SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q3 2015 Earnings Presentation
53 slides from SpareBank 1 Helgeland's earnings presentation, 2015
Slide 1: Presentation Q3 2015
Presentation Q3 2015 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation Q3 2015 (HSB Group)
Presentation Q3 2015 (HSB Group) Main Features Lisbeth Flågeng Profit & Loss Chief Executive Officer Balance Lending Deposits Funding Sverre Klausen Solidity Chief Financial Officer Summary Helgeland Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 3 En drivkraft for vekst på Helgeland
Slide 4: Main features 3rd quarter
Main features 3rd quarter Result Gross Profit MNOK 188 (235) • Good basis operation, maintained net interest in NOK and percent • Increased credit spread, unrealized losses on interest-bearing securities • Moderate write-downs on lending Profitability • ROE (after tax) 8.6 (11.7) % Solidity capital
Slide 5: Main features 3rd quarter
Main features 3rd quarter Lending 9-month growth 6.2 (1.3) % • Retail market 6.8 (2.2) % • Corporate market 5.0 (-0.3) % Deposits 9-month growth 2.7 (7.2) % – good deposit ratio 63.7 (66.4) % • Retail market 6.2 (7.6) % • Corporate market -2.9 (6.5) % Interest rate change Maintained competitiveness
Slide 6: Profit & loss
Main Features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 6 En drivkraft for vekst på Helgeland
Slide 7: Result
Result Profit development (MNOK) Good result so far this year 400 30% Stabile net interest • Reduction of mortgage 25% interest rates is covered 300 283 266 through reduction of deposit 20% interest rates and lower deposit costs-decline in 200 188 15% 172 88 Nibor 133 76 59 • Unrealized losses on 10
Slide 8: Key figures
Key figures Key figures in % of BTA Commentary 2% Net interest 1.76% • Maintained from 2013 Net commissions 1% 0.97% 1.01% • 0,33 % - stabile level Operating costs 0.33% • weak increase since 2013 0.10% 0% -0.06% Losses on lending • Moderate level so far this year -1% Financial instruments 2011 2012
Slide 9: Profit & loss
Profit & loss Helgeland Sparebank (group) Profit & loss (MNOK) Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Net interest- and credit provision earnings 113 114 116 115 112 114 116 Net provision earnings 19 22 22 19 21 20 23 Other operation income 1 1 2 3 2 1 6 Ordinary operations cost 62
Slide 10: Net interest
Net interest Development net intr.(mnok.) and % of average BTA Commentary 150 Net interest maintained 114 116 115 112 114 116 Still strong competition regarding price. 100 • Last reduction of the mortgage interest rate is 1.76% 1.77% 1.77% conducted 01.12.15, 1.75% 1.75% 1.74% covered through market
Slide 11: Operating cost
Operating cost Development operating cost (mnok) and % of Development operating cost (mnok) and % of BTA income 100 300 263 77 233 239 218 75 67 66 196 61 63 63 200 50 57.0 % 48.2 % 47.9 % 49.3 % 38.1 % 40.1 % 100 25 1.02% 0.99% 0.95% 1.01% 1.01% 0 0 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 2
Slide 12: Balance
Main features Profit& Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 12 En drivkraft for vekst på Helgeland
Slide 13: Total assets
Total assets BTA whereby lending and deposits (MNOK) Commentary 30 000 Adapted Liquidity reserve 25 985 25 798 26 558 24 594 22 802 22 119 20 000 14 093 10 000 0 2011 2012 2013 2014 30.09.15 Total Asset Lending Deposits 13 En drivkraft for vekst på Helgeland
Slide 14: Lending
Main features Profit & Losses Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 14 En drivkraft for vekst på Helgeland
Slide 15: Credit growth
Credit growth 12-month credit growth Commentary 20% Lending growth PM 67,5 BM 32,5 Helge Norge 16,2 • 12-month growth 5.4 (0.8) % % land 15% % % 83,6 % PM Share 10% • Goal minimum 60 % • Per Q3 67.5 (66.1) % 5% Share in Helgeland region • Per Q3 83.6 (83.8) % 0% (SSB numbers per 30.08.15) -5% 2011 2
Slide 16: Credit growth CM and RM
Credit growth CM and RM 12-month credit growth corporate market 12-month credit growth personal market 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% 2011 2012 2013 2014 30.09.15 2011 2012 2013 2014 30.09.15 HSB Helgeland corp. Statistic Norway corp. HSB Helgeland pers. Statistic Norway pers. Commentar
Slide 17: Lending CM
Lending CM Lending distributed in sector Commentary Good diversification in the CM Real estate 13 % lending portfolio and very loyal 13 % corporate customers Farming and forestry 06 % 06 % CM of total lending 32.5 (33.9) Construction and power 04 % % 04 % 01 % Food production consisting of Transport
Slide 18: Real estate
Real estate Real estate sorted by sector Rental sorted on geograpgy 0.0 % 4.2 % 8.2 % PURCHASE AND SALE 6.9 % 0.9 % 3.8 % OF OWN PROPERTY 5.4 % Rana SHARE APARTMENTS Alstahaug RENTAL OF OWN OR Vefsn 15.3 % 52.1 % LEASED PROPERTY Oslo 86.7 % REAL ESTATE Brønnøy BROKERAGE 16.4 % Andre PROPERTY MANAGEM
Slide 19: Oil exposure – impact for Helgeland
Oil exposure – impact for Helegeland • Helgeland Sparebank has no customers that directly and solely depend on activity related to oil and gas activity outside the Helgeland coast. • The supplier industry to the sector have large variations in the industry – an example is Wasco Coatings Ltd factory
Slide 20: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss Commentary 200 Good portfolio quality net non-performing and other 150 impaired commitments is in a relatively low level. 100 50 1.0 % 0.5 % 0.6 % 0.5 % 0.6 % 0 2011 2012 2013 2014 30.09.15 Net commitments exposed to l
Slide 21: Deposits
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 21 En drivkraft for vekst på Helgeland
Slide 22: Total deposit growth
Total deposit growth 12-month deposit growth Commentary Good deposit growth 20% • 12-mont growth 1.3 (10.9) % RM CM Helge Norway 63,7 36,3 land 8,1 % PM share 15% % % 91,2 • Per Q3 63.7 (61.2) % % Locally in Helgeland 10% •Per Q3 91.2 (91.6) % 5% Deposit ratio • Goal minimum 60 % • Per Q3 63.7 (66.4
Slide 23: Deposits CM and RM
Deposits CM and RM 12-month deposit growth corporate market 12-month deposit growth personal market 35% 20% 30% 25% 15% 20% 10% 15% 10% 5% 5% 0% 0% -5% -10% -5% 2011 2012 2013 2014 30.09.15 2011 2012 2013 2014 30.09.15 HSB Helgeland Corp. HSB Helgeland pers. Commentary 12-month growth 1.3 (10.9) % w
Slide 24: Deposits CM
Deposits CM Customer deposits Commentary Well diversified deposit Municipalities 11 % portfolio in the CM 10 % Transport and services 06 % 06 % Share CM 36.3 (38.8) % of Construction and power 07 % total deposits 05 % Real estate 04 % 04 % Food 15 Deposits from municipalities 03 % Real Industry % Se
Slide 25: Deposit development
Deposit development 100 % 80 % Deposit development (MNOK) Balance over MNOK 60 % 14 500 8 40 % 14 000 Balance MNOK 2-8 13 500 20 % 13 000 12 500 0% Balance MNOK 1-2 12 000 11 500 Volume NOVEMBER… NOVEMBER… MAY 2013 MAY 2014 MAY 2015 FEBRUARY 2014 FEBRUARY 2015 AUGUST 2013 AUGUST 2014 AUGUST 2015 NOV
Slide 26: Funding
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 26 26 En drivkraft for vekst på Helgeland
Slide 27: Funding
Funding Commentary Funding development (MNOK) 120% The deposits are the most important source for funding 100% 11.6 % 15.1 % 13.5 % 15.0 % 14.1 % 80% 33.4 % 26.8 % 25.9 % 25.0 % 30.5 % 60% 40% 54.8 % 56.9 % 58.8 % 50.9 % 49.7 % 20% 0% 2011 2012 2013 2014 30.09.15 Deposits Swap agreement Senior CB FO
Slide 28: Funding
Funding Commentary Maturity on loans (MNOK) Good and long term funding 2 500 Share long term funding 2 000 81.4 (85.0) % 455 630 Combined duration of 2,6 (2,5) 1 500 285 years. Duration in the mortgage company increased to 3.1 years 450 1 000 1 000 Maximum limit for transferring to 1 475 1 400 1 400
Slide 29: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Gross profit MNOK 27.1 (37.3) CET1 ratio 16.2 (16.6) % (standard method with 35 % mortgage weights) Cover pool - qualified loans MNOK 4.236 (4.178), deposits MNOK 207 (230) CB loans NOK 3.6bn (whereby 0.3 in the ownership of the parent bank) Combined LTV 53 (52) % cover poo
Slide 30: Liquidity buffers
Liquidity buffers Securities distributed in sectors Commentary 30% The liquidity buffers constitute CB 1 39% 22% NOK 3.8 (4.6)bn. – equal 14.6 Finance, Norway 15% (17.7) % of total assets. The 14% buffer capital consists of cash, Government 19% 22% deposits in Bank of Municipalites 18% Norway/banks
Slide 31: Solidity
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 31 En drivkraft for vekst på Helgeland
Slide 32: Capital adequacy
Capital adequacy Development capital adequacy Commentary 18% Capital ratio • CET1 13.9 (12.5) % 2.0 % 16% • Core capital 15.3 (13.7) % • Total capital 17.3 (16.0) % 1.4 % 14% The profit is not included. By taking inn 70 %, core capital becomes 14.6 % and total 12% capital 18.0%. 13.9 % Unrealized pr
Slide 33: HELG – largest owners
HELG – 20 largest owners Parent bank Per 30.09.15 Numbers % share Numbers % share Sparebankstiftelsen Helgeland 6 599 598 35.3 % Helgeland Kraft AS 340 494 1.8 % Pareto AS 1 570 836 8.4 % Verdipapirfondet Pareto 269 000 1.4 % UBS AG, London Branc A/C 1 148 900 6.1 % Citibank 219 847 1.2 % Merrill Ly
Slide 34: EC development and liquidity HELG
EC development and liquidity HELG The price for HELG per 30.09.15 was NOK 58,75 per EC. This is an increase of NOK 3,75 since year end. 34 En drivkraft for vekst på Helgeland
Slide 35: Summary
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 35 En drivkraft for vekst på Helgeland
Slide 36: Prospects and priorities
Prospects and priorities Result • Still good basis operation, • Stronger competition for good corporate customers and generally low interest rates challenges the net interest • Still potential for a reduction in the deposit interest rates if further reduction of the mortgage interest rates • Develop
Slide 37: Prospects and priorities
Prospects and priorities Profitable growth, futuristic and leading bank in Helgeland • To continue the work with systematic processing of our own customers and offensive work towards new customers • Total customer relationship and width sale • Acquire and maintain competence requirements – AFR and G
Slide 38: Future views – Helgeland
Future views – Helgeland Helgeland region • Still cautious optimism in the business sector in Helgeland • Large infrastructure investments with repair / reconstruction of the E6 initiated – provides local spin-offs • Avinor’s impect assessment regarding new big airport is awaited with excitement – s
Slide 39: Helgeland
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 39 En drivkraft for vekst på Helgeland
Slide 40: Property price development
Property price development Property price development in Helgeland compared to larger places (measured by price pr sqm for sold houses). Average national price increase for apartments 3rd quarter 2015 is 8.2 % • Property price increase in Helgeland was slightly weaker with an increase of 6.3 % in th
Slide 41: Unemployment in %
Unemployment Commentary Unemployment in Helgeland 4 There is not a significant difference in unemployment 3.5 between the regions in Unemployment in % 3 Helgeland. 2.5 Increase in unemployment in Brønnøy per 30.09.15 2 About 2.6 % of the work force 1.5 per 30.09.15 1 By the end of 3rd quarter there
Slide 42: Large public sector contributes to a stable employment offer
Large public sector contributes to a stable employment offer as well as investments and spending • Helgeland have more than 1500 employees in public sector enterprises and the enterprises are still expanding: • The National Library Mo i Rana • The State Agency for Recovery of Fines • NRK License Off
Slide 43: Aquaculture
Aquaculture Aquaculture around 10 % of the regions turnover. Total export value salmon in 2015 of approximately NOK 5bn, employs around 700 people direct – with subcontractors around 2800 people. Prices are slightly declining but remains high with around NOK 35-39 pr. kilo Production cost is higher
Slide 44: Construction (building & machinery)
Construction (building & machinery) Construction High activity in Mo i Rana both private and public sector /schools, elderly homes, houses and flats). An estimate of MNOK 800 to 900 for 2015-2016. Brønnøysundregistrene - new offices, estimated at NOK 1.5 billion, to be started in 2016/2017. Relative
Slide 45: Horisont Helgeland
Horisont Helgeland This is the second edition of the magazine “Horisont Helgeland”. The attention this time is devoted to culture – and experience industry. The magazine also contains factual information regarding value adding and development in the region. Source to the next foils is Associate Erle
Slide 46: Thank you for your attention!
Thank you for your attention! EN DRIVKRAFT FOR VEKST 46 En drivkraft for vekst på Helgeland
Slide 47: Appendices
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 47 En drivkraft for vekst på Helgeland
Slide 48: Helgeland
Helgeland • 78 492 citizens at the beginning of 2015 – Net growth since 2013 – 461 people – Weaker growth in the age group 25 – 45 years than the rest of the country – Increased growth in the city municipalities at the expense of the districts • 4 regions – Mo i Rana region - 36 149 citizens (46.5 %
Slide 49: Helgeland
Helgeland • Total turnover in 2014 of around 44 bn. – 11.7% increase towards 2013 – Expected growth in 2015 3.2 % – Distribution of revenues between sectors – Trade, transport and tourism: Approximately 40 % - 17.5 bn. – increase of 28 % – Industry approximately 33 % - 14.7 bn. – increase of 1.2 % –
Slide 50: Helgeland
Helgeland • Large investments in transport communications, power generation and property • Significant environmental improvement investments in cooperation with Enova (Celsa and Alcoa) – Large environmental gains – puts industry in word class for low environmental impact • Two of the largest develop
Slide 51: Business development and ownership
Business development and ownership 100 % 7,9 % Gavestiftelse 40 % 7,5 % Egenkapitalbeviseier 48 % 10,0 % 51 En drivkraft for vekst på Helgeland
Slide 52: Management and organisational structure
Management and organisational structure Board of Directors Assistant secretary Internal Auditor Brit Søfting Chief Executive Marit Jakobsen Officer Lisbeth Flågeng Director of Director of Chief Financial Chief Business Chief Human Chief Chief Risk Corporate Retail Market Officer Development Resource
Slide 53: Contact information
Contact information Head office Board of directors Postal address Postboks 68, 8601 Mo i Rana Ove Brattbakk, leder Visiting address Jernbanegata 15, 8622 Mo i Rana Stein Andre Herigstad-Olsen, nestleder Phone number 75 11 90 00 Eva Monica Hestvik Web www.hsb.no Bjørn Audun Risøy Organization number