Sparebank 1 Smn · OSL:MING
Sparebank 1 Smn — Sparebank 1 Smn Prim Cap — Q4 2024 Earnings Presentation
43 slides from Sparebank 1 Smn's earnings presentation, Feb 12, 2025
Slide 1: Fourth quarter 2024 Preliminary annual accounts
Fourth quarter 2024 Preliminary annual accounts MÅ FÅ ORGINALBILDE February 12th 2025 Trond Søraas CFO
Slide 2: Q4 2024 Profitable and solid
Q4 2024 Profitable and solid • Return on equity of 14.4% in Q4 and 16.6% in 2024 High revenues, solid contributions from most business areas, and gains from the merger between Fremtind and Eika Insurance • The leading finance group in Mid-Norway Strengthened market position with new initiatives, an
Slide 3: High value creation over time
High value creation over time 3
Slide 4: Realised effects from «One SMN» in 2024
Realised effects from «One SMN» in 2024 Strengthened market position across all business areas* Retail banking EM1 Midt-Norge Corporate banking SpareBank 1 Regnskapshuset SMN Market share mortgages Market share house sales Market share corporate loans Market share businesses * Market shares in Centr
Slide 5: Growth from synergies and strategic initiatives
Growth from synergies and strategic initiatives Growth in 2024 Merger with SB1 Søre Sunnmøre Private Banking Deposits Advisory services Total lending growth in Net subscription for funds and asset Deposit growth retail banking Revenue growth advisory services Sunnmøre and Fjordane (NOKbn) management
Slide 6: Valuable ownership and collaboration in the SpareBank 1 Alliance
Valuable ownership and collaboration in the SpareBank 1 Alliance SpareBank 1 Gruppen Norway’s second largest financial group Results from ownership (NOKm) Robust professional communities with effective knowledge sharing Innovative strength and economies of scale Strong product companies Leading digi
Slide 7: The finance centre is the core of our local presence
The finance centre is the core of our local presence World class customer experiences 26 finance centres where the customer meets «One SMN», with expertise in banking, accounting and real estate brokerage 7
Slide 8: Digital leader through SpareBank 1 and associated companies
Digital leader through SpareBank 1 and associated companies w ’s best mobile bank Mobilbankrapporten 2024, Cicero 8
Slide 9: Well-equipped to handle periods with market volatility
Well-equipped to handle periods with market volatility MING – a robust investment Home market with low unemployment, moderate housing price development, and diversified business sector Robust loan portfolio with a high share of mortgages Conservative loan provisions Strong solidity Local presence an
Slide 10: Savings banks contribute to stability, safety and active local communities
Savings banks contribute to stability, safety and active local communities With a commitment to our societal mission Community dividends contribute to vibrant local communities Over 3,000 NOKm for public benefit purposes in the last five years SMN – share to the community Savings banks with customer
Slide 11: Leading in Central Norway Among the top performers in the Nordic region
29.3 % Leading in Central Norway MING total return including dividend 2024 Among the top performers in the Nordic region 41.1 % Norway’s best mobile bank 95 % Owned by the society (incl. ECC owned by the Of loans to businesses «A good and user-friendly mobile bank that takes care of everyone» saving
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Slide 13: Financial Information
Financial Information
Slide 14: Q4 2024 and 2024 key figures
Q4 2024 2024 14.4 % 16.6 % Lending growth Retail banking 5.5 % 5.0 % Return on equity Return on equity Corporate banking 7.5 % 1,052 mill 4,591 mill Deposit growth Retail banking 6.0 % 7.5 % Profit after tax Profit after tax Corporate banking 10.7 % Operating margin subsidiaries 18.3 % 176 mill Regn
Slide 15: Achieving financial targets
Achieving financial targets Return on equity (per cent) Solidity (per cent) Cost/income bank ex. finance (per cent) Cost/income subsidiaries ex. finance (per cent) s s s 15
Slide 16: High value creation over time allows for record-high dividends
High value creation over time allows for record-high dividends 12.50 NOK dividend per ECC 61 % pay-out ratio 896 NOKm community dividends 16
Slide 17: Growth and margins in Retail Banking - quarterly
Growth and margins in Retail Banking - quarterly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M s w w s 17
Slide 18: Growth and margins in Corporate Banking - quarterly
Growth and margins in Corporate Banking - quarterly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M s w w * Lending margin for Q4 23 is adjusted for previously unrecognised interest due to redemption of an exposure previously acquired at a discount 18
Slide 19: Results
Results Change Change from NOK mill 2024 2023 Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 from Q3 24 Q4 23 Net interest income 5,373 4,732 1,372 1,355 1,310 1,336 1,345 17 27 Commission income and other income 2,392 2,085 580 553 680 579 498 27 82 Operating Income 7,766 6,816 1,953 1,908 1,990 1,915 1,844 45 109
Slide 20: Income
Income Net interest income and other income (NOKm) Commission income ss s s NOK mill 2024 2023 Change Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 Payment transmission income 354 330 24 107 79 91 77 101 Credit cards 71 61 10 18 18 17 18 14 Commissions savings and asset mgmt 49 43 6 13 13 12 11 11 Commissions insur
Slide 21: Costs
Costs Total operating expenses per quarter (NOKm) Costs per category • Total costs increased by 91NOKm from the previous quarter s s • Costs in the bank increased by 78NOKm of which capital tax and higher national insurance contributions account for 60NOKm • When adjusted for higher capital tax and
Slide 22: Broad product range and a diversified income platform
Broad product range and a diversified income platform Ownership interests Profit after tax (NOKm) s ss s s 22
Slide 23: Losses
Losses Loan losses (NOKm) Distribution of losses in the quarter (NOKm) s 23
Slide 24: Solidity
Solidity CET 1 Leverage ratio s s s s’ s s w s -capital. The bank is subject to a provisional add-on of 0.7 per cent to its Pillar 2 requirement. Until the application for adjustment of IRB models has been processed the CET1 requirement is 16.95% 24
Slide 25: MING – an attractive investment
MING – an attractive investment Profitable, solid and with a shareholder-friendly dividend policy Market leader in Central Norway High share of commission income from subsidiaries and product companies Significant value from ownership within and outside the SpareBank 1 Alliance Well-positioned for s
Slide 26: Disclaimer
Disclaimer This presentation contains certain forward-looking statements relating to the business, financial performance and results of SpareBank 1 SMN and/or the industry in which it operates. Forward- looking statements concern future circumstances and results and other statements that are not his
Slide 27: Appendix
Bank SpareBank 4 teator SMN Accounting Appendix
Slide 28: Macro in Mid-Norway
Macro in Mid-Norway Unemployment Housing market dynamics Mid-Norway Wholly unemployed as a percentage of the labor force s s s s Norge Trøndelag Møre og Romsdal Development in housing prices Number of bankruptcies in Trøndelag, Møre & Romsdal Seasonally adjusted prices s s s 100 2015 Q4 24 Source: N
Slide 29: Profitable and solid
Profitable and solid Return on equity CET1 ratio Result per ECC Loan losses in per cent of total lending 29
Slide 30: Growth and margins in Retail Banking - Yearly
Growth and margins in Retail Banking - Yearly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M s w w s 30
Slide 31: Growth and margins in Corporate Banking - Yearly
Growth and margins in Corporate Banking - Yearly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M s s w w s s 31
Slide 32: Diversified deposit portfolio
Diversified deposit portfolio Deposits by sector (NOKbn) Deposits covered by the deposit Liquidity Coverage Ratio guarantee scheme (NOKbn) (LCR) s s s s s Public deposits are not covered by the guarantee scheme, but are mostly bound by contractual obligations 32
Slide 33: Well diversified lending portfolio dominated by mortgages
Well diversified lending portfolio dominated by mortgages Loans per sector as at 31st of December 2024 and change last 12 months (NOKbn) s s s s s s s s s s s s s s ss s s s s s s s 33
Slide 34: Commercial property, construction, building
Commercial property, construction, building Share of commercial real estate exposure Rental properties make up 77 % of the banks CRE exposure, in the corporate lending book* mainly to retail trade, industry/storage and offices Distribution of property per Distribution of area Q424 per Q4 24 s s s s
Slide 35: Robust mortgage portfolio
Robust mortgage portfolio Loan-to-value ratio in the mortgage portfolio Granted interest-only periods Share of mortgages by LTV Number of loans granted interest-only periods in the Retail Banking portfolio s s s 35
Slide 36: Problem loans
Problem loans BB Lending to customers in stage 3 = % of gross lending 0.99% 0.97% o9e% ee ee 098% ---- eee eee sy . 0.91% ~s (088% ert tte ~ - 08% se . Pae TT ~~. 082% oe 28 : me 0.78% ,¢ 2,291 2,289 2,260 2,231 2,044 2,065 2,085 1,964 1888 a Q422 Q123 Q223 Q3 23 Q423 Q124 Q2 24 Q3 24 Q4 24 Bank Spa
Slide 37: Subsidiaries
Subsidiaries Change Change NOK mill, SMN's share in parentheses Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 from Q3 24 from Q4 23 EiendomsMegler 1 Midt-Norge (92.4%) -1 8 43 20 -7 -9 6 SpareBank 1 Regnskapshuset SMN (93.3%) -3 -7 54 35 8 4 -11 SpareBank 1 Finans Midt-Norge (56.5%) 87 68 76 66 12 19 76 SpareBank 1
Slide 38: Product companies
Product companies Change Change NOK mill, SMN's share in parentheses Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 from Q3 24 from Q4 23 SpareBank 1 Gruppen (19.5%) 99 86 1 40 -51 13 150 Gain from merger between Fremtind/Eika 452 -452 SpareBank 1 Boligkreditt (23.7%) 23 37 35 33 30 -14 -7 SpareBank 1 Næringskreditt
Slide 39: Return on financial investments
Return on financial investments Change from Change from NOK mill Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 Q3 24 Q4 23 Net gain/(loss) on stocks 44 -1 4 42 472 45 -427 Net gain/(loss) on financial instruments -47 -45 -17 -11 -41 -2 -6 Net gain/(loss) on forex 42 24 11 22 27 17 15 Net return on financial instrum
Slide 40: Equity certificate, key figures
Equity certificate, key figures Key figures 2024 2023 2022 2021 2020 ECC ratio 66.8 % 66.8 % 64.0 % 64.0 % 64.0 % Total issued ECCs (mill) 144.21 144.20 129.29 129.39 129.39 ECC price 171.32 141.80 127.40 149.00 97.60 Market value (NOKm) 24,706 20,448 16,471 19,279 12,629 Booked equity capital per E
Slide 41: Balance sheet
Balance sheet NOKbn 31.12.24 31.12.23 Cash and receivables from central banks 0.7 1.2 Deposits with and loans to credit institutions 9.2 8.7 Net loans to and receivables from customers 179.3 169.0 Fixed-income CDs and bonds 36.7 34.2 Derivatives 7.2 6.7 Shares, units and other equity interests 1.0 1
Slide 42: Maturity structure
Maturity structure SP, SNP. Final maturity NOKbn 42
Slide 43: Development in CET1 capital and capital adequacy
Development in CET1 capital and capital adequacy CET1 ratio in per cent s s s 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 CET1 8.254 9.374 10.679 12.192 13.223 13.820 14.727 15.830 17.041 17.790 19.776 21.589 22.409 ROE
Sparebank 1 Smn Prim Cap — Q4 2024 Earnings Presentation on 6ix