Slide 1: Presentation of financial results for 2014
Sparebanken Hedmark Presentation of financial results for 2014
Slide 2: About Sparebanken Hedmark
About Sparebanken Hedmark Hedmark is the leading provider of financial products to people, companies and Sparebanken the public sector in Hedmark Hedmark NOK 7.6 billion in equity. NOK 50 billion in total assets. Norway’s largest self- NOK 66 billion in commercial volume (incl. loans to SpareBank 1
Slide 3: Highlights - year 2014
Highlights - year 2014 Market developed well: 6.8% lending growth and 3.2% deposit growth. 2014 was the Very good growth in new markets, Oppland and Akershus. Bank's Good growth in sales of non-capital intensive products. best year Digital channels saw good growth. Very good profit after tax of NOK
Slide 4: Highlights - year 2014
Highlights - year 2014 Stable banking The fall in margins on mortgages are largely compensated with lower deposits rates. operations and The losses are very low and the exposure in the oil sector are minimal good results Good results from subsidiaries (Leasing and asset financing , Estate agency and
Slide 5: Profit/loss (Group)
Profit/loss (Group) Change in 2014 2013 amount Net interest income 1.043 1.008 35 Net commission income 446 370 76 Other income 217 189 28 Total operating expenses 981 916 65 Result bank operation before losses 725 651 74 Losses on loans and guarantees 66 72 -6 Result bank operation after losses 659
Slide 6: Profit/loss (Parent bank)
Profit/loss (Parent bank) Change in 2014 2013 amount Net interest income 835 831 4 Net commission income 467 389 78 Other income 16 19 -3 Total operating expenses 726 681 45 Result bank operation before losses 592 558 34 Losses on loans and guarantees 52 61 -9 Result bank operation after losses 540
Slide 7: Result before tax for Group and Parent Bank
Result before tax for Group and Parent Bank Result before tax - Group Result before tax – Parent bank 1.400 900 835 1.232 800 1.200 700 1.000 622 600 841 537 800 500 479 600 539 527 400 300 400 200 200 100 0 0 2011 2012 2013 2014 2011 2012 2013 2014
Slide 8: Income statement quarterly (Group)
Income statement quarterly (Group) Q4 2014 Q3 2014 Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Q4 2012 Net interest income 272 272 259 240 263 266 252 227 242 Net commission income 104 104 109 130 100 104 89 77 74 Other income 54 51 57 56 46 49 48 46 44 Total operating expenses 263 237 239 242 2
Slide 9: Specification of results (Group)
Specification of results (Group) Change in (Nok million) 2014 2013 amount Parent Bank's profit after tax 835 622 213 Dividends received from subsidiaries and joint ventures -135 -123 -12 Profit /loss attributable to: SpareBank 1 Gruppen AS 202 132 70 Bank 1 Oslo Akershus AS 183 133 50 SpareBank 1 Bo
Slide 10: Financial results by quarter (Group)
Financial results by quarter (Group) Profit/loss before tax excl. profit from other financial assets and liabilitites Profit/loss before tax 350 500 457 298 283 300 244 240 400 250 300 265 269 200 241 150 200 100 100 50 0 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Net result f
Slide 11: Specification of the consolidated profit (Group)
Specification of the consolidated profit (Group) Change in profit before tax 2013 vs 2014 1400 -65 6 1200 250 1000 60 104 35 800 600 1232 400 841 200 0 Profit before tax 2013 Net interest income Net commission and Result from Net income from Operating expenses Losses Profit before tax 2014 other inc
Slide 12: Net interest income (Group)
Net interest income (Group) Interest income excl. Commission from cover bond companies * Interest income incl. commission from cover bond companies 350 2,25% 350 2,21% 2,21% 2,20% 300 2,20% 300 52 53 57 60 60 2,15% 49 63 250 2,15% 37 250 41 200 2,08% 2,10% 200 2,07% 2,04% 2,05% 150 2,05% 150 266 2,0
Slide 13: Net commission and other income (Group)
Net commission and other income (Group) Net commission and other income Composition of total income from banking operations 200 180 5 19 160 5 13 % 20 9 8 140 18 44 21 21 120 26 16 26 9 27 Net interest income 100 38 35 22 25 29 Net commission income 80 26 % 21 17 19 60 21 21 61 % Other income 40 60
Slide 14: Net income from financial assets and liabilities (Group)
Net income from financial assets and liabilities (Group) 2014 Q4 2014 Q3 2014 Q2 2013 Q1 2013 2013 Dividends 13 1 1 0 12 21 Net profit from ownership interest 394 97 103 80 114 326 Net income from other financial assets and liabilities 166 29 173 -3 -33 -84 Net income from financial assets and liabi
Slide 15: Operating expenses (Group)
Operating expenses (Group) Q4 Q3 Q2 Q1 2014 2014 2014 2014 2014 2013 Payroll 397 102 98 95 102 359 Pension costs 54 13 14 14 13 49 Social security expenses 92 31 20 20 21 79 Total personnel expenses 543 146 132 129 136 487 0 Total operating expenses and other expenses 294 81 70 74 69 288 Total perso
Slide 16: Losses on loans and guarantees (Group)
Losses on loans and guarantees (Group) Defaulted and doubtful commitments Yearly losses 900 2,00% -160 -146 -140 800 1,80% -120 1,60% -100 700 -80 -72 -66 1,40% 600 -60 -50 -50 -42 1,20% 500 -40 390 424 1,00% -20 400 0 0,80% 2009 2010 2011 2012 2013 2014 300 459 340 339 0,60% Quarterly losses 200 0,
Slide 17: Interest margin Parent bank
Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard) 2,30% 2,29% 2,28% 2,26% 2,22% 2,22% 2,20% 2,20% 2,16% 2,14% 2,10% 2,07% 2,01% 2,01% 2,00% 1,93% 1,90% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Slide 18: Interest margin Parent bank
Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard) 2,70% 2,62% 2,59% 2,57% 2,58% 2,60% 2,57% 2,57% 2,53% 2,50% 2,50% 2,41% 2,40% 2,35% 2,28% 2,30% 2,24% 2,18% 2,19% 2,20% 2,15% 2,12% 2,11% 2,10% 2,05% 2,06% 2,00% 2,01% 1,97% 2,00% 1,91% 1,90% 1,82% 1,80% Q1 2012 Q2 2012 Q3 2012 Q4
Slide 19: Main figures Sparebanken Hedmark (Group)
Main figures Sparebanken Hedmark (Group) 2014 2013 Profitability Return on equity capital after tax 14,4 % 11,0 % From the balance sheet Assets 49.934 47.397 Business volume 65.928 62.578 Lending growth last 12 months incl. Loans transferred to covered bond companies 6,8 % 8,9 % Deposits growth duri
Slide 20: Balance sheet (Group)
Balance sheet (Group) 31.12.2014 31.12.2013 Change in amount ASSETS Cash and deposits with central banks 748 572 176 Loans to and receivables from credit institutions 675 699 -24 Loans to and receivables from customers 39.691 36.936 2.755 Financial papers 4.787 5.647 -860 Investments in subsidiaries
Slide 21: Development in balance sheet (Group)
Development in balance sheet (Group) Gross loans incl. Loans transferred to coverd bond companies (Nok billion) Development in assets and business volume (Nok billion) 60,0 12,0 % 70,0 62,6 65,9 56,7 10,0 % 60,0 53,0 50,0 53,9 54,8 55,9 49,6 51,6 52,4 52,6 44,3 46,1 49,0 50,8 8,0 % 50,0 48,1 38,4 40
Slide 22: Development in Tier 1 ratio (Group)
Development in Tier 1 ratio (Group) • Capital adequacy ratio group as at 31.12.14: 17,1 % • Tier 1 Capital ratio parent bank as at 31.12.14: 21,7 % 18,0 % 16,0 % 16.9 % 0.2 % 16.2 % 1.8 % 14,0 % 15.1 % 15.2 % 14.5 % 14.1 % 12,0 % 13.2 % 10,0 % 11.5 % 8,0 % 6,0 % 4,0 % 2,0 % 0,0 % 2007 2008 2009 2010
Slide 23: Equity ratio (Group)
Equity ratio (Group) 18,0 % 18,0 % 17,0 % 17,0 % 16,0 % 16,0 % 15,0 % 15,3 % 15,0 % 14,0 % 14,0 % 14,2 % 13,7 % 13,0 % 13,0 % 12,8 % 12,8 % 12,0 % 12,0 % 11,0 % 11,5 % 11,0 % 10,8 % 10,0 % 10,4 % 10,0 % 9,0 % 9,0 % 8,0 % 8,0 % 2007 2008 2009 2010 2011 2012 2013 2014 Equity ratio Tier 1 Ratio
Slide 24: Composition of loans and receivables from customers (Group)
Composition of loans and receivables from customers (Group) Composition of loans incl. covered bond companies Composition of loans excl. covered bond companies Commercial services; 1.659 Primary industries; Other; Corporate 3.557 2.562 banking; Retail Wholesale and 42,9 % banking; retail trade; 57,1
Slide 25: Liquidity reserves
Liquidity reserves 9000 8000 127 7000 6000 3480 5000 263 4000 7999 3000 3407 2000 1000 722 0 Cash Drawing rights in the Other liquid assets Unutilized facilities * Funds and listed shares Liquidity reserve Central Bank * Reserve taking into account 30% fall in house prices
Slide 26: Maturities
Maturities Annual maturities; total to maturity MNOK 9 525 Funding maturities the next 12 months MNOK 2.500 600 2.000 400 1.500 1.980 1.000 1.900 200 1.468 1.150 500 1.012 500 550 400 300 200 0 65 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 30. 2. 28. 30. 30. 30. 30. 30.
Slide 27: Outlook for 2015
Outlook for 2015 • The development in the Inland Region is expected to be stable.This region has traditionally been less exposed to cyclical fluctuations than other regions, and reduced oil activities will have limited consequensces. • The bank expects continued low losses. Greater competition and f
Slide 28: Kontakt
Kontakt: Administrerende direktør: richard.heiberg@sparebanken-hedmark.no Finansdirektør: tad@sparebanken-hedmark.no