Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Gruppen — Q2 2012 Earnings Presentation
35 slides from Sparebank 1 Ostlandet's earnings presentation, Aug 9, 2012
Slide 1: 1st half-year and 2nd quarter 2012 Presentation of results
Q2 1st half-year and 2nd quarter 2012 Presentation of results from SpareBank 1 Gruppen Kirsten Idebøen, CEO 9 August 2012
Slide 2: Year-to-date profit in line with last year
Year-to-date profit in line with last year Pre-tax profit Group quarterly (MNOK) • Pre Pre-tax tax profit for 1st half half-year: year: MNOK 296 (308) Q1 Q2 • Net profit for 1st half-year: MNOK 263 (249) 173 162 • Annualised return on equity: 145 10.5 (10.5) % 123 • Group’s G ’ total t t l assets t
Slide 3: Financial performance per business area
Financial performance per business area • SpareBank 1 Livsforsikring has built up Pre-tax profit per subsidiary (MNOK) further reserves during 1st half-year. Administration result continued to improve. 238 236 236 1H2011 1H2012 • Good financial result and improved insurance result contributed to a g
Slide 4: SpareBank 1 Livsforsikring
SpareBank 1 Livsforsikring Improved administration result and inc eased buffer increased b ffe capital 4
Slide 5: Improved administration result and increased buffer capital
SpareBank 1 Livsforsikring Improved administration result and increased buffer capital • Pre-tax profit: MNOK 236 (238) for 1st half-year and MNOK 142 (109) in Q2 P t Pre-tax fit (MNOK), profit (MNOK) quarterly t l Q1 • Administration result: MNOK -26 (-43) for 1st half-year Q2 and MNOK -19 (-24) in
Slide 6: The company built up further buffers during 1st half-year
SpareBank 1 Livsforsikring The company built up further buffers during 1st half half-year year Buffer capital Buffer capital trend, trend, per per quarter quarter (%) (%) Securities adjustment reserve (MNOK) 14.6 % 15.2 % 14.8 % 14.0 % 14.1 % 617 12.8 % 11.0 % 390 327 185 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2
Slide 7: Asset allocation per portfolio as at 30/06/2012
Asset allocation per portfolio as at 30/06/2012 (31/12/11) SB1 Livsforsikring SB1 Skadeforsikring Group Investment choice portfolio Group portfolio Company portfolio 0.0 (0.0) % 12.9 (13.8) % 1.0 (-4.5) % 10.3 ((10.4)) % 0.0 (0.0) % 38.9 (37.4) % 0.5 (-0.2) % 20.9 (18.8) % 8.2 (7.9) % 12.2 (12.7) %
Slide 8: New occupational pension products are expected as of 01/01/2014
SpareBank 1 Livsforsikring New occupational p p pension pproducts are expected p as of 01/01/2014 / / Basic model Standard model • Maximum premiums: 7% of salary up to 7.1G* and • Maximum premiums: 8% of salary up to 7.1G* and 25.1% of salary from 7.1G-12G 26.1% of salary from 7.1G-12G • The company
Slide 9: SpareBank 1 Skadeforsikring Group
SpareBank 1 Skadeforsikring Group G d financial Good fi i l result lt and d improved i d insurance i result lt 9
Slide 10: Good financial result and improved insurance result
SpareBank 1 Skadeforsikring Group Good financial result and improved insurance result Pre-tax Pre tax profit, profit quarterly (MNOK) 308 Q1 • Pre-tax profit: MNOK 236 (107) for 1st half-year 254 Q2 and MNOK 70 (56) in Q2 Q3 Q4 • Insurance result*: MNOK 12 (-22) for 1st half-year 168 166 and MNOK 31
Slide 11: Good underlying profitability in main products and lower proportion of large claims
SpareBank 1 Skadeforsikring Group Good underlying profitability in main products and lower proportion of large claims Combined ratio for own account – quarterly (%) Combined ratio for own account (%) 105.5 105.8 103.5 96.9* 100.3 101.9 100.7 101.6 97.7 99.0 93.4* 96.5 94.0 96.2 92.9 21.1 89.8 21.9 2
Slide 12: Good portfolio growth in 1st half-year 2012
SpareBank 1 Skadeforsikring Group Good portfolio growth in 1st half half-year year 2012 Portfolio growth per year (MNOK) 5 407 • Total portfolio growth of MNOK 209 (277) to NOK 5.4 (5.0) billion as at 30/06/2012, equivalent to a growth of 4.0 % 3 358 – Unison Forsikring saw growth in 1st half-year o
Slide 13: SpareBank 1 Markets
SpareBank 1 Markets Visible effects from result-oriented work 13
Slide 14: Visible effects from result-oriented work
SpareBank 1 Markets Visible effects from result-oriented work Results SB1 Markets - Market share bond issues • Total turnover 12 % • 1st half-year: MNOK 73 (58), up 25 % • Q2: MNOK 40 (24), up 70 % • Pre Pre-tax tax profit 5% • 1st half-year: MNOK -90 (-26) 3% 3% 2% • Q2: MNOK -45 (-22) 1% Q1 2011 Q
Slide 15: ODIN Forvaltning
ODIN Forvaltning O o a g Nine out of twelve equity funds performed better than their benchmark in 1st half-year 15
Slide 16: Nine out of twelve equity funds performed better than their benchmark
ODIN Forvaltning Nine out of twelve equity funds performed better than their benchmark in 1st half-year • Pre Pre-tax half-year: tax profit for 1st half year: MNOK -2 2 (24) Pre-tax profit (MNOK), quarterly – Management fees totalled MNOK 131 (172) 17 17 16 14 Q1 • Pre Pre-tax tax profit for Q2: MNO
Slide 17: Nine out of twelve equity funds beat benchmark. New CEO
ODIN Forvaltning Nine out of twelve equity funds performed better than their benchmark in 1st half-year. New CEO Return on equity q y fund as at 30/06/2012 / / ((%)) 11.6 Fund Benchmark 8.8 8.2 8.8 7.1 6.9 6.2 5.7 5.8 5.3 5.4 5.3 4.7 4.6 3.9 2.8 2.9 3.0 1.9 18 1.8 -0.6 -2.2 -1.6 -7.5 ODIN ODIN ODIN
Slide 18: SpareBank 1 Gruppen Finans Group
SpareBank 1 Gruppen Finans Group Continued focus on growth and cost-efficiency 18
Slide 19: Continued focus on growth and cost-efficiency
SpareBank 1 Gruppen Finans Group Continued focus on growth and cost cost-efficiency efficiency Pre-tax profit (MNOK) • SpareBank p 1 Gruppen pp Finans Group p reported p ap pre-tax 14.2 profit for 1 half-year of MNOK 14.2 (9.8) st 1H2011 12.2 11.6 • Higher costs in the factoring business area reduce
Slide 20: Outlook
Outlook SPAREBANK 1 GRUPPEN • SpareBank 1 Skadeforsikring has started a number of measures aimed at improving profitability The effect of the measures has been satisfactory so far and is expected to profitability. increase throughout 2nd half-year. • SpareBank 1 Livsforsikring is well positioned wit
Slide 21: The nation's savings bank
The nation nation's s savings bank 21 21
Slide 22: Appendix
Appendix SpareBank 1)
Slide 23: SpareBank 1 Alliance
SpareBank 1 Alliance SpareBank 1 SpareBank 1 SpareBank 1 Sparebanken Samarbeidende LO (Trade Union) SR-Bank SMN Nord-Norge Hedmark Sparebanker (10%) (19.5%) (19.5%) (19.5%) (12%) (19.5%) SpareBank 1 Gruppen AS SpareBank 1 ODIN SpareBank 1 Markets Livsforsikring Forvaltning (97.47%) (100%) (100%) All
Slide 24: Return on equity after tax among selected Nordic financial institutions
Return on equity after tax among selected Nordic financial institutions Average 1H2012 2011 2010 2009 2009-2011 Gjensidige* 17.7% 11.9% 13.1% 11.1% 12.0% Handelsbanken 14.0% 13.5% 12.9% 12.6% 13.0% Nordea 12.1% 10.6% 11.5% 11.3% 11.1% DNB 10.7% 11.4% 13.6% 10.6% 11.9% SpareBank 1 Gruppen 10.5% 11.1%
Slide 25: Key figures
SpareBank 1 Gruppen Key figures Q2 Q1 Q4 Q3 Q2 Q1 Year 2012 2012 2011 2011 2011 2011 2011 Groupp Net result for the period (MNOK) 63.4 199.9 281.5 -4.8 97.2 151.9 525.8 Return on equity (%) 10.5 % 15.9 % 23.2 % -0.3 % 8.1 % 12.9 % 11.1 % Capital adequacy ratio, cumulative (%) 15.9 % 14.8 % 16.2 % 16
Slide 26: Result for 1st half-year 2012
SpareBank 1 Gruppen Result for 1st half half-year year 2012 Q2 Q1 Q2 Half year Year Fi Figures in i MNOK 2012 2012 2011 2012 2011 2011 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 141.8 94.1 109.0 235.8 238.4 414.1 - SpareBank 1 Skadeforsikring Group 70.4 165.5 56.2 235.9
Slide 27: Quarterly results
SpareBank 1 Gruppen Quarterly results Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Figures in MNOK 2012 2012 2011 2011 2011 2011 2010 2010 2010 2010 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 141.8 94.1 98.1 77.7 109.0 129.4 72.5 85.8 100.3 91.9 - SpareBank 1 Skadeforsikring Group 70.
Slide 28: Result for 1st half-year 2012 - Livsforsikring
SpareBank 1 Livsforsikring Result for 1st half half-year year 2012 Q2 Q1 Q2 Half year Year g Figures in MNOK 2012 2012 2011 2012 2011 2011 Insurance risk income 369.1 361.2 333.0 730.3 668.7 1,338.7 Insurance risk claims -266.2 -340.4 -252.6 -606.6 -508.2 -1,061.7 Risk result 102.9 20.7 80.4 123.6 1
Slide 29: Profit per portfolio for 1st half-year 2012
SpareBank 1 Livsforsikring Profit per portfolio for 1st half-year 2012 Previously P i l Group established Investment choice Company Figures in MNOK portfolio individual products portfolio portfolio Total Risk result 123.8 -2.9 1.1 0.0 122.0 Administration result 33.8 -20.6 -39.6 0.0 -26.4 Net invest
Slide 30: Premium income trend for 1st half-year 2012
SpareBank 1 Livsforsikring Premium income trend for 1st half half-year year 2012 Q2 Q1 Q2 Half year Year Figures in MNOK 2012 2012 2011 2012 2011 2011 Individual annuity and pension insurance 72.3 72.3 71.1 144.6 144.1 284.9 Individual endowment insurance 150.2 147.9 141.1 298.1 279.6 570.6 Group pe
Slide 31: Return on customer portfolio with guarantee as at 30/06/2012
SpareBank 1 Livsforsikring Return on customer portfolio with guarantee as at 30/06/2012 Value-adjusted return excluding l di change h iin value l construction: t ti Booked return: Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 2012 2012 2012 2012 2012 2012 2012 2012 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 2012 2012 2012 2012 2012 2012 20
Slide 32: Return on ordinary customer portfolio with guarantee as at 30/06/2012
SpareBank 1 Livsforsikring Return on ordinary customer portfolio with guarantee as at 30/06/2012 Percent Norwegian shares 78 7.8 Foreign shares 7.5 Money market 1.8 Norwegian bonds 3.6 Foreig bonds 4.5 Held to maturity 26 2.6 Real estate 3.5 32
Slide 33: Balance sheet as of 30/06/2012
SpareBank 1 Livsforsikring Balance sheet as of 30/06/2012 Half year Year Figures in MNOK 2012 2011 2011 Intangible assets 134 80 107 Investments 2,851 2,569 2,881 Reinsurance's part of insurance obligations 207 221 223 Accounts receivable 90 117 225 Other assets 276 261 368 Prepayed liabilities and
Slide 34: Result for 1st half-year 2012 - Skadeforsikring Group
SpareBank 1 Skadeforsikring Group Result for 1st half half-year year 2012 Q2 Q1 Q2 H lf year Half Year Y Figures in MNOK 2012 2012 2011 2012 2011 2011 Gross written premium 1,431.1 1,713.1 1,380.6 3,144.2 2,933.9 5,358.2 Net earned premium 1,257.3 1,234.5 1,137.7 2,491.8 2,238.5 4,695.9 Net incurred
Slide 35: Result for 1st half-year 2012 - ODIN Forvaltning
ODIN Forvaltning Result for 1st half half-year year 2012 Q2 Q1 Q2 Half year Year Figures in MNOK 2012 2012 2011 2012 2011 2011 M Management t fees f 63 4 63.4 67 2 67.2 85 5 85.5 130 6 130.6 172 3 172.3 303 5 303.5 Total operating income 63.4 67.2 85.5 130.6 172.3 303.5 Salaries -25.9 -24.6 -27.5 -5