Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — FY2013 Earnings Presentation
68 slides from Sparebank 1 Nord-norge's earnings presentation, Feb 5, 2014
Slide 1: Preliminary annual report and accounts 2013
SpareBank 1 Nord-Norge Preliminary annual report and accounts 2013 5 February 2014 1
Slide 2: SpareBank 1 Nord-Norge – The Group
SpareBank 1 Nord-Norge – The Group Vision statement: For North-Norway! Head office Tromsø Organisation: 5 regioner Regional offices : Hammerfest Tromsø Harstad Bodø Mo i Rana Branches: 74 2
Slide 3: Organisation of the financial services Group
Organisation of the financial services Group SpareBank 1 Nord-Norge Financial Services Group - Tromsø SpareBank 1 Gruppen AS - Bodø SpareBank 1 Finans Nord-Norge AS Equity stake 19,5 % Equity stake 100 % EiendomsMegler 1 Alliansesamarbeidet SpareBank 1 DA Lofoten AS Equity stake 17,74 % Equity stake
Slide 4: Macro and Economic trends Q4 - 2013
Macro and Economic trends Q4 - 2013 4
Slide 5: Nord-Norge - strengthened position
Macro Nord-Norge - strengthened position • High investment growth • Less dependent on the petroleum sector compared with Norway as a whole • Increased demand is important for the export industries • Less risk in case of reduced housing prices • Big public sector represents a stabilizing factor
Slide 6: The growth in the north is twice as high compared to the south
Prognosis The growth in the north is twice as high compared to the south North-Norway - Macroeconomic prognosis Percentage growth compared to last year • Higher wealth creation Norway Nord-Norge • Increased exports 2013 2014 2013 2014 Private consumption 3 3 3 3 • High, but somewhat Public consumpti
Slide 7: Considerable optimism in the business sector
Prognosis Considerable optimism in the busines sector • High expectations with regard to higher sales • Moderate expctations to increased exports • Modest expectations to increased employment • Expectations vary between the business sectors Sales Employm. Exports
Slide 8: North Norway: Investments are important
Investments North Norway: Investments are important • NOK 200 bill. worth of investments projects identified for the period 2014 – 2020 • Biggest projects within housing, the continental shelf, and power supply • Investments within industry and commerce are picking up • Infrastructure investments ar
Slide 9: Lack of skilled workers
Labour market Lack of skilled workers • Alarming number of businesses are experiencing lack of skilled workes • Difficult to implement planned investments • Should ensure access – Education – Easened work immigration Tourism Seafood Building and Trade Knowledge construction based services H.educ. te
Slide 10: Northern Norwegians return home
Labour market Northern Norwegians return home
Slide 11: Regional business sectors in for the future
Regional business sectors in for the future • Seafood • Oil service businesses • Tourism • Energy • Mining and minerals (?) • Infrastructure; Building /construction and trade 11
Slide 12: North Norway – Housing market
North Norway – Housing market
Slide 13: Moderate relative price level– also in the towns
Housing market Moderate relative price level– also in the towns House prices/m2 Yearly avg Total housing (>100 m2) NOK 1.000 50,0 45,0 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 - 1992 1995 1998 2001 2004 2007 2010 2013 Oslo Tromsø Norge Nord-Norge gjsn
Slide 14: Considerable need of new housing units in the towns
Considerable need of new housing units in the towns Share of planned new housing units Need for housing units until 2030 in the towns per county - prognosis
Slide 15: Housing market keeps up
Housing market keeps up Housing starts • Prices increased in 2013 (Q4) Number of units – Northern Norway: 5,5 % ( 0,9) 2.500 – Norway: 1,0 % (- 2,6) 2.250 • 10 % decrease in number of housing units for sale 2.000 – Low supply in the biggest towns – Low average transfer period in 1.750 Tromsø - 27 da
Slide 16: For Nord-Norge!
Vision statement For Nord-Norge! 16 16
Slide 17: ail RDNORSK |
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Slide 18: Main financial targets
Main financial targets • Banking operations at top international level: Minimum 12 % ROE • Undisputable solid: 14.5 % Core Tier 1 in 2016 18
Slide 19: SpareBank 1 Nord-Norge 4th quarter report 2013
SpareBank 1 Nord-Norge 4th quarter report 2013 Main features (figures and percentages in brackets refer to the same period in 2012): • Profit before tax NOK 1 179 million (NOK 767 million) • Profit after tax NOK 963 million (NOK 525 million) • Return on equity after tax of 13.0% (9.0%) • ROE last qu
Slide 20: SpareBank 1 Nord-Norge 4th quarter report 2013
SpareBank 1 Nord-Norge 4th quarter report 2013 Main features (figures and percentages in brackets refer to the same period in 2012): • Lending growth in last 12 months 6.3% (11.6%), including intermediary loans • Retail market 8.4% (11.0%) • Ret Corporate market 1.6% (12.9%) • Growth in deposits in
Slide 21: Capital adequacy ratio - Group
Capital adequacy ratio - Group 13 % 12,29 % 12 % 11 % 10,84 % 10,79 % 10,73 % 10,62 % 10,72 % 9,66 % 10,67 % 10 % 10,23 % 10,31 % 10,29 % 9% 8% 7% 6% 5% 03.11 06.11 09.11 12.11 03.12 06.12 09.12 12.12 03.13 06.13 09.13 12.13 Common Equity Tier I % incl result Lower limit Common Equity Tier I 21
Slide 22: Increased solidity - planned and implemented measures
Increased solidity - planned and implemented measures Measure Status 1 Concentrate on core SNN Invest – Activities discontinued business Sale of stake in Bank 1 Oslo (4.8 % remaining) 2 Increase cost efficiency Low parent bank cost increase in 2013 3 Increase interest General interest margin increas
Slide 23: Profit and loss account - Group
Profit and loss account - Group (Amounts in NOK million) 31.12.13 31.12.12 Net interest income 1 290 1 166 Net fee-, commision and other operating income 922 656 Net income from financial investments 346 260 Total net income 2 558 2 082 Total costs 1 207 1 120 Result before losses and write-downs 1
Slide 24: Quarterly summary – Profit and loss account figures
Quarterly summary – Profit and loss account figures (Amounts in NOK million) 4Q13 3Q13 2Q13 1Q13 4Q12 Net interest income 360 341 309 280 307 Net fee-, commision and other operating income 253 233 238 198 202 Net income from financial investments 85 106 64 91 30 Total net income 698 680 611 569 539
Slide 25: Quarterly results – net interest income
Quarterly results – net interest income (Amounts in NOK million) 4Q13 3Q13 2Q13 1Q13 4Q12 Interest and similar income from loans to and claims on credit institutions 1 7 5 6 7 Interest and similar income from loans to and claims on customers 778 664 634 615 623 Interest and similar income from certi
Slide 26: Total commission and other income
Total commission and other income Per 4Q (in NOK million) 4Q13 3Q13 2Q13 1Q13 4Q12 2013 2012 Guarantee commissions 9 9 10 6 7 34 27 Interbank commissions 5 5 5 4 4 18 16 C redit arrangement fee 3 3 3 2 3 10 13 Arrangement fee from SpareBank 1 Boligkreditt 91 90 84 67 62 332 175 Arrangement fee from
Slide 27: Net interest income - Group
Net interest income - Group 500 3,00 % 450 400 350 2,00 % 300 250 200 1,00 % 150 100 50 0 0,00 % 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Net interest income SpareBank 1 Boligkreditt and Næringskreditt Perc.of aver.tot.ass. (Amounts in NOK million) 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Ne
Slide 28: Changes in net interest income last quarter
Changes in net interest income last quarter 500 7 5 8 450 11 9 2 400 18 350 300 250 451 431 200 150 100 50 0 Net interest Deposits Lending Lendring Volume EC Other Other Net interest income margin margin margin interest- income 3Q13 corporate private bearing 4Q13 * Measured against average funding c
Slide 29: Lending margin, Parent bank
Lending margin, Parent bank 3,50 % 3,33 % 3,33 % 3,32 % 2,94 % 3,00 % 2,67 % 2,69 % 2,69 % 2,50 % 2,37 % 2,60 % 2,59 % 2,53 % 2,28 % 2,24 % 2,00 % 2,14 % 2,02 % 1,82 % 1,50 % 1,00 % 0,50 % 0,00 % 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Interest margin corporate Interest margin retail The interest ma
Slide 30: Customer deposit, Parent bank
Customer deposit, Parent bank 0,40 % 0,19 % 0,20 % 0,19 % 0,11 % 0,01 % 0,02 % 0,00 % -0,04 % -0,07 % 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 -0,06 % -0,16 % -0,17 % -0,11 % -0,20 % -0,15 % -0,33 % -0,40 % -0,36 % -0,47 % -0,46 % -0,46 % -0,49 % -0,50 % -0,60 % -0,68 % -0,80 % -0,74 % -0,82 % -0,82
Slide 31: Net interest income –
Net interest income – • The future development in net interest income is mainly dependent on • The competitive situation • The bank’s funding cost • The competition within the retail market and corporate lending with low risk currently seem to be increasing. • All other factors equal, a reduction in
Slide 32: Income from financial investments
Income from financial investments (Amounts in NOK million) 31.12.13 31.12.12 Dividends 27 17 Income from joint ventures 302 210 Gains/losses and net value changes on shares 57 -104 Gains/losses and net value changes on certificates and bonds -30 67 Gains/losses and net value changes on foreign excha
Slide 33: Group operating costs
Group operating costs (Amounts in NOK million) 31.12.13 31.12.12 Change Wages and salaries 553 499 54 Pension costs 31 34 - 3 Social costs 54 48 6 Total personnel costs 638 581 57 Administration costs 337 319 18 Total personnel- and general administration costs 975 900 75 Depreciation and write-down
Slide 34: Group operating costs
Group operating costs NOK mill. 350 3,50 % 325 300 3,00 % 275 250 2,50 % 225 200 2,00 % 175 150 1,50 % 125 100 1,00 % 75 50 0,50 % 25 0 0,00 % 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Total costs Perc.of aver.tot.ass. 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Total costs 277 282 277 266 295 2
Slide 35: Group operating expenses
Group operating expenses Per 4Q (in NOK million) 4Q13 3Q13 2Q13 1Q13 4Q12 2013 2012 Wages and salaries 154 131 138 129 134 552 499 Pension costs 3 9 11 9 4 32 34 Social costs 17 11 13 13 15 54 48 Total personnel costs 174 151 162 151 153 638 581 Development costs 29 27 28 26 22 109 97 Electronic dat
Slide 36: Core banking operations
Core banking operations- (excl. income from financial investments) (Amounts in NOK million) 4Q13 3Q13 2Q13 1Q13 4Q12 Net interest income 360 341 309 280 307 Net fee- and commission income 210 219 207 181 182 Other operating income 43 14 31 17 20 Total costs 325 286 302 294 295 Underlying banking ope
Slide 37: Group companies result before tax
Group companies result before tax (Amounts in NOK million) 31.12.13 31.12.12 SpareBank 1 Finans Nord-Norge AS 98 739 75 575 SpareBank 1 Nord-Norge Invest AS -29 776 -147 523 SpareBank 1 Regnskapshuset Nord-Norge AS 2 909 - 498 EiendomsMegler 1 Nord-Norge AS 15 356 7 291 SpareBank 1 Nord-Norge Forval
Slide 38: Proposed profit allocation
Proposed profit allocation (Amounts in NOK million) Parent Bank's profit after tax 915,1 Allocated to cash dividend 110,4 Allocated to equalisation reserve 282,3 Total to EC-holders 42,91 % 392,7 392,7 Pay-out ratio EC-holders 28,11 % Allocated to donations 8,25 % 43,1 Allocated to the Savings Bank'
Slide 39: Key figures balance sheet
Key figures balance sheet (Amounts in NOK million) 31.12.13 31.12.12 Change Change % Total assets 77 513 75 329 2 184 2,9% Gross lending 57 371 54 551 2 820 5,2% Loans and advances to customers incl SpareBank 1 80 670 75 914 4 756 6,3% Boligkreditt and Næringskreditt Deposits from customers 44 948 4
Slide 40: Deposit volume
Deposit volume 50 000 100 % 46 006 44 948 45 000 43 745 43 266 43 588 43 232 43 938 41 765 90 % 39 675 40 000 Corp 84,32 % 82,86 % 80 % 28 % 35 000 80,87 % 80,90 % 77,88 % 77,62 % 78,35 % Retail 76,45 % 55 % 75,56 % 30 000 Public 70 % 17 % 25 000 60 % 20 000 15 000 50 % Deposit growth past 10 000 12
Slide 41: Deposit growth households
Deposit growth households Deposit growth corporates. 12 mth. growth 25 20 15 10 6,8 5 5,0 % 0 -5 -10 2010M12 2011M12 2012M12 2013M12 SNN, Corporate clients Norway, Corporates Source: Statistics Norway, The money supply M2, Dec 2013 & SNN Bare, Dec 2013 41
Slide 42: Deposit growth corporates
Deposit growth corporates Deposit growth households. 12 mth. growth 12 10 8 6,1 6 5,3 % 4 2 0 2010M12 2011M12 2012M12 2013M12 SNN, Retail clients Norway, Households Source: Statistics Norway, The money supply M2, Dec 2013 & SNN Bare, Dec 2013 42
Slide 43: Lending volume
Lending volume 90 000 80.671 51 49 80 000 75.956 77.282 79.083 % % 75.914 74.665 72.331 69.978 70 000 68.033 66.722 63.334 63.536 64.876 60 000 Retail incl. SpareBank 1 Boligkreditt 50 000 Corp/ Public 40 000 30 000 20 000 42 % 10 000 58 % 0 des. 10 mar. 11 jun. 11 sep. 11 des. 11 mar. 12 jun. 12 se
Slide 44: Credit growth corporates
Credit growth corporates Credit growth corporates. 12 mth growth 16 14 12 10 8 6 4 3,7 % 2 1,5 0 -2 -4 2010M12 2011M12 2012M12 2013M12 SNN, Corporate clients Norway, Corporates Source: 44 Statistics Norway, The credit indicator C2, Dec 2013 & SNN Bare, Dec 2013
Slide 45: Credit growth households
Credit growth households Credit growth households. 12 mth growth 14 12 10 8,4 8 7,0 6 % 4 2 0 2010M12 2011M12 2012M12 2013M12 SNN, Retail clients Norway, Households Source: 45 Statistics Norway, The credit indicator C2, Dec 2013 & SNN Bare, Dec 2013
Slide 46: Credit area
Credit area • Quality • Portfolio • Migration, commitments in default and losses 46
Slide 47: Lending portfolio - comments
Lending portfolio - comments • Good increase in retail lending, with focus on commitments qualifying for SpareBank 1 Boligkreditt (covered bond company). • Low growth in corporate market lending last 12 months. • The portfolio and growth in corporate sector lending is diversified. • Some increase in
Slide 48: Distribution on segments shows good diversification
Distribution on segments shows good diversification Loan portfolio including Boligkreditt SPB1 Boligkreditt 28,9 % Construction building 2,4 % Other service industry 2,1 % Agriculture, fisheries, fish farming 4 % 19,9 % Transport and wholsesale 6,3 % Wage-earners 41,4 % Maritime sector 0,8 % Other 4
Slide 49: Group lending by sector
Group lending by sector (NOK million) 31.12.13 Share 31.12.12 Share Change Change in % Crop production, Forestry and fishing 3 208 4,0 % 2 858 4% 350 12 % Manufacturing, electricity and water supply, construction 3 579 4,4 % 4 438 6% - 859 -19 % Wholesale and retail trade, accomodation and food serv
Slide 50: Portfolio - exposure as of 31.12.13, parent bank
Portfolio - exposure as of 31.12.13, parent bank 30.000 25.000 20.000 NOK mill 15.000 10.000 5.000 0 Næringskreditt Boligkreditt Low risk Medium risk High risk Default/impaired Retail market Corporate market SB1 Boligkreditt SB1 Næringskreditt 50
Slide 51: Portfolio - exposure as of 31.12.13
Portfolio - exposure as of 31.12.13 Loans distributed by exposure and share of EAD (Exposure at Default) Share of loanexposure (EAD) December 2013 Share of loanexposure (EAD) December 2012 71 % 66 % 14 % 15 % 9% 8% 7% 6% Below 10 mnok 10 - 100 mnok 100 - 250 mnok Above 250 mnok 51
Slide 52: The Group's non-performing, impaired and other problem commitments
The Group's non-performing, impaired and other problem commitments 1.100 3,00 % 1.000 900 2,50 % 800 MNOK 700 2,00 % 600 1,50 % 500 400 1,00 % 300 200 0,50 % 100 0 0,00 % 31.12.09 31.12.10 31.12.11 31.12.12 31.03.13 30.06.13 30.09.13 31.12.13 Non-performing commitments 575 492 471 397 598 598 563 48
Slide 53: Loan losses: The Group's write-downs as of Q4 2013
Loan losses: The Group's write-downs as of Q4 2013 Write-downs 4th quarter 4th quarter 2013 2012 2013 (iso) 2012 (iso) Individual write-downs Retail market 14 5 2 0 Corporate market 136 223 34 43 SpareBank 1 Finans Nord-Norge 9 6 4 4 Other group units 13 1 4 0 Total individual write-downs 172 235 44
Slide 54: Losses on loans and guarantees
Losses on loans and guarantees 250 1,40 % 1,20 % 200 1,00 % NOK mill 150 0,80 % 0,60 % 100 0,40 % 50 0,20 % 0 0,00 % 2009 2010 2011 2012 2013 Net losses Net losses in % of gross lending incl. SpareBank 1 Boligkreditt and… 2009 2010 2011 2012 2013 Individual write-downs for impaired value 163 133 84
Slide 55: Liquidity/funding
Liquidity/ funding SpareBank 4 NORD-NORGE
Slide 56: Funding instruments /diversification, 31.12.13
Funding instruments /diversification, 31.12.13 56
Slide 57: Maturity profile of capital markets funding, 31.12.13
Maturity profile of capital markets funding, 31.12.13 (excl. SB1 Boligkreditt) • Good diversification in terms of maturities • NOK 21.031 mill in capital market funding exclusive of SB1 Boligkreditt • SpareBank 1 Boligkreditt is an important funding source. Mortgage loans of NOK 23.000 mill transfer
Slide 58: Equity certificate holders
Equity certificate holders 58
Slide 59: Equity Certificates (EC) - holder structure
Equity Certificates (EC) - holder structure 100,00 6,9 7,3 6,3 6,1 5,7 5,5 5,2 8,2 7,7 7,9 7,7 7,7 8,7 10,3 10,2 11,3 10,0 13,8 90,00 80,00 70,00 64,8 60,00 66,2 68,6 68,4 68,7 69,4 66,8 65,7 70,6 67,2 67,4 67,3 67,2 64,1 64,4 64,1 65,8 65,6 50,00 40,00 30,00 20,00 29,7 24,6 26,5 25,2 25,6 25,5 25,4
Slide 60: The 20 largest EC holders
The 20 largest EC holders Number of Share of total Equity Certificate holders Equity Certificates capital Pareto Aksje Norge 5.253.551 5,23 % MP Pensjon PK 2.720.503 2,71 % Citibank N.A. 2.385.597 2,38 % Pareto Aktiv 2.209.269 2,20 % Frank Mohn A/S 2.204.670 2,20 % Flps - Princ All Sec Stock Sub 1.7
Slide 61: The 20 largest EC holders residing in Northern Norway
The 20 largest EC holders residing in Northern Norway Number of Share of total Equity Certificate holders Equity Certificates Equity Certificate capital Sparebankstiftelsen Sparebank 1 Nord-Norge 1.411.606 1,41 % Consept Eiendom AS 739.796 0,74 % Ditlefsen, Karl 547.543 0,55 % Norges Råfisklag 457.4
Slide 62: 6262
62 6262
Slide 63: Contact information
Contact information SpareBank 1 Nord-Norge P O Box 6800 N-9298 Tromsø CEO CFO J Jan-Frode F d Janson J Rolf Eigil Bygdnes Tel +47 909 075183 Tel +47 905 19 774 Internet: Financial calendar 2014 SNN home page and internet bank: www.snn.no Q4-2013 5 February Hugin Online: www.huginonline.no Q1 Q 6 May
Slide 64: Enclosures
Enclosures SpareBank 4 NORD-NORGE
Slide 65: SpareBank 1 Group and Alliance
SpareBank 1 Group and Alliance 65
Slide 66: SpareBank 1 is the second largest financial group in Norway
SpareBank 1 is the second largest financial group in Norway – (total assets) - with good profitability • Founded in 1996 • 15 independent savings banks - Of six listed ECC banks and one commercial bank • Two jointly owned commercial banks - BN Bank and Bank 1 Oslo Akershus • Sparebank 1 Gruppen: pro
Slide 67: The SpareBank 1 alliance has a solid business model
The SpareBank 1 alliance has a solid business model, with proximity to customers and a conservative risk profile Shareholders and SamSpar distributors 19,5 % 19,5 % 19,5 % 11 % 1,4 % 19,5 % 9,6 % Products, commissions and dividends Sales SpareBank 1 Gruppen AS BN Bank Bank 1 Oslo Akershus SpareBank
Slide 68: The SpareBank 1 alliance includes three areas
The SpareBank 1 alliance includes three areas: The SpareBank 1 banks The alliance cooperation Companies owned by the banks • SpareBank 1 Nord-Norge • The management of the Alliance • Companies owned by at least two cooperation and underlying business banks and that may promote itself as a • SpareBan
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