SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Q2 2021 Earnings Presentation
42 slides from SpareBank 1 Helgeland's earnings presentation, 2021
Slide 1: Presentation Q2 2021 - A driving force for growth in Helgeland
Presentation Q2 2021 - A driving force for growth in Helgeland
Slide 2: Presentation per 30.06.21 (SBH Group)
Presentation per 30.06.21 (SBH Group) Main Features Hanne Nordgaard Events Q2 Chief Executive Officer Profit & loss Lending Deposits Funding Sverre Klausen Solidity Chief Financial Officer Prospects and priorities Appendices
Slide 3: Main features per 30.06.21
Main features per 30.06.21 Gross profit MNOK 171 (190) ROE* 7.6 (11.9) % Total assets 34.8 (33.8) bn Solidity CET1 20.9 (17.3) % *Adjusted for hybrid capital
Slide 4: Financial targets
Financial targets ROE target of 11 % from 2023. In the years 2020, 2021, and ROE the transformation year 2022 it is not expected to fulfil the long >11 % term target for ROE. New target for CET1 is fulfilled by the end of the quarter, and CET1 takes in to account expected increase in buffer targets
Slide 5: Unemployment
Unemployment Under the covid-19 pandemic, the unemployment increased significant from Q4 2019 to Q1 2020. Unemployment in %, Norway, Nordland and Helgeland Nationally, 81 300 people, or 2.9 % 12.00% of the work force was registered 11.00% unemployed at the end of Mars. This is an decrease of 0.9 % f
Slide 6: Housing price development
Housing price development Price development - sold apartments in NOK/sqm Price development - sold villas in NOK/sqm 100 000 80 000 90 000 70 000 80 000 60 000 70 000 Oslo 50 000 Oslo 60 000 Trondheim Trondheim 50 000 40 000 Bodø Bodø 40 000 Helgeland Helgeland 30 000 30 000 20 000 20 000 10 000 10 0
Slide 7: Events Q2
Main features Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 8: Events Q2
Events Q2 • Stable profit from the basis operation • Net interest income of MNOK 144, witch is on the same level as last quarter. • Write-downs on lending amounted to MNOK 7. • The adjustment of the parameters in the loss model implemented in relation to covid-19 is maintained. Effect of these amoun
Slide 9: Status entrance in SpareBank1/SamSpar and the acquisition from SNN
Status entrance in SpareBank1/SamSpar and the acquisition from SNN • Milestones 2021: • 1. mars SpareBank 1 Helgeland bought 15 % of the shares in Eiendomsmegler 1 Nord-Norge and Regnskapshuset Nord-Norge. • 15. mars SpareBank 1 Helgeland entered the SpareBank 1 alliance and changed name to SpareBan
Slide 10: Profit & loss
Main features Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 11: Profit
Profit Profit development Profit Q2 390 Gross profit MNOK 171 348 • Net ROE 7,6 % (hybrid excluded) 110 135 185 96 65 171 76 85 78 49 150 7,6% 94 93 93 40 -34 2018 2019 2020 30.06.21 Q1 Q2 Q3 Q4 ROE %
Slide 12: Gross profit
Gross profit Change in gross profit (MNOK) Gross profit MNOK 171 (190). 200 -11.0 1.0 200 • Reduced net interest as a consequence of price -71.0 43.0 competition and adaption in relation to the interest 180 180 160 160 rate changes in 2020. High liquidity entrance 21.0 provides a slightly weaker net
Slide 13: Net interest
Net interest Development net intr.(mnok.) and % of average BTA • High liquidity entrance in the first quarter provides a slightly weaker net 149 150 144 144 interest than expected 140 1.75% 1.76% 1.73% 1.71% 1.66% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Net interest Net interest %
Slide 14: Commission income (MNOK)
Commission income (MNOK) 100 97 90 8 7 86 8 8 33 30 Guarantee commission 32 29 Commission income insurance - 0.30% (general, life, saving and pension) 0.29% 3 0.29% 0.28% 0.28% 20 Commission income payment 28 59 60 services 49 50 In % of total assets 26 2017 2018 2019 2020 30.06.2021 Commission inco
Slide 15: Operating costs
Operating costs Operating cost (mnok) and % of income Costs are higher than on the banks target for 77 cost level of 40 % of total income. This is as expected, and is related to additional costs as a consequence of the Helgeland 1 project and 40 lower income. 23 90 5 3 82 78 73 73 62.4% 56.2% 45.8%
Slide 16: Development total assets and man-years
Development total assets and man-years 177 177 177 177 168 164 34.8 Total assets per man-year (MNOK) 34.1 33 33.2 249 31.9 232 152 150 230 29.4 148 148 215 220 143 27.1 140 193 26 25.8 24.6 165 22.8 154 139 145 20.1 130 115 Number of man years Total assets (billion NOK) Total assets per man-year (MN
Slide 17: Loss on commitments
Loss on commitments MNOK 10 in loss so far this year, hereof MNOK 7 in Q2 The write-down is partly a consequence of calculated loss and partly a product of statements of earlier depreciated commitments. The write-downs this quarter is considered low. 0.89% 0.24% 0.18% 0.07% 249 65 51 10 2018 2019 20
Slide 18: Lending
Main features Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 19: 12-month credit development
12-month credit development Lending corporate market Lending retail market 9 639 18 812 18 978 8 898 18 658 -7.7 % -6.2 % 8 350 -0.8 % 1.7 % 30.06.19 30.06.20 30.06.21 30.06.19 30.06.20 30.06.21 The decrease in lending for the corporate market is mainly related to the leave of two large corporate co
Slide 20: Credit development
Credit development 12-month credit development corporate market 12-month credit development retail market 16% 16% 11% 11% 6% 6% 1% 1% -4% -4% -9% -9% 2018 2019 2020 30.06.2021 2018 2019 2020 30.06.2021 SBH Helgeland corp. Statistic Norway corp. SBH Helgeland pers. Statistic Norway pers. 12-month cre
Slide 21: Lending CM
Lending CM Lending distributed in sector 11.0 % Good diversification in the CM Real estate 10.4 % lending portfolio and loyal corporate 5.1 % customers Farming and forestry 4.8 % Share CM of total lending 30.6 (32.3)% or MNOK 8 350 4.4 % Construction and power 3.4 % (8 898) 6.1 % Transport and servi
Slide 22: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss Net non-performing and other impaired commitments amounts to MNOK 336, an 600 increase of MNOK 20 from year end. 500 The increase is mainly related to changes in 400 the default commitment definition. It is individual
Slide 23: Deposits
Main features Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 24: Deposit development
Deposit development Deposit development corporate market (12-month) Deposit development retail market (12-month) 35% 20% 30% 25% 15% 20% 10% 15% 10% 5% 5% 0% 0% -5% -10% -5% 2018 2019 2020 30.06.2021 2018 2019 2020 30.06.2021 SBH Helgeland Corp. Statistic Norway Corp. SBH Helgeland pers. Statistic N
Slide 25: Deposit development
Deposit development 23 000 000 000.00 21 000 000 000.00 19 000 000 000.00 17 000 000 000.00 15 000 000 000.00 13 000 000 000.00 11 000 000 000.00 feb. 15 jun. 15 jun. 17 jun. 18 jun. 19 jun. 20 jun. 21 okt. 15 feb. 16 jun. 16 okt. 16 feb. 17 okt. 17 feb. 18 okt. 18 feb. 19 okt. 19 feb. 20 okt. 20 fe
Slide 26: Deposits CM
Deposits CM Customer deposits Well diversified deposit portfolio in the CM 11.0 % Municipalities 13.9 % 9.8 % Transport and services 11.2 % Share CM 42.2 (40.3)% or MNOK Construction and power 3.2 % 3.3 % 8 688 (7 483) of total deposits 2.4 % Farming and forestry 2.0 % Deposits from municipalities R
Slide 27: Funding
Main features Events Q2 Profit & Loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 28: Funding
Funding Funding development 2.1 % 2.5 % 2.5 % 2.5 % 2.6 % 19.4 % 19.3 % 22.0 % 22.2 % 21.1 % 13.0 % 18.7 % 12.2 % 11.3 % 17.1 % 64.9 % 69.4 % 59.9 % 58.4 % 63.1 % 2017 2018 2019 2020 30.06.2021 Deposits Senior CB FO
Slide 29: Funding due
Funding due High quality and long term Maturity of loans (MNOK) funding Share long term funding 80.8% (87.9)% Combined duration of 2.3 1 654 1 500 (2.7) years. Duration in the 1 500 mortgage company 2.4 years 620 187 920 1 000 800 500 337 300 300 2021 2022 2023 2024 2025 2026 2027 2028 2029 Senior C
Slide 30: Liquidity buffer
Liquidity buffer Interest bearing securities: Sector distribution interest portfolio • Duration portfolio 1.5 (1.4) years • 98.9 % rated A- or better • 98.5 % CB or state-/ municipal 30% CB 1 guaranteed bonds 27% Municipality papers are actively used 43% Municipalities as short term liquidity placem
Slide 31: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland boligkreditt AS is fully owned by SpareBank 1 Helgeland • Net profit MNOK 26.7 (30.5) • CET1 ratio of 20.8 (17.4)% • standard method with 35% mortgage weights • Gross loans amounts to MNOK 6 428 (7 664) and CB MNOK 5 815 (6 763) Good security in the lending portfo
Slide 32: Solidity
Main features Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices Foto: Hans Petter Sørensen
Slide 33: Capital adequacy
Capital adequacy Development capital adequacy 24% 2.7 % Capital ratio 22% 2.6 % 1.8 % • CET1 20.9 (17.3)% 20% 2.5 % 1.7 % • Core capital 22.6 (19.0)% 18% 1.7 % 2.4 % 1.7 % • Total capital 25.3 (21.6)% 1.6 % 16% 1.6 % Leverage ratio: 10.6 (9.6)%. 20.9 % 14% 18.8 % 17.2 % 12% 15.8 % 15.3 % 10% 8% 2017
Slide 34: HELG – the 20 largest owners
HELG – the 20 largest owners Morbank Per 30.06.21 Number %-share Number %-share Sparebankstiftelsen Helgeland 7 315 020 35.0 % Catilina Invest AS 296 546 1.4 % Pareto Invest AS 1 970 817 9.4 % VPF Nordea Avkastning 240 370 1.2 % VPF Nordea Norge 1 067 487 5.1 % VPF Nordea Kapital 238 245 1.1 % Berge
Slide 35: HELG – the 20 largest local owners
HELG – the 20 largest local owners Geografical owner structure (%) 15.4 14.8 14.7 13.1 12.5 14.3 14.2 14.0 15 41.8 42.9 42.4 43.9 44.4 42.7 42.7 43.1 42.3 42.8 42.3 42.9 43.0 43.1 43.0 43.1 42.9 42.7 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Local owners (Helgeland) Oth
Slide 36: HELG – EC development and liquidity
HELG – EC development and liquidity Utvikling HELG vs OSEEX - siste 12 måneder 70% 160 000 31.12.19 31.12.20 31.03.21 30.06.21 60% 140 000 EC fraction opening balance 76.4 % 76.4 % 76.3 % 76.3 % 50% 120 000 Number of EC's 20.9 20.9 20.9 20.9 40% 100 000 price 84.0 86.0 107 120 Volum HELG Change (%)
Slide 37: Prospects and priorities
Main features Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 38: Prospects ahead
Prospects ahead ▪ Positive future ahead despite of corona ▪ Low unemployment, large public and private projects, rising housing prices and stable turnover numbers is factors that supports this. ▪ Entrance in the SpareBank1 alliance. ▪ The associated transactions will affect the operations 2021, and
Slide 39: Appendices
Main features Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 40: Profit & loss
Profit & loss SpareBank 1 Helgeland (group) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Net interest- and credit provision earnings 142 145 156 159 159 140 149 150 144 144 Net provision earnings 23 22 25 30 24 24 23 26 28 21 Other operatios income 2 0 1 2 1 0 2 2
Slide 41: SpareBank 1 Helgeland
SpareBank 1 Helgeland • Vision: a driving force for growth in Helgeland. • Business concept: SpareBank 1 Helgeland is the profitable and leading local bank building future Helgeland. • Offices: The Bank has 4 offices in Mo i Rana, Mosjøen, Sandnessjøen and Brønnøysund. • SpareBank 1 Helgeland is the
Slide 42: Contact information
Contact information Board of directors Head office Bjørn Krane, chairman Postal address: Postboks 68, 8601 Mo i Rana Rolf Eigil Bygdnes, deputy chairman Visiting address: Jernbanegata 15, 8622 Mo i Rana Marianne Terese Steinmo Siw Moxness Phone number 75 11 90 00 Tone Helen Hauge Web www.sbh.no Birg
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