Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — Sparebanken Hedmark — H1 2016 Earnings Presentation
18 slides from Sparebank 1 Ostlandet's earnings presentation, 2016
Slide 1: Financial results – H1-2016
Financial results – H1-2016 CEO Richard Heiberg
Slide 2: Acquisition of Bank 1 Oslo Akershus AS finalised
Acquisition of Bank 1 Oslo Akershus AS finalised • Still Norway’s most solid regional savings bank. • Increased competence, breadth and competitiveness. • Unique position as the alliance’s bank in the capital region. • Low risk. • Norway’s fourth largest savings bank with total adjusted assets of NO
Slide 3: «New» bank – same values
«New» bank» – same values Local granaries First savings converted, Local savings banks Merger of Joins Acquisition of bank in becoming Hof with central role in savings banks in SpareBank 1 Bank 1 Oslo Norway Sparebank local development Hedmark alliance Akershus IPO 1822 1845 Until 1960 1950-1993 200
Slide 4: New Sparebanken Hedmark – financial goals
New Sparebanken Hedmark – financial goals Norway’s most solid regional savings bank - 16 % CET-1 ratio - The bank has not recorded an operating losses since the end of WW II Low risk and transparent business - No oil exposure in the loan book - 75 % retail share – stable portfolio with high customer
Slide 5: Oil-free loan book and 75 % retail loans
Oil-free loan book and 75 % retail loans The «church spire principle» holds ‒ 3/4 of the loan book is retail loans ‒ Well positioned for further growth in Norway’s largest (and still growing) market ‒ Moody’s: Acquisition of Bank 1 is credit positive Agriculture is the second largest sector in the c
Slide 6: Largest owners with a long-term perspective
Largest owners with a long-term perspective Long-term ownership perspective • Broad-based agreement of co-operation with the Norwegian Confederation of Trade Unions (LO) • LO and the foundation is represented on the Board Ownership overview per 30 June 2016: • Sparebanken Hedmark Sparebankstiftelse
Slide 7: The foundation – unique for Norwegian savings banks
The foundation – unique for Norwegian savings banks • Largest EC-foundation in Norway, by a clear margin. Unique • Infinite time horizon. • War chest up to NOK 1.5 billion – and growing. • Will always own at least 50 per cent of the certificates. Long-term • Contribute to improved valuation of the b
Slide 8: The new savings bank is taking shape
The new savings bank is taking shape Customers • Retail market: Growth based on careful lending primarily to relationship customers and LO-members. • Corporate market: «Church spire principle» maintained, with SME financing. Organisation • No over-lap in the branch network, but merging of support fu
Slide 9: Financial report for H1 2016
Financial report for H1 2016 • Financial results of Bank 1 Oslo Akershus AS for H1-16 have been included in the group result in accordance with the equity method, with an ownership share of 40.5 per cent. • The balance sheet of Bank 1 Oslo Akershus AS has been fully consolidated in the group balance
Slide 10: First half of 2016 – healthy operations and low loan losses
First half of 2016 – healthy operations* and low loan losses • Maintain a CET-1 ratio of above 16 % also after the acquisition. • Improved interest rate margin in H1-16 compared with 2015, both for the parent bank and the new group. • Healthly volume growth and almost zero increase in costs. • Very
Slide 11: First half of 2016 – stable and good – preparing for IPO
First half of 2016 – stable and good – preparing for IPO • Interest rate margins for new group of 2.22 % - an improvement of 9 bps compared to same period last year. • Loan margin down 26 bps, but deposit margin up 35 bps. • Good growth in all markets – growth in loans and deposits of 10.5 % and 11.
Slide 12: First half 2016 - proforma and reported result
First half 2016 - proforma and reported result First half-year Year Proforma Reported 2015 2015 Net interest income 845 596 536 1105 Net commission income 515 234 228 461 Other income 109 100 109 190 Total operating expenses 882 513 509 1051 Result bank operation before losses 587 417 364 705 Losses
Slide 13: Main figures for the new bank, Hedmark and Bank 1
Main figures for the new bank, Hedmark and Bank 1* Reported «Former» Bank 1 OA First half-year 2016 Proforma Hedmark Hedmark Group Profitability Return on equity capital after tax 9,2 % 8,2 % 8,8 % 10,6 % Return on equity capital after tax excl. securities effects 10,8 % 10,0 % 10,7 % From the balan
Slide 14: The most solid regional savings bank
The most solid regional savings bank - Goal of CET-1 ratio of 16 % has been reached • Leverage ratio: 8.3 % • Capital adequacy ratio for group per 30.06.16: 18.6 % • CET-1 ratio for parent bank per 30.06.16: 29.6 % 18% 0,3 % 17% 0,2 % 0,7 % 16% 0,4 % 15% 14% 13% 16,9 % 17,2 % 12% 16,2 % 16,0 % 14,8
Slide 15: Conclusion
Conclusion • The country’s fourth largest savings bank and the third largest equity certificate capital-bank. • Maintains position as Norway’s most solid regional savings bank. • Integration process well underway – merger in H1-17. • No oil-exposure and retail share of 75 %. • Low loan losses and fa
Slide 16: Annex
Annex Sparebanken 4) HEDMARK
Slide 17: 75 % retail share, 80 % if including agriculture
75 % retail share, 80 % if including agriculture Loan book by sector, incl. covered bond companies Loan book by sector, incl. covered bond companies Corporate Commercial Other 3.905 Primary market services 3.618 industries 25,1 % 4.064 Wholesale and retail Public trade 1.316 market 74,9 % Real estat
Slide 18: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Sparebanken Hedmark believes that the expectations reflected in such forward-looking statements are reasonable,