Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q1 2024 Earnings Presentation
49 slides from Sparebank 1 Nord-norge's earnings presentation, May 8, 2024
Slide 1: 1Q 2024
1Q 2024 May 8th 2024 Hanne Karoline Kræmer, CEO Bengt Olsen, CFO
Slide 2: Highlights
@ Highlights SpareBank NORD-NORGE
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 916 MNOK (903) 17.8 % (19.1 %) CET1 ratio C/I ratio Losses 17.0 % (17.3 %) 33.9 % (33.2 %) 36 MNOK (-57) SpareBank NORD-NORGE 1)
Slide 5: Satisfying financial results
Satisfying financial results * Including 50 % of the 1Q24 result 5
Slide 6: Subsidiaries – results before tax
Subsidiaries – results before tax 6
Slide 7: Outlook
2 } Outlook SpareBank NORD-NORGE
Slide 8: ESG focus areas in the first quarter
ESG focus areas in the first quarter • Launched the group’s transition plan «path to net zero» • Published the updated Green Finance Framework • The annual report has been revised to meet the requirements of CSRD/ESRS • The following key figures are reported in 2023: - 200 MNOK to green transition t
Slide 9: Increased focus outside of the northern region!
Increased focus outside of the northern region! 9
Slide 10: The expectations barometer for Northern Norway
The expectations barometer for Northern Norway • Increased optimism among businesses • Small businesses are more optimistic than larger ones • Inflation, increased interest rates and a weak NOK is still the biggest concerns 11
Slide 11: Status and outlook in Northern Norway
Status and outlook in Northern Norway 12
Slide 12: Ambitions for growth and increased market share
Ambitions for growth and increased market share Expected 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 country.
Slide 13: Financial status
(3 } Financial status SpareBank NORD-NORGE
Slide 14: Group financial highlights and key figures
Group financial highlights and key figures 15
Slide 15: Quarterly development
Quarterly development T * Including 50 % of the 1Q24 result 16
Slide 16: Strong capital base
Strong capital base CET1 Pillar 1 P2R Buffer req P2G min.requirement * Including 50 % of the 1Q24 result 17
Slide 17: Result before tax - last quarter
Result before tax - last quarter (Amounts in NOK million) 18
Slide 18: Net interest income - Group
Net interest income - Group (Amounts in NOK million) 19
Slide 19: Development in net interest income
Development in net interest income Net interest in % of average assets NII 21
Slide 20: Low losses
Low losses Net losses in % of Net losses gross lending incl. interm. loans (Amount in NOK million) Retail Corporate 22
Slide 21: Lending growth
Lending growth Retail Corporate 23 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 22: Retail Market
Retail Market Retail (excl. Commission com.loans loans 24
Slide 23: Corporate Banking
Corporate Banking Lending growth Development in lending margin (iso) AT 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Lending growth (12 mth) | 4Q22 1023 4Q23 25 15.5% 14.4% 74% 4022 1923. 2023, 3Q23 4Q23 1024 SpareBank (1) NORD-NORGE
Slide 24: Deposit growth
Deposit growth 26 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 25: Long term financial targets
Long term financial targets < 40 % C/I ratio > 13 % > 50 % ROE Dividend payout ratio 15.8 % CET1 ratio 28
Slide 26: Financial outlook
Financial outlook © The group has recieved the full effect of the latest interest hike from February 20, 2024. Nibor har been stable in the quarter, which har led to a decrease in the deposit margin, and an increase in the lending margin. If the market's expectations, that we have seen the peak of t
Slide 27: Why invest in SpareBank 1 Nord-Norge
Why invest in SpareBank 1 Nord-Norge 30
Slide 28: 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 29: Appendix
A) Appendix SpareBank NORD-NORGE
Slide 30: A solid bank for Northern Norway
A solid bank for Northern Norway * Including 50 % of the 1Q24 result 33
Slide 31: Development in lending margins
Development in lending margins Corporate Retail 34
Slide 32: 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 33: Geographical distribution of ownership
Geographical distribution of ownership Foreign holders Other Norwegian holders Holders residing in Northern Norway 36
Slide 34: 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 PARETO INVEST NORGE AS VPF EIKA EGENKAPITALBEVIS Geveran Trading Company LTd KOMMUNAL LANDSPENSIONSKASSE GJENSI Brown Brothers Harriman & Co. MP PENSION PK FORSVARETS PERSONELLSERVICE State
Slide 35: Cost development - Group
Cost development - Group Cost/income Group (Amounts in NOK million) Group operating costs 38
Slide 36: Operating expenses - Group
Operating expenses - Group (Amounts in NOK million) 39
Slide 37: Net fee- and other operating income - Group
Net fee- and other operating income - Group 40
Slide 38: Risk exposure - Group
Risk exposure - Group 1,8% Non-performing /impaired High risk 100.0% Medium risk Low risk 41
Slide 39: 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 40: Exposure distributed by size
Exposure distributed by size* 31.03.2023 31.03.2024 43 *Incl. parent bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt
Slide 41: LTV mortgage loans
LTV mortgage loans LTV is distributed by balance and 31.03.2023 is based on the market value of the collateral: • 98.4 % of the gross exposure is within 85 % of the collateral 31.03.2024 market value • Only 0.5 % of the gross exposure is higher than 100 % of the collateral market value • The figures
Slide 42: Diversified portfolio in commercial real estate
Diversified portfolio in commercial real estate 45
Slide 43: Loan losses - Group
Loan losses - Group The Group’s annualized losses is 0.10 % (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 1.01 % of total exposure. Expected loss share: 28.49 % Commitments in step 2: 12.51 % of total exposure. Expected loss share: 2.66 %
Slide 44: The lending portfolio
The lending portfolio* 47 *) Incl. SpareBank 1 Boligkreditt
Slide 45: Funding
Funding NOK 21,270 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 45,538 mill had been transferred as of 31.03.24 Amount of gross maturities of capi
Slide 46: Achieving goals for sustainability
Achieving goals for sustainability • ESG-classified portfolio aligned with EUs taxonomy • Major contribution to the SDGs • Green product framework and Green Finance Framework established special for the Arctic region • 41% women in leadership positions • 24% reduction in greenhouse gas emissions • E
Slide 47: 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 48: 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 49: Noen som har et fint bilde til avslutning?
Noen som har et fint bilde til avslutning? 52
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