SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q4 2014 Earnings Presentation
50 slides from SpareBank 1 Helgeland's earnings presentation, 2015
Slide 1: Presentation Q4 2014
Presentation Q4 2014 En drivkraft for vekst på Helgeland 1
Slide 2: Presentation Q4 2014 (HSB group)
Presentation Q4 2014 (HSB group) Main features Profit & Loss Lisbeth Flågeng Balance Chief Executive Officer Lending Deposits Funding Sverre Klausen Solidity Chief Financial Officer Summary Appendices En drivkraft for vekst på Helgeland 2
Slide 3: Management and organisational structure
Management and organisational structure Board of Directors Assistant and GM Internat Auditor Helgeland Boligkreditt AS Chief Executive Marit Jakobsen Brit Søfting Officer Lisbeth Flågeng Director of Director of Chief Financial Chief Business Chief Human Chief Chief Risk Corporate Retail Market Offic
Slide 4: Theme
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 4
Slide 5: Main features 4th quarter
Main features 4th quarter Result Good basic operations – gross profit MNOK 283 (266) – improvement of MNOK 17 • Net interest increased by MNOK 19 • Return on financial investments increased by MNOK 30 • Increased costs in the last quarter – partly non-recurring costs • Moderate losses on lending Pro
Slide 6: Main features 4th quarter
Main features 4th quarter Lending Reduced 12-month growth 0.6 (4.4) % • Retail market 3.0 (7.9) % - lower than expected • Corporate market -3.9 (-0.4) % - reduced growth in line with the bank’s targets Deposits Increased 12-month growth 5.7 (15.9) % - good deposit ratio 65.9 (62.7) % • Retail market
Slide 7: Theme
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 7
Slide 8: Profit & Loss
Profit & Loss Helgeland Sparebank Good result Profit development (mnok) Stable net interest • Meeting the competition, 300 283 lowering mortgage rates 266 • Reducing the deposit rate in the same period 201 • Net interest not weakened as a consequence of 172 changes 150 133 • Adaption of individual c
Slide 9: Result
Result Helgeland Sparebank Good result Profit development(mnok) and return on equity % Stable net interest • Meeting the competition, 300 283 lowering mortgage rates 266 • Reducing the deposit rate in the same period 201 • Net interest not weakened as a consequence of 172 changes 150 133 • Adaption
Slide 10: Key figures
Key figures Helgeland Sparebank Commentary Keyfigures in % of average BTA Net interest 2% • Strengthened margin from 2011 • Unchanged last four quarters Net commissions 1% • Stable level from 2011 • 0.31 % - unchanged from 2013 0% 2010 2011 2012 2013 2014 Gross profit Net interest Net provisions En
Slide 11: Key figures
Key figures Helgeland Sparebank Commentary Keyfigures in % of average BTA Net interest 2% • Strengthened margin from 2011 • Unchanged last four quarters Net commissions 1% • Stable level from 2011 • 0.31 % - unchanged from 2013 Operating costs • Falling level from 2010 • Increased in 2014 0% 2010 20
Slide 12: Key figures
Key figures Helgeland Sparebank Commentary Keyfigures in % of average BTA Net interest 2% • Strengthened margin from 2011 • Unchanged last four quarters Net commissions • Stable level from 2011 • 0.31 % - unchanged from 2013 Operating costs 1% • Falling level from 2010 • Increased in 2014 Losses on
Slide 13: Profit & Loss
Profit & Loss Helgeland Sparebank (group) Profit & loss (MNOK) Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Net interest- and credit provision earnings 118 113 114 116 115 Net provision earnings 20 19 22 22 19 Other operatios income 3 1 1 2 3 Ordinary operations cost 62 62 61 63 77 Result basic operation
Slide 14: Net interest
Net interest Helgeland Sparebank Commentary Development net intr.(mnok.) and % of average BTA 150 Net interest maintained from Q1 to Q4 118 114 116 115 113 Still strong price competition • Latest reduction on mortgage rates is funded by reduction on deposit rates 1,79 % 1,75 % 1,75 % 1,75 % 1,74 % 7
Slide 15: Operating cost
Operating cost Helgeland Sparebank Commentary Development operating cost (MNOK) % of income 300 Increased costs in NOK. Costs 263 in percent maintained relative 239 to income. 233 218 218 • Annual positions reduced 200 57,7 % from 177 in 2013 to 168 by 53,9 % 47,5 % the end of 2014 44,5 % 44,6 % - C
Slide 16: Theme
Theme Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 16
Slide 17: Total Assets
Total Assets Helgeland Sparebank Commentary BTA (MNOK) 30.000 Controlled growth 25.985 25.823 • Disengagement of CM 24.594 commitments 22.802 • Adapted liquidity reserve 20.160 15.000 0 2010 2011 2012 2013 2014 Total Asset En drivkraft for vekst på Helgeland 17
Slide 18: Total Assets
Total Assets Helgeland Sparebank Commentary BTA whereby lending (MNOK) 30.000 Controlled growth 25.985 25.823 • Disengagement of CM 24.594 commitments 22.802 20.828 • Adapted liquidity reserve 20.160 Lending • Q4 NOK 20.8 (20.7) bn. 15.000 • 12-month growth MNOK 120 0 2010 2011 2012 2013 2014 Total
Slide 19: Total Assets
Total Assets Helgeland Sparebank Commentary BTA whereby lending and deposits (MNOK) 30.000 Controlled growth 25.985 25.823 • Disengagement of CM 24.594 commitments 22.802 20.828 • Adapted liquidity reserve 20.160 Lending 13.725 • Q4 NOK 20.8 (20.7) bn. 15.000 • 12-month growth MNOK 120 Deposits • Q4
Slide 20: Theme
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 20
Slide 21: Credit growth
Credit growth Helgeland Sparebank Commentary 12-month credit growth Controlled lending growth • 12-month growth 0.6 (4.4)% PM 67,1 % BM Helgeland Norge RM share 83,8 % 16,1 % 32,9 % • Goal minimum 60% • Per Q4 – 67.1 (65.6)% Share in Helgeland region • Per Q4 – 83.8 (83.2)% 2010 2011 2012 2013 2014
Slide 22: Credit growth CM and RM
Credit growth CM and RM Helgeland Sparebank Helgeland Sparebank 12-month credit growth corporate market 12-month credit growth retail market 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 HSB Helgeland corp. Statistic Norway corp. HSB Helgeland pers. St
Slide 23: The market in the Helgeland region
The market in the Helgeland region Market share in the main bank in Helgeland Market share housing insurance in Helgeland 0% 5% 10% 15% 20% 25% 30% 60% 56% 56% 2009 HSB / Frende 19% 22% 54% 26% 52% 2010 7% 50% 49%49% Terra/Eika 6% 7% 2011 9% Sparebank1 Forsikring 10% 11% 2012 2012 40% DNB 3% 3% 2013
Slide 24: Property price development
Property price development Helgeland Sparebank Helgeland Sparebank Price development - sold apartments in NNOK/sq.m. Price development - sold houses in MNOK/sq.m. 60.000 50.000 45.000 50.000 40.000 35.000 40.000 30.000 30.000 25.000 20.000 20.000 15.000 10.000 10.000 5.000 0 0 2006 2007 2008 2009 20
Slide 25: Lending CM
Lending CM Helgeland Sparebank Commentary Lending distributed in sector Good diversification in the CM lending portfolio and very loyal 12,4 % Real estate corporate customers 13,1 % 6,5 % Lending CM constitute NOK Farming and forestry 6,3 % 6.8 (7.2) bn. 4,3 % Construction and power CM share of tota
Slide 26: Non-performing and other impaired commitments
Non-performing and other impaired commitments Helgeland Sparebank Commentary Net defaulted and com. exp. to loss 200 Still good portfolio quality Flattening of net non- 150 performing and other impaired commitments 100 The development of defaults in the portfolio and on individual commitments is mon
Slide 27: Theme
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 27
Slide 28: Total deposit growth
Total deposit growth Helgeland Sparebank Commentary 12-month deposit growth Good deposit growth • 12-months growth 5.7 (15.9) PM 61,6 % BM Helgeland Norge % 38,4 % 91,6 % 7,7 % RM share • Per Q4 – 61.6 (61.0) % Share from Helgeland region • Per Q4 – 91.6 (92.2) % Deposit ratio • Goal minimum 60% • P
Slide 29: Deposits CM and RM
Deposits CM and RM Helgeland Sparebank Helgeland Sparebank 12-month deposit growth for businesses 12-moth deposit growth for households 35% 20% 30% 15% 25% 20% 10% 15% 10% 5% 5% 0% 0% -5% -5% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 HSB Helgeland Corp. Statistic Norway Corp. HSB Helgeland p
Slide 30: Deposits CM
Deposits CM Helgeland Sparebank Commentary Customer deposits Well diversified deposit Municipalities 11,6 % portfolio in the CM 11,0 % Transport and services 6,5 % Deposits from CM constitute 6,1 % NOK 5.3 (5.1) bn. Construction and power 5,4 % 5,9 % CM share 38.4 (39.0) % of Real estate 3,7 % 3,1 %
Slide 31: Theme
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 31
Slide 32: Funding
Funding Helgeland Sparebank Commentary Funding development (MNOK) 30.000 The deposits are the most important source for funding The bank’s mortgage company is rated ‘Aaa’ and will be an important source for funding in the time ahead 15.000 12.989 13.725 9.883 10.429 11.211 8.615 9.100 0 2008 2009 20
Slide 33: Funding
Funding Helgeland Sparebank Commentary Maturity of loans (MNOK) 2.500 Good and long term funding Share long term funding 83.8 2.000 (80.7) % 500 630 Combined duration of 2.6 (2.5) 1.500 285 years 607 1.000 Planning a gradual increase of 399 duration in the mortgage 1.500 1.400 1.400 company 500 844
Slide 34: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland Sparebank Commentary LTV-allocation 31.12.14 Combined LTV 52 (52) % 76 ≤ 8% Cover pool • Qualified loans MNOK 71-75 10% 4,150 (4,698) • Deposits MNOK 224 (238) 61-70 21% • OC level 29 (23) % 51-60 20% CB loans NOK 3.4 bn. (whereby 0.3 in the ownership 41-50 15% of
Slide 35: Liquidity buffers
Liquidity buffers Helgeland Sparebank Commentary Securities distributed in sectors The liquidity buffers constitute NOK 4.3 (4.5) bn. – equal to 16.7 28% CB 1 34% (17.4) % of total assets 28% Finance, Norway 22% The buffer capital consists of Government 20% cash, deposits in Bank of 17% Norway/banks
Slide 36: Theme
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 36
Slide 37: Suggested profit allocation
Suggested profit allocation Helgeland Sparebank Commentary Suggested allocation of profit 2014 Increased pay-out ratio 120 • 31.8 (25.7) % 98 100 Profit per equity certificate 100 • NOK 7.90 in the parent bank and NOK 8.7 in the group 80 Suggested dividend for 2014: 59 • Basis for dividends in the 6
Slide 38: Capital ratio
Capital ratio Helgeland Sparebank Commentary Development capital adequacy Capital ratio 18% • CET1 13.4 (12.3) % • Core capital 14.8 (13.9) % 16% 2,4 % • Total capital 17.2 (16.0) % Increased pension commitments 14% 1,4 % is charged to the equity in 2014 with MNOK 44 12% CET1 capital will be further
Slide 39: HELG – largest owners
HELG – 20 largest owners Parent bank Per 31.12.14 Numbers % share Numbers % share Sparebankstiftelsen Helgeland 6 599 598 35.3 % Lamholmen AS 366 734 2.0 % Pareto AS 1 070 836 5.7 % Helgelandskraft AS 340 494 1.8 % MP Pensjon PK 1 032 203 5.5 % AS Atlantis Vest 335 000 1.8 % UBS AG, London Branc A/C
Slide 40: EC development and liquidity HELG
EC development and liquidity HELG The good price development has continued also in Q4 2014 A down-sale from Sparebankstiftelsen in 2014 contributes to an increased number of tradable ECs on the Oslo Stock Exchange – 5.7 million ECs are traded so far this year, whereby 3 million from Sparebankstiftel
Slide 41: Theme
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 41
Slide 42: Prospects and priorities
Prospects and priorities Increased competitiveness • Adapted mortgage interest rates and deposit rates in the retail- and corporate market • Improved competitiveness against Statens Pensjonskasse • Concrete measures to increase the growth in the retail market • Shifted focus from deposits to lending
Slide 43: Prospects and priorities
Prospects and priorities Result • Still good basic operations • Maintenance of the net interest • Level of commission earnings is expected to remain • Good results in the product companies, Frende and Brage • Challenges on the cost area are met with a number of measures • Reduction of annual positio
Slide 44: Prospects and priorities
Prospects and priorities The Helgeland region • Low oil price and a weak exchange rate is positive for the large export businesses in the region (industrial and fish farming) – several large investments have been determined and are partly started. • The changing business cycle increases the availabi
Slide 45: Thank you for your attention!
Thank you for your attention! A DRIVING FORCE FOR GROWTH En drivkraft for vekst på Helgeland
Slide 46: Theme
Theme RANA ALSTAHAUG Main features Profit & Loss VEFSN BRØNNØY Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 46
Slide 47: HSB – wide ranging investment in knowledge
HSB – wide ranging investment in knowledge Helgeland Sparebank Helgeland Sparebank Antall underviste elever skoleåret 2013/14 Millionstøtte til forskning og høgskoletilbud siden 2010 Ungdoms- Videregående skole skole Forskning Høgskoletilbud 1.018 elever 185 elever 8,4 mill. kr. 5,2 mill. kr. Knowle
Slide 48: A driving force for growth on Helgeland
A driving force for growth on Helgeland Norway’s 12th largest savings bank of 108 banks – 15 offices in 13 municipalities in the Helgeland region ✓ Bank total assets of NOK 26 billion and a market share of 50% • An independent regional bank with no alliances and quoted on the stock exchange - The on
Slide 49: Business development and ownership
Business development and ownership Board Styre of Directors Assistant and GM Chief Executive Officer Helgeland Boligkreditt AS Lisbeth Flågeng Internal Auditor Brit Søfting Marit Jakobsen Director of Director of Chief Financial Chief Business Chief Human Chief Chief Risk Corporate Retail Market Offi
Slide 50: Contact information
Contact information Head office Board of Directors Postal address Postboks 68, 8601 Mo i Rana Thore Michalsen, Chairman Visiting address Jernbanegata 15, 8622 Mo i Rana Ove Brattbakk, Deputy Chair Phone 75 11 90 00 Gislaug Øygarden Web www.hsb.no Monica Skjellstad Organisation number 937904029 Stein