Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q1 2012 Earnings Presentation
73 slides from Sparebank 1 Nord-norge's earnings presentation, Apr 26, 2012
Slide 1: Presentation of 1st Quarter Report 2012
Presentation of 1st Quarter Report 2012 26 April 2012 1
Slide 2: SpareBank 1 Nord-Norge Group
SpareBank 1 Nord-Norge Group Headoffice: Tromsø Organization: 5 regions Regional branches: Hammerfest Tromsø Harstad Bodø Mo i Rana Local branches: 76 Number of man-years Group: 794 2
Slide 3: Organisation of the financial services Group
Organisation of the financial services Group SpareBank 1 Nord-Norge Financial Services Group SpareBank 1 Gruppen AS Financial Services Group Equity stake 19,5 % SpareBank 1 Nord-Norge SpareBank 1 Utvikling DA Invest ASA Systems development Investment company Equity stake 17.74 % Equity stake 100 % -
Slide 4: Financial goals
Financial goals • Solidity • Profitability • Top line growth • Effectivenss • Market shares 4
Slide 5: Financial targets
Financial targets • Capital adequacy ratio • Effectiveness – Core-capital coverage: – The targeted cost ratio is 11 % or higher maximum 50 % of income and shall be comparable to the level of competing banks in Norway • Profitability – ROE shall be comparable • Top-line growth to the performance of c
Slide 6: Capital adequacy
Capital adequacy Successful equity issues completed. The Saving Banks foundation has been established • The Bank’s equity has been strengthened with NOK 583 mill through equity issues during 1st half of 2011 – The transactions show that the equity market has great faith in the economy of this part o
Slide 7: Capital adequacy ratio - Group
Capital adequacy ratio - Group Morbank Konsern (Beløp i mill kroner) 31.12.11 31.03.11 31.03.12 31.03.12 31.03.11 31.12.11 4 936 4 187 4 911 Kjernekapital 6 099 5 259 6 002 491 552 482 Tilleggskapital 442 490 463 5 427 4 739 5 393 Ansvarlig kapital 6 541 5 749 6 465 Minimumskrav ansvarlig kapital Ba
Slide 8: Financial targets
Financial targets • Capital adequacy ratio • Effectiveness – Core-capital coverage: – The targeted cost ratio is 11 % or higher maximum 50 % of income and shall be comparable to the level of competing banks in Norway • Profitability – ROE shall be comparable • Top-line growth to the performance of c
Slide 9: Profit and loss account - Group
Profit and loss account - Group (Amounts in NOK million) 31.03.12 31.03.11 Net interest income 281 275 Net fee-, commision and other operating income 126 120 Net income from financial investments 149 242 Total net income 556 637 Total costs 282 246 Result before losses and write-downs 274 391 Net lo
Slide 10: Quarterly Summary – Profit and loss account figures
Quarterly Summary – Profit and loss account figures (Amounts in NOK million) 1Q12 4Q11 3Q11 2Q11 1Q11 Net interest income 281 282 296 276 275 Net fee-, commision and other operating income 126 125 127 134 120 Net income from financial investments 149 -162 46 58 242 Total net income 556 245 469 468 6
Slide 11: Quarterly Summary – income from financial investments
Quarterly Summary – income from financial investments (Amounts in NOK million) 1Q12 4Q11 3Q11 2Q11 1Q11 Dividends 2 -3 7 9 1 Income from joint ventures 81 63 30 53 49 Gains/losses and net value changes on certificates and bonds 28 -3 -6 -1 7 Gains/losses and net value changes on shares 6 -234 -4 -14
Slide 12: Result before tax - Group companies
Group companies Result before tax 31.03.12 31.03.11 SpareBank 1 Finans Nord-Norge AS 15 734 17 104 SpareBank 1 Nord-Norge Invest AS -1 574 177 889 SNN Økonomihus AS 266 0 EiendomsMegler 1 Nord-Norge AS 3 220 - 443 SpareBank 1 Nord-Norge Forvaltning ASA 297 447 North-West 1 Alliance Bank 21 - 184 Tot
Slide 13: Results – the Group
Results – the Group In comparison with 1st quarter 2011, the reasons for the change in the pre-tax result are as follows: • Increase in net interest income + NOK 6 mill. • Increase in net commission income + NOK 1 mill. • Reduction in income from financial investments - NOK 93 mill. • Increase other
Slide 14: Underlying banking operations
Underlying banking operations - (excl. income from financial investments) Group (Amounts in NOK million) 1Q12 4Q11 3Q11 2Q11 1Q11 Net interest income 281 282 296 276 275 Net fee- and commission income 120 119 127 122 119 Other operating income 6 6 0 12 1 Total costs 282 277 252 261 246 Income, core
Slide 15: Top line growth
Top line growth 700 637 600 556 500 400 362 31.03.11 31.03.12 300 275 281 275 200 100 0 Net interest income Total income exclusive Total income net interest income Income growth 2,2% -24,0% -12,7% Costs growth 14,6% 15 15
Slide 16: Net interest income - Group
Net interest income - Group 4,00 % 350 300 3,00 % 250 200 2,00 % 150 100 1,00 % 50 0 0,00 % 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 NOK Million - Boligkreditt Perc.of aver.tot.ass. Perc. incl. Boligkreditt 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 NOK Million 272 281 291 285 275 276 296 282
Slide 17: Interest contribution: corporate lending
Lending, Parent bank – corporate market Loan volum corporate Interest margin corporate 23 000 2,00 1,80 22 000 1,60 21 000 Interest contribution 1,40 20 000 The interest 1,20 margin is defined as the NOK 19 000 1,00 difference between the 0,80 customer 18 000 lending (deposit) 0,60 interest rate 17
Slide 18: Interest contribution: retail lending
Lending, Parent bank – retail market Loan volum retail banking Interest margin retail banking 48 000 2,00 47 000 1,80 46 000 1,60 45 000 Interest contribution 1,40 The interest 44 000 margin is 1,20 defined as the 43 000 difference NOK 1,00 between the 42 000 customer 0,80 lending 41 000 (deposit) 0
Slide 19: Interest contribution: corporate deposits
Customer deposits, Parent bank – corporate market Deposit volum corporate Interest margin corporate 22 000 2,00 1,80 21 000 1,60 20 000 1,40 Interest contribution The interest 19 000 margin is 1,20 defined as the difference NOK 18 000 1,00 between the customer 0,80 lending 17 000 (deposit) interest
Slide 20: Interest contribution: retail deposits
Customer deposits, Parent bank – retail market Deposit volum retail banking Interest margin retail banking 23 000 2,00 1,80 22 000 1,60 21 000 Interest contribution 1,40 The interest 20 000 margin is 1,20 defined as the difference NOK 19 000 1,00 between the customer 0,80 lending 18 000 (deposit) 0,
Slide 21: Financial targets
Financial targets • Capital adequacy ratio • Effectiveness – Core-capital coverage: – The targeted cost ratio is 11 % or higher maximum 50 % of income and shall be comparable to the level of competing banks in Norway • Profitability – ROE shall be comparable • Top-line growth to the performance of c
Slide 22: Group operating costs
Group operating costs (NOK Million) 31.03.12 31.03.11 Change Wages and salaries 114 99 15 Pension costs 9 9 0 Social costs 10 11 - 1 Total personnel costs 133 119 14 Administration costs 84 68 16 Total personnel- and general administration costs 217 187 30 Depreciation and write-downs of fixed asset
Slide 23: Group operating costs
Group operating costs 300 3,50 % 275 250 3,00 % 225 2,50 % 200 175 NOK mill. 2,00 % 150 125 1,50 % 100 75 1,00 % 50 0,50 % 25 0 0,00 % 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 NOK Million Perc.of aver.tot.ass. 1Q12 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Group operating costs 188 256 237 276 246
Slide 24: Key figures balance sheet
Key figures balance sheet (Amounts in NOK million) STATEMENT OF 31.03.12 31.03.11 Change Change % Total assets 70 012 68 202 1 810 2,7% Gross lending 50 941 49 638 1 303 2,6% Loans and advances to customers including agency 69 978 63 536 6 442 10,1% loans Deposits from customers 39 675 39 402 273 0,
Slide 25: Customer deposits
Customer deposits Deposits from customers 44 000 42 000 Volume according to markets 31.03.12 40 000 38 000 Corp. 28 % 36 000 Retail 55 % 34 000 Public 17 % 32 000 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 25 25
Slide 26: Deposit growth households
Deposit growth households Deposit growth households. 12 mth. growth 12 10 8 6 % 4 2 0 2006M01 2007M01 2008M01 2009M01 2010M01 2011M01 2012M01 SNN, Retail clients Households Source: Statistisk Sentralbyrå, The money supply M2, March 2012 & SNN Bare, March 2012 26
Slide 27: Deposit growth corporates
Deposit growth corporates Deposit growth corporates 12 monhts 40 35 30 25 20 15 % 10 5 0 2006M01 2007M01 2008M01 2009M01 2010M01 2011M01 2012M01 -5 -10 SNN, Corporate clients Corporates Source: Statistisk Sentralbyrå, The money supply M2, March 2012 & SNN Bare, March 2012 27
Slide 28: Group lending portfolio
Group lending portfolio Volume according to Loans and advances to customers including agency loans markets 31.03.12 76 000 Retail Corp/ excl. 71 000 Pub Bolig- 43 % kreditt 57 % 66 000 61 000 Volume incl. Boligkreditt 56 000 Corp/ Pub 31 % Retail incl. Bolig- kreditt 51 000 69 % 46 000 1Q10 2Q10 3Q1
Slide 29: Distribution on segments shows good diversification
Distribution on segments shows good diversification Loan portfolio including Boligkreditt SPB1 Boligkreditt 27 Construction building % 3,3 % Other service industry 1,8 % Agriculture, fisheries, fish farming 4,3 % Other 20 % Transport and Wage-earners wholsesale 6,1 % 42 % Maritime sector 1,0 % Prope
Slide 30: Credit growth households
Credit growth households 30 Credit growth households 12 months 18 16 14 12 10 % 8 6 4 2 0 2006M01 2007M01 2008M01 2009M01 2010M01 2011M01 2012M01 SNN, Retail clients Households Source: Statistisk Sentralbyrå, The credit indicator C2, March 2012 & SNN Bare, March 2012 30
Slide 31: Credit growth corporates
Credit growth corporates Credit growth corporates 12 months 25 20 15 10 % 5 0 2006M01 2007M01 2008M01 2009M01 2010M01 2011M01 2012M01 -5 SNN, Corporate clients Corporates Source: Statistisk Sentralbyrå, The credit indicator C2, March 2012 & SNN Bare, March 2012 31
Slide 32: Credit area
Credit area • Quality • Portfolio • Migration, commitments in default and losses 32
Slide 33: Portfolio
Portfolio • High quality in lending portfolio. Reduced level of default - still at low levels. • Few corporate exposures in high risk industries has contributed to an overall low portfolio risk. • The Group's total write-downs in Q1 2012 is somewhat higher than the expected normalized level. • The G
Slide 34: Portfolio - exposure as of 31.03.12
Portfolio - exposure as of 31.03.12 34
Slide 35: Risk change - portfolio change Q1/11 – Q1/12
Risk change - portfolio change Q1/11 – Q1/12 35
Slide 36: Group lending by sector
Group lending by sector (NOK million) 31.03.12 Share 31.03.11 Share Change | Change in % | Mining and quarrying 72 0,1 % 83 0% - il -13 % Construction 956 1,9 % 788 2% 168 21% Building of ships and boats 26 0,1 % 23 0% 3 13 % Electricity, gas, steam an air conditioning supply 1189 2,3 % 987 2% 202 2
Slide 37: Loan to value – LTV in % of collateral
Loan to value – LTV in % of collateral The calculation is based on the collateral market value. The numbers includes the Group's share of SB1 Boligkreditt-portofolio 37
Slide 38: Portfolio of corporate property
Portfolio of corporate property • Lowest – Low risk, expected loss 0 % - 0,50 % • Medium risk, expected loss 0,50 - 2,00 % • High - Highest risk, expected loss over 2,00 % The portfolio of corporate property represents the Group's highest concentration concerning one single sector The portfolio of c
Slide 39: Losses and commitments in default
Losses and commitments in default • Neutral loss development. One loss of significant size. • Commitments in default and commitments in certain sectors are monitored closely. – Property projects – Housing co-operatives • Small losses in the retail market 39
Slide 40: The Group's defaulted commitments
The Group's defaulted commitments Still positive loss development in defaulted and impaired commitments 40
Slide 41: Losses on loans and guarantees - Group
Losses on loans and guarantees - Group 350 1,40 % 300 1,20 % 250 1,00 % NOK mill 200 0,80 % 150 0,60 % 100 50 0,40 % 0 0,20 % -50 0,00 % 2008 2009 2010 2011 31.03.12 Net losses Net losses in % of gross lending incl.agency loans 2008 2009 2010 2011 31.03.12 Individual write-downs for impaired value 2
Slide 42: Loss on lending: The Group's write-downs in Q1 2012
Loss on lending: The Group's write-downs in Q1 2012 The Group's total write-downs in Q1 is somewhat higher than the expected normalized level. 42
Slide 43: Securities
Securities SpareBank 4 NORD-NORGE
Slide 44: Income from financial investments
Income from financial investments (Amounts in NOK million) 31.03.12 31.03.11 Dividends 2 1 Income from joint ventures 81 49 Gains/losses and net value changes on shares 6 176 Gains/losses and net value changes on foreign exchange 12 8 Gains/losses and net value changes on certificates and bonds (inc
Slide 45: Interest-bearing portfolio
Interest-bearing portfolio Industry, Norway 3,4 % Subord. debt, Norway 1,6 % Fin. sector, abroad Gov. cert. 3,4 % CDO 22,0 % 0,9 % Fin. sector, Norway 5,9 % Cert. 8,6 % Gov. guar. bonds Covered bonds 6,2 % 46,6 % Public bonds 1,3 % 45
Slide 46: Equity certificate holders
Equity certificate holders 46
Slide 47: Equity Certificates (EC) - holder structure
Equity Certificates (EC) - holder structure 35 31.03.11 31.03.12 30 25 20 % 30,7 30,9 25,4 25,1 15 23,1 21,5 10 5 5,2 7,7 0 10 largest Equity 20 largest Equity Holders residing in North Foreign Holders Certificate holders Certificate holders Norway 47 47
Slide 48: The 20 largest EC holders as at 31.03.12
The 20 largest EC holders as at 31.03.12 Number of Share of total Equity Certificate holders Equity Certificates Equity Certificate capital Pareto Aksjer Norge 3 382 268 5,11 % MP Pensjon 1 622 879 2,45 % Pareto Aktiv 1 520 783 2,30 % Frank Mohn AS 1 355 745 2,05 % Morgan Stanley & Co. Llc - Client
Slide 49: The 20 largest EC holders residence in Northern Norway
The 20 largest EC holders residence in Northern Norway - 31.03.12 Number of Share of total Equity Certificate holders Equity Certificates Equity Certificate capital SPBstiftelsen Sparebank 1 Nord-Norge 916 561 1,38 % Consept Eiendom A/S 480 116 0,73 % Karl Ditlefsen, Tromsø 459 243 0,69 % Norges Råf
Slide 50: Liquidity/funding
Liquidity/funding SpareBank 4 NORD-NORGE
Slide 51: Funding instruments/diversification at 31.03.12
Funding instruments/diversification at 31.03.12 Category < 1 yr > 1 yr Sum Lower Tier 2, NOK 1000 1000 EMTN, EUR 572 534 1106 Tier 1, Perpetual, USD 0 343 343 Senior usikret, NOK 2212 12915 15126 Bytteordningen 460 2102 2562 TOTAL, SHORT FUNDING 3244 TOTAL, LONG FUNDING 16894 TOTAL, ALL FUNDING 2013
Slide 52: Funding and liquidity management
Funding and liquidity management Maturity profile of capital markets funding at 30.03.12 Maturity profile ex. SpareBank 1 Boligkreditt • Good diversification in terms of maturities. • SpareBank 1 Boligkreditt is a substantial funding source, NOK 19 bn transferred as at 30.03.12. • Gross maturities c
Slide 53: Summary – key figures
Summary – key figures Group Amounts in NOK million 31.03.12 31.03.11 Change Change % RESULT Result before tax 232 381 - 149 -39,1% STATEMENT OF FINANCIAL POSITION Total assets 70 012 68 202 1 810 2,7% Gross lending 50 941 49 638 1 303 2,6% Deposits from customers 39 675 39 402 273 0,7% KEY FIGURES 3
Slide 54: SpareBank 1 Nord-Norge 1st quarter report 2012
SpareBank 1 Nord-Norge 1st quarter report 2012 Satisfied result 1st quarter 2012. The bank’s solvency is very good. Main features (figures and percentages in brackets refer to the same interim period in 2011): • Operating result before tax NOK 232 • Lending growth during the last 12 months million (
Slide 55: Contact information
Contact information SpareBank 1 Nord-Norge P O Box 6800 9298 Tromsø CEO Deputy CEO CFO Hans Olav Karde Oddmund Åsen Rolf Eigil Bygdnes Tlph 901 51 981 Tlph 906 72 757 Tlph 905 19 774 Financial calendar Internet: 2011 SNN home page and internet bank: www.snn.no Q1 28. April Hugin Online: www.huginonl
Slide 56: Enclosures
Enclosures SpareBank 4 NORD-NORGE
Slide 57: Group net fee, commision and other operating costs
Group net fee, commision and other operating costs (Amounts in NOK million) 1Q12 4Q11 3Q11 2Q11 1Q11 Guarantee c ommissions 5 7 3 4 4 Other fee- and commission inc ome 136 136 143 136 134 Fee- and commission inc ome 141 143 146 140 138 Fee- and commission costs 21 24 19 18 19 Net fee- and commission
Slide 58: Quarterly Summary – operating costs
Quarterly Summary – operating costs (Amounts in NOK million) 1Q12 4Q11 3Q11 2Q11 1Q11 Wages and salaries 114 121 112 106 99 Pension costs 9 5 9 6 9 Social costs 10 15 10 11 11 Total personnel costs 133 141 131 123 119 Administration Total costs personnel- and general administration 84 85 75 85 68 co
Slide 59: SpareBank 1 Group and Alliance
SpareBank 1 Group and Alliance 59
Slide 60: The Alliance structure
The Alliance structure SpareBank 1 SpareBank 1 SpareBank 1 Sparebanken Samarbeidende LO/LO-forbund SR-Bank SMN Nord-Norge Hedmark Sparebanker (19,5 %) (19,5 %) (19,5 %) (12 %) (19,5 %) (10 %) SpareBank 1 Gruppen AS SpareBank 1 SpareBank 1 ODIN Markets Livsforsikring Forvaltning (97,2 %) (100 %) (100
Slide 61: The SpareBank 1 Alliance
The SpareBank 1 Alliance The SpareBank 1 Alliance - Key numbers – 15 saving banks – 2 alliance owned commercial banks • BN Bank og SpareBank 1 Oslo Akershus – Total assets (pro forma): ca NOK 712 billion (30.09.11) – Number of branches: 351 – Number of employees (full-time equivalents): ca 6 300 (20
Slide 62: Macro North Norway
62 Macro North Norway SpareBank 4 NORD-NORGE
Slide 63: Facts about North Norway
Facts about North Norway There are more of us • The population increased by 2,558 • Immigration of foreign workers drives growth • Growth in the towns and stabilisation in rural areas Large public sector - 42% of jobs Large differences in the industries 3 counties of the counties 88 municipalities 4
Slide 64: North Norway - Important focus area
North Norway - Important focus area The message from the northern region: • The northern region is Norway's most strategic focus area • Setting out the course of northern region policy and ensuring better coordination and a greater effect from input • Value creation and jobs Overall objective: • Cre
Slide 65: North Norway - Future resource centre
North Norway - Future resource centre Marine resources • Sustainable fish stocks • Large available areas ideal for growth in fish farming • New opportunities in marine bioprospecting • Northward movement of the aquaculture industry • Increasing demand for seafood Energy resources • Large potential f
Slide 66: North Norway - Future resource centre
North Norway - Future resource centre Minerals • Considerable potential for deposits of commercially exploitable minerals: iron, olivine, quartz, copper, gold, nepheline etc. • Greater global demand for ore and minerals • Increasing need for metal and metal products Culture and attractions • Coastal
Slide 67: An energy region takes shape
An energy region takes shape 67 67
Slide 68: Petroleum - Renewed optimism
Petroleum - Renewed optimism Status: • Increased exploration and drilling activity • Onshore bases mean increased local activity - Opportunity for competence- based industry • Greatest activity in Nordland and Finnmark Future potential: • Large potential for future value creation • Norway and North
Slide 69: Renewable energy
Renewable energy North Norway has great potential for new, renewable energy - Hydropower, wind power on land and water, tidal power, forests: • The potential for wind power corresponds to 1.5 times Norway's total current hydropower production • District heating plants burning wood chippings make for
Slide 70: North Norway - important for neighbouring countries
North Norway - important for neighbouring countries Exports from North Norway mean new transnational transport solutions Increasing petroleum development gives opportunities for supply bases and oil transshipment A cross-border perspective with neighbouring countries ensures good joint solutions for
Slide 71: The challenges for the country and area are linked to workforce and infrastructure
The challenges for the country and area are linked to workforce and infrastructure • Low unemployment - 2.8% completely unemployed in February 2012 • Increasing workforce shortage - 8,300 people in 2011 • Increasing petroleum development gives opportunities and challenges • Realising growth potentia
Slide 72: Attractive for jobseekers
Attractive for jobseekers From Nordlys 15.03.2012 72
Slide 73: Bank. Forsikring. Og deg.
Bank. Forsikring. Og deg.
SpareBank 1 Nord-Norge — Q1 2012 Earnings Presentation on 6ix