Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — Sparebanken Hedmark — H1 2013 Earnings Presentation
33 slides from Sparebank 1 Ostlandet's earnings presentation, Aug 14, 2013
Slide 1: Sparebanken Hedmark 1st Half Year 2013
Sparebanken Hedmark 1st Half Year 2013 Presentation of financial results CEO Richard Heiberg 14 August 2013
Slide 2: Appendix
Apendix I. Highlights first half year Page 4 II. Income statement Page 5 III. Balance Sheet and Capital Page 8 IV. Credit Page 25 V Liquidity and financing Page 29 VI Rating Page 32 2
Slide 3: About Sparebanken Hedmark
About Sparebanken Hedmark • Sparebanken Hedmark is the leading provider of financial products to people, companies and the public sector in Hedmark • Norway's largest self-owned savings bank: – NOK 6.3 billion in equity – NOK 46 billion in total assets – NOK 60 billion in commercial volume (incl. lo
Slide 4: Highlights - 1st Half Year 2013
Highlights - 1st Half Year 2013 Agenda • Increased stake in Bank 1 Oslo Akershus AS from 12% to 40.5% • Decision on direct ownership in SpareBank 1 Markets AS • Moody's confirmed A2 and stable outlook • Submitted IRB-A application to the Financial Supervisory Authority of Norway • High level of acti
Slide 5: Income statement first half-year 2013 (Group)
Income statement first half-year 2013 (Group) Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Net interest income 252 227 242 242 230 Net commission income 89 77 74 63 63 Other income 48 46 44 51 45 Total operating expenses 227 231 223 205 213 Result bankoperation before losses 162 119 137 151 125 Losses on
Slide 6: Specification of the consolidated profit (Group)
Specification of the consolidated profit (Group) Change in profit before tax Q2-2012 vs Q2-2013 450 400 64 -71 350 -4 -22 57 300 8 250 200 150 319 287 100 50 0 Profit before tax Q2- Net interest income Net commission and Result from Net income from Operating expenses Losses Profit before tax Q2- 201
Slide 7: Specification of results (Group)
Specification of results (Group) 1. Half year 1. Half year (Nok million) 2013 2012 Parent Bank's profit before tax 306 307 Dividends received from subsidiaries and joint ventures -121 -101 Profit /loss attributable to: SpareBank 1 Gruppen AS 47 38 Bank 1 Oslo Akershus AS 53 12 SpareBank 1 Boligkredi
Slide 8: Interest margin Parent bank (incl. Boligkreditt)
Interest margin Parent bank (incl. Boligkreditt) 2,50 % 2.43 % 2,40 % 2.32 % 2.32 % 2,30 % 2.28 % 2.26 % 2.25 % 2.22 % 2,20 % 2.19 % 2.18 % 2,10 % 2.08 % 2.08 % 2.01 % 2,00 % Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 8
Slide 9: Interest margin Parent bank (incl. Boligkreditt)
Interest margin Parent bank (incl. Boligkreditt) 2,80 % 2.71 % 2.68 % 2,70 % 2.61 % 2.59 % 2,60 % 2.55 % 2.52 % 2.50 % 2,50 % 2.42 % 2.42 % 2,40 % 2,.6 % 2.30 % 2.36 % 2,30 % 2.24 % 2.27 % 2,20 % 2.22 % 2.17 % 2.18 % 2.16 % 2.15 % 2,10 % 2.15 % 2.12 % 2.08 % 2,00 % 2.03 % 1,90 % 1.94 % Q3 Q4 Q1 Q2 Q
Slide 10: Operating expenses (Group)
Operating expenses (Group) 1. Half year 1. Half year 2013 2012 Payroll 178 174 Pension costs 24 24 Social security expenses 38 34 Total personnel expenses 240 232 Total operating expenses and other expenses 142 133 Total personnel- and operating expenses 382 365 Depreciation 19 18 Other operating ex
Slide 11: Losses on loans and guarantees (Group)
Losses on loans and guarantees (Group) Quarterly losses isolated Yearly losses -30 -160 -140 -146 -120 -25 -26 -100 -80 -23 -23 -22 -22 -60 -20 -40 -50 -50 -42 -20 -25 0 -15 2009 2010 2011 2012 Q2 2013 Defaulted and doubtful commitments -12 -10 1.000 1,85 % 2,00 % 1,76 % 1,75 % 800 1,80 % 1,39 % 1,6
Slide 12: Main figures Sparebanken Hedmark (Group)
Main figures Sparebanken Hedmark (Group) 1. half year 2013 1. half year 2012 2012 Profitability Return on equity capital after tax 8,5 % 7,9 % 7,0 % Total operating costs in relation to total income 57,1 % 58,6 % 60,3 % From the balance sheet Deposits rom customers in relation to gross loans to cust
Slide 13: Quarterly financial statements
Quarterly financial statements
Slide 14: Statement second quarter 2013 (Group)
Statement second quarter 2013 (Group) Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Net interest income 252 227 242 242 230 Net commission income 89 77 74 63 63 Other income 48 46 44 51 45 Total operating expenses 227 231 223 205 213 Result bankoperation before losses 162 119 137 151 125 Losses on loans a
Slide 15: Specification of the consolidated profit (Group)
Specification of the consolidated profit (Group) (Nok million) Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Parent Bank's profit before tax 266 40 82 90 191 Dividends received from subsidiaries and joint ventures -94 -27 0 0 -67 Profit /loss attributable to: SpareBank 1 Gruppen AS 10 37 -5 27 9 Bank 1 Os
Slide 16: 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 250 237 250 211 199 200 200 170 157 152 150 150 119 109 100 88 82 100 50 50 0 0 Q2-2012 Q3-2012 Q4- 2012 Q1-2013 Q2-2013 Q2-2012 Q3-2012 Q4- 2012 Q1-2013 Q2-20
Slide 17: Net interest income (Group)
Net interest income (Group) Interest income excl. Commission from BK and NK Interest income incl. commission from BK and NK 255 2,35 % 350 2,31 % 2,30 % 2,29 % 250 2,30 % 300 2,25 % 49 245 2,24 % 2,25 % 37 250 9 27 10 10 17 41 2,21 % 11 27 240 2,20 % 200 235 2,15 % 2,13 % 2,15 % 230 150 2,10 % 252 2
Slide 18: Net commission and other income (Group)
Net commission and other income (Group) 200 180 160 49 140 120 41 30 100 80 31 37 19 15 16 60 23 13 17 8 12 9 40 27 16 18 15 16 10 20 16 16 16 22 27 28 15 14 15 9 0 Commission from Real estate Income from Payment Insurance services Other commission BK and NK brokerage accounting transmission Q2-2012
Slide 19: Net income from financial assets and liabilities (Group)
Net income from financial assets and liabilities (Group) Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Dividends 18 7 Net profit from ownership interest 53 54 -5 46 10 Profit/loss and change in value of bond and certificates 19 -37 -21 -114 7 Profit/loss and change in value of shares -7 1 Profit/loss and
Slide 20: Operating expenses (Group)
Operating expenses (Group) Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Payroll 86 92 87 86 83 Pension costs 12 12 3 11 12 Social security expenses 18 20 20 18 16 Total personnel expenses 116 125 110 115 111 Total operating expenses and other expenses 75 67 77 61 70 Total personnel- and operating expense
Slide 21: Balance sheet and capital
Balance sheet and capital Sparebanken 1 HEDMARK
Slide 22: Development in balance sheet
Development in balance sheet Gross loans incl. Loans transferred to mortgage companies (NOK billion) Development in assets and business volume (NOK billion) 60,0 12,0 % 70,0 49.0 50.5 60.0 50,0 44.0 44.6 45.0 45.8 46.7 48.1 10,0 % 60,0 53.0 56.7 41.8 42.3 43.0 49.6 44.3 46.1 40,0 8,0 % 50,0 35.8 38.
Slide 23: Balance sheet
Balance sheet 30.06.2013 30.06.2012 31.12.2012 ASSETS Cash and deposits with central banks 604 608 236 Loans to and receivables from credit institutions 480 349 294 Loans to and receivables from customers 36.517 34.226 35.200 Financial papers 5.400 5.991 5.958 Investments in subsidiaries, associates
Slide 24: Development in Tier 1 ratio (Group)
Development in Tier 1 ratio (Group) Tier 1 ratio for 18,0 % Parent bank (30.06): 20.3 % 16,0 % 16.9 % 15.1 % 15.2 % 14,0 % 14.7 % 14.1 % 13.2 % 12,0 % 12.7 % 11.5 % 10,0 % 8,0 % 6,0 % 4,0 % 2,0 % As at 1. July 2013 the Government has implemented new capital adequacy requirements: 0,0 % Core Tier 1:
Slide 25: Credit
Credit Sparebanken 1 HEDMARK
Slide 26: Composition of loans and receivables from customers (Group)
Composition of loans and receivables from customers (Group) Gross loans by sector and industry inlc. Mortage comapaniese Composition of loans incl. Mortage companies Commercial services; 1.760 Corporate Primary banking; Other; 92 industries; 3.253 43.0 % Retail banking; Wholesale and 57.0 % retail t
Slide 27: Risk in the loan portfolio (excl. BK)
Risk in the loan portfolio (excl. BK) Loans by size of commitment as a percentage of EAD Loans by size of commitment as a percentage of EAD 80 % 90 % 71 % 71 % 80 % 78 % 70 % 75 % 70 % 60 % 60 % 50 % 50 % 40 % 40 % 30 % 30 % 21 % 19 % 20 % 20 % 10 % 10 % 8% 10 %11 % 10 % 6 %6 % 5% 3% 3 %3 % 0% 0% Lo
Slide 28: Risk in the loan portfolio (incl. BK)
Risk in the loan portfolio(incl. BK) Loans by size of commitment as a percentage of EAD Loans by size of commitment as a percentage of EAD 90 % 90 % 84 % 82 % 80 % 77 % 78 % 80 % 70 % 70 % 60 % 60 % 50 % 50 % 40 % 40 % 30 % 30 % 20 % 15 % 16 % 20 % 10 % 6% 10 % 8 %7 % 5% 4 %4 % 3 %2 % 3 %2 % 0% 0% L
Slide 29: Liquidity and financing
Liquidity and financing Sparebanken 1 HEDMARK
Slide 30: Liquidity reserves
Liquidity reserves • The figure shows the distribution of the bank's liquidity reserve as at 30.6.13 • The grey bar indicates a haircut of 10 %. 7.000 6.000 432 87 5.000 1.000 239 4.000 131 3.000 5.405 3.430 2.000 1.000 518 - Cash Drawing rights in the CPs Other liquid assets Unutilized credit Funds
Slide 31: Maturities
Maturities Annual maturities; total to maturity MNOK 8 044. Funding maturities the next 12 months MNOK 1 749. 800 2.000 600 1.500 1.000 400 500 200 - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Bond issues 200 1.249 1.205 1.345 1.000 1.030 300 300 - - - - - - - -
Slide 32: Rating
Rating Sparebanken 1 HEDMARK
Slide 33: Rating
Rating • On 2 July, Moody's confirmed Sparebanken Hedmark's A2 rating and said it had a stable outlook. – Moody's put it under review for possible downgrading in March due to our increased stake in Bank 1 Oslo Akershus AS – The bank's individual C- rating (standalone financial strength rating) was a