SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q2 2013 Earnings Presentation
49 slides from SpareBank 1 Helgeland's earnings presentation, 2013
Slide 1: Presentation for the 2nd quarter 2013
Presentation for the 2nd quarter 2013 A driving force for growth on Helgeland 1
Slide 2: Presentation for the 2nd quarter 2013 (HSB group)
Presentation for the 2nd quarter 2013 (HSB group) Main features Jan Erik Furunes Strategy process Chief Executive Officer Profit & Loss Balance Lending Lisbeth Flågeng Deputy Chief Executive Officer Deposits Funding Solidity Inger Lise Strøm Summary Chief Financial Officer Appendices A driving force
Slide 3: Main features: profit and loss for the quarter
Main features Profit and loss for the quarter Further improved basic operations, no large one-time-effects • Gross profit MNOK 66 (31) Improvements in key figures • Significantly improved net interest 1.73 (1.48) % • Low costs 0.94 (1.01) %, in percent of income 44.7 (59.2) % • Low write-downs on le
Slide 4: Main features: profit and loss so far this year
Main features Profit and loss so far this year Further improved basic operations – gross profit MNOK117 (73) Improved earnings by MNOK 44 – increased by 60% from 30.06.12 • The net interest increased by MNOK 35 – increased by 21% from 30.06.12 • Net value change on financial instruments increased by
Slide 5: Strategy process
Main features Strategy process Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices A driving force for growth on Helgeland 5
Slide 6: Strategy analysis and strategy plan
Strategy process 2013 Strategy analysis and strategy plan Ownership government and business management Strategy analysis (picture of challenges) Strategy- process • Driving forces, developmental features, market position, competition strategy and SWOT-analysis Strategy- analysis Strategy plan (battl
Slide 7: Document of goals – superior goals
Strategy process 2013 Document of goals – superior goals Ownership government and business management Strategy analysis (picture of challenges) Strategy- process • Driving forces, developmental features, market position, competition strategy and SWOT-analysis Strategy- analysis Strategy plan (battli
Slide 8: Document of goals – strategic goals
Strategy process 2013 Document of goals – strategic goals Ownership government and business management Document of goals (strategic goals) Strategy- process • We will maintain our strong and leading market position • We will be a professional and active supporter in the development of the region Str
Slide 9: Document of goals – strategic and financial goals
Strategy process 2013 Document of goals – strategic and financial goals Ownership government and business management Document of goals (strategic goals) Strategy- process • We will maintain our strong and leading market position • We will be a professional and active supporter in the development of
Slide 10: Profit & loss
Main features Strategy process Profit & loss Balance Lending Deposits Funding Solidity Summary Appendices A driving force for growth on Helgeland 10
Slide 11: Income- and key figure developments
Profit & loss statement Income- and key figure developments Helgeland Sparebank Further improved basic Key figures in % of average BTA operations 2,5 % Net interest Net income • Strengthened in 2012 and Net interest first half 2013 Net provision 2,0 % Net provision earnings • Stable income in NOK •
Slide 12: Income- and key figure developments
Profit & loss statement Income- and key figure developments Helgeland Sparebank Further improved basic Key figures in % of average BTA operations 2,5 % Net interest Net income • Strengthened in 2012 and Net interest first half 2013 Net provision 2,0 % Operations costs Net provision earnings Write-do
Slide 13: Income- and key figure developments
Profit & loss statement Income- and key figure developments Helgeland Sparebank Further improved basic Key figures in % of average BTA operations 2,5 % Net interest Net income Net interest • Strengthened in 2012 and Net provision first half 2013 Operations costs 2,0 % Write-downs lend. Net provision
Slide 14: Profit and loss accounts
Profit & loss statement Profit and loss accounts Helgeland Sparebank (HSB group) 30.06.12 30.06.13 Q2 2012 Q2 2013 Net interest- and credit provision earnings 169 204 85 109 Net provision earnings 34 35 18 18 Other operations income 3 3 1 2 Ordinary operations costs 117 118 58 59 Result basic operat
Slide 15: Profit and loss accounts
Profit & loss statement Profit and loss accounts Helgeland Sparebank (HSB group) Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Net interest- and credit provision earnings 1,48 % 1,53 % 1,54 % 1,55 % 1,73 % Net provision earnings 0,32 % 0,33 % 0,29 % 0,28 % 0,29 % Other operations income 0,02 % 0,02 % 0,05
Slide 16: Return on equity
Profit & loss statement Return on equity Helgeland Sparebank Increased return on Return on equity and target figures equity Result 14 % • 9.2 % (6.3) % - increased from 8.4 % in the 1st quarter 12 % Target figures 10 % • 10 % under normal market conditions 8% Group contribution from 6% Helgeland Bol
Slide 17: Balance
Main features Strategy process Profit & loss Balance Lending Deposits Funding Solidity Summary Appendices A driving force for growth on Helgeland 17
Slide 18: Balance- and growth development
The balance Balance- and growth development Helgeland Sparebank Reduced lending BTA whereby lending and deposits growth 30 000 (MNOK) Volume gross lending at 30.06.2013 was NOK 20.5 25 000 (19.0) bn. 12-month growth in lending 20 000 was MNOK 1,523: 8.0 (10.2)% 15 000 6-month lending growth MNOK 650
Slide 19: Balance- and growth development
The balance Balance- and growth development Helgeland Sparebank Increased deposit BTA whereby lending and deposits growth 30 000 (MNOK) Volume at 30.06.2013 was MNOK 12.2 (11.2) 25 000 12-month deposit growth MNOK 996: 8.9 (7.3) % 20 000 6-month deposit growth 15 000 MNOK 983: 8.8 (7.4) % 10 000 5 0
Slide 20: Lending
Main features Strategy process Profit & loss Balance Lending Deposits Funding Solidity Summary Appendices A driving force for growth on Helgeland 20
Slide 21: Gross lending BM
Lending Gross lending BM Helgeland Sparebank Good diversification in Lending distributed in sectors the lending portfolio NOK 20.5 (19.0) bn. Real estate Lending to personal customers constitute Farming and f orestry NOK13.2 (12.1) bn, mainly well secured mortgages Fishery and aquaculture NOK 2.1 (2
Slide 22: Credit growth PM
Lending Credit growth PM Helgeland Sparebank 12-month growth 8.9 12-month credit growth households (11.2) % 25 % Normal activity – somewhat lower growth in 2013 20 % 15 % 10 % 5% 0% 2008 2009 2010 2011 2012 30.06.13 SSB Norge HSB Helgeland A driving force for growth on Helgeland 22
Slide 23: Credit Growth BM
Lending Credit Growth BM Helgeland Sparebank 12-month growth 6.5 12-month credit growth in businesses (8.7) % 25 % The growth in BM has diminished since 2011. 20 % Stricter priorities of projects so far in 2013 15 % Unloading of commitments 10 % is ongoing and is expected to give effects in the 2nd
Slide 24: Defaults and commitments exposed to loss
Lending Defaults and commitments exposed to loss Helgeland Sparebank Good portfolio quality – Net defaulted and com. exp. to loss growth without increased risk 250 5,0 % 4,5 % Net defaulted and 200 4,0 % commitments exposed to loss in % of gross lending 3,5 % has been declining since 150 3,0 % 2008
Slide 25: Deposits
Main features Strategy process Profit & loss Balance Lending Deposits Funding Solidity Summary Appendinces A driving force for growth on Helgeland 25
Slide 26: Customer deposits BM
Deposits Customer deposits BM Helgeland Sparebank Loyal customer base Customer deposits Of total deposits at NOK 12.2 (11.2) bn, NOK 8 (7.3) Municipalities bn. or 65.4 (65.4) % are from personal customers Transport and services Real estate Good diversification of deposits from businesses Constructio
Slide 27: Deposit ratio
Deposits Deposit ratio Helgeland Sparebank Increased deposit ratio Deposit coverage group/parent bank The deposit ratio in the HSB 90 % group was 59.5% The target deposit ratio for the HSB group is 60% 80 % Good deposit growth in the quarter -New deposit products have been received well in the marke
Slide 28: Deposit growth PM
Deposits Deposit growth PM Helgeland Sparebank 12-month growth 8.8 12-month deposit growth for households (8.4) % 25 % The growth in the personal market is still higher than the national average 20 % New products have been well received and the focus 15 % on deposits gives good results 10 % The work
Slide 29: Deposit growth BM
Deposits Deposit growth BM Helgeland Sparebank 12-month growth 9.1 12-month deposit growth for businesses (5.3) % 25 % Loyal customer base gives good growth in the business 20 % market – still higher growth than the national average 15 % 20 largest deposits have been stable over time and 10 % consti
Slide 30: Funding
Main features Strategy process Profit & loss Balance Lending Deposits Funding Solidity Summary Appendices A driving force for growth on Helgeland 30
Slide 31: Loans from the capital market
Funding Loans from the capital market Helgeland Sparebank Satisfactory funding Maturity of loans (MNOK) Duration on loans is 2.3 years 3 000 Liquidity indicator 1 was 106.9% The indicator value for the reference banks was on the 2 500 31.03.13 at 105.4% 2 000 Covered bonds constitute NOK 4.1 bn. (37
Slide 32: Liquidity buffers
Funding Liquidity buffers Helgeland Sparebank Solid buffer capital Securities distributed in sectors The liquidity buffers constitute NOK 4.3 bn, equal Govt./LCR 1 to 16.7% of BTA CB 1 The buffer capital consists of Municipalities cash, deposits in BoN/banks and interest bearing assets CB 2 Finance,
Slide 33: Helgeland Boligkreditt AS
Funding Helgeland Boligkreditt AS Helgeland Sparebank Good cover pool LTV-fordeling 30.06.13 The cover pool: 40 % • Qualified lending of MNOK 4,943 35 % • Deposits: MNOK 244 • Rate of fullness: 126% Andel i % av totale lån 30 % • Combined LTV: 52% 25 % Loans: • Covered bonds NOK 4.1 bn. 20 % • Durat
Slide 34: Solidity
Main features Strategy process Profit & loss Balance Lending Deposits Funding Solidity Summary Appendices A driving force for growth on Helgeland 34
Slide 35: Capital ratio
Solidity Capital ratio Helgeland Sparebank Satisfactory solidity Development in capital adequacy CET1 capital was 11.3% (11.5% at 31.12.12) – well 18,0 % above the regulatory requirements of 9% (at the 16,5 % moment) T1 capital was 12.9% (13.1% 15,0 % at 31.12.12) Total capital ratio was 15.0% 13,5
Slide 36: Capital structure
Solidity Capital structure Helgeland Sparebank New capital targets have been determined Development capital adequacy 18,0 The HSB group aims toward a 17,5 CET1 of 12.5% from 01.07.14 Including and a total capital ratio up to 18% 17,0 70 % of toward 2018 (given the counter 16,5 result cyclical buffer
Slide 37: Summary
Main features Strategy process Profit & loss Balance Lending Deposits Funding Solidity Summary Appendices A driving force for growth on Helgeland 37
Slide 38: Prospects and priorities
Summary Prospects and priorities Target oriented work toward the bank’s strategy plan • Increase return on equity - Increase profitability additionally through better net interest • Reduced interest rates on deposits on parts of the portfolio, with full effect from August • Continue differentiated r
Slide 39: Prospects and priorities: Helgeland region
Summary Prospects and priorities • Helgeland has since 2007 grown in population and value creation • Helgeland has a robust and versatile labour market - National governmental businesses expand - Increased oil- and gas activity both off- and on shore - Challenging for export oriented process- and mi
Slide 40: Contact information
Contact information Chief Executive Officer Business 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 Deputy Chief Executive Officer Internet Lisbeth Flågeng ECCs in general: www.egenkapitalbevis.no (+47) 75 1
Slide 41: Appendices
Main features Strategy process Profit & loss Balance Lending Deposits Funding Solidity Summary Appendices A driving force for growth on Helgeland 41
Slide 42: Management and organisational structure
The local bank Management and organisational structure The bank’s Gift fund General manager Geir Sætran A driving force for growth on Helgeland 42
Slide 43: Profitable and leading
The local bank Profitable and leading Helgeland all possibilities – the region is growing both in terms of population and value creation • Helgeland Sparebank’s vision is to be a driving force for growth on Helgeland • The bank’s main goal is to maintain the position as a profitable and leading bank
Slide 44: A driving force for growth
The local bank A driving force for growth Norway’s 12th largest savings bank of 110 banks – 15 offices in 13 municipalities in the Helgeland region Bank total assets of NOK 25 billion and a market share of 50% • An independent regional bank with no alliances and quoted on the stock exchange - The
Slide 45: Solid market position
The bank Solid market position Helgeland Sparebank still has a solid market position in the Helgeland region (markedsundersøkelsen 2012): • Personal market 56 % • Youth market 56 % • Business market 60 % • Agricultural market 80 % • The customer barometer on satisfaction (76) and loyalty (83) indica
Slide 46: Business development and ownership
The local bank Business development and ownership Subsidiaries and associated companies 100 % 8,9 % 34% 6,5 % 48% 10 % A driving force for growth on Helgeland 46
Slide 47: 20 largest owners of the ECC - HELG
The bank 20 largest owners of the ECC - HELG Parent bank Per 30. 06. 13 Numbers % s hare Numbers % s hare Sparebankstiftelsen Helgeland 12 099 598 64,7 % Citibank, N.a S/A 135 647 0,7 % MP Pensjon 800 000 4,3 % Nervik, Steffen 110 000 0,6 % Sparebank 1 Midt-Norge 649 047 3,5 % Melum Mølle AS 100 000
Slide 48: Helgeland all possibilities
Developmental features Helgeland all possibilities The main message in “Horizon Helgeland” published by Helgeland Sparebank in 2012: • Growing population and value creation in the Helgeland region • Growth is threatened by the European crisis • Growth is limited due to the increasing demographic pop
Slide 49: "Horizon Helgeland" summary
Developmental features ”Horizon Helgeland” summary “In ”Horizon Helgeland” central developmental features since 2007 are shown – the year before the financial crisis hit – and on to 2012. A short summary of the graphical presentation: • Helgeland’s population increases. Increased employment, low une