SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Q1 2023 Earnings Presentation
41 slides from SpareBank 1 Helgeland's earnings presentation, 2023
Slide 1: Presentation Q1 2023
Presentation Q1 2023 - A driving force for growth in Helgeland
Slide 2: Presentation 31.03.23 (SBH group)
Presentation 31.03.23 (SBH group) Hanne Nordgaard Anne Ekroll Chief Executive Officer Chief Financial Officer
Slide 3: Main features
Intern - Helgeland • Main features
Slide 4: Financial targets
Intern - Helgeland Financial targets Profitable ROE The bank has a ROE target on level with comparable >11 % banks, p.t. 11 %. Solid CET1 The target for CET1 of 17.5 % includes a buffer of 1.3 %. >17.5 % Efficient Cost growth Long term cost target of 40 % of income C/I: <40 % Responsible Dividend ra
Slide 5: Main features per 31.03.23
Main features per 31.03.23 Gross Profit ROE* MNOK 184 (147) 13.3 (10.8) % *adjusted for hybrid capital Solidity Total assets CET 18,7 38.4 (39.6) mrd. Kr (18,1) %
Slide 6: Driving force for sustainable growth, competence and cooperation
Intern - Helgeland Driving force for sustainable growth, competence and cooperation Sustainability in the bank • New sustainability strategy to be decided in December 2022. •The banks first sustainability report delivered for 2022, integrated in the annual financial report. •TDCF analysis of climate
Slide 7: Summary Q4
Intern - Helgeland • Summary Q4
Slide 8: Summary Q1
Summary Q1 SpareBank 1 Helgeland (group) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net interest- and credit comission earnings 184 202 223 233 Net comission earnings 38 41 39 36 Other operatios income 2 4 0 2 Ordinary operations cost 91 95 101 101 Result basic operations 133 152 161 170 Write-downs lending an
Slide 9: Summary Q1
Intern - Helgeland Summary Q1 Good basis operation and strengthened result. • Net interest of MNOK 233, up from MNOK 223 last quarter. • Net commission income of MNOK 38, a reduction of MNOK 1 from last quarter. • Net value change on financial investments of MNOK 24, down from MNOK 26 last quarter.
Slide 10: Good profit development
Intern - Helgeland Good profit development Profit development (MNOK) Profit 563 Strengthened gross profit of MNOK 184 181 (147) pr. 31.03.23 • ROE of 13.2 %* (ROE is adjusted for hybrid capital) 131 264 15 78 104 13.2 % 78 184 147 93 2021 2022 2023 Q1 Serie4 Q3 Q4 ROE %
Slide 11: Profit improvement
Intern - Helgeland Profit improvement Gross profit is MNOK 37 higher than for the corresponding period last year. Change in gross profit (MNOK) • Increase in net interest 250 • Reduction in commission income is 59 -10 -7 related to bonus commission of 3 -9 200 MNOK 9 recognized in Q1 2022. 150 • Inc
Slide 12: Good development in net interest
Intern - Helgeland Good development in net interest • Net interest and commission income amounts to MNOK 233 in Q1 against MNOK 223 last quarter. 7 4 233 6 223 • In % of average total assets, net 8 202 2.47% interest and commission income is 184 2.32% 2.47 % against 2.32 last quarter. 2.07% 2.25% 1.
Slide 13: Stable commission income
Intern - Helgeland Stable commission income 46 41 8 38 39 Season variation Comission on loans transferred to 36 1 6 4 mortgage company • Decrease in commission income from 8 2 1 7 last quarter, but on the same level as 1 Guarantee commission the corresponding period in 2022. 12 12 1 22 0.47% 12 • Bo
Slide 14: Stable and healthy cost development
Intern - Helgeland Stable and healthy cost development. Operating cost (mnok) and % of income • The costs are within target (cost/income <40 %). 101 101 95 91 46.4 % 41.6 % 35.1 % 34.2 % Q2 2022 Q3 2022 Q4 2022 Q1 2023 Operation cost Operation cost %
Slide 15: Low losses
Intern - Helgeland Low losses 0.30% 0.25% • MNOK 10 in loss in the first quarter against MNOK 6 last quarter. 0.20% 0.20% 0.15% 64 0.13% 0.10% 0.05% 11 0.04% 10 0.00% 2021 2022 31.03.2023 Net loss MNOK Net loss in % of gross lending
Slide 16: Lending
* Main feature ofit & loss * Lending JEDO sits dinc * Prospects ahead - Appendices r
Slide 17: Weak lending growth in 2023 (SpaBol included)
Weak lending growth in 2023 (SpaBol included) CM 26,4 % RM 73,6 % Development gross lending (MNOK) 44000 Development gross lending CM/RM (MNOK)) 39000 39000 37000 9 968 9 863 34000 9 573 9 474 9 752 -1,8 % -1,0 % 4,1 % 1,1 % 35000 29000 33000 24000 37 426 37 347 36 910 36 867 36 810 19000 31000 27 4
Slide 18: Lending CM – good industry spread
Intern - Helgeland Lending CM – good industry spread Lending distributed in sector 10.3 % • Good diversified lending Real estate portfolio in the CM and loyal 11.4 % Farming and forestry 4.5 % corporate customers. Share 4.6 % CM of total lending 32.2 (29.8) % Construction and power 2.7 % equals MNOK
Slide 19: Lending CM – Real estate
Intern - Helgeland Lending CM – Real estate • Low vacancy in all segments on the real estate side. Under coverage on Real estate - allocation pr segment housing and industrial areas. • 54 % of real estate categorized in low risk. 24 % in best middle risk class. 96 % 14 % 10 % 4% of the real estate m
Slide 20: Non-performing and impaired commitments
Intern - Helgeland Non-performing and impaired commitments • Net non-performing and impaired commitments amounts to MNOK 292, Net defaulted and com. exp. to loss an increase of MNOK 48 in 2023. 600 • The increase is related to a few 500 customers that have gone in default for various reasons. 400 30
Slide 21: Deposits
Intern - Helgeland • Deposits
Slide 22: Increase in deposits in the quarter
Increase in deposits in the quarter Deposit development (MNOK) 31 000 Deposit decelopment CM/RM (MNOK) 26 000 10 637 10 715 9 876 21 000 9 657 9 811 16 000 0,7 % -2,2 % 10,1 % 0,7 % 25 377 25 129 24 731 24 144 24 152 11 000 14 855 14 662 14 492 14 495 14 333 6 000 2,4 % -2,3 % 4,0 % 1,0 % 3,6 % -2,4
Slide 23: Stable deposit mass
Stable deposit mass 100 % 90 % 27 000 Development deposits (MNOK) 80 % 25 000 70 % 23 000 60 % Over MNOK 8 21 000 50 % Between MNOK 2-8 19 000 40 % Between MNOK 1-2 17 000 30 % Under MNOK 1 15 000 20 % 13 000 10 % 11 000 0% des. 21 okt. 22 feb. 21 sep. 15 feb. 16 jul. 16 des. 16 mar. 18 jun. 19 sep.
Slide 24: Deposits CM
Intern - Helgeland Deposits CM Customer deposits Municipalities 12.0 % 12.9 % • Good diversity in the deposit 11.2 % portfolio in the CM. Transport and services 13.6 % 3.1 % Construction and power 2.9 % • Share CM deposits amounts to 42.2 Farming and forestry 2.5 % (40.6) % or MNOK 10 715 (9 811) of
Slide 25: Funding
> ¢ Pre ° De * Funding aye} \opendice
Slide 26: Funding – Increased deposit ratio
Intern - Helgeland Funding – Increased deposit ratio Funding development • Share customer deposits has 2.4 % increased in 2023 as a 2.5 % 2.3 % 13.0 % 11.5 % consequence of transferred 17.1 % 10.2 % 9.7 % loans to SpaBol. 13.0 % 74.4 % 76.6 % 67.4 % 2021 2022 31.03.2023 Deposits Senior CB FO
Slide 27: Funding due
Intern - Helgeland Funding due • The funding due structure is still affected by transfers to SpaBol, and adaption to right level of funding. • Share long term funding 79.9 % (75.4) % 1 179 1 500 • Combined duration of 2.3 (2.3) years. Duration in the mortgage company of 2.4 331 years. 1 000 800 402
Slide 28: Liquidity buffer
Intern - Helgeland Liquidity buffer Interest bearing securities: • Duration portfolio 1.9 (1.9) years • 99.4 % rated A- or better Sector distribution interest portfolio • 98.2 % is OMF or state/ municipality guaranteed bonds. 44% CB 1 • Municipality papers are 44% actively used as short term liquidi
Slide 29: Transfer of loans to mortgage companies
Transfer of loans to SpareBank 1 Boligkreditt is 2.51 % mortgage companies owned by SpareBank 1 Helgeland Maximum limit for transfer to mortgage companies is • SpareBank 1 Boligkreditt (SpaBol) is an issuer of covered bonds maximum 35 % of the groups gross lending, and 50 % that is jointly owned by
Slide 30: Solidity
Intern - Helgeland • Solidity
Slide 31: Good capital adequacy
Intern - Helgeland Good capital adequacy Capital adequacy Development capital adequacy • The banks capital adequacy is higher than the target. 2.5 % 1.9 % 2.3 % • Target : CET1 17.5 % 2.0 % 2.1 % 2.0 % 17.9 % 19.0 % 18.7 % 2021 2022 31.03.23 Capital adequacy % T1 capital % CET 1 capital % Target cap
Slide 32: Prospects ahead
Intern - Helgeland • Prospects ahead
Slide 33: Unemployment Recruitment
Unemployment Recruitment The region experience a shortage on Unemployment in Helgeland and in Nordland is lower qualified labour. than for Norway overall. Norway: 1.8 % Nordland: 1.3 % Helgeland: 1.1 % The green shift provides large opportunities in Helgeland because of access to renewable Analyses
Slide 34: Prospects ahead
Prospects ahead Net interest is expected slightly strengthened ROE target of 11 % after tax from last part of 2023. Stable commission income of around 0.30 % of total assets For the corporate market, a significant Operation costs for the basic operation increase in activity is expected in the period
Slide 35: Appendices
Intern - Helgeland • Appendices
Slide 36: Profit & loss
Profit & loss SpareBank 1 Helgeland (group) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net interest- and credit comission earnings 150 144 144 148 168 174 184 202 223 233 Net comission earnings 26 28 21 22 36 46 38 41 39 36 Other operatios income 2 1 0 4 -1 2 2 4
Slide 37: HELG-EC development and OSEBX last 12 months
HELG- EC development and OSEEX last 12 months 31.12.20 31.12.21 31.12.22 31.03.23 EC fraction opening balance 76.4 % 77.3 % 79.9 % 79.9 % Number of EC's 20.9 27.0 27.0 27.0 price 86.0 131 120 127.0 Stock exchange value 1 797 3 537 3 240 3 429 Accounted equity per EC 129 124 135 128 Profit per EC 12
Slide 38: Owners
Intern - Helgeland Owners 20 largest owners Sparebankstiftelsen Helgeland 28.1 % SpareBank 1 Nord-Norge 20.0 % Pareto Invest AS 7.9 % VPF Eika Egenkapital 4.7 % Verdipapirfondet Nordea Norge Verd 3.7 % Spesialfondet Borea Utbytte 2.2 % J.P. Morgan Bank Luxembourg S.A. 1.8 % Helgeland Kraft AS 1.4 %
Slide 39: 50 % north norwegian ownership
Intern - Helgeland 50 % north norwegian ownership Geographical owner structure (%) 5% 6% 5% 5% 5% 5% 15% 15% 40% 40% 40% 40% 40% 41% 42% 42% 54% 54% 55% 55% 55% 55% 44% 44% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Local owners (Nord-Norge) Other norwegian owners Foreign owners
Slide 40: SpareBank 1 Helgeland
Intern - Helgeland SpareBank 1 Helgeland • Vision: a driving force for growth in Helgeland. • Business concept: SpareBank 1 Helgeland is the profitable and leading local bank building future Helgeland. • Offices: The bank has offices in Mo i Rana, Mosjøen, Sandnessjøen and Brønnøysund. • Total asset
Slide 41: Contact information
Contact information Main office Posal address: Postboks 68, 8601 Mo i Rana Visiting address: Jernbanegata 15, 8622 Mo i Rana Tel: 75 11 90 00 Web: www.sbh.no Organization number: 937 904 029 Management Hanne Nordgaard CEO 416 85 777 – Hanne.Nordgaard@sbh.no Investor Relations Anne Ekroll CFO 913 36
SpareBank 1 Helgeland — Q1 2023 Earnings Presentation on 6ix