Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Gruppen — H1 2013 Earnings Presentation
31 slides from Sparebank 1 Ostlandet's earnings presentation, Aug 14, 2013
Slide 1: SpareBank 1 Gruppen Presentation 1st Half 2013
SpareBank 1 Gruppen Presentation 1st Half 2013 14 August 2013 - Kirsten Idebøen, Idebøen CEO
Slide 2: Performance in the 1st half of 2013
Performance f in the 1st halff off 2013 • Substantial improvement in pre-tax profit – MNOK 531 (296) • Premium growth and good result for the life insurance business • Buffer capital has grown further • Market M k t leader l d iin new personall iinsurance product d tb business i and d llow market k
Slide 3: Key figures
Key figures Pre-tax profit for the quarter (MNOK) Pre-tax profit for the year-to-date (MNOK) 170 531 164 145 123 295 308 296 Q2 Q2 Q2 Q2 1H 1H 1H 1H 2010 2011 2012 2013 2010 2011 2012 2013 Annualised return on equity (%) Capital adequacy ratio as of the end of the quarter (%) 15.6 15.9 16.7 14.6 14.
Slide 4: Pre-tax profit from subsidiaries almost doubled
4 Pre 236 Life insurance Pre-tax usiness arrea bu 284 P& &C Insurance 236 bu usiness are ea 438 ODIN -2 Forvaltning 16 14 R Receivable es manageme m ent 3 1H2013 1H2012 -90 SB11 Marke ets -35 tax profit from subsidiaries almost doubled
Slide 5: Insurance business area
Insurance business area The integration of the life and P&C insurance business has been a success 5
Slide 6: Strong improvement in the insurance unit
Insurance business area (life and P&C combined) Strong improvement in the insurance unit Gross combined ratio - Risk insurance (%) Combined ratio risk insurance as of 1st half of 2013 95.2 95 5 95.5 94 5 94.5 93 9 93.9 92 7 92.7 Combined C bi d Cost/income C t/i 88.9 89.1 Claims ratio 21.7 14.1 17.3
Slide 7: SpareBank 1 Forsikring AS (life insurance business)
SpareBank 1 Forsikring AS (life insurance business) Well on track with building up of reserves for longevity. Good buffers Buffer capital trend, per quarter (%) Pre-tax profit for the quarter (MNOK) 147 16.3 142 14.8 15 5 15.5 14.8 137 13.6 12.8 94 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2012 2013 2013 Cor
Slide 8: SpareBank 1 Skadeforsikring Group (P&C insurance business)
SpareBank 1 Skadeforsikring Group (P&C insurance business) Strong improvement in result – driven by profit from prior years and reduced compensation costs Pre-tax profit for the quarter (MNOK) Actual effects of P&C costs project (MNOK) 265 175 158 135 141 140 124 166 174 112 104 70 Q1 2012 Q2 2012 Q
Slide 9: ODIN Forvaltning
ODIN Forvaltning Costs reducing measures contributed to improved result 9
Slide 10: ODIN Forvaltning: costs reducing measures improved result
ODIN Forvaltning Costs reducing measures contributed to improved result Pre-tax profit for the quarter (MNOK) Return on equity funds for the year-to-date (%) Fund Benchmark 8.4 7.7 25.0 22.7 19.1 16..1 16.0 14.0 13.7 13.2 13.2 13.2 12.1 12.0 11.4 11.3 11.1 9.2 8.8 8.6 7.9 6.3 1.7 1.6 -1 ODIN ODIN OD
Slide 11: Receivables management
Receivables Good earnings in factoring and portfolio, management deficit in debt collection business 11
Slide 12: Good earnings in factoring and portfolio, deficit in debt collection
Receivables management Good earnings in factoring and portfolio, portfolio deficit in debt collection business Pre-tax profit for the year-to-date (MNOK) 1H2012 1H2013 19.8 • Factoring - strongest t t growth th in i the th market k t - market share of 16.9% (14.6%) 11.6 • Debt collection 9.7 - lost
Slide 13: SpareBank 1 Markets
SpareBank p 1 Markets The improvements in SpareBank 1 Markets continue, with the highest income in one quarter ever 13
Slide 14: SpareBank 1 Markets: best income in any one quarter
SpareBank 1 Markets B Best iincome iin any one quarter B k d iincome ffor th Booked the quarter t (MNOK) Key figures for 1H2013 (1H2012) in MNOK 61 • Income: 107 (73) 50 • Operating result: 4 (-37) 46 • Pre-tax P t profit:fit -35 35 ((-90) 90) 40 27 Key figures for Q2 2013 (Q2 2012) in MNOK • Income
Slide 15: Best when it comes to return on equity
Best when it comes to return on equity 1st half Average 2013 2010-2012 SpareBank 1 Gruppen 15.6% 12.8% Handelsbanken 14.2% 13.8% Nordea 11.3% 11.5% DNB 10.8% 12.2% Storebrand 10.6% 8.1% Gjensidige 9.8% 14.2% Danske Bank 5 2% 5.2% 2 9% 2.9% Source: The companies financial statements. Return on equity
Slide 16: Thank you for your time!
Thank you for your time! Kirsten Idebøen 16
Slide 17: Appendix
Appendix pp
Slide 18: The SpareBank 1 Alliance has a solid business model
The SpareBank 1 Alliance has a solid business model with its proximity to its customers and a conservative risk profile Shareholders and distributors SamSpar 19.5% 19.5% 19.5% 12% 19.5% 10% Products, commissions and Products dividend Sales SpareBank 1 Gruppen AS BN Bank Bank 1 Oslo Akershus SpareBan
Slide 19: New management structure from 01/07/2013
SpareBank 1 Gruppen New management structure from 01/07/2013 Risk management and CEO Compliance Kirsten Idebøen Torbjørn Martinsen IT Corporate Governance Eivind Gjemdal Jarle Haug Product Companies Business Development Market Turid Grotmoll Iren Rutle Tore Haarbergg Rune Selmar Saving Payment Finan
Slide 20: Results for 1st half-year 2013
Results for 1st half-year 2013 Q2 Half year Figures in MNOK 2013 2012 2013 2012 Part of result from subsidiaries before tax -SpareBank 1 Forsikring AS 137.0 141.8 284.4 235.8 -SpareBank 1 Skadeforsikring Group 173.6 70.4 438.4 235.9 -ODIN ODIN Forvaltning F lt i AS 77 7.7 -1.5 15 16 2 16.2 -2.0 20 -
Slide 21: Key figures
SpareBank 1 Gruppen Key figures Q2 Q1 Q4 Q3 Q2 Q1 Year 2013 2013 2012 2012 2012 2012 2012 Group Net result for the period (MNOK) 87.1 315.0 -47.6 227.7 63.4 199.9 443.4 Annualised return on equity (%) 15.6 % 23.1 % 8.7 % 12.7 % 10.5 % 15.9 % 8.7 % Capital adequacy ratio, accumulated (%) 14.6 % 14.0
Slide 22: Quarterly results
SpareBank 1 Gruppen Quarterly results Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Figures in MNOK 2013 2013 2012 2012 2012 2012 2011 2011 2011 2011 2010 2010 2010 Part of result from subsidiaries before tax - SpareBank 1 Forsikring 137.0 147.4 99.0 144.6 141.8 94.1 98.1 77.7 109.0 129.4 72.5 85.8 100.3 -
Slide 23: Forsikring AS: Results for 1st half-year 2013
SpareBank 1 Forsikring AS (life insurance business) Results for 1st half-year 2013 Q2 Q1 Q2 Half year Year Figures g in MNOK 2013 2013 2012 2013 2012 2012 Insurance risk income 453.1 430.1 369.1 883.2 730.3 1,613.3 Insurance risk claims -343.6 -334.4 -266.2 -678.0 -606.6 -1,303.3 Risk result 109.5 9
Slide 24: Results per portfolio for 1st half-year 2013
SpareBank 1 Forsikring AS (life insurance business) Results per portfolio for 1st half-year 2013 Previously Group established Investment choice Company Figures in MNOK portfolio individual products portfolio portfolio Total Risk result 190.4 -0.7 -4.6 0.0 185.0 Administration result 18.7 -13.4 -16.5
Slide 25: Development of premium income
SpareBank 1 Forsikring AS (life insurance business) Development of premium income Q2 Q1 Q2 Half year Year Figures in MNOK 2013 2013 2012 2013 2012 2012 Individual annuity and pension insurance 81.4 79.8 72.3 161.2 144.6 325.3 Individual endowment insurance 159.8 155.6 150.2 315.4 298.1 607.7 Group p
Slide 26: Return on customer portfolios with a guarantee as at 30/06/2013
SpareBank 1 Forsikring AS (life insurance business) Return on customer portfolios with a guarantee as at 30/06/2013 Value-adjusted return Booked return: excl. change in value construction: Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 201
Slide 27: Return on ordinary customer portfolio with guarantee as at 30/06/2013
SpareBank 1 Forsikring AS (life insurance business) Return on ordinary customer portfolio with guarantee as at 30/06/2013 Percent Norwegian shares 5.7 Foreign shares 13.4 Money market 14 1.4 Norwegian bonds 2.4 Foreign bonds -1.6 Held to maturity 2.5 Real estate 3.4 27
Slide 28: Balance sheet as of 30/06/2013
SpareBank 1 Forsikring AS (life insurance business) Balance sheet as of 30/06/2013 Half year Year Figures in MNOK 2013 2012 2012 Intangible assets 190 134 165 Investments 3 352 2 851 3 140 Reinsurance's part of insurance obligations 237 207 213 Accounts receivable 106 90 105 Other assets 154 276 128
Slide 29: Asset allocation per portfolio as of 30/06/2013
Asset allocation p per p portfolio f as off 3 30/06/2013 / / 3 (31/12/2012) SB1 Skadeforsikring SB1 Forsikring AS konsern I Investment choice h portfolio f l G Group portfolio f li Company portfolio 13.2 (12.6) % 0.1 (0.2) % 9.0 (8.2) % 10.6 (10.1) % 41.8 (39.2) % 0.3 ((0.7)) % 18 2 (18 18.2 (18.4)
Slide 30: Skadeforsikring Group: Results for 1st half-year 2013
SpareBank 1 Skadeforsikring Group Results for 1st half-year 2013 Q2 Q1 Q2 Half year Year Figures in MNOK 2013 2013 2012 2013 2012 2012 Gross written premium 1 370.8 1 612.9 1 431.1 2 983.7 3 144.2 5 600.4 Net earned premium 1 174.0 1 193.1 1 257.3 2 367.2 2 491.8 5 073.1 Net incurred claims -862.0 -
Slide 31: ODIN Forvaltning: Results for 1st half-year 2013
ODIN Forvaltning Results for 1st half-year 2013 Q2 Q1 Q2 Half year Year Figures in MNOK 2013 2013 2012 2013 2012 2012 Management fees 69.2 66.7 63.4 135.9 130.6 257.1 Total operating income 69.2 66.7 63.4 135.9 130.6 257.1 Salaries -29.2 -23.7 -25.9 -52.9 -50.5 -110.1 Depreciations -6.3 -6.4 -6.8 -1