SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q1 2014 Earnings Presentation
60 slides from SpareBank 1 Helgeland's earnings presentation, 2014
Slide 1: Presentation for the 1st quarter 2014
Presentation for the 1st quarter 2014 En drivkraft for vekst på Helgeland 1
Slide 2: Presentation for the 1st quarter 2014 (group)
Presentation for the 1st quarter 2014 (group) Main features Jan Erik Furunes Developments Chief Executive Officer Profit and loss Balance Lisbeth Flågeng Lending Deputy Chief Executive Officer Deposits Funding Solidity Inger Lise Strøm Summary Chief Financial Officer Appendices En drivkraft for veks
Slide 3: Main features
Presentation for the 1st quarter 2014 (group) Main features Developments Profit and loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 3
Slide 4: Main features 1st quarter
Main features 1st quarter Results Good basic opreation – gross profit MNOK 66 (51) • Net interest increased by MNOK 18 • Net commissions increased by MNOK 2 • Operating cost increased bu MNOK 3 • Losses on loans increased by MNOK 5 • Return on financial investments increased by MNOK 3 Profitability
Slide 5: Main features 1st quarter
Main features 1st quarter Lending Reduced 12-month growth 3,3 (9,0) % – in line with the Bank’s instruments due to increased capital recuirements • Personal market 6,1 (11,7) % • Corporate market -1,6 (4,7) % Deposits Increased 12-month growth14,4 (8,0) % – deposit coverage 63,1 (57,0) % due to new
Slide 6: Developments
Presentation for the 1st quarter 2014 (group) Main features Developments Profit and loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 6
Slide 7: Helgeland – rich on natural resources
Helgeland – rich on natural resources En drivkraft for vekst på Helgeland 7
Slide 8: Helgeland – increased value added
Helgeland – increased value added North-Norway Noth-Norway Corporate related revenue in % 2012 Oil related revenue(MNOK) 70 % 1 600 1 431 1 311 1 359 55 % 45 % 879 800 701 736 666 35 % 490 411 307 17 % 0 Helgeland Salten Of oten, Lof oten and Troms Finnmark Vesterålen 0% Nordland Helgeland Troms/Fin
Slide 9: Helgeland – less vulnerable
Helgeland – less vulnerable Helgeland Helgeland Unemployment development House price movements per sqm villas and apartments 1 600 80 000 40 000 1 200 65 000 30 000 800 50 000 20 000 400 35 000 10 000 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Helgeland Norway (right axis) Helgeland
Slide 10: HSB – only non-aligned bank
HSB – only non-aligned bank En drivkraft for vekst på Helgeland 10
Slide 11: HSB – solid market position
HSB – solid market position Helgeland Helgeland Marketshare in % PM 2013 Share of loans % BM 2013 DNB Services 27 % 15% Food HSB 28 % 50 % SB 1 NN Real Estate Other 14 % 36 % Industry 9% 21 % Marketshare The lending ratio HSB has a market share of 50% in the retail market and about 60% HSB has a sol
Slide 12: HSB – digital focusing and employee satisfaction
HSB – digital focusing and employee satisfaction Helgeland Sparebank Helgeland Sparebank Digital Channel Development Satisfaction index 2012 (TNS Gallup) 1 200 000 Public sector 60 910 489 Production Companies 59 785 571 686 362 719 305 Services 58 600 000 Trading 56 Other Businesses 71 Average (50.
Slide 13: Profit and loss
Presentation for the 1st quarter 2014 (group) Main features Developments Profit and loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 13
Slide 14: Profit & loss
Profit & loss Helgeland Sparebank Kommentar Profit development (mnok) Historically good result in 2013 300 266 based only on core operations The improvement from 2011 to 201 2013 is exactly 100 % 177 172 Uncertainties ahead 150 133 133 • Relief BM-engagement • Increased prica competition one- • Effe
Slide 15: Profit & loss
Profit & loss Helgeland Sparebank Kommentar Profit development(mnok) and return on equity % Historically good result in 2013 300 266 based only on core operations The improvement from 2011 to 201 2013 is exactly 100 % 177 172 Uncertainties ahead 150 133 133 10,4 % 9,9 % • Relief BM-engagement 9,2 %
Slide 16: Keyfigures
Keyfigures Helgeland Sparebank Kommentar Keyfigures in % of average BTA Net interest 3% • Improved margin from 2011 Gross profit • Slight decrease Q1/2014 Net interest Net provisions • Stable level from 2011 2% Net provisions • Normalized insurance sales 1% 0% 2008 2009 2010 2011 2012 2013 Q1/2014 E
Slide 17: Keyfigures
Keyfigures Helgeland Sparebank Kommentar Keyfigures in % of average BTA Net interest 3% • Improved margin from 2011 Gross profit • Slight decrease Q1/2014 Net interest Net provisions Net provisions Operating cost • Stable level from 2011 2% Losses on loans • Normalized insurance sales Operation cost
Slide 18: Keyfigures
Keyfigures Helgeland Sparebank Kommentar Keyfigures in % of average BTA Net interest 3% Gross profit • Improved margin from 2011 Net interest • Slight decrease Q1/2014 Net provisions Operating cost Net provisions Losses on loans • Stable level from 2011 2% Finance inv. • Normalized insurance sales O
Slide 19: Profit & loss
Profit & loss Helgeland Sparebank (konsern) Profit & loss (MNOK) Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Net interest- and credit provision earnings 95 109 117 118 113 Net provision earnings 17 18 22 20 19 Other operatios income 1 2 1 3 1 Ordinary operations cost 59 59 59 62 62 Result basic operatio
Slide 20: Net interest
Net interest Helgeland Sparebank Kommentar Development net intr.(mnok.) and % of average BTA Strong increase in net interest 150 income from 2011 to end of 2013 117 118 109 113 Flattening is du to 95 • Relief BM involvement • Increased price competition 1,73 % 1,82 % 1,79 % 1,75 % 75 1,55 % Price co
Slide 21: Operating cost
Operating cost Helgeland Sparebank Kommentar Development operating cost (mnok) and % of income Cost increase from 2012 to 80 2013 was a modest 2.6 % 62 62 Relatively flat cost trend during 59 59 59 2013 to 2014 50,4 % Expense ratio slightly higher in 44,7 % 42,2 % 44,6 % 2014 due to reduced income.
Slide 22: Key figures
Key figures Helgeland Sparebank Kommentar Keyfigures in % of average BTA Gross profit, nett interest, net 0,84 % proviosions og finace- Gross prof it investments strengthened 1,03 % 1,55 % Non growth in operating cost Net interest 1,75 % and some greater losses on loans 0,28 % Net provisions 0,30 %
Slide 23: Balance
Presentation for the 1st quarter 2014 (group) Main features Developments Profit and loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 23
Slide 24: Total Assets
Total Assets Helgeland Sparebank Kommentar BTA (MNOK) Cause of lower total assets 30 000 25 985 25 789 • Relief BM involvement 24 594 22 802 20 160 18 376 16 594 15 000 0 2008 2009 2010 2011 2012 2013 Q1/2014 Total Asset En drivkraft for vekst på Helgeland 24
Slide 25: Total Assets
Total Assets Helgeland Sparebank Kommentar BTA whereby lending (MNOK) Cause of lower total assets 30 000 25 985 25 789 • Relief BM involvement 24 594 22 802 Lending 20 757 20 160 • Q1/2014 20,8 (20,1) bn NOK 18 376 •12 mnth growth 661 MNOK 16 594 • 3 mnth growth 49 mill. kr. 15 000 0 2008 2009 2010
Slide 26: Total Assets
Total Assets Helgeland Sparebank Kommentar BTA whereby lending and deposits (MNOK) Cause of lower total assets 30 000 25 985 25 789 • Relief BM involvement 24 594 22 802 Lending 20 757 20 160 • Q1/2014 20,8 (20,1) bn NOK 18 376 •12 mnth growth 661 MNOK 16 594 • 3 mnth growth 49 mill. kr. 15 000 13 1
Slide 27: Balance sheet
Balance sheet Helgeland Sparebank Kommentar Balance allocation in% of BTA Strong deposit growth has reduced the need for funding 81,2 % Lending 80,5 % Unweighted equity in the balance sheet are 16,0 % strenghtened Liquidity buf f er 15,6 % 46,3 % Deposits 50,8 % 44,4 % Funding 38,3 % 7,3 % Equity 7,
Slide 28: Lending
Presentation for the 1st quarter 2014 (group) Main features Developments Profit and loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 28
Slide 29: Credit growth
Credit growth Helgeland Sparebank Kommentar 12-month credit growth Reduced lending growth in line with the Bank’s instruments due to higher capital requirements • 12 mnth growth 3,3 (9,0) % • 3 mnth growth 0,2 (1,3) % 5,8 % 3,3 % 2008 2009 2010 2011 2012 2013 Q1/2014 HSB Helgeland totalt Statistic N
Slide 30: Credit growth
Credit growth Helgeland Sparebank Kommentar 12-month credit growth Reduced lending growth in line with the Bank’s instruments due to higher capital Pers. Corp. Helgeland Norway 65,5 % 34,5 % 83,7 % 16,3 % requirements • 12 mnth growth 3,3 (9,0) % • 3 mnth growth 0,2 (1,3) % PM-share • minimum target
Slide 31: Credit growth BM and PM
Credit growth BM and PM Helgeland Sparebank Helgeland Sparebank 12-month credit growth retail market 12-month credit growth personal market 20 % 20 % 15 % 15 % 10 % 10 % 5% 5% 0% 0% -5 % -5 % 2008 2009 2010 2011 2012 2013 Q1/2014 2008 2009 2010 2011 2012 2013 Q1/2014 HSB Helgeland corp. Statistic No
Slide 32: Lending BM
Lending BM Helgeland Sparebank Kommentar Lending distributed in sector Well-diversified loan portfolio 12,6 % in BM and very loyal Real estate 12,5 % customers. 6,4 % Farming and f orestry Lending to BM constituting 7,2 6,5 % (7,3) bn NOK 4,5 % Construction and power 4,2 % 4,3 % Fishery and aquacult
Slide 33: Lending BM
Lending BM Helgeland Sparebank Kommentar Lending distributed in sector Well-diversified loan portfolio 12,6 % in BM and very loyal Real estate 12,5 % customers. 6,4 % Farming and f orestry Lending to BM constituting 7,2 6,5 % (7,3) bn NOK 4,5 % Construction and power 4,2 % Food production consosting
Slide 34: Net defaulted and commitments exposed to loss
Net defaultet and com. exp. to loss Helgeland Sparebank Kommentar Net defaulted and com. exp. to loss Still good quality on portfolio 250 Net non-performing and 200 doubtful loans as % of gross loan falling since 2008 150 Net non-performing and doubtful loans as% of gross 100 1,5 % loans declining s
Slide 35: Deposits
Presentation for the 1st quarter 2014 (group) Main features Developments Profit and loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 35
Slide 36: Deposit growth
Deposit growth Helgeland Sparebank Kommentar 12-month deposit growth Very good deposit growth • 12 month growth14,4 (8,0) % • 3 month growth 0,9 (2,2) % 14,4 % 4,8 % 2008 2009 2010 2011 2012 2013 Q1/2014 HSB total Helgeland Statistic total Norway En drivkraft for vekst på Helgeland 36
Slide 37: Deposit growth
Deposit growth Helgeland Sparebank Kommentar 12-month deposit growth Very good deposit growth • 12 month growth14,4 (8,0) % PM BM Helgeland • 3 month growth 0,9 (2,2) % 60,8 % 91,9 % 39,2 % Norway 8,1 % PM-share • Result 60,8 (65,5) % • Regionshare 91,9 (91,7) % 14,4 % Share of deposits under 2 MNOK
Slide 38: Deposit BM and PM
Deposit BM and PM Helgeland Sparebank Helgeland Sparebank 12-month deposit growth for businesses 12-moth deposit growth for households 35 % 20 % 30 % 15 % 25 % 20 % 10 % 15 % 10 % 5% 5% 0% 0% -5 % -5 % 2008 2009 2010 2011 2012 2013 Q1/2014 2008 2009 2010 2011 2012 2013 Q1/2014 HSB Helgeland Corp. St
Slide 39: Deposit BM
Deposit BM Helgeland Sparebank Kommentar Customer deposits Well diversified deposit Municipalities 8,1 % portfolio in BM 11,7 % Transport and services 5,9 % Deposits from BM constitutes 6,7 % 5,1 (3,9) bn Construction and power 4,9 % 5,7 % Real estate 4,1 % 3,7 % Trade, hotel and f orestry 2,8 % 2,8
Slide 40: Deposit BM
Deposit BM Helgeland Sparebank Kommentar Customer deposits Well diversified deposit Municipalities 8,1 % portfolio in BM 11,7 % Transport and services 5,9 % Deposits from BM constitutes 6,7 % 5,1 (3,9) bn Construction and power 4,9 % 5,7 % Deposits from municipalties Real estate 4,1 % 3,7 % constitu
Slide 41: Funding
Presentation for the 1st quarter 2014 (group) Main features Developments Profit and loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 41
Slide 42: Funding
Funding Helgeland Sparebank Kommentar Maturity of loans (MNOK) Strong and long-term funding 2 500 Duration of borrowing is 2,5 2 000 (2,3) years 500 900 1 500 630 285 1 000 396 1 500 1 400 1 200 1 200 400 500 826 400 0 2014 2015 2016 2017 2018 2019 Senior CB En drivkraft for vekst på Helgeland 42
Slide 43: Funding
Funding Helgeland Sparebank Kommentar Funding development (MNOK) Deposits is the mail funding 30 000 source The Bank’s mortgage company rated, bonds will continue to be the focus area 15 000 0 2008 2009 2010 2011 2012 2013 Q1/2014 Deposits Swap agreement Senior CB FO En drivkraft for vekst på Helgel
Slide 44: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland Sparebank Kommentar LTV-allocation 31.03.14 The cover: • Eligible loans 4.215 (4.740) 30,0 % MNOK 24 % • Deposits: 234 (274) MNOK 23 % • Coverage: 23 (16) % 20 % • Total LTV: 53 (53) % Funding: 15 % • Bonds 3,6 bn NOK (of which 15,0 % 0.4 in the parent bank’s 9% 9
Slide 45: Liquidity buffers
Liquidity buffers Helgeland Sparebank Kommentar Securities distributed in sectors Good diversification across 23 % sectors CB 1 29 % 29 % Finance, Norway 26 % The group has gradually 16 % increased the quality of the Government 19 % liquidity buffer, and will 10 % gradually further customize Municip
Slide 46: Solidity
Presentation for the 1st quarter 2014 (group) Main features Developments Profit and loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 46
Slide 47: Capital adequacy
Capital adequacy Helgeland Sparebank Kommentar Development capital adequacy Capital adequacy was12,2 (11,4) 18 % 18 % % Core capital 13,80 (13,0) % 16 % 16 % Core tier one 15,92 (13,06) % 2,1 % The Group is on schedule with 14 % 14 % the strengthening of capital 1,6 % adequacy in relation to new 12
Slide 48: HELG – largest owners
HELG – 20 largest owners Parent bank Per 31. 03. 14 Numbers % s hare Numbers % s hare Sparebankstiftelsen Helgeland 8 599 598 46,0 % Verdipapirfondet Eika utbytte 262 884 1,4 % USB AG, London Branc A/C 1 000 000 5,3 % Sniptind Holding AS 201 801 1,1 % MP Pensjon PK 902 203 4,8 % Holberg Norge Verdip
Slide 49: ECC development and Liquidity HELG
ECC developement og Liquidity HELG The good price development has continued into Q1 2014 Sales in HELG increased from 0.9 million certificates in 2012 to 6.1 million certificates in 2013, of which 2.5 million was from Sparebankstiftelsen Helgeland in November. Further divestment from Sparebankstifte
Slide 50: Summary
Presentation for the 1st quarter 2014 (group) Main features Developments Profit and loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 50
Slide 51: Priorities and prospects
Priorities and prospects Profitability and solvency Purposeful work with the bank's strategy and capital plan succeeded in 2013 and continued in 2014 Priority is continued profitability and solvency Result The Bank expects continued solid core operations • Moderate decrease in net interest- relief B
Slide 52: Priorities and prospects
Priorities and prospects Digital focusing Prioritising investments in the direction of digital channels, continuing and raising skills for the employers in the bank at the same direction Helgeland region The Bank expects continued stability and steady growth in the region, primarily due to major inf
Slide 53: Thank you for your attention!
Thank you for your attention! EN DRIVKRAFT FOR VEKST En drivkraft for vekst på Helgeland
Slide 54: Appendices
Presentation for the 1st quarter 2014 (group) RANA ALSTAHAUG Main features Developments VEFSN BRØNNØY Profit and loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 54
Slide 55: A driving force for growth on Helgeland
A driving force for growth on Helgeland Norway’s 12th largest savings bank of 108 banks – 15 offices in 13 municipalities in the Helgeland region Bank total assets of NOK 26 billion and a market share of 50% • An independent regional bank with no alliances and quoted on the stock exchange - The on
Slide 56: Strategic and financial goals
Strategic and financial goals Strategic goals Financial goals Helgeland Sparebank’s vision is to be a driving force for Profitability: ROE of at least 10%, given normal market growth in the Helgeland region conditions The bank’s main goal is to maintain its position through Solidity: CET1 ratio of a
Slide 57: Management and organisational structure
Management and organisational structure Board of directors Chief Executive Officer Assistant and GM Helgeland Jan Erik Furunes Internat auditor Boligkreditt AS Marit Jakobsen Brit Søfting Deputy CEO and Chief Executive, Chief Investments Chief Business Chief Human Chief Financial Chief Risk Chief Ex
Slide 58: Business development and ownership
Business development and ownership Board Styre of directors Chief Executive Officer Assistant and GM Helgeland Jan Erik Furunes Internat auditor Boligkreditt AS Marit Jakobsen Brit Søfting Deputy CEO and Chief Executive, Chief Investments Chief Business Chief Human Chief Financial Chief Risk Chief E
Slide 59: Historically strong result in 2013
Historically strong result in 2013 Helgeland Sparebank Development Gross Profit (NOK) 266 242 100 % Profit 201 improvment from 2011! 177 172 159 133 133 ! 3,6 % sick Fusion Disposable- Disposable- leave 1. april effect effect lowest 60 44 45 since 2005! 2005 2006 2007 2008 2009 2010 2011 2012 2013 E
Slide 60: Contact information
Contact information Head office Board Postal address Postboks 68, 8601 Mo i Rana Thore Michalsen, Chair Visiting address Jernbanegata 15, 8622 Mo i Rana Ove Brattbakk, Deputy Chair Phone 75 11 90 00 Gislaug Øygarden Web www.hsb.no Monica Skjellstad Organization number 937904029 Stein Andre Herigstad