Slide 1: Sparebanken Hedmark Second Quarter 2014
Sparebanken Hedmark Second Quarter 2014 Presentation of financial results CEO Richard Heiberg 13.08.2014
Slide 2: 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 7.2 billion in equity – NOK 50 billion in total assets – NOK 66 billion in commercial volume (incl. lo
Slide 3: Highlights – first half-year 2014
Highlights – first half-year 2014 • Very good financial strength – An equity ratio on 14.4 per cent of the unweighted balance sheet • Higher risk weight on mortgage loans to customers have siginificant effect on the core 1 ratio (14,0) • Satisfactory performance in the banking operations • Good resu
Slide 4: Profit/loss first quarter 2014 (Group)
Profit/loss first quarter 2014 (Group) First half- First half- year year 2014 2013 2013 Net interest income 499 479 1008 Net commission income 238 166 370 Other income 113 94 189 Total operating expenses 481 458 916 Result ordinary operation before losses 369 281 651 Losses on loans and guarantees 3
Slide 5: Result before tax for Group and Parent Bank
Result before tax for Group and Parent Bank Result before tax accumulated - Group Result before tax accumulated – Parent bank 600 450 400 500 389 506 350 327 400 300 306 307 250 300 319 287 200 277 200 150 100 100 50 0 0 Q2-11 Q2-12 Q2-13 Q2-14 Q2-11 Q2-12 Q2-13 Q2-14 5
Slide 6: Result before tax for Group incl. effects from Nets Holding ASA
Result before tax for Group incl. effects from Nets Holding ASA • Gains on NOK 158 million from the sale of shares in Nets Holding ASA • Recognition of the gain from the Nets Holding ASA in the first half would have resulted in a return on equity of 16.9 percent • Core equity tier 1 ratio increase t
Slide 7: Income statement isolated quarters (Group)
Income statement isolated quarters (Group) Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013 Net interest income 259 240 263 266 252 Net commission income 109 130 100 104 89 Other income 57 56 46 49 48 Total operating expenses 240 242 235 223 227 Result ordinary operation before losses 185 184 174 196 162 Los
Slide 8: Specification of results (Group)
Specification of results (Group) First half- First half- (Nok million) year 2014 year 2013 2013 Parent Bank's profit after tax 362 306 622 Dividends received from subsidiaries and joint ventures -134 -121 -123 Profit /loss attributable to: SpareBank 1 Gruppen AS 85 47 132 Bank 1 Oslo Akershus AS 119
Slide 9: 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 350 275 271 290 298 270 300 265 254 245 265 250 260 200 255 251 250 150 245 241 100 240 235 50 230 0 225 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2013 Q4 2013 Q1 201
Slide 10: Specification of the consolidated profit (Group)
Specification of the consolidated profit (Group) Change in profit before tax Q2 2013 vs Q2 2014 600 25 -8 -24 500 82 400 91 20 300 506 200 319 100 0 Profit before tax 1. Net interest income Net commission and Result from Net income from Operating expenses Losses Profit before tax 1. half-year 2013 o
Slide 11: Net interest income (Group)
Net interest income (Group) Interest income excl. Commission from covered bond companies Interest income incl. commission from covered bond companies 350 2,25% 350 2,21% 2,20% 2,21% 2,21% 300 2,20% 300 57 60 60 49 63 2,15% 27 37 250 2,13% 2,15% 250 41 27 200 2,10% 200 2,07% 150 2,04 % * 2,02 % * 2,0
Slide 12: Net commission and other income (Group)
Net commission and other income (Group) 200 5 180 19 160 5 20 17 140 44 18 8 20 26 120 19 16 22 9 100 16 38 35 22 19 80 30 21 17 19 18 60 15 40 60 63 60 57 49 20 0 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Commission from covered bond companies Real estate brokerage Income from accounting Payment transmission I
Slide 13: Net income from financial assets and liabilities (Group)
Net income from financial assets and liabilities (Group) 2013 Q2 2013 Q1 2013 Q4 2013 Q3 2013 Q2 2013 Dividends 12 12 0 18 Net profit from ownership interest 195 81 114 81 99 48 Profit/loss and change in value of bond and certificates 27 27 -54 10 19 Profit/loss and change in value of shares -128 -8
Slide 14: Operating expenses (Group)
Operating expenses (Group) Q2 Q1 Q4 Q3 Q2 2014 2014 2014 2013 2013 2013 Payroll 197 95 102 91 90 86 Pension costs 27 14 13 11 13 12 Social security expenses 41 20 21 22 19 18 Total personnel expenses 265 129 136 124 122 116 0 0 0 0 Total operating expenses and other expenses 143 74 69 78 67 75 Total
Slide 15: Losses on loans and guarantees (Group)
Losses on loans and guarantees (Group) Quarterly losses isolated Yearly losses -50 -160 -140 -146 -45 -120 -43 -100 -40 -80 -60 -76 -72 -35 -40 -50 -50 -42 -30 -20 -33 -24 -24 -25 0 -25 2006 2007 2008 2009 2010 2011 2012 2013 Q2-2013 Q2-2014 -23 -23 Defaulted and doubtful commitments -20 -22 -21 1.0
Slide 16: Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard)
Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard) 2,30% 2,27% 2,26% 2,25% 2,22% 2,21% 2,19% 2,20% 2,14% 2,13% 2,11% 2,10% 2,01% 2,01% 2,00% 1,94% 1,90% Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 16
Slide 17: Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard)
Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard) 2,70% 2,62% 2,59% 2,60% 2,57% 2,54% 2,55% 2,52% 2,49% 2,50% 2,42% 2,42% 2,40% 2,36% 2,30% 2,30% 2,24% 2,20% 2,18% 2,17% 2,16% 2,12% 2,08% 2,09% 2,10% 2,05% 2,04% 2,00% 1,98% 2,00% 1,93% 1,90% 1,83% 1,80% Q3 2011 Q4 2011 Q1 2012 Q2
Slide 18: Main figures Sparebanken Hedmark (Group)
Main figures Sparebanken Hedmark (Group) First half-year First half-year 2014 2013 2013 Profitability Return on equity capital after tax 12,3 % 8,5 % 11,0 % From the balance sheet Assets 50.195 46.290 47.397 Business volume 65.855 60.279 62.578 Lending growth last 12 months incl. Loans transferred t
Slide 19: Balance sheet (Group)
Balance sheet (Group) 30.06.2014 30.06.2013 31.12.2013 ASSETS Cash and deposits with central banks 1.504 604 572 Loans to and receivables from credit institutions 629 480 699 Loans to and receivables from customers 38.004 36.517 36.936 Financial papers 6.062 5.400 5.646 Investments in subsidiaries,
Slide 20: Development in balance sheet (Nok billion) (Group)
Development in balance sheet (Nok billion) (Group) Gross loans incl. Loans transferred to covered bond companies Development in assets and business volume 60,0 12,0 % 80,0 65.9 62.6 50,0 10,0 % 56.7 52.4 52.6 53.9 53.0 50.8 51.6 60,0 49.6 48.1 49.0 8,0 % 44.3 46.1 45.8 46.7 40,0 38.4 6,0 % 40,0 30,0
Slide 21: Development in Tier 1 ratio (Group)
Development in Tier 1 ratio (Group) Core equity tier 1 ratio parent bank as at 30.06: 18.9 % 18,0 % 16,0 % 16.9 % 0.2 % 16.2 % 15.1 % 15.2 % 14,0 % 0.4 % 14.1 % 14.0 % 13.2 % 12,0 % 11.5 % 10,0 % 8,0 % 6,0 % 4,0 % 2,0 % As at 1. July 2014 the 0,0 % Government will implement 2007 2008 2009 2010 2011
Slide 22: Equity ratio (Group)
Equity ratio (Group) 18,0 % 18,0 % 17,0 % 17,0 % 16,0 % 16,0 % 15,0 % 15,0 % 14,0 % 14,4 % 14,0 % 14,2 % 13,7 % 13,0 % 13,0 % 12,8 % 12,8 % 12,0 % 12,0 % 11,5 % 11,0 % 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 Q2-2014 Equity ratio Tier 1 Ratio 22
Slide 23: 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 Corporate services; 1,545 Primary banking; 42.7 % industries; 3,353 Other; Retail banking; 2,457 57.3 % Wholesale and retail trad
Slide 24: Liquidity reserves
Liquidity reserves • The figure shows the distribution of the bank's liquidity reserve as at 30.06.2014 7.000 6.000 47 1.000 5.000 290 4.000 3.000 6.065 4.477 2.000 1.000 - 251 cash Deposited securities Other liquid assets Unutilized credit Funds and listed Liquidity reserve facilities shares 24
Slide 25: Maturities
Maturities Annual maturities; total to maturity MNOK 8 518 Funding maturities the next 12 months MNOK 660 2500 800 2000 600 1500 400 1000 200 500 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 Subordinated 500 jul.14 aug.14sep.14 okt.14nov.14des.14 jan.15 feb.15mar.15