity Certificates of SOON
Development in Equity Certificates of SOON Share price (NOK) NOK 31.03.24 31.12.23 31.03.23 31.12.22 Share price 67,00 64,00 50,00 55,00 Market value 9.387 8.966 7.005 7.411 NOK (mnok) 72 Book equity per equity certificate 56,64 55,00 51,90 55,50 68 (group) 64 Earnings per 60 equity certificate 1,65
Slide 43: 20 Biggest owners of equity certificates
20 Biggest owners of equity certificates 20 Biggest owners of equity certificates • At the end of the year, the number of quity certificate holders is 5 792 (5 811). • The 20 largest owners are listed with 74.2 % of the ownership capital. Of this, the five savings bank foundations own 59.0 % • At th
Slide 44: Corporate social responsibility and sustainability
Corporate social responsibility and sustainability SpareBank 1 Sørøst-Norge will be responsible by preventing and detecting financial crime, be climate proactive and help customers be the same and be socially engaged Monthly meetings in the sustainability council Updates and next steps per departmen
Slide 45: Contact details
Adresse Per Halvorsen CEO Contact details Tel +47 934 07 441 E-mail; Per.Halvorsen@sb1sorost.no Adresse Roar Snippen CFO/IR Tel +47 976 10 360 E-mail; Roar.Snippen@sb1sorost.no Adresse Mona Storbrua Head of treasury (IR) Address Tel +47 916 39 833 Fokserødveien 12 E-mail; Mona.Storbrua@sb1sorost.no
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