Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q1 2022 Earnings Presentation
47 slides from Sparebank 1 Nord-norge's earnings presentation, May 6, 2022
Slide 1: 1Q 2022
1Q 2022 Oslo, 6 May 2022 Liv B. Ulriksen, CEO Bengt Olsen, CFO
Slide 2: Highlights
Highlights SpareBank 1) NORD-NORGE
Slide 3: Highlights YTD
Highlights YTD The obvious choice for people and businesses «Better than anyone else, we shall understand and do what’s important for people and businesses in Northern Norway» Main bank retail 38 % Main bank SME 42 % Real estate agency 34 % Accounting 20 % Secured financing 24 % 3
Slide 4: Strong financial results
Strong financial results CET1 ratio Return on equity capital Cost/income Group 18,7% 188% 15,8 % 15,1% 43,1% 42,7% 398% 40,0% 40,6 % 2018 2019 2020 2021 1Q22 2018 2019 2020 2021 1Q22 2018 2019 2020 2021 1Q22 SpareBank (1) NORD-NORGE
Slide 5: Subsidiaries – results before tax
Subsidiaries – results before tax 5
Slide 6: Outlook
Outlook SpareBank 1) NORD-NORGE
Slide 7: War in Ukraine
War in Ukraine SpareBank 1 Nord-Norge barely affected: • Mortgages russian retail customer: apx. 500 MNOK • Total exposure (corporate): < 30 MNOK • Number of corporate customers exposed: < 10 • Frustration due to payment difficulties Eastern Finnmark heavily affected: • May loose up to 600 jobs • Ri
Slide 8: Status and outlook in Northern Norway
Status and outlook in Northern Norway 8
Slide 9: Ambitions for growth and increased market share
Ambitions for growth and increased market share Expected growth for SpareBank 1 Nord-Norge in 2022 Retail market: 4-6 % Corporate market: 6-9 % The bank is strongly capitalized, and the region is well positioned for further economic growth. 9
Slide 10: Financial status
Financial status SpareBank 1) NORD-NORGE
Slide 11: Group financial highlights and key figures
Group financial highlights and key figures 11
Slide 12: Quarterly development
12 Quarterly development CET1 ratio Return on equity capital Cost/income Group 18,6% 18,7% 188% 175% 173% 180% 18,0% 45,1% 41,6 % 39,1 % “ON 42.7% 369% “me 4Q20 1021 2021 3021 4Q21 1022 4q20 1021 2021 3021 4Q21 1022 420 1021 2021 3021 4Q21 1022 SpareBank NORD-NORGE 1)
Slide 13: Result before tax - last quarter
Result before tax - last quarter (Amounts in NOK million) 13
Slide 14: Net interest income - Group
Net interest income - Group (Amounts in NOK million) 14
Slide 15: Low losses and net reversals
Low losses and net reversals Net losses in % of Net losses gross lending incl. interm. loans Retail Corporate 15
Slide 16: Lending growth
Lending growth Retail Corporate 16 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 17: Retail Market
Retail Market Retail (excl. Commission com.loans loans 17 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 18: Corporate Banking
Corporate Banking 18 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 19: Deposit growth
Deposit growth 19 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 20: Development in deposit margins
Development in deposit margins Retail Corporate 20
Slide 21: Long term financial targets
Long term financial targets < 40 % C/I ratio > 12 % > 50 % ROE Dividend payout ratio 15 % CET1 ratio 21
Slide 22: Financial outlook
22 Financial outlook ROE >12 % CET1 Ratio: 15 % C/l< 40% Pay out ratio >50% Lending margins and provisions from SpareBank 1 Boligkreditt is negativly effected by the increase of Nibor, which is outpreforming both the central bank rate and mortgage rates. This is as expected with a steepening of the
Slide 23: Why invest in SpareBank 1 Nord-Norge
Why invest in SpareBank 1 Nord-Norge 23
Slide 24: Contacts
Contacts Management Liv B. Ulriksen CEO +47 957 31 130 liv.bortne.ulriksen@snn.no Bengt Olsen CFO +47 975 89 560 bengt.olsen@snn.no Investor Relations Terje Karlstad Investor Relations +47 411 22 220 terje.karlstad@snn.no 24
Slide 25: Appendix
Appendix SpareBank 1) NORD-NORGE
Slide 26: A solid bank for Northern Norway
A solid bank for Northern Norway 26
Slide 27: Development in lending margins
Development in lending margins Corporate Retail 27
Slide 28: Company structure
Company structure SpareBank 1 Boligkreditt AS SpareBank 1 SpareBank 1 Finans Nord- Eiendomsmegler 1 Nord- SpareBank 1 Gruppen AS 19,50 % | Financial services 15,92 % | Mortgage company Næringskreditt AS Norge AS Norge AS 3,09 % | Mortgage company 85 % | Loan/consumer finance/leasing 85 % | Real esta
Slide 29: Geographical distribution of ownership
Geographical distribution of ownership Foreign holders Other Norwegian holders Holders residing in Northern Norway 29
Slide 30: The 20 largest EC holders
30 The 20 largest EC holders EC Holders Number of Ecs o Share of EC Capital PARETO INVEST AS VPF EIKA EGENKAPITALBEVIS PARETO AKSJE NORGE VERDIPAPIRFOND GEVERAN TRADING CO LTD MP PENSJON PK The Bank of New York Mellon SA/NV Brown Brothers Harriman & Co. The Northern Trust Comp, London Br FORSVARETS
Slide 31: Cost development - Group
Cost development - Group Cost/income Group (Amounts in NOK million) Group operating costs 31
Slide 32: Operating expenses - Group
Operating expenses - Group (Amounts in NOK million) 32
Slide 33: Net fee- and other operating income - Group
Net fee- and other operating income - Group 33
Slide 34: Risk exposure - Group
Risk exposure - Group Non-performing /impaired High risk 100,0% Medium risk Low risk 34
Slide 35: Changes in exposure last months - Group
Changes in exposure last 12 months - Group 6 179 Non-performing /impaired High risk (Amounts in NOK million) Medium risk Low risk 35
Slide 36: Exposure distributed by size
Exposure distributed by size* 31.03.2021 31.03.2022 36 *Incl. parent bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt
Slide 37: LTV mortgage loans
LTV mortgage loans LTV is distributed by balance and 31.03.2021 is based on the market value of the collateral: • 98.6 % of the gross exposure is within 85 % of the collateral 31.03.2022 market value • Only 0.7 % of the gross exposure is higher than 100 % of the collateral market value • The figures
Slide 38: Diversified portfolio in commercial real estate
Diversified portfolio in commercial real estate 38
Slide 39: Still low oil related exposure
Still low oil related exposure Oil related exposure amounts to NOK 808 mill • The exposure represents 0.59 % of total exposure including covered bond companies • Average weighted probability of default 1.86 % • A total of NOK 26 mill are non-performing or impaired commitments • The activity within o
Slide 40: Oil related portfolio
Oil related portfolio • Exposure amounts to NOK 536 mill • Exposure amounts to NOK 246 mill • Exposure amounts to NOK 26 mill • Average weighted probability of default 2.47 % • Average weighted probability of default is 0.33% • Average weighted probability of default if 100 % • Total amount of 7 ves
Slide 41: Loan losses - Group
Loan losses - Group The Group’s annualized losses is -0.10 % (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 0.69 % of total exposure. Expected loss share: 30.05 % Commitments in step 2: 7.18 % of total exposure. Expected loss share: 3.88 %
Slide 42: Funding
Funding NOK 20 375 mill in capital market funding exclusive of SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt is important funding sources. In total NOK 36 279 mill had been transferred as of 31.03.22 Amount of gross maturities of capi
Slide 43: Ambitious goals for climate risk and sustainability
Ambitious goals for climate risk and sustainability Sustainability and climate risk are included in our business- and risk strategy A framework for the link between green lending and green capital market funding has been developed. The framework is based on important business sectors in the north, i
Slide 44: Achieving goals for sustainability
Achieving goals for sustainability • ESG-classified portfolio aligned with EUs taxonomy* • Major contribution to the SDGs (175 mill in 2021) • Green product framework and Green Finance Framework established special for the Arctic region • 41% women in leadership positions • 24% reduction in greenhou
Slide 45: SpareBank 1 Alliance
SpareBank 1 Alliance • The SpareBank 1-alliance consists of 14 banks • Operate exclusively in Norway – Norway’s most extensive branch network with approx. 350 branches • The alliance is in the forefront of incorporating SpareBank 1 Nord-Norge technological innovation into its distribution channels.
Slide 46: SpareBank 1 Alliance companies
SpareBank 1 Alliance SpareBank 1 SMN SpareBank 1 SR-Bank SpareBank 1 Samspar SpareBank 1 LO Nord-Norge Østlandet SpareBank 1 BN Bank SpareBank 1 SpareBank 1 Gruppen SpareBank 1 Alliance companies Markets Boligkreditt SpareBank 1 SpareBank 1 SpareBank 1 SpareBank 1 Fremtind Modhi Mobilitet Holding Kr
Slide 47: Noen som har et fint bilde til avslutning?
Noen som har et fint bilde til avslutning? 47
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