Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q1 2021 Earnings Presentation
54 slides from Sparebank 1 Nord-norge's earnings presentation, May 12, 2021
Slide 1: 1Q 2021
1Q 2021 Tromsø, 12 May 2021 Liv B. Ulriksen, CEO Bengt Olsen, CFO
Slide 2: Highlights
@ Highlights SpareBank NORD-NORGE oO
Slide 3: Highlights in 1Q
Highlights in 1Q The obvious choice for people and businesses «Better than anyone else, we shall understand and do what’s important for people and businesses in Northern Norway» Main bank retail 35 % Main bank SME 36 % Real estate agency 36 % Accounting 20 % Secured financing 21,5 % 3
Slide 4: A good first quarter
A good first quarter cET1 Return on equity capital Cost/income Group 17,2% 175% 17,4% 15,8 % 149% 14,5.% 43,1% 41,2% 416% 12,9% 13,0% 12,6% 130% 398% 40,0% 2017 2018 2019 2020 1Q21 2017 2018 2019 2020 1Q21 2017 2018 2019 2020 1Q21 SpareBank (1) NORD-NORGE
Slide 5: Subsidiaries – results before tax
Subsidiaries – results before tax 5
Slide 6: Data-driven innovation and business development
Data-driven innovation and business development Insight into customers behavior and needs, coupled with opportunities, trends and partnership, will create tomorrow’s customer experiences 6
Slide 7: A driving force for the development of the region
A driving force for the development of the region 182 companies receive support through the project «Another day» 91 experiences will be piloted this summer 10 of them will get another NOK 200 000 after the summer to make the test a permanent solution 7
Slide 8: Outlook
2 } Outlook SpareBank NORD-NORGE oO
Slide 9: Unemployment
Unemployment Northern Nordland Norway Norway Troms og Finnmark 10
Slide 10: Housing market
Housing market Price change y/y 15,6 % Average price, NOK per m2 12,5 % 14,6 % 10,8 % Northern 8,5 % Norway Troms og Finnmark Nordland 11
Slide 11: Northern Norway - selected industries
Northern Norway - selected industries Million Million, NOK Troms og Nordland Norway Northern Finnmark Norway Northern Northern Norway Norway, share of stays 12
Slide 12: Bankruptcies in Northern Norway
Bankruptcies in Northern Norway Number of bankruptcies in Northern Norway 2019 are still at low levels 2020 These industries have seen the greatest 2021 number of bankruptcies: • Construction • Accommodation • Catering • Retail sales Number of bankruptcies are expected to increase going forward Tota
Slide 13: Status and outlook in Northern Norway
Status and outlook in Northern Norway 14
Slide 14: Exciting future in the north for «the best bank in Norway»
Exciting future in the north for «the best bank in Norway» #1 out of 117 banker! 15
Slide 15: Ambitions for growth and increased market share
Ambitions for growth and increased market share Expected growth for SpareBank 1 Nord-Norge in 2021 Retail market: 2-5 % Corporate market: 4-6 % Corporate growth within companies and industries with an expected low negative impact of Corona 16
Slide 16: Financial status
(3 } Financial status SpareBank 1) NORD-NORGE
Slide 17: Group financial highlights and key figures
Group financial highlights and key figures 18
Slide 18: Quarterly development
Quarterly development cET1 Return on equity capital Cost/income Group 17,2% 175% 17,4% 15,8 % 15,0% 14,9% 14.5% 42,9% 43,1% 12,9% 13,0% 412% 398% 400% 416% 12,0 % 2016 = 2017 2018 2019 2020 =1Q21 2016 2017 2018 2019 2020 «1Q21 2016 2017 2018 2019 2020 :1Q21 SpareBank (1) NORD-NORGE
Slide 19: Result before tax - last quarter
Result before tax - last quarter 20
Slide 20: Net interest income - Group
Net interest income - Group 21
Slide 21: Low losses
Low losses Net losses Net losses in % of gross lending incl. interm. loans Corporate Retail 22
Slide 22: Lending growth
Lending growth Retail Corporate 23
Slide 23: Retail Market
Retail Market Retail (excl. Commission com.loans loans 24
Slide 24: Corporate Banking
Corporate Banking Lending growth Development in lending margin (iso) ca 36 066 38 109 2,90% 2,46% 2,58% 2,57% 2,48% 4Qi9 1Q20 2Q20 3Q20 4Q20 1Q21 Lending growth (YTD) 31.12.19 31.03.20 30.06.20 30.09.20 31.12.20 25 11,7% 10,9% 10,9 % 9,5 % 9,8 % 84% 31.12.19 31.03.20 30.06.20 30.09.20 31.12.20 31.03
Slide 25: Deposit growth
Deposit growth Retail Market Corporate Banking Public Market 31.03.19 31.03.20 31.03.21 31.03.19 31.03.20 31.03.21 31.03.19 31.03.20 31.03.21 Deposits gross 54% 35% 26 SpareBank (1) NORD-NORGE
Slide 26: Development in deposit margins
Development in deposit margins Retail Corporate 27
Slide 27: Long term financial targets
Long term financial targets < 40 % C/I ratio > 12 % > 50 % ROE Dividend payout ratio 15 % CET-1 28
Slide 28: Financial outlook
29 Financial outlook ROE >12 % CET-1 Ratio: 15 % C/l< 40% Pay out ratio >50% Some decrease in net interest income over the last quarter based on a rising Nibor and fewer businessdays The competition in the retail market is still tough and put a pressure on the margins The competition and the overall
Slide 29: Why invest in SpareBank 1 Nord-Norge
Why invest in SpareBank 1 Nord-Norge 30
Slide 30: Contacts
Contacts Management Liv B. Ulriksen CEO +47 957 31 130 liv.bortne.ulriksen@snn.no Bengt Olsen CFO +47 975 89 560 bengt.olsen@snn.no Investor Relations Terje Karlstad Investor Relations +47 411 22 220 terje.karlstad@snn.no 31
Slide 31: Appendix
A) Appendix NORD-NORGE SpareBank 1)
Slide 32: A solid bank for Northern Norway
A solid bank for Northern Norway 33
Slide 33: Development in lending margins
Development in lending margins Corporate Retail 34
Slide 34: Company structure
Company structure SpareBank 1 Næringskreditt SpareBank 1 Finans Nord- Eiendomsmegler 1 Nord- SpareBank 1 Gruppen AS SpareBank 1 Boligkreditt AS 19,5 % | Financial services 18,14 % | Covered Bond company AS Norge AS Norge AS 8,45 % | Funding/property Loan/consumer finance/leasing Real estate brokerag
Slide 35: Geographical distribution of ownership
Geographical distribution of ownership Foreign holders Other Norwegian holders Holders residing in Northern Norway 36
Slide 36: The 20 largest EC holders
37 The 20 largest EC holders EC Holders Number of Ecs o Share of EC Capital PARETO INVEST AS PARETO AKSJE NORGE VERDIPAPIRFOND The Northern Trust Comp, London Br State Street Bank and Trust Comp GEVERAN TRADING CO LTD VPF EIKA EGENKAPITALBEVIS MP PENSION PK Brown Brothers Harriman & Co. FORSVARETS P
Slide 37: Cost development - Group
Cost development - Group Cost/income Group Group operating costs 38
Slide 38: Operating expenses - Group
Operating expenses - Group 39
Slide 39: Net fee- and other operating income - Group
Net fee- and other operating income - Group 40
Slide 40: Risk exposure as of 31.03.2021 - Group
Risk exposure as of 31.03.2021 - Group Non-performing /impaired High risk 100,0% Medium risk Low risk 41
Slide 41: Changes in exposure last 12 months - Group
Changes in exposure last 12 months - Group 2 075 2 481 6 153 Non-performing /impaired High risk Medium risk Low risk 42
Slide 42: Exposure distributed by size
Exposure distributed by size* 31.03.2020 31.03.2021 43 *Incl. parent bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt
Slide 43: LTV mortgage loans
LTV mortgage loans LTV is distributed by balance and 31.03.2020 is based on the market value of the collateral: • 97.6 % of the gross exposure is within 85 % of the collateral 31.03.2021 market value • Only 1.1 % of the gross exposure is higher than 100 % of the collateral market value • Very small
Slide 44: Reduced use of interest-only loans
Reduced use of interest-only loans Corporate Retail 45
Slide 45: Declining demand for liquidity loans with state guarantee
Declining demand for liquidity loans with state guarantee Liq.loans % of max state guarantee Number of loans 46
Slide 46: Diversified portfolio in commercial real estate
Diversified portfolio in commercial real estate 47
Slide 47: Still low oil related exposure
Still low oil related exposure Oil related exposure amounts to NOK 893 mill • The exposure represents 0.64 % of total exposure including covered bond companies • Average weighted probability of default 0.92 % • A total of NOK 43 mill are non-performing or impaired commitments • The activity within o
Slide 48: Oil related portfolio
Oil related portfolio • Exposure amounts to NOK 579 mill • Exposure amounts to NOK 265 mill • Exposure amounts to NOK 48 mill. including • Average weighted probability of default 1.13 % • Average weighted probability of default is 0.25% Industry NOK 46 mill and Other NOK 2 mill • Total amount of 7 v
Slide 49: Loan losses - Group
Loan losses - Group The Group’s annualized losses is -0.16 % (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 0.54 % of total exposure, Expected loss share: 37.19 % Commitments in step 2: 8.09 % of total exposure, Expected loss share: 3.52 %
Slide 50: Funding
Funding NOK 23 248 mill in capital market funding exclusive of SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt is important funding sources. In total NOK 37 827 mill had been transferred as of 31.03.21 Amount of gross maturities of capi
Slide 51: Ambitious goals for climate risk and sustainability
Ambitious goals for climate risk and sustainability Sustainability and climate risk are included in our business- and risk strategy A framework for the link between green lending and green capital market funding has been developed. The framework is based on important business sectors in the north, i
Slide 52: SpareBank 1 Alliance
SpareBank 1 Alliance • The SpareBank 1-alliance consists of 14 banks • Operate exclusively in Norway – Norway’s most extensive branch network with approx. 350 branches • The alliance are in the forefront of incorporating SpareBank 1 Nord-Norge technological innovation into its distribution channels.
Slide 53: SpareBank 1 Alliance companies
SpareBank 1 Alliance SpareBank 1 SMN SpareBank 1 SR-Bank SpareBank 1 Samspar SpareBank 1 LO Nord-Norge Østlandet BN Bank SpareBank 1 SpareBank 1 Group Boligkreditt SpareBank 1 Alliance companies SpareBank 1 SpareBank 1 Fremtind Odin Forvaltning Kreditt Næringskreditt Forsikring (65%) SpareBank 1 Spa
Slide 54: Noen som har et fint bilde til avslutning?
Noen som har et fint bilde til avslutning? 55
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