Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q3 2024 Earnings Presentation
51 slides from Sparebank 1 Nord-norge's earnings presentation, Oct 30, 2024
Slide 1: 3Q 2024
3Q 2024 October 30th 2024 Hanne Karoline Kræmer, CEO Bengt Olsen, CFO
Slide 2: Highlights
C1) Highlights SpareBank NORD-NORGE oO
Slide 3: The Obvious Choice for People and Businesses!
The Obvious Choice for People and Businesses!
Slide 4: Highlights YTD
Highlights YTD Pre-tax profit ROE 3 441 MNOK (2 345) 22.9 % (15.6 %) CET1 ratio C/I ratio Losses 16.6 % (17.6) 28.5 % (34.5) 86 MNOK (25) SpareBank NORD-NORGE 1)
Slide 5: Satisfying Financial Results
Satisfying Financial Results 5
Slide 6: Subsidiaries – Earnings Before Tax
Subsidiaries – Earnings Before Tax 6
Slide 7: Simplification leads to cost reductions
Simplification leads to cost reductions Simplification project The largest processes in the group are being assessed Natural turnover where we do not replace 1 out of 5 who leave Leads to a yearly saving in 2025 of around NOK 10 million, expected to increase to 40-50 million in 2027 ‒ All else being
Slide 8: Outlook
2 } Outlook SpareBank NORD-NORGE oO
Slide 9: Strong development in loans
Strong development in loans SNN loan growth 12 months Norwegian credit growht 12 months Differanse 9
Slide 10: Record for norwegian seafood exports
Record for norwegian seafood exports Value, Bn NOK 10 Fish farming Fisheries
Slide 11: A region with high activity
A region with high activity 2024 Norway 2023 Northern 2022 Norway 2021 2020 2019 11
Slide 12: Housingmarket
Housingmarket Price changes last 12 months Price m2 12
Slide 13: Status and Outlook in Northern Norway
Status and Outlook in Northern Norway 13
Slide 14: Ambitions for Lending Growth and Market Share
Ambitions for Lending Growth and Market Share Expected lending growth for SpareBank 1 Nord-Norge in 2024 Retail market: 2-4 % Corporate market: 4-7 % The Group is well capitalized. Underlying market growth is lower than in many years, but the region is well positioned compared to the rest of the cou
Slide 15: Financial status
3) Financial status NORD-NORGE SpareBank 1)
Slide 16: Group Financial Highlights and Key Figures
Group Financial Highlights and Key Figures 16
Slide 17: Quarterly Development
Quarterly Development T * Including 50 % of the 1Q24 result 17
Slide 18: Earnings Before Tax - Last Quarter
Earnings Before Tax - Last Quarter (Amounts in NOK million) 19
Slide 19: Net Interest Income - Group
Net Interest Income - Group (Amounts in NOK million) 20
Slide 20: Low Losses
Low Losses Net losses in % of Net losses gross lending incl. interm. loans (Amount in NOK million) Corporate Retail 21
Slide 21: Development in Net Interest Income
Development in Net Interest Income Net interest in % of average assets NII 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) 2.3% 2.5% 2.5% 2.5% 2.5% 2.2% 2Q23 3Q23 4Q23 1024 2024 3Q24 Lending growth (12 mth) Hl ; 2023 3Q23 25 15.5% 13.8% 14.4% 14.6% 94% 79% 2Q23 3Q23. 4023 1Q24-2Q24-— 324 SpareBank (1) NORD-NORGE
Slide 25: Deposit Growth
26 Deposit Growth Retail Market Corporate Banking Public Sector 30.09.2022 30.09.2023 30.09.2024 % 33,233 30.09.2022 30.09.2023 30.09.2024 Deposits gross 53% 39% 30.09.2022 30.09.2023 30.09.2024 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 > 13 % > 50 % ROE Dividend payout ratio 15.8 % CET1 ratio 28
Slide 28: Financial Outlook
Financial Outlook * Despite strong competition on both deposits and mortgages, the the Group has managed to maintain a interest margin at 3.03 % and a NII at NOK 2 billion. There is an increased price preasure on the retail mortgages due to the credith growth softening and inceased competition. Neve
Slide 29: Why Invest in SpareBank 1 Nord-Norge
Why Invest in SpareBank 1 Nord-Norge 30
Slide 30: Contacts
Contacts Management Hanne Karoline Kræmer CEO +47 414 70 483 Hanne.karoline.kramer@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 * Including 50 % of the 1Q24 result 33
Slide 33: Development in Lending Margins
Development in Lending Margins Corporate Retail 34
Slide 34: Company Structure
Company Structure SpareBank 1 Boligkreditt AS SpareBank 1 SpareBank 1 Finans Nord- EiendomsMegler 1 Nord- SpareBank 1 Gruppen AS 19.50 % | Financial services 16.21 % | Mortgage company Næringskreditt AS Norge AS Norge AS 1.05 % | Mortgage company 85 % | Loan/consumer finance/leasing 85 % | Real esta
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 AKSJE NORGE VERDIPAPIRFOND Skandinaviska Enskilda Banken AB VPF EIKA EGENKAPITALBEVIS. Geveran Trading Company LTd KOMMUNAL LANDSPENSJONSKASSE GJENS! MP PENSJON PK Brown Brothers Harriman & Co. FORSVARETS PERSONELLSER
Slide 37: Cost Development - Group
Cost Development - Group Cost/income Group (Amounts in NOK million) Group operating costs 38
Slide 38: Operating Expenses - Group
Operating Expenses - Group (Amounts in NOK million) 39
Slide 39: Net Fee- and Other Operating Income - Group
Net Fee- and Other Operating Income - Group 40
Slide 40: Risk Exposure - Group
Risk Exposure - Group 1,8% Non-performing /impaired High risk Medium risk Low risk 41
Slide 41: Changes in Exposure last Months - Group
Changes in Exposure last 12 Months - Group Non-performing /impaired High risk (Amounts in NOK million) Medium risk Low risk 42
Slide 42: Exposure Distributed by Size
Exposure Distributed by Size* 30.09.2023 30.09.2024 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 30.09.2023 is based on the market value of the collateral: • 98.9 % of the gross exposure is within 85 % of the collateral 30.09.2024 market value • Only 0.5 % of the gross exposure is higher than 100 % of the collateral market value • The figures
Slide 44: Diversified Portfolio in Commercial Real Estate
Diversified Portfolio in Commercial Real Estate 45
Slide 45: Loan Losses - Group
Loan Losses - Group The Group’s annualized losses is (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 1.35 % of total exposure. Expected loss share: 26.41 % Commitments in step 2: 16.10 % of total exposure. Expected loss share: 1.90 % Commitm
Slide 46: The Lending Portfolio
The Lending Portfolio* *) Incl. SpareBank 1 Boligkreditt 47
Slide 47: Funding
Funding NOK 24,795 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 45,507 mill had been transferred as of 30.09.24 Amount of gross maturities of capi
Slide 48: Work on ESG initiatives in the third quarter of 2024
Work on ESG initiatives in the third quarter of 2024 • SNN has revised the double materiality analysis in accordance with CSRD requirements • The annual report is being adjusted to comply with CSRD/ESRS requirements • The accounting firm in the Group has established a dedicated sustainability team 4
Slide 49: 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 SpareBank 1 Nord-Norge (Tromsø) • The alliance is in the forefront of incorporating technological innovation into its distribution c
Slide 50: SpareBank 1 Alliance companies
SpareBank 1 Alliance SpareBank 1 SMN SpareBank 1 SR-Bank SpareBank 1 Samspar SpareBank 1 LO Nord-Norge Østlandet SpareBank 1 BN Bank SpareBank 1 SpareBank 1 Gruppen SpareBank 1 Alliance companies Markets Boligkreditt SpareBank 1 SpareBank 1 SpareBank 1 SpareBank 1 Fremtind Modhi Mobilitet Holding Kr
Slide 51: Noen som har et fint bilde til avslutning?
Noen som har et fint bilde til avslutning? 52
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