Rogaland Sparebank · OSL:ROGS
Rogaland Sparebank — Sandnes Sparebank — Investor Day (November 2022)
95 slides from Rogaland Sparebank's investor day presentation, Nov 8, 2022
Slide 1: Capital Markets Day
Capital Markets Day Sandnes 8.11.2022
Slide 2: Content
Content: Status & Strategy Local Macro Retail market Corporate market Credit quality and solidity Liquidity
Slide 3: Stable good results through turbulent times
Den Gule Banken, Sandnes Sparebank Stable good results through turbulent times ROE YTD Summary: 28 0 12 ,0 % • Profit after tax MNOK 217,7 (208,8) 23 0 9,8 % 9,5 % 9,5 % 9,5 % 10 ,0 % • Return on equity after tax 9,5 % (9,5 %) 8,9 % 218 210 204 • EPS NOK 6,6 (6,4) 18 0 209 8,0 % 183 • Lending growth
Slide 4: Lending growth at 7,6 % YOY
Lending growth at 7,6 % YOY Solid growth in the retail market, restructuring of the corporate market Group Level (12 mo.) Growth by Division (12 mo.) 0,08 7,6 % 0,14 0,07 0,12 12,3 % 0,06 6,1 % 0,1 5,5 % 9,9 % 5,2 % 0,08 0,05 4,9 % 4,8 % 7,5 % 7,6 % 4,5 % 6,9 % 6,8 % 4,3 % 0,06 6,2 % 0,04 4,0 % 5,0
Slide 5: Financial Goals in the Strategy Period 2021-2024
Financial Goals in the Strategy Period 2021-2024 ROE Solidity Dividends 0 0 1 0 0 1 0 1 0 0 1 0 0 1 0 0 50-75% 1 0 >10,0 % 0 17,8 % 74 % 9,7 % 0 17,5 % 1 0 9,6 % 0 1 0 9,0 % 0 16,6 % >16,6 %* 1 63 % 63 % 0 1 0 0 0 1 2019 2020 2021 Mål 2024 2019 2020 2021 Mål 2024 2019 2020 2021 Mål 2024 * Internt må
Slide 6: Endring og gjennomføring av ny strategi – en bank med sjel
Endring og gjennomføring av ny strategi – en bank med sjel
Slide 7: Medarbeidere Kunder Omdømme 2021-2024
2021 - 2024 Medarbeidere Kunder Omdømme EK- avkastning Bærekraft Teknologi og strategisk samarbeid Lønnsom vekst
Slide 8: Strategic commitments for employees, customers, reputation
Vi skal ha, ivareta og være relevante for de mest engasjerte, kompetente og prestasjonsorienterte lagspillerne. Vi skal differensiere oss mot Vi skal være bevisste og jobbe for å våre konkurrenter ved å tilby videreutvikle og forsterke bankens de beste kundeopplevelser for omdømme mot bankens de rik
Slide 9: Klassen på Gode
1 KLASSEN PA GodE 4/ SER. yl SKAL VERE BEST eT OG PERSONLIGE KUNDEOPPLEVEL Den Gule Banken Sandnes Sparebank
Slide 10: Ett år med nytt navn
Ett år med nytt navn Den Gule Banken, Sandnes Sparebank • Hvorfor • Tilbakemeldinger • Effekter • Det tar tid •
Slide 11: Ett år med nytt navn
Ett år med nytt navn
Slide 12: Kompetansebygging
Kompetansebygging • Nye ansatte • Utvikling av ansatte • Sertifiseringer og kursing satt i system • Lederutvikling Trine Stangeland, Turid Hamre og brødrene Ingebrigtsen
Slide 13: Kultur
Kultur • Glede • Stolthet • Lagspill • Endringskapasitet • Høy medarbeidertilfredshet • Lavt sykefravør Lars Kristiansen, Tarjai Bore, Roald Haualand, Stig Figved
Slide 14: Kultur i praksis
Kultur i praksis PM Q3 2022 @ : 1. sep. kl. 14:51 Det skapes gode kundeopplevelser! Astrid fikk i gar en fin blomst fra en szerdeles fornayd kunde. Det er kjekt 4 se at vi klarer 4 skape unike kundeopplevelser helt i trad med visjonen var! Astrid nevnes ofte i KOI- undersokelser og fortjener en lite
Slide 15: Bærekraft
Bærekraft • Kunder og finansiering • Kompetanse og kultur • Drift og rapportering • Lokalsamfunn
Slide 16: Converting to a new core system
Converting to a new core system April 2023 • Planning and preparation – April 2023 • Complicated and demanding, professionally driven by Eika, good prosject management in the bank. • Standardization • Lower costs, better solutions towards customers, specifically within the corporate market
Slide 17: Increasing regulatory requirements
Increasing regulatory requirements • AML • GDPR • New act on financial agreements • The transparency act • General reporting requirements • Cyber security
Slide 18: Skikkelighetskultur
«Skikkelighetskultur» Compliance and AML • Organization • Reporting • Building competence • Culture • Reward
Slide 19: Utsatt rettssak
Utsatt rettssak mo -= === 1033:52 Rogaland PST og Sandnes Sparebank i retten: - Denne saken er veldig spesiell PRESSEMELDING Sandnes Sparebank nektet 4 vedta en millionbot fra PST for fen bankkonto med mulla Krekars navn. NA gir saken i retten, 19.10.2022 som den farste i sit slag Patalemyndighetene
Slide 20: Eika
Eika Strategically important for Den Gule Banken • Very satisfied with being an Eika bank • Good products • Good technological solutions • Good competence and innovative power • Low costs
Slide 21: s cmd a O =
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Slide 22: Content
Content: Status & Strategy Local Macro Retail market Corporate market Credit quality and solidity Liquidity
Slide 23: Content: Local Macro
Content: Local Macro Investments The Labor Market The Housing Market Commercial Property
Slide 24: Norges Bank regional network – region Southwest
Norges Bank regional network –region Southwest Production growth Investment growth Source: Norges Bank regionale nettverk 13.september 2022.
Slide 25: Oil investments face a solid increase in 2023
Oil investments face a solid increase in 2023 Oil investments face a solid increase in 2023 The regional network expects further growth within the oil sector • Investments in the oil sector will is expected to fall before a solid recovery in 2023. The estimates for 2023 will be revised as new PUDs a
Slide 26: Unemployment rate in Rogaland at 1.6%
The unemployment rate in Rogaland is at 1.6%, 0.6pp below pre-pandemic levels The unemployment rate in Rogaland is at 1.6%, 0.6pp below pre-pandemic levels Unemployment is significantly lower than pre-pandemic levels in all professions.
Slide 27: Strong growth in number of employees in all sectors
Strong growth in the number of employees in all sectors All main sectors have more employees now compared to before the pandemic Business services in particular have picked up since the pandemic • Business services: Finance, real estate, communication, admin & support, scientific & technical activit
Slide 28: Vacancies in Rogaland at record high level
The number of vacancies in Rogaland continues to be at a record high level and the number of employed people has increased rapidly The number of vacancies in Rogaland is at record high levels, as is the rest of The number of employed people in Rogaland was 3,2 % higher in Q3 than the country. before
Slide 29: Labor market in Rogaland differs from the rest of the country
The labor market in Rogaland differs from the rest of the country Rogaland is still exposed to the cyclical effects of the energy sector Strong growth in Rogaland in recent years • Source: Stavanger kommune
Slide 30: Housing prices decreasing as interest rates rise
Housing prices are decreasing as a result of interest rate hikes and an increasing number of homes for sale Housing prices are decreasing as a result of interest rate hikes and an increasing Increasing number of homes for sale number of homes for sale Price development in the Stavanger area: + 5,5 %
Slide 31: Decreasing activity in the housing market
Decreasing activity in the housing market The average time to sell a home has decreased in recent years The trend in the number of transactions is falling, also in Stavanger
Slide 32: Price development: nominal vs real housing prices
Price development: nominal vs real housing prices Nominal price development (incl october 2022) Price development adjusted for inflation (incl september 2022)
Slide 33: Housing market most residents can partake in
The region has a housing market most residents can parttake in Price per square meter differs between cities Share of the housing sales a single nurse can purchase in 2022 Source: Eiendom Norge (pr aug2022) Source : Krogsveen / Early Warning
Slide 34: Strong increase in population growth in 2022
Stong increase in population growth in 2022 The population growth in Rogaland in 2022 is related to immigration from Ukraine Labor immigration is increasing
Slide 35: Electricity prices and interest rates decrease purchasing power
Increasing electricity prices and mortgage interest rates are decreasing purchasing power Strong increase in electricity prices The debt burden will increase in line with the increasing interest rate 35
Slide 36: High inflation leads to decrease in real wages
High inflation leads to a decrease in real wages Zero or negative growth in real wages in recent years Inflation is expected to exceed the 2%-target in upcoming years
Slide 37: Commercial property – the local market
Commercial property – the local market Challenges through the oil downturn – decrease from 2018 Total vacancies commercial property Detailed overview vacancies commerical properties 6,9 % 6,2 % 6,3 % 6,0 % 5,9 % 5,4 % 5,2 % 5,0 % 4,6 % 4,3 % 4,0 % 2,8 % 2,8 % 2011 2012 2013 2014 2015 2016 2017 2018
Slide 38: Commercial property – offices vacancies
Commercial property – the local market Offices are the segments with the most vacancies. Some variation between locations Total vacancies offices Detailed overview vacancies offices 13,5 % 11,2 % 11,3 % 10,7 % 10,1 % 9,7 % 9,8 % 9,2 % 8,6 % 8,0 % 7,0 % 4,4 % 3,4 % 2011 2012 2013 2014 2015 2016 2017
Slide 39: Commercial property – mixed use and commercial buildings
Commercial property – the local market Mixed use properties and commercial buildings are the segments with the lowest vacancy rate Total vacancies mixed use properties Total vacancies commercial buildings 1,6 % 1,6 % 5,0 % 4,9 % 1,4 % 1,4 % 4,4 % 1,3 % 1,3 % 4,2 % 4,0 % 4,0 % 3,7 % 3,7 % 1,1 % 1,1 %
Slide 40: Commercial property – rental prices increasing
Commercial property – the local market Rental prices are increasing after years of decrease Yield increasing – Stavanger city center at 4,75 % Rental prices vary by location • Higher rental prices in the Stavanger city center compared to the rest of the region • Yield is generally higher in Stavange
Slide 41: Content
Content: Status & Strategy Local Macro Retail market Corporate market Credit quality and solidity Liquidity
Slide 42: From Customer Flight to Growth Strategy 2017 to 2022
From Customer Flight to Growth Strategy 2017 to 2022
Slide 43: Customer Satisfaction Retail – Development 2017-2022
Customer Satisfaction Retail – Development 2017-2022 83 83 78 75 71 69 69 68 63 58 56 52 2017 2018 2019 2020 2021 2022 KOI PM (snitt for året) KOI PM (TNS Kantar)
Slide 44: Customer Satisfaction Retail 2022 – Competitors
0 20 60 40 80 100 120 Sbanken 97 Eika 78 74 Andre banker 2018 Den Gule Banken 56 Sparebank 1 67 DnB 48 Sbanken 94 Eika 82 72 Andre banker 2019 69 Den Gule Banken Sparebank 1 67 52 DnB 89 Sbanken Eika 79 Andre banker 63 2020 Den Gule Banken 68 Sparebank 1 67 DnB 53 88 Sbanken Eika 79 Andre banker 66
Slide 45: Strategic investment in the retail market
Strategic investment in the retail market Growth in retail lending (YOY) 0,14 • Customer experiences as a 0,12 12,3 % basis for growth 0,1 9,9 % • An organization that wants something • Retail lending increased by 0,08 7,5 % 7,6 % 6,9 % 0,06 6,2 % NOK 2,2 mrd (12,3 %) YOY. 5,0 % 0,04 3,9 % 4,1 % • R
Slide 46: Balansebank
Balansebank ©) balansebank — en del av Sandnes Sparebank
Slide 47: What is Balansebank?
What is Balansebank? • A Retail department, with 8 financial advisors and 1 leader • A service from Den Gule Banken, Sandnes Sparebank with its own name, brand, logo and associated domain • A department that operates in the special loan segment, for customers that do not normally get loans from ordi
Slide 48: Balansebank
Balansebank Stable growth over time Lending volume MNOK Key Figures YTD: 1 200 • Net interests of MNOK 22,2 • Loan losses in % of gross lending of 1,20% 1 000 • Where individual write downs amount to 0,8% 800 • Non-performing and doubtful loans is 9,8% 600 • The average time customers stay in Balans
Slide 49: Content
Content: Status & Strategy Local Macro Retail market Corporate market Credit quality and solidity Liquidity
Slide 50: Outlook
Outlook • Corporates in the region is split in two − Those that are directly affected by high energy prices, cost inflation and rising interest rates − Those with a significate increase in turnover and a high level of activity as a result of high energy prices • Increased uncertainty and market upre
Slide 51: Strategic agenda
Strategic agenda • We are the local bank for small and medium- sized businesses in the region • We must reflect the businesses in the region, which we are a part of • Best in customer experiences • Increased investment in SMEs • Industry organization • Increased competence • Recruitment
Slide 52: Content
Content: Status & Strategy Local Macro Retail market Corporate market Credit quality and solidity Liquidity
Slide 53: Losses on Loans and Guarantees
Losses on Loans and Guarantees Low losses through the corona pandemic, consistently stable and good credit quality Losses on loans and guarantees, quarterly Losses on loans and guarantees, EOY 0,13 % 0% 0,11 % 0,10 % 0% 0,06 % 0% 0% 24 25 0,04 % 8 13 5 0% 0,03 % 0,02 % 0% 0,02 % 1 2 2 2018 2019 2020
Slide 54: Lending to Customers by Division
Lending to Customers by Division Low regional credit growth | Solid growth the last few years Loans to customers Loans to customers, by division 30 27,0 25,4 25 24,0 22,9 22,2 29 % 27 % 27 % 26 % 20 32 % 15 10 71 % 73 % 73 % 74 % 68 % 5 0 2018 2019 2020 2021 9M22 2018 2019 2020 2021 9M22 Retail Corp
Slide 55: Focus on reducing portfolio risk
Focus on reducing portfolio risk Growth in small businesses| Reduction in large corporates over MNOK 100 loans > MNOK 100, volume and # customers 10 største engasjement 3,0 16 2,4 14 2,5 14 2,3 2,4 12 2,2 11 11 12 2,0 2,1 2,1 2,2 9 10 2,1 2,1 1,5 1,7 2,0 1,6 1,5 8 1,4 1,9 1,0 1,9 6 1,8 0,5 1,7 4 1,6
Slide 56: Non-Performing and Doubtful Loans
Non-Performing and Doubtful Loans Stable and declining levels Non-performing and doubtful loans, quarterly Non-performing and doubtful loans, quarterly 0,91 % 0,85 % 0,83 % 1,05 % 1,04 % 0,81 % 0,77 % 0,96 % 227 0,85 % 215 214 213 207 0,77 % 251 233 220 215 207 3Q21 4Q21 1Q22 2Q22 3Q22 2018 2019 202
Slide 57: Write-downs on Loans
Write-downs on Loans Write-downs, EOY Write-downs, EOY 2% 0,70% 1,08 % 1% 86 0,64 % 0,63 % 1% 0,37 % 0,34 % 25,3 0,38 % 31,0 0% 0,35% 0,31% 0,32 % 35,7 52,1 0,29 % 13,6 20 -1% 157 0,23 % 0,23 % 44,2 43 -1% 80 74 0,15% 0,12% 38 32 -2% 2018 2019 2020 2021 9M22 Collective write-downs 2018 2019 2020 202
Slide 58: Loans to Customers by Division, Credit Risk
Loans to Customers by Division, Credit Risk Risk expressed by expected creditloss (ECL, PDxLGD) Retail Corporate 60 0,30 % 250 2,50 % 0,24 % 0,25 % 2,02 % 2,00 % 50 0,23 % 0,20 % 200 194 0,19 % 44 1,50 % 0,18 % 42 1,27 % 0,15 % 0,15 % 1,16 % 40 1,00 % 37 35 0,10 % 150 0,75 % 0,70 % 32 0,50 % 30 0,05
Slide 59: The Lending Portfolio
The Lending Portfolio The share of lending to the retail market has increased significantly over tha past years Growth in smaller coporate engagements and within agriculture Total composition The corporate market by sector Retail services 1% Farming 3% Other* Public and 1% private services Buidling
Slide 60: Retail Loan Portfolio
Retail Loan Portfolio LTV distribution Volume by geography 55 % 54 % 45 % Landet for 35 % øvrig 28 % Oslo 17% 25 % Øvrig 5% rogaland 14 % 2% 15 % Lokalt Markedsområde 5% 2% 76% 1% -5 % < 60% 60-75% 75-85% 85-100% >100% • 82 % of the portfolio has LTV below 75% • 78 % of the volume are within the ban
Slide 61: Retail Loan Portfolio
Retail Loan Portfolio Loan size distribution Interest-only loans 35 % 25% 30 % 26% 20% 20,1 % 25 % 18,8 % 22% 20 % 19% 15% 15 % 12,0 % 12% 11,1 % 11% 10% 9,8 %9,9 % 10,710,1 % % 9% 9,0 % 8,50% 10 % 8,3 % 7,40% 5% 5,40%5,70% 5% 0% 0% < 1 mill 1-2 mill 2-3 mill 3-4 mill 4-5 mill > 5 mill • A limited a
Slide 62: Credit Risk Retail – 90 Days Arrears
Credit Risk Retail – 90 Days Arrears BalanseBank and ordinary retail are different customer segments with different customer behavior 90 days arrears, total 90 days arrears, ordinary retail and BalanseBank 2% 200% 4% 18% 17,1 % 1,2 % 180% 16,2 % 16,1 % 16% 4% 15,7 % 1% 1,1 % 1,0 % 1,1 % 160% 15,0 %
Slide 63: Credit Risk Corporate – Defaults and Payment Holidays
Credit Risk Corporate – Defaults and Payment Holidays 90 days arrears Share of interest only loans 9% 35% 139% 31,5 % 7% 7,41% 30% 29,4 % 119% 25% 5% 99% 4,00% 20% 3,36% 79% 19,3 % 18,9 % 3% 17,1 % 18,0 % 2,40% 15% 2,02% 59% 1% 1,16% 1,05% 1,26% 1,13% 0,91% 11,7 %12,5 % 12,0 % 39% 10% 10,3 % 9,9 % 7
Slide 64: Lending to Real Estate
Lending to Real Estate 72% of total corporate exposure Loans secured on real estate Loans secured on real estate, by loan size Housing cooperative 40% Commercial Other 4% building 4% building 35% 34% projects 0% Housing 30% 28% building Land projects 3% 11% 25% 20% 17% 16% Commercial 15% Housing ren
Slide 65: Lending to Real Estate > MNOK 30
Lending to Real Estate > MNOK 30 34 engagements | EAD NOK 2,8 bn | 36% of corporate loan book | ca 50% of real estate loans Property type 38 % 33% 33 % 28 % 23 % 22% 18% 18 % 13 % 11% 8% 7% 6% 3% 2% 2% -2 % • 100% 1st lien • WA occupancy rate is 89 % • 77% with LTV below 80% • WA remaining term of o
Slide 66: Lending to Real Estate > MNOK 30
Lending to Real Estate > MNOK 30 34 engagements | EAD NOK 2,8 bn | 36% of corporate loan book | ca 50% of real estate loans Location of collateral • Properties on Forus / Lura are mainly mixed-use, but there are also elements of office, housing rental and development properties • Exposure in Sandnes
Slide 67: Lending to Real Estate > MNOK 30
Lending to Real Estate > MNOK 30 Development from 2021 to 2022 Property location 2021 Property location 2022 40,1 % 14,8 % 12,1 % 11,5 % 7,0 % 6,1 % 3,5 % 3,4 % 1,4 % Forus/Lura Oslo Sandnes Sola Sør-Jæren Stavanger Stavanger Ryfylke Agder randsone • 2,7 bn in loans • 2,7 bn in loans • Significant r
Slide 68: Sustainability Credit Portfolio
Sustainability Credit Portfolio «We are commited to contributing to a better and more sustainable future for our emplyees, our customers and our surroundings» • The bank’s most important contribution to the green transition and «net zero» 2050 is via the allocation of credit • Focus areas 2022-2023
Slide 69: Energy Labeling
Energy Labeling Working on collecting data Retail Corporate • Criteria for the green loan programme • Source: Create Solutions − Mortgages with energy labeling A or B • We have an energy rating of 19% of the bank’s property portfolio − Loans built with TEK10 and TEK17 • Of these 38% has energy label
Slide 70: Well Capitalized and Equipped for Further Growth
Well Capitalized and Equipped for Further Growth Common equity tier 1 capital ratio of 18,1 % including profits YTD | Leverage ratio 8,5 % Common Equity Tier 1 Ratio (CET1) A well-capitalized bank 17,3 % • 18% 0,5 % Increased value of Eika increases CET-1 with 0,5%, valid from 15% 31.12.2022 12% • T
Slide 71: Dividend to Owners – Stable Ownership Fraction of 63,5%
Dividend to Owners – Stable Ownership Fraction of 63,5% Equity Capital Certificate Owners and 36,5 % Social Capital EPS and Dividend per ECC Dividend to Customers and Gift Fund 9 80 8,5 8 7,9 7,9 70 7 6,9 6,6 60 6 50 5 40 4 71 30 63 60 3 5,9 5,2 5,0 20 2 34 2,8 1 10 0 - 0 - 2018 2019 2020 2021 9M22
Slide 72: Content
Content: Status & Strategy Local Macro Retail market Corporate market Credit quality and solidity Liquidity
Slide 73: Liquidity
Liquidity LCR at 313 % | NSFR at 131 % Market funding (MNOK) Liquidity reserve, (MNOK) 4.500 4.230 3.499.0 00 4.000 3.780 2.926 2.999.0 00 2.825 3.500 3.225 3.000 2.499.0 00 2.286 2.500 2.293 1.999.0 00 3.000 3.550 2.301 247 2.000 1.700 2.425 1.499.0 00 1.500 300 986 1.300 999.000 886 1.000 497 1.40
Slide 74: Liquidity
Liquidity NOK 3,5 bn. ex. cash Composition Credit duration 2,80 Foreign 2,60 Covered Bonds Domestic 9% Municipalities (RW20) 2,40 18 % Foreign Municipalities (RW0) 2,20 6% 2,00 Domestic Covered Bonds 1,80 49 % Gov't Guaranteed 1,60 17 % nov.21 mai.21 sep.21 des.21 mai.22 sep.22 feb.21 feb.22 jul.22
Slide 75: Updated Green Framework
Updated Green Framework + Update of 2020 framework * Tightening of green criteria in line with best market practice + Inclusion of wider Use of Proceeds categories: + Green residential and commercial buildings * Renewable Energy + Energy Efficiency + Sustainable management of living natural resource
Slide 76: Sustainalytics Second Party Opinion
Sustainalytics Second Party Opinion
Slide 77: ©
©
Slide 78: Appendix
Den Gule Banken ‘Sandnes Sparebank Appendix
Slide 79: The Equity Capital Certificate
The Equity Capital Certificate SADG: Development in price and volume at OSE ECC-ownership 20 largest owners of equity certificates as at 30.09.2022 No. of equity certificates Share 1. Sparebank 1 SR-Bank ASA, Finansavdelingen 3.485.009 15,14 % Pris Avkastning 2. Sandnes Sparebank 2.081.715 9,05 % 40
Slide 80: Profitability
Profitability Stable results despite a troubled macroeconomic period ROE, Quarterly ROE, Yearly 140 16, 0 % 350 13,5 % 120 14, 0 % 9,6 % 9,7 % 9,5 % 10,0 % 300 9,0 % 12, 0 % 8,8 % 100 103 277 9,6 % 250 261 281 8,0 % 9,0 % 10, 0 % 244 80 7,8 % 200 218 8,0 % 73 60 66 6,1 % 6,0 % 150 59 6,0 % 40 48 100
Slide 81: Net Interest Margin
Net Interest Margin Interest rate changes towards customers are beginning to take effect. Still som lag in interest margin as a result of an increase in Nibor Net interest Margin, Quarterly Net Interest Margin, Yearly 1,90% 1,90% 1,80% 1,80% 1,73% 1,72% 1,70% 1,70% 1,64% 1,62% 1,58% 1,59% 1,60% 1,60
Slide 82: Margins on Loans and Deposits
Margins on Loans and Deposits Tough competition and an increasing NIBOR-rate affects margins Lending Margins Deposit Margins 2% 1,64 % 2% 3,07 % 2,92 % 1% 2,77 % 2,81 % 1,31 % 2,53 % 1% 1% 1% 1,76 % 0,83 % 0,74 % 0,74 % 1% 0,63 % 1,40 % 1,15 % 1,17 % 0,42 % 0% 0,34 % 0% 0,04 % 0,49 % 0% 0,03 % 3Q21
Slide 83: Other Income
Other Income Solid dividend from Eika Gruppen, turbulent equity and interest rate markets affect financial securities Other Income, last 5 quarters Other Income, EOY/YTD 3Q21 4Q21 1Q22 2Q22 3Q22 2018 2019 2020 2021 9M22 154,3 75,8 140,6 2,1 135,0 14,8 130,0 25,1 0,7 2,6 122,6 31,5 39,0 28,9 14,4 79,
Slide 84: Gross Commission Income
Gross Commission Income Good activity in Aktiv Eiendom, inprovement in the sale of insurance and mutual funds Gross commission, last 5 quarters Gross commissions, EOY/YTD 27 27 110, 0 25 0,5 0,5 25 24 99 25, 0 0,6 3,5 2 0,6 0,5 3,9 89 2,9 3,7 1,3 90,0 86 12 3,4 1,3 3 3 80 1,4 20, 0 1,4 1,4 1,3 9 10
Slide 85: Operating Costs
Operating Costs Mål 2019: Some increase in personnel cost, replacement of core systems slightly below budget Other Operating Costs, last 5 quarters Other Operating Costs, EOY/YTD 100 400 1,20 90 86 314 79 350 77 11 80 74 73 29 1,00 1 2 9 10 300 36 70 10 261 269 269 9 9 0,80 - - 242 60 250 27 28 30 1
Slide 86: Solidity – Leverage Ratio
Solidity – Leverage Ratio Leverage (Equity/Total assets), quarterly Leverage (Equity/Total assets), EOY / YTD 12% 12% 9,8 % 9,9 % 10,0 % 9,8 % 9,7 % 9,2 % 9,2 % 8,9 % 8,9 % 8,9 % 9% 9% 6% 6% 3% 3% 0% 0% 3Q21 4Q21 1Q22 2Q22 3Q22 2018 2019 2020 2021 9M22 86
Slide 87: Cost to Income Banking Operations
Cost to Income Banking Operations Cost ratio without real estate and conversion costs related to core banking systems Cost to income, quarterly Cost to income, EOY/YTD 1 1 0 1 0 0 0 0 0 0 51% 42% 42% 44% 43% 48% 0 41% 46% 44% 0 0 35% 0 0 0 0 0 3Q21 4Q21 1Q22 2Q22 3Q22 2018,00 2019 2020 2021 9M22 Cos
Slide 88: Loans to Customers by Division
Loans to Customers by Division The share of lending to the retail market has increased significantly over the last 5 years Distribution by sector Distribution by division Retail services 1% Farming 3% Other* Public and 1% private services Buidling & 2% construction 3% 29 % 27 % 27 % 26 % 32 % Commer
Slide 89: Loans to Corporate Customers - 26% of total lending
Loans to Corporate Customers - 26% of total lending Largest growth in the agriculture sector and the SME-segment Distribution by sector Corporate loans to real estate Housing cooperative Commercial Other 4% building 4% building projects 0% Housing Commercial real building Land estate projects 3% 60%
Slide 90: Write-downs on Loans
Write-downs on Loans Write-downs, quarterly Write-downs, EOY/YTD 2% 1% 2% 1% 0,40 % 0,37 % 0,37 % 0,35 % 0,34 % 1,08 % 1% 0% 86 0,64 % 0,63 % 1% 0,37 % 0,34 % 19 14 12 13 20 -1 % 25,3 31,0 0% 46 44 46 48 -1 % 35,7 52,1 43 13,6 20 -1% 157 44,2 43 -2 % -1% 38 80 74 36 38 32 32 38 32 -2 % -2% 3Q21 4Q21
Slide 91: Deposit From Customers
Deposit From Customers By division Deposit-to-loan ratio 51% 53% 51% 51% 49% 55 % 45 % 3Q21 4Q21 1Q22 2Q22 3Q22 Deposits Retail Deposits Corporate
Slide 92: Liquidity
Liquidity NOK 3,5 bln excl. cash Composition of portfolio Rating distribution 70% Foreign Covered Bonds Domestic 9% Municipalities (RW20) 18 % Foreign Municipalities (RW0) 6% 29% Domestic Covered Bonds 49 % Gov't Guaranteed 17 % 0% 0% 1% AAA AA A BBB BB • BB is a nordic high yield fund • AA is mainl
Slide 93: Key figures
Key figures 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 9M21 9M22 Growth assets 0,1 % -0,9 % 5,2 % -2,6 % -1,1 % 5,7 % 1,1 % 2,5 % 1,6 % 8,3 % Growth lending (net) 0,1 % 1,5 % 1,2 % 1,3 % 1,4 % 1,3 % 2,0 % 2,8 % 4,3 % 7,6 % Growth deposits 0,4 % 2,7 % 4,7 % -0,3 % 0,4 % 2,7 % 5,0 % -4,0 % 7,7 % 4,0 % Ne
Slide 94: Definition of Key Figures
Definition of Key Figures Rate of deposits to loans Return on equity before tax OB deposits from customers/OB net loans to customers (Operating profit before taxes / days in the period x days in a year) / ((OB total equity + IB total equity) / 2 [excl. T1 hybrid instruments] Liquidity coverage ratio
Slide 95: Contacts
Contacts Trine Karin Stangeland CEO Telefon: +47 934 88 117 E-mail: trine.stangeland@sandnes-sparebank.no Tomas Nordbø Middelthon Deputy CEO/CFO Telefon: +47 922 11 865 E-mail: tnm@sandnes-sparebank.no Johan Erik Flaatin Head of Treasury Telefon: +47 51 67 67 21 E-mail: joef@sandnes-sparebank.no Thi