Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Østlandet — Q1 2017 Earnings Presentation
30 slides from Sparebank 1 Ostlandet's earnings presentation, 2017
Slide 1: Financial results, Q1 2017
SI Bank pareBank @) Financial results, Q1 2017 SpareBank @) @STLANDET
Slide 2: Merged bank, new name
Merged bank, new name • Sparebanken Hedmark and Bank 1 Oslo Akershus merged operations with effect from 1 April 2017. • In its afternoon meeting on 30 March 2017, the Supervisory Board of Sparebanken Hedmark decided that the name of the merged bank would be SpareBank 1 Østlandet. The new name matche
Slide 3: New SpareBank 1 Østlandet
New SpareBank 1 Østlandet • Norway’s fourth largest savings bank, established in 1845. • Operations in Hedmark, Oppland, Oslo and Akershus with 1.7 mill. inhabitants. • Head office in Hamar. • Equity certificate bank, owned by Sparebankstiftelsen Sparebanken Hedmark (75 %), LO (15 %) and other Spare
Slide 4: New group structure and management
New group structure and management With effect 1 April CEO Richard Heiberg Innovation and Business Finance Development Geir-Egil Bolstad Dag-Arne Hoberg Business operations Risk and compliance Gudrun Michelsen Vidar Nordheim Communications HR and legal Siv Stenseth Eldar Kjendlie Organizations and C
Slide 5: Dividend, return on equity and CET-1 targets
50% DIVIDEND 10% RETURN O 16% CET-1 MINIMUM
Slide 6: Summary of financials, Group
Summary of financials, Group • Profit after tax in Q1 2017 for Group of NOK 274 mn (Q1 2016 pro forma: 203), with Improved an ROE of 9.3 % (7.6 %). profitability ‒ Improvement from Q1 2016 due mainly to higher net interest income and lower loan losses. ‒ Closure of defined benefit pension scheme in
Slide 7: Key financials – quarterly
Key financials – quarterly Net interest income an commission fees from covered bond companies (MNOK) Return on equity after taxes (%) 517 521 540 14,6 337 341 9,0 9,4 9,3 7,6 Q1-16 Q2-16 Q3-16* Q4-16* Q1-17* Q1-16 Q2-16* Q3-16* Q4-16* Q1-17* Losses on loans and guarantees CET-1 (%) 43 17,5 20 9 16,9
Slide 8: Key financials – annual
Key financials – annual Net interest income and commission fees from covered bond Return on equity after taxes (%) companies (MNOK) 14,4 1.715 11,0 11,4 10,5 1.271 1.293 1.215 1.063 7,0 2012 2013 2014 2015 2016* 2012 2013 2014 2015 2016* Losses on loans and guarantees (MNOK) CET-1 (%) 75 72 17,2 66
Slide 9: Financial results
Financial results SpareBank 1. @STLANDET
Slide 10: Financial reporting and the Bank 1-acquisition
Financial reporting and the Bank 1-acquisition • The income statement of Bank 1 Oslo Akershus AS for H1-16 has been included in the Group result in accordance with the equity method, with an ownership share of 40.5 %. The income statement includes 100 % consolidation of Bank 1’s result from Q3 2016.
Slide 11: Main figures for Q1 2017
Main figures for Q1 2017 Group, former Sparebanken Hedmark and Bank 1 Reported "Former" Sparebanken Sparebanken Bank 1 Oslo Hedmark Group Hedmark Akershus Group Profitability Return on equity capital after tax 9,3 % 8,4 % 13,0 % From the balance sheet Assets (NOK mn) 101.861 61.186 42.028 Total adju
Slide 12: Income statement Q1 2017
Income statement Q1 2017 Q1 2017 Q1 2016 2016 Net interest income 464 297 1.490 Net commission income 255 110 759 Other income 53 50 180 Total operating expenses 437 253 1.203 Result bank operation before losses 335 204 1.226 Losses on loans and guarantees -26 9 75 Result bank operation after losses
Slide 13: Profits from subsidiaries and joint ventures
Profits from subsidiaries and joint ventures (Nok million) Q1 2017 Q1 2016 2016 Parent Bank's profit after tax 190 158 964 Dividends received from subsidiaries and joint ventures -84 -80 -389 Profit /loss attributable to: SpareBank 1 Gruppen AS 42 34 192 Bank 1 Oslo Akershus AS* 119 23 250 SpareBank
Slide 14: Change in profit from Q1 2016 to Q1 2017
Change in profit from Q1 2016 to Q1 2017 Contribution to changes in profit before tax from Q1-16 to Q1-17. Sparebanken Hedmark (Group). MNOK. 9 12 -42 7 28 137 -142 11 -27 137 30 361 202 Profit before NII SH NII B1 Commission Commission Op. costs SH Losses B1 Dividend/result Income from Losses SH Op
Slide 15: Group income profile
Group income profile Income by type. Sparebanken Hedmark (Group). % share of total income.* 12,3 % 12,1 % 16,6 % 16,2 % 14,9 % 9,9 % 9,7 % 4,1 % 4,8 % 5,9 % 4,3 % 6,1 % 10,5 % 9,3 % 9,2 % Other commission and other income 8,7 % 8,7 % 4,5 % 4,9 % 4,9 % Income from accounting services 5,0 % 4,7 % 5,0
Slide 16: Net interest income
Net interest income Interest income excl. commissions from covered bond companies. Interest income incl. commissions from covered bond companies 500 464 2,50% 442 452 Commission fees from cov bond comp B1 2,11% 38 450 2,05% 2,08% 37 33 Commission fees from cov bond comp SH 38 38 35 400 1,79% 1,85% 2
Slide 17: Loan and deposit volumes
Loan and deposit volumes Loans. Numbers in boxes: Total loans. NOK bn.** Deposits. NOK bn. 119 122 115 118 63 62 63 63 37 37 36 36 62 34 18 79 81 83 85 44 Q1-16 Q2-16* Q3-16* Q4-16* Q1-17* Q1-16 Q2-16* Q3-16* Q4-16* Q1-17* Loans transferred to coverd bond companies Gross loans own balance * Includes
Slide 18: Lending margins
Lending margins Retail lending margins, incl transferred loans. %.* Corporate lending margins, incl transferred loans. %.* 2,01% 2,77% 1,95% 2,67% 2,68% 2,63% 2,63% 1,89% 1,82% 1,83% 2,68% 1,78% 2,59% 2,62% 1,74% 2,56% 1,71% 2,52% 2,49% 2,50% 1,64% 2,47% 1,64% 2,43% 1,61% 1,58% 1,55% 2,31% 1,47% 1,4
Slide 19: Deposit margins
Deposit margins Retail deposit margins. %.* Corporate (excl Organisation Market) deposit margins. %.* 0,44% 0,39% 0,30% 0,29% 0,28% 0,22% 0,24% 0,27% 0,25% 0,17% 0,16% 0,17% 0,21% 0,26% 0,23% 0,08% 0,08% 0,19% 0,03% 0,00% 0,15% -0,04% 0,14% 0,23% 0,11% 0,17% -0,17% 0,15% -0,20% 0,08% Q1 2016 Q2 2016
Slide 20: Net commission and other income
Net commission and other income Commission and other income, by type. MNOK.* 8 13 15 17 16 31 14 36 46 Commission income from credit cards 79 Other income 9 70 Income from accounting services 6 10 71 13 Income from real estate brokerage 46 Mutual fund and insurance commisions 45 45 47 Payment transm
Slide 21: Operating expenses
Operating expenses Operating expenses, by type. MNOK.* 69 85 63 Other operating expenses 19 22 21 Depreciation 99 116 122 Admin. and other operating costs 25 27 49 47 50 11 12 11 Social security 68 75 24 8 23 Pensions 11 223 209 195 116 112 Payrolls -26 -245 Q1-16 Q2-16 Q3-16* Q4-16* Q1-17* * Includ
Slide 22: Financial assets and liabilities
Financial assets and liabilities Net income from financial assets and liabilities, by type. MNOK.* 2 Net result from financial assets and liabilites ex 96 valuation of own debt 19 82 37 Valuation of own debt 70 52 Net result from ownership interests 45 49 21 6 1 9 -20 Dividends from equity investmen
Slide 23: Losses
Losses Losses on loans and guarantees. Quarterly. MNOK.* Losses on loans and guarantees. Annual. MNOK.* 1 72 75 42 66 56 20 42 9 3 0 -19 -7 -26 Q1-16 Q2-16 Q3-16* Q4-16* Q1-17* 2012 2013 2014 2015 2016* Q1-2017* * Includes 100 % ownership of Bank 1. 23
Slide 24: Problem loans
Problem loans Defaulted commitments 700 Defaulted and other doubtful commitments. MNOK.* Other doubtful commitments 1,6% 1,40% Gross defaulted and doubtful in % of gross commitments 600 1,4% 1,20% Gross defaulted and doubtful in % of gross comm. inc. transferred loans 1,10% 1,10% 1,2% 500 0,90% 1,0%
Slide 25: Composition of loans and receivables
Composition of loans and receivables 74 % of lending to retail customers – 77 % including agriculture Composition of loans incl. covered bond companies. MNOK Composition of loans incl. covered bond companies. % share. Commercial services 3.404 Other 4.139 Primary industries 4.412 Wholesale and retai
Slide 26: Geographical distribution of loans
Geographical distribution of loans The loan portfolio is evenly distributed across three counties. Gross lending pr county. % of total lending*. Mortgage loans pr county. % of total mortgage lending*. Other, Other, 6% 6% Hedmark, Hedmark, 33% Oslo, 29% 37% Oslo, 30% Oppland, 4% Akershus, Akershus, 2
Slide 27: Capital adequacy
Capital adequacy The most solid regional savings bank. Maintains target of CET-1 of 16 % over time. Measures of bank solidity for Sparebanken Hedmark (Group). %. Leverage ratio in Q1 2017: 7,5% 0,3 % 1,0 % 0,9 % 0,4 % 2,7 % 13,7 % 15,3 % 15,6 % 14,2 % 12,0 % 12,1 % 16,9 % 17,2 % 16,9 % 16,7 % 16,2 %
Slide 28: Equity capital
Equity capital Equity capital. End-of-year balances. MNOK. 12.107 12.370 8.718 7.624 6.718 6.044 2012 2013 2014 2015 2016* Q1-17* * Includes 100 % ownership of Bank 1. 28
Slide 29: Size of balance sheet
Size of balance sheet Total assets and total adjusted assets (incl loans transferred to covered bond companies). End-of-year balances. NOK bn. 160 138 139 140 Figures in boxes: Total adjusted assets 37 37 120 100 73 80 63 66 57 17 16 60 15 13 102 102 40 50 56 44 47 20 0 2012 2013 2014 2015 2016* Q1-
Slide 30: Contact details
Richard Heiberg Chief Executive Officer Tel.: +47 902 06 018 richard.heiberg@sparebanken-hedmark.no Contact details Geir-Egil Bolstad Chief Financial Officer Tel.: +47 918 82 071 geir-egil.bolstad@sparebanken-hedmark.no 30
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