SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q1 2019 Earnings Presentation
53 slides from SpareBank 1 Helgeland's earnings presentation, 2019
Slide 1: En drivkraft for vekst på Helgeland
Presentation Q1 2019 En drivkraft for vekst på Helgeland 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation per 31.03.19 (HSB Group)
Presentation per 31.03.19 (HSB Group) Main Features Hanne Nordgaard Helgeland Chief Executive Officer Profit & loss Lending Deposits Funding Sverre Klausen Chief Financial Officer Solidity Prospects and priorities Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main features per 31.03.19
Main features per 31.03.19 Gross profit MNOK 93 (94) ROE 8.7 (9.0) % Total assets 34.4 (32.2) bn Solidity CET1 15.1 (15.6) % 3 En drivkraft for vekst på Helgeland
Slide 4: Main features per 31.03.19
Main features per 31.03.19 Property agent buys Hotell Syv Søstre • Property agent Ragde Eiendom AS and Breidablikk Eiendom AS have signed the contract for the purchase of Hotell Syv Søstre in Sandnessjøen. These are long-term owners who will work to open the hotel as soon as possible. The sales pric
Slide 5: New representatives on the bank's board in 2019
Main features per 31.03.19 3 new representatives on the bank’s board in 2019 New Chairman of the board • Stein Andre Herigstad-Olsen is 42 years old, a business economist with specialization in finance. He is CEO of Torghatten Trafikkselskap and Chief financial officer of Torghatten ASA. New board m
Slide 6: Financial targets
Financial targets ROE: CET1: 10 % 15.0 % Dividend ratio: Cost growth: 50 % <= 1 % of the dividend basis 6 En drivkraft for vekst på Helgeland
Slide 7: Main features Helgeland Profit & loss
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 7 En drivkraft for vekst på Helgeland
Slide 8: Property price development
Property price development Price development - sold apartments in NOK/sqm Price developments in the 80.000 1st quarter, 70.000 2.2 % in Helgeland and 3.0 60.000 % in Oslo. Oslo 50.000 Trondheim 40.000 Bodø Helgeland 30.000 20.000 10.000 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
Slide 9: Stabile property price development
Stabile property price development Price development - sold villas in NOK/sqm 70.000 Price developments in the 60.000 1st quarter, 8.3 % in Helgeland and 4.5 50.000 % in Oslo. Oslo 40.000 Trondheim Bodø 30.000 Helgeland 20.000 10.000 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1
Slide 10: Unemployment
Unemployment Unemployment in Helgeland and in Unemployment in %, Norge, Nordland og Helgeland Nordland is lower than for Norway 3,50% as a whole. 3,25% • Norge 2.4 % 3,00% • Nordland 2.1 % 2,75% • Helgeland 2.1 % 2,50% 2,25% 2,00% 1,75% 1,50% 1,25% 1,00% 31.12.18 31.03.14 30.06.14 30.09.14 31.12.14
Slide 11: Digital focus in Helgeland Sparebank
Digital focus in Helgeland Sparebank 11 En drivkraft for vekst på Helgeland
Slide 12: Digital commitment • In general
Digital commitment • In general • Strategy: – Self-service and automate increased advisor capacity – Focus on integration, collaboration and new solutions – Insight work in relation to customers, products/services, digitalization • Focus areas: – Self-service – Robotisation – Open Banking – Mobile
Slide 13: Digital commitment • Self-service
Digital commitment • Self-service • Strategy: The customer wants it, we want it we do it • Mobile and online banking – External system provider – Continuous development of new, user-friendly services • Self-service and automated credit processes – Consent-based loan application – New self-service
Slide 14: Digital commitment • Robotisation
Digital commitment • Robotisation • Strategy: Internal professional environment, increased capacity • Upscale automation – Established professional environment – Robotic internal processes • Integration – Integrate automation solution with CRM – Automate web form and simple self-service mechanisms 1
Slide 15: Digital commitment • Open Banking
Digital commitment • Open Banking • Strategy: Integration og cooperation • «Transparency" – Compliance in relation to PSD2-requirments - In route – Q3/19 – Extended cooperation with third parties - At the idea stage • «Perspective" – Accounts from other banks in our channel solutions - Under develop
Slide 16: Digital commitment • Mobile payment
Digital commitment • Mobile payment • Strategy: Open, but pending • Tokenization – Safe, exciting, future, immature market – Differentiated implementation: – Support for tokenization Under development - Q3/19 – Support for BankAxept Under development - Q3/19 (Vipps in store) – Support for various Wa
Slide 17: Main features Helgeland Profit & loss
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 17 En drivkraft for vekst på Helgeland
Slide 18: Result
Result Change in gross profit (MNOK) Good result 120 1,0 -6,0 97 1,0 96 Gross profit MNOK 93 100 95 80 3,0 94 • Decreased income from financial 93 investments 60 92 • Decreased write-downs on lending 94 -1,0 1,0 93 91 40 90 20 89 88 0 87 18 En drivkraft for vekst på Helgeland
Slide 19: Profit
Profit Result Q1 Profit developement (MNOK) Gross profit MNOK 93 40% • Net ROE 8.7 % 460 452 35% 85 360 348 30% 107 72 (One time effect pension MNOK 74 in Q1 2016) 25% 260 101 185 20% 106 76 160 15% 74 91 49 93 10% 60 94 93 80 84 5% -34 -40 0% 2016 2017 2018 Q1 2019 Q1 Q1 EE Q2 Q3 Q4 ROE % 19 En dri
Slide 20: Net interest
Net interest Development net intr.(mnok.) and % of average BTA • Effect of latest interest rate change • Higher funding costs with increased Nibor interest rates 200 • Decided interest rate change on May 22nd will have positive effect 141 141 140 145 142 on net interest 150 1,79% 1,75% 1,75% 1,70% 1
Slide 21: Provision
Provision Development net provision income • Stable commission income 0,30% 0,28% 0,28% 0,28% 85 86 90 23 2016 2017 2018 Q1 2019 Net provision income (MNOK) In % of BTA 21 En drivkraft for vekst på Helgeland
Slide 22: Helgeland Sparebank - product companies
Helgeland Sparebank - product companies 7.9 % Frende is owned by 15 individual saving banks. Frende Insurance consist of the companies Frende Life insurance and Frende damage insurance. The company is owned by Helgeland Sparebank, thirteen other individual saving banks 7.5 % and Must invest AS. The
Slide 23: Operating costs
Operating costs Operating cost (mnok) and % of income 100 Stable costs in NOK 74 73 • Costs in % of revenue 42.7 75 72 69 71 50 41,4% 42,5% 41,5% 42,7% 34,3% 25 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Operation cost Operation cost % 23 En drivkraft for vekst på Helgeland
Slide 24: Loss on commitments
Loss on commitments Low loans losses • MNOK 5 in loan losses in Q1 0,89% 0,25% 0,15% 0,06% 36 66 249 5 2016 2017 2018 31.03.19 Net loss MNOK Net loss in % of gross lending 24 En drivkraft for vekst på Helgeland
Slide 25: Main features Helgeland Profit & loss
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 25 En drivkraft for vekst på Helgeland
Slide 26: Growth
Growth Lending retail market Lending corporate market 18.691 9.496 17.853 6.7 % 8.813 7.7 % 5.3 % 4.7 % 16.956 8.256 31.03.17 31.03.18 31.03.19 31.03.17 31.03.18 31.03.19 26 En drivkraft for vekst på Helgeland
Slide 27: Credit growth
Credit growth 12-month credit growth Credit growth HSB 20% • 12-month growth 5.7 (5.8)% 15% Locally in Helgeland • Per Q1 82.4 (83.5)% 10% PM share • Target minimum 60% 5% • Per Q1 66.3 (67.0)% 0% -5% 2016 2017 2018 Q1 2019 HSB Helgeland total Statistic Norway total 27 En drivkraft for vekst på Helg
Slide 28: Credit growth CM
Credit growth CM 12-month credit growth corporate market 12 month growth CM 7.7 (6.7) % 20% Expect lower 12 months growth throughout the rest of 2019 15% 10% 5% 0% -5% 2016 2017 2018 Q1 2019 HSB Helgeland corp. Statistic Norway corp. 28 En drivkraft for vekst på Helgeland
Slide 29: Credit growth RM
Credit growth RM 12-month credit growth retail market 12 month growth RM 4.7 (5.3) % 20% • The bank’s market shares are 15% stable 10% 5% 0% -5% 2016 2017 2018 Q1 2019 HSB Helgeland pers. Statistic Norway pers. 29 En drivkraft for vekst på Helgeland
Slide 30: Lending CM
Lending CM Lending distributed in sector Good diversification in the CM lending portfolio and loyal 12,2 % corporate customers Real estate 11,4 % 5,1 % Share CM of total lending 33.7 Farming and forestry (33.0)% or MNOK 9 496 5,1 % 4,8 % (8 951) Construction and power 5,1 % 3,2 % Transport and servi
Slide 31: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss Net non-performing and other 600 impaired commitments amounts to MNOK 340 an increase of MNOK 20 500 since year end. This amounts to 1.2 % 400 of gross loans 300 Increase in defaults and doubtful commitments in 2018 20
Slide 32: Main features Helgeland Profit & loss
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 32 En drivkraft for vekst på Helgeland
Slide 33: Deposit growth
Deposit growth 12-month deposit growth 12-month growth 2.6 (3.5)% 20% RM share • Per Q1 57.7 (56.5)% 15% Locally in Helgeland 10% •Per Q1 89.9 (90.2)% Deposit ratio 5% • Target minimum 60% • Per Q1 61.3 (63.1)% 0% -5% 2016 2017 2018 Q1 2019 HSB total Helgeland Statistic total Norway 33 En drivkraft
Slide 34: Deposit growth CM
Deposit growth CM 12-month deposit growth corporate market 12-month growth CM -0.2 (+2.4)% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% 2016 2017 2018 Q1 2019 HSB Helgeland Corp. Statistic Norway Corp. 34 En drivkraft for vekst på Helgeland
Slide 35: Deposit growth RM
Deposit growth RM 12-month deposit growth retail market 12-month growth RM 4.8 (4.2)% 20% 15% 10% 5% 0% -5% 2016 2017 2018 Q1 2019 HSB Helgeland pers. Statistic Norway pers. 35 En drivkraft for vekst på Helgeland
Slide 36: Deposits CM
Deposits CM Customer deposits Municipalities 9,4 % 11,5 % Well diversified deposit Transport and services 9,9 % portfolio in the CM 11,0 % Construction and power 6,2 % 3,6 % Share CM 42.3 (43.5)% or Farming and forestry 6,6 % MNOK 7 303 (7 321) of total 3,4 % deposits Real estate 4,4 % 5,8 % 2,5 % D
Slide 37: Main features Helgeland Profit & Loss
Main features Helgeland Profit & Loss Lending Deposits Funding Solidity Prospects and priorities Appendices 37 En drivkraft for vekst på Helgeland
Slide 38: Funding
Funding Funding development (MNOK) 120% 100% 2,8 % 2,1 % 2,5 % 2,5 % 17,5 % 19,3 % 22,0 % 22,9 % 80% 19,2 % 18,7 % 17,1 % 16,7 % 60% 40% 60,5 % 59,9 % 58,4 % 57,8 % 20% 0% 2016 2017 2018 Q1 2019 Deposits Swap agreement Senior CB FO 38 En drivkraft for vekst på Helgeland
Slide 39: Funding
Funding Maturity of loans (MNOK) Good and long term funding 3.000 Share long term funding 2.500 94.3% (88.9)% 2.000 Combined duration of 2.9 1.000 1.500 1.500 1.500 (2.9) years. Duration in the 1.500 mortgage company 3.2 years 1.000 1.200 1.294 500 1.000 1.000 1.000 130 250 400 0 2019 2020 2021 2022
Slide 40: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland boligkreditt AS, fully owned by Helgeland Sparebank • Net profit MNOK 13 (15). • CET1 ratio of 18.1 (20.1)% • standard method with 35% mortgage weights • Gross loans amounts to MNOK 7 494 (6 791) and CB MNOK 6 836 (5 707) Good security in the lending portfolio • C
Slide 41: Main features Helgeland Profit & loss
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 41 En drivkraft for vekst på Helgeland
Slide 42: Liquidity buffer
Liquidity buffer Sector distribution interest portfolio 33% CB 1 30% Interest bearing securities: Finance, Norway 1% • Duration portfolio 2.0 (2.1) years 0% • 98 % rated A- or better 19% • 98.7 % CB or state-/ municipal Government guaranteed bonds 22% 43% Municipalites Municipality papers are active
Slide 43: Capital adequacy
Capital adequacy Development capital adequacy Capital ratio 22% • CET1 15.1 (15.6)% • Core capital 16.7 (17.2)% 20% 1,8 % • Total capital 19.1 (19.0)% 18% 1,7 % 2,4 % 2,4 % The Group’s capital targets included 2,6 % 1,6 % Pilar 2 addition of 2.2% amounts to 16% 1,6 % 1,6 % 14.2%. 14% If 50% of the p
Slide 44: HELG – the 20 largest owners
HELG – the 20 largest owners Per 31.03.19 Numbers % share Numbers % share Sparebankstiftelsen Helgeland 7 315 020 35.0 % Catilina Invest AS 256 046 1.2 % Pareto AS 1 949 392 9.3 % VPF Nordea Avkastning 244 270 1.2 % VPF Nordea Norge 1 407 987 6.7 % VPF Nordea Kapital 238 245 1.1 % Merrill Lynch Prof
Slide 45: HELG – the 20 largest local owners
HELG – the 20 largest local owners Per 31.03.19 Numbers % share Antall % % share Sparebankstiftelsen Helgeland 7 315 020 35.05 % Torghatten ASA 16 824 0.08 % Helgeland Kraft AS 377 691 1.81 % Harald Svendsen 13 710 0.07 % Vigner Olaisen AS 144 653 0.69 % Dan Erik Kjellnø 13 000 0.06 % Steffen Nervik
Slide 46: HELG – EC development and liquidity
HELG – EC development and liquidity 2016 2017 2018 Q1 2019 EC fraction 75.1 % 76.5 % 76.3 % 76.4 % Number of EC's 20.9 20.9 20.9 20.9 Stock exchange price 81.0 88.0 69.5 72.0 Stock value 1 692.9 1 839.2 1 452.6 1 504.8 Accounted equity per EC 101 108 110 112 Profit per EC 13.5 9.5 5.0 2.5 Dividend p
Slide 47: Main features Helgeland Profit & loss
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 47 En drivkraft for vekst på Helgeland
Slide 48: Priorities 2019
Priorities 2019 – Adapt the calculation basis for capital adequacy given the requirement for countercyclical buffer. – Profitable growth in the retail market: maintain market position. – Increased width sales – Continue the restructuring of the portfolio and increase the profitability of the corpora
Slide 49: Main features Helgeland Profit & loss
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 49 En drivkraft for vekst på Helgeland
Slide 50: Profit & loss
Profit & loss Helgeland Sparebank (group) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Net interest- and credit provision earnings 135 141 142 147 141 141 140 145 142 Net provision earnings 20 22 21 23 22 22 22 24 23 Other operatios income 1 1 0 2 1 3 6 6 2 Ordinary operat
Slide 51: Helgeland Sparebank – Subsidiary and associated companies
Helgeland Sparebank – Subsidiary and associated companies 100 % Helgeland Boligkreditt has concession as a credit company with permission to issue covered bonds. The company will ensure stable and long-term financing for the Group under competative conditions. Helgeland Invest AS is an investment co
Slide 52: Helgeland Sparebank
Helgeland Sparebank Vision: a driving force for growth in Helgeland. Business concept: to be a profitable and the leading bank in Helgeland. The bank provides financial products and services to consumers, small and medium-sized businesses, municipalities and other institutions related to Helgela
Slide 53: Contact information
Contact information Head office Board of directors Postal address Postboks 68, 8601 Mo i Rana Stein Andre Herigstad-Olsen, chairman Visiting address Jernbanegata 15, 8622 Mo i Rana Bjørn Audun Risøy, deputy chairman Marianne Terese Steinmo Phone number 75 11 90 00 Siw Moxness Web www.hsb.no Nils Ter