SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q1 2012 Earnings Presentation
47 slides from SpareBank 1 Helgeland's earnings presentation, May 3, 2012
Slide 1: Account presentation 1. quarter 2012
Result presentation Shippingklubben 03.05.12 Account presentation 1. quarter 2012 En drivkraft for vekst på Helgeland 1
Slide 2: Account presentation 1. quarter 2012 (group)
Account presentation 1. quarter 2012 (group) Highlights Jan Erik Furunes CEO The bank The Region Profit and loss Lisbeth Flågeng Balance sheet DCEO Lending Deposits Inger Lise Strøm Financing General manager Corporate Summery staff Appendix En drivkraft for vekst på Helgeland 2
Slide 3: The Region Helgeland – In the middle of Norway
Highlights Tromsø The bank The Region Helgeland – In the midle of Norway Profit and loss The polar circle- and Balance sheet Himmelblålandet Mo i Rana Lending Dominance in northern Norway • Process and engineering industry Trondheim Deposits •Oil- and gas acitivity • Powerproduction Financing •Aquac
Slide 4: Highlights: Result and key figures Q1/2012
Highlights Result and key figures Q1/2012 (Q1/2011) Result • Stable operating – result before tax 42 (40) NOK mill. Key figures • Increased net interest – from 1,42 % in Q4/2011 to 1,46 (1,57) % in Q1/2012 • Good cost control – 1,03 (1,15) % • Moderate losses – 0,10 (0,12) % • Good insurance sales –
Slide 5: Population 2012
Folketall 2012 Highlights The bank The region Mo i Rana Profit and loss 25.652 13.258 Balance sheet 7.778 7.372 Sandnessjøen Lending Mosjøen Sandnessjøen Mo i Rana Mosjøen Brønnøysund Deposits Financing Brønnøysund Summary Appendix En drivkraft for vekst på Helgeland 5
Slide 6: The bank: A brief overview
The bank A brief overview Helgeland Sparebank Market share in % main bank connection Helgeland 2011 • Vision - A driving force for growth within Helgeland • Business concept - A profitable and leading bank • Total assets HSB 54 % DnB, NB og PB 26 % SB1NN 15 % Other (Nordea, Handels m.fl.) 5 % - Norw
Slide 7: The region
Highlights The bank The region Mo i Rana Profit and loss Balance sheet Sandnessjøen Lending Mosjøen Deposits Financing Summary Brønnøysund Appendix E6 En drivkraft for vekst på Helgeland 7
Slide 8: The region: A brief overview
The region A brief overview Helgeland Sparebank • Helgeland 78 000 Population growth Helgeland - Growth in population and value creation 77 500 • Real estate and property - Increasing construction acitivity and 77 000 prices 76 500 • Oil- and gas activity 76 000 - The fields of Norne, Skarv and Luva
Slide 9: Profit and loss
Highlights The bank The region Profit and loss Balance sheet Lending Deposits Financing Summary Appendix En drivkraft for vekst på Helgeland 9
Slide 10: Result- and key figure development
Profit and loss Result- and key figure development Helgeland Sparebank Stable operating Key figures in % of A.T.A Net interest 3.0 % • Increased funding costs Result after tax • Increased price Net interest competition 2.5 % Net commission Net commission income 2.0 % • Transition from Terra to Frend
Slide 11: Result- and key figure development
Profit and loss Result- and key figure development Helgeland Sparebank Stable operating Key figures in % of A.T.A Net interest 3.0 % • Increased funding costs Result after tax • Increased price Net interest competition 2.5 % Net commission Net commission income Operating costs • Transition fromTerra
Slide 12: Result- and key figure development
Profit and loss Result- and key figure development Helgeland Sparebank Stable operating Key figures in % of A.T.A Net interest 3.0 % • Increased funding costs Result after tax • Increased price competition Net interest 2.5 % Net commission income Net commission • Transition from Terra to Operating c
Slide 13: Profit and loss account
Profit and loss Profit and loss account Helgeland Sparebank Profit and loss account (NOK mill.) Q1/2011 In % of A.T.A Q1/2012 In % av A.T.A Net interest- and credit comission income 80 1.57 % 84 1.46 % Net comission income 13 0.25 % 16 0.28 % Other operating income 1 0.03 % 2 0.03 % Operating costs
Slide 14: Profit and loss account
Profit and loss Profit and loss account Helgeland Sparebank Result in % of average total assets Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Net interest- and credit comission income 1.57 % 1.55 % 1.48 % 1.42 % 1.46 % Net comission income 0.25 % 0.30 % 0.30 % 0.31 % 0.28 % Other operating income 0.03 % 0
Slide 15: Equity return
Profit and loss Equity return Helgeland Sparebank Increased equity return Return on equity and target figures Target figure 16 % • Risk-free interest +5% =7% 14 % Result • 7,2 % (6,6 %) 12 % 10 % 8% 6% 4% 2007 2008 2009 2010 2011 Q1/2012 Return on equity Risk-free interest rate + 5 % En drivkraft fo
Slide 16: Balance sheet
Highlights The bank The region Profit and loss Balance sheet Lending Deposits Financing Summary Appendix En drivkraft for vekst på Helgeland 16
Slide 17: Balance- and growth development
Balance sheet Balance- and growth development Helgeland Sparebank Steady growth Total assets whereof lending and Balance sheet deposits (NOK mill.) • Growth in both retail- and 25 000 corp. market • Total assets at NOK 23.0 bn. . 20 000 15 000 10 000 5 000 0 2007 2008 2009 2010 2011 Q1/2012 Total as
Slide 18: Balance- and growth development
Balance sheet Balance- and growth development Helgeland Sparebank Steady growth Total assets whereof lending and Balance sheet deposits (NOK mill.) • Growth in both retail- and 25 000 corp. market. • Total assets at NOK 23.0 bn. 20 000 • Lending NOK18.4 bn. • Deposits from customers NOK 10.6 bn. 15
Slide 19: Balance sheet figures
Balance sheet Balance sheet figures Helgeland Sparebank Balance sheet (NOK mill.) 31.12.2011 Q1/2012 Total assets 22 802 22 998 Loans 18 149 18 431 Deposits 10 429 10 603 Development gross lending 12 mth 9.1 % 9.3 % - Retail market 9.3 % 8.5 % - Corporate market 8.9 % 10.6 % Development deposits 12
Slide 20: Lending
Highlights The bank The region Profit and loss Balance sheet Lendings Deposits Financing Summary Appendix En drivkraft for vekst på Helgeland 20
Slide 21: Gross lending per 31.03.12
Gross lending per 31.03.12 Helgeland Sparebank 18 431 (16 862) MNOK Gross lending by sector/industry Lending retail market NOK Retail market 11.5 (10.6) bn. Mainly well secured mortgages. P ro perty, pro perty develo pment NOK 1.2 (1.1) bn. A griculture and fo restry consisting of agricultur and for
Slide 22: Credit growth corporate market
Credit growth corporate market Helgeland Sparebank 12 mth. growth corp. market 10.6 % Credit growth corporate market 12 mth. 25 % The growth in HSB is higher than average growth in the 20 % market. (SSB figures per february) 15 % 10 % 5% 0% -5 % 2007 2008 2009 2010 2011 Q1/2012 SSB Norge HSB Helgela
Slide 23: Credit growth retail market
Credit growth retail market Helgeland Sparebank 12 mth. growth retail market 8.5 % Credit growth retail market 12 mth. 20 % The growth i HSB is slightly higher than average growth in the retail market. 15 % (SSB figures per february) 10 % 5% 0% 2007 2008 2009 2010 2011 Q1/2012 SSB Norge HSB Helgelan
Slide 24: Exposure by risk category
Exposure by risk category Helgeland Sparebank Stable corp. market portfolio Risk classification corporate market 100 % Portfolioscore without collateral value taken into account. 80 % 60 % 54 % 56 % 56 % 52 % 40 % 31 % 29 % 30 % 26 % 20 % 17 % 15 % 20 % 14 % 0% 31.12.09 31.12.10 31.12.11 Q1/2012 Low
Slide 25: Exposure by risk category
Exposure by risk category Helgeland Sparebank Low risk and good quality of retail market Risk classification retail market portfolio. 100 % 87 % 87 % 87 % 87 % Very high share within the low risk category. 80 % 60 % 40 % 20 % 11 % 11 % 11 % 11 % 3% 2% 2% 2% 0% 31.12.09 31.12.10 31.12.11 Q1/2012 Low
Slide 26: Defaults and doubtful commitments
Defaults and doubtful commitments Helgeland Sparebank Growth without increased risk Net defaults and doubtful commitments 250 1.6 % The growth within the last 1.4 % three years has not led to 200 increased defaults or 1.2 % doubtful commitments. 1.0 % mill. kr. 150 Reduction during the first 0.8 % q
Slide 27: Deposits
Highlights The bank The region Profit and loss Balance shett Lending Deposits Financing Summary Appendix En drivkraft for vekst på Helgeland 27
Slide 28: Deposits from customers per 31.03.12
Deposits from customers per 31.03.12 Helgeland Sparebank The bank has a loyal customer base Deposits from customers Retail market 91.6 % of customer deposits from customers Municipalities and municipal enetrprise within the region. Transport and service Property and property development Building and
Slide 29: Deposits from customers per 31.03.12
Deposits from customers per 31.03.12 Helgeland Sparebank Stable share of customers in the retail Deposits and deposit coverage retail- market and corp. market 14 80 % A total deposits of NOK 10.6 bn, consisting of NOK 12 70 % 6.9 bn or 64.6 %, from 60 % customers within the retail 10 market. 3.6 50
Slide 30: Deposits growth corporate market
Deposits growth corporate market Helgeland Sparebank Lower growth in the corp. market. Deposit growth corp. market 12 mth. 25 % The deposits growth is still lower than the average in 20 % the market. (SSB figures per februrary) 15 % 10 % 5% 0% -5 % 2007 2008 2009 2010 2011 Q1/2012 SSB Norge HSB Helg
Slide 31: Deposits growth retail market
Deposits growth retail market Helgeland Sparebank Good growth in the retail market Deposit growth retail market 12 mth. 20 % Savings in the retail market are higher than the average in the market. 15 % 12 mth. growth HSB 8.2% (SSB figures per february) 10 % 5% 0% 2007 2008 2009 2010 2011 Q1/2012 SSB
Slide 32: Financing
Highlights The bank The region Profit and loss Balance sheet Lending Deposits Financing Summary Appendix En drivkraft for vekst på Helgeland 32
Slide 33: Funding per 31.03.12
Funding per 31.03.12 Helgeland Sparebank Good financial situation Maturity (NOK mill.) 3 000 Duration of funding portfolio ca. 2.3 years. 2 500 Covered bonds represents NOK 2.6 bn of total funding 2 000 NOK 10.1 bn. 1 500 Deposits coverage 57.5 %, no change from end of last year 1 000 Share of lendi
Slide 34: Liquidity buffers per 31.03.12
Liquidity buffers per 31.03.12 Helgeland Sparebank Good quality on liquidity buffers Securities portfolio by sector Covered bonds, Norway Liquidity buffer in interest- bearing securities (incl. Financial inst., Norway securities deposited in NB State and cash) is NOK 3.7 bn, guarant./municipalities
Slide 35: Liquidity buffers per 31.03.12
Liquidity buffers per 31.03.12 Helgeland Sparebank Good quality on liquidity buffers Securities portfolio by rating AAA Minimum requirements for credit quality of the issuer AA+ is BBB-. AA 78 % of the portfolio is rated A- or better. AA- A+ A A- BBB+ BBB BBB- 0% 5% 10 % 15 % 20 % 25 % 30 % En drivk
Slide 36: Increased capital adequacy in first quarter
Increased capital adequacy in first quarter Helgeland Sparebank Increased core capital Development capital adequacy The bank conducted a 16 % successful issuance of a 14 % fundbond in March at a 14.1 % value of NOK 220 mill. 13.8 % 13.6 % 13.3 % 13.1 % 13.1 % 13.0 % 12.8 % 12.8 % 12.6 % 12.6 % 12 %
Slide 37: Summary
Highlights The bank The region Profit and loss Balance sheet Lending Deposits Financing Summary Appendix En drivkraft for vekst på Helgeland 37
Slide 38: Summary: Future prospects and priorities
Summary Future prospects and priorities • Growth both in population and value adding within Helgeland - Low unemployment rates and dependent on labor immigration • Aker Solutions got 300 applicants for 20 engineerpositions - Uneven competence and wider needs of competence • Helgeland ”Center of Know
Slide 39: Summary: Future prospects and priorities
Summary Future prospects and priorities • Balancing the target of maintaining a solid market position vs. a satisfying profit. • Strenghten the net interest income through lending- and deposit interest adjustments, and increased price differentiation towards customers • Increase commission income th
Slide 40: Contact information
Contact information CEO Corporate address Jan Erik Furunes Helgeland Sparebank +47 75 12 83 21 /+47 915 70 573 Postboks 68 jan.erik.furunes@hsb.no 8601 Mo i Rana Norway DCEO Internet Lisbeth Flågeng Equity capital certificates, general information: +47 75 12 83 01 / +47 416 85 777 www.egenkapitalbev
Slide 41: Appendix
Appendix En drivkraft for vekst på Helgeland 41
Slide 42: A regional finance business
The bank A regional finance business Eiendomsselskap 100 % ANS Bankbygg Mo i Rana 97 % 8.9 % Helgeland Eiendomsselskap AS Mosjøen 100 % Helgeland Utviklingsselskap AS Mosjøen 100 % 34 % AS Sparebankbygg Brønnøysund 100 % 6.5 % Storgata 73 AS Brønnøysund 43 % 48 % 10 % En drivkraft for vekst på Helge
Slide 43: A driving force for growth within Helgeland
The bank A driving force for growth within Helgeland • 13. Largest savings bank of 113 in Norway ̶ 16 offices in 14 municipalities på Helgeland • An independent regional bank, free of alliance and registered at Oslo Stock Exchange ̶ The only bank with its headquarter within the region • A complete l
Slide 44: A bank engaged in the community
The bank A bank engaged in the community ”This is not the first time Helgeland Sparebank steps up and saves projects that has gone bad financially. At the same time it’s usually the bank that often makes it possible to begin with construction and development of sport facilities within the region, th
Slide 45: The equity certificate HELG – the 20 largest owners
The bank The equity certificate HELG – the 20 largest owners Helgeland Sparebank 20 largest owners Per 31.03.12 Number of PCCs % Number of PCCs % Sparebankstiftelsen Helgeland 12 099 598 64.7 % Sparebanken Vest 200 000 1.1 % Sparebank 1 Midt-Norge 660 000 3.5 % Nervik, Steffen 105 000 0.6 % MP Pensj
Slide 46: Indeks Nordland 2012 about Helgeland
The region Indeks Nordland 2012 about Helgeland ”The region of Helgeland has had a strong growth within sales after 2009. Good export conjunctures for metals and salmon has, combined with a fast growing petroleum activity, stimulated to growth. The development within retail, transport and mining is
Slide 47: Central developments Q1/2012 at Helgeland
The region Central developments Q1/2012 at Helgeland • The process industry in Mo i Rana amd Mosjøen is doing well. This in spite the fact that the market has been unstabile, and pressed prices. • The engineering industry is above the edge. The Miras-group is consolidated after its bankruptcy and th