Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Gruppen — Q3 2010 Earnings Presentation
40 slides from Sparebank 1 Ostlandet's earnings presentation, Oct 28, 2010
Slide 1: 3rd quarter 2010 Presentation of results
3rd quarter 2010 Presentation of results SpareBank 1 Gruppen Kirsten Idebøen, CEO 28 October 2010
Slide 2: Highlights
Highlights • Good earnings performance for SpareBank 1 Gruppen in the 3rd quarter • SpareBank 1 Skadeforsikring reports the lowest quarterly claims ratio in four years in the 3rd quarter • Argo Securities establishes SpareBank 1 Markets in collaboration with the alliance banks. The aim is to strengt
Slide 3: Good year-to-date earnings performance for SpareBank 1 Gruppen
Good year-to-date earnings performance for SpareBank 1 Gruppen Group pre-tax profit, quarterly • Pre-tax profit as of Q3 was MNOK 643 (818). Pre-tax profit for Q3 was MNOK 347 (358)* 450 400 374 358 • Profit after tax as of Q3 was MNOK 508 (567). Profit 347 350 after tax for Q3 was MNOK 259 (330) 30
Slide 4: Delta profitability project still ahead of schedule
Delta profitability project still ahead of schedule in realising profitability effects, and has contributed to a net result effect of MNOK 77 year to date REALISED EFFECTS AS OF 30 SEPTEMBER 2010* PROFIT EFFECT FROM THE DELTA PROFITABILITY (excluding Bank 1 Oslo) PROJECT AS OF 30 SEPTEMBER 2010 (MNO
Slide 5: SpareBank 1 Livsforsikring
SpareBank 1 Livsforsikring Good risk result and solid buffer capital 5
Slide 6: Livsforsikring: Good risk result and solid buffer capital
SpareBank 1 Livsforsikring Good risk result and solid buffer capital Pre-tax profit, quarterly • Pre-tax profit as of Q3 was MNOK 278 (311). Pre-tax 300 206 profit for Q3 was MNOK 86 (81) 200 81 92 100 86 100 44 24 MNOK 0 • Risk result was MNOK 260 (277) year to date. Risk -100 -52 result was MNOK 7
Slide 7: Solid buffer capital
SpareBank 1 Livsforsikring Solid buffer capital • Core and capital adequacy ratio estimated at 20.1 % and 18.3 % as of 30.09.10, compared with 19.0 % and 16.1 % as of 31.12.09 Development in buffer capital 18% • The buffer capital, including the year-to-date 16% 15.4 % 16.1 % 13.7 % profit, amounted
Slide 8: Value adjusted return for customer portfolios with guarantee
SpareBank 1 Livsforsikring Value adjusted return for customer portfolios with guarantee year to date (excluding change in value construction) Q2 Q3* Q2 Q3 Q2 Q3 Q2 Q3 2010 2010 2010 2010 2010 2010 2010 2010 5 4.6 4.1 4.0 4 3.7 3 Prosent 2.1 2 1.6 1.5 1.4 1 0 SpareBank 1 Storebrand Vital Nordea * Boo
Slide 9: SpareBank 1 Skadeforsikring Group
SpareBank 1 Skadeforsikring Group Positive insurance result development year to date 9
Slide 10: Positive insurance result development year to date
SpareBank 1 Skadeforsikring Group Positive insurance result development year to date • Pre-tax profit was MNOK 334 (506) as of Q3. Pre-tax profit for Q3 Pre-tax profit, quarterly was MNOK 254 (251), inclusive of a pre-tax loss from Unison Forsikring of MNOK -9 from the date of the acquisition, of wh
Slide 11: Low claims ratio in Q3
SpareBank 1 Skadeforsikring Group Low claims ratio in Q3 Net combined ratio - cumulative Net combined ratio - quarterly 108.5 % 100.6 % 20.2 % 100.6 % 100 % 97.2 % 95.1 % 96.2% 96.8 % 120.0 % 18.6 % 21.1 % 108.6 % 20.0 % 21.7 % 22.5 % 21.7 % 100.6 % 99.6 % 20.2 % 100.0 % 93.9 % 90.9 % 92.9 % 21.1 %
Slide 12: ODIN Forvaltning
ODIN Forvaltning Increased assets under management 12
Slide 13: Increased assets under management
ODIN Forvaltning Increased assets under management Pre-tax profit, quarterly • Pre-tax profit was MNOK 48 (18) year to date. Pre- 35 30 tax profit in Q3 was MNOK 17 (16) 30 29 26 25 • Total assets have increased by NOK 1.0 billion from 20 16 17 17 year-end 2009 and amounted to NOK 29.0 billion as 15
Slide 14: Argo Securities
Argo Securities Stronger position through the "SpareBank 1 Markets" collaboration 14
Slide 15: Stronger position through the SpareBank 1 Markets collaboration
Argo Securities Stronger position through the "SpareBank 1 Markets" collaboration Pre-tax loss, quarterly • Pre-tax loss was MNOK -34 (-39) as of Q3. Pre-tax loss in Q3 was MNOK -29 (-15) 2009 2010 – Provisions for employee bonuses were allocated in Q3 0.0 -5.0 -2.7 -1.9 -10.0 • Positive development
Slide 16: SpareBank 1 Gruppen Finans
SpareBank 1 Gruppen Finans Strategic focus within receivables management 16
Slide 17: Strategic focus within receivables management
SpareBank 1 Gruppen Finans Strategic focus within receivables management Pre-tax profit/loss as of Q3 2010 YTD 2009 YTD 2010 • SpareBank 1 Gruppen Finans reported a pre-tax profit of 20.4 20.2 MNOK 2 (20) year to date 20 • The Factoring business area reported a pre-tax loss of MNOK -0.5 (5), marked
Slide 18: Simplified legal structure implemented in Q3
SpareBank 1 Gruppen Finans Simplified legal structure implemented in Q3 Old structure New structure SpareBank 1 SpareBank 1 Gruppen Gruppen SpareBank 1 Gruppen Finans SpareBank 1 Holding Gruppen Finans (100%) (100%) SpareBank 1 Actor Actor Portefølje Actor Factoring Fordringsforvaltning Conecto (100
Slide 19: Acquisition of debt collection company Conecto AS strengthens countercyclical business
SpareBank 1 Gruppen Finans Acquisition of debt collection company Conecto AS in Q3 strengthens SpareBank 1 Gruppen's countercyclical business • Combined, SpareBank 1-owned Actor Fordringsforvaltning and Conecto represent Ranking Revenue 31.12.2009 Company (MNOK) the third largest debt collection com
Slide 20: Competitive return on equity among selected Nordic financial institutions
Competitive return on equity among selected Nordic financial institutions 3rd quarter 2010* Year 2009** SpareBank 1 Gruppen 15.8 % 17.5 % Handelsbanken 12.9 % 12.6 % DnB NOR 12.2 % 10.6 % Nordea 11.0 % 11.3 % Gjensidige 10.8 % 11.3 % Storebrand 3.9 % 5.6 % Danske Bank 3.4 % 1.0 % *For comparison pur
Slide 21: The nation's savings bank
The nation's savings bank 21 21
Slide 22: Appendix
Appendix SpareBank . |)
Slide 23: SpareBank 1 Alliance
SpareBank 1 Alliance SpareBank 1 SpareBank 1 Sparebanken SpareBank 1 Samarbeidende LO (Trade Union) SR-Bank SMN Hedmark Nord-Norge Sparebanker (10%) (19.5 %) (19.5%) (12%) (19.5%) (19.5%) SpareBank 1 Gruppen AS Argo SpareBank 1 ODIN Securities Livsforsikring Forvaltning (76.75%) (100%) (100%) Allian
Slide 24: Earnings performance by company year to date
Earnings performance by company year to date Pre-tax profit in subsidiaries 200 550 506 • Solid buffers in SpareBank 1 Livsforsikring 500 450 150 400 • Positive insurance result development for 350 334 311 SpareBank 1 Skadeforsikring. Unison MNOK MNOK 300 100 278 Forsikring became a wholly owned sub
Slide 25: Profit year to date 2010
SpareBank 1 Gruppen Profit year to date 2010 Year to date Year Figures in MNOK 2010 2009 2009 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 277.9 311.2 392.2 - Additional provisions recognised as income in consolidated accounts 0.0 0.0 0.0 - SpareBank 1 Skadeforsikring 333
Slide 26: Quarterly profits
SpareBank 1 Gruppen Quarterly profits Q3 Q2 Q1 Q4 Q3 Q2 Q1 Figures in MNOK 2010 2010 2010 2009 2009 2009 2009 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 85.8 100.3 91.9 81.0 81.2 205.6 24.4 - Additional provisions recognised as income in consolidated accounts 0.0 0.0 0.
Slide 27: Livsforsikring: Profit year to date 2010
SpareBank 1 Livsforsikring Profit year to date 2010 Q3 Q2 Q1 Q3 Year to date Year Figures in MNOK 2010 2010 2010 2009 2010 2009 2009 Insurance risk income 327.3 321.7 315.3 303.9 964.3 919.0 1,220.6 Insurance risk claims -250.1 -213.4 -209.3 -208.0 -672.8 -610.5 -829.4 Risk result 77.1 108.3 106.0 9
Slide 28: Profit by portfolio year to date 2010
SpareBank 1 Livsforsikring Profit by portfolio year to date 2010 Previously Group established Investment choice Company Figures in MNOK portfolio individual products portfolio portfolio Total Risk result 252.2 7.5 0.4 0.0 260.1 Administration result 25.2 -42.7 -107.8 0.0 -125.2 Net investment result
Slide 29: Premium income trends
SpareBank 1 Livsforsikring Premium income trends Q3 Q2 Q1 Q3 Year to date Year Figures in MNOK 2010 2010 2010 2009 2010 2009 2009 Individual annuity and pension insurance 68.6 83.1 75.2 64.1 226.9 192.2 269.6 Individual endowment insurance 129.5 128.9 126.9 121.7 385.4 361.2 486.7 Group pension insu
Slide 30: Asset allocation by portfolio
SpareBank 1 Livsforsikring Asset allocation by portfolio As of 30.09.2010 *) Group portfolio Company portfolio Investment choice portfolio 0.1 (0.1) % 14.0 (14.5)** % 46.9 (48.7) % 34.7 (31.5) % 37.4 (34.2) % 20.2 (19.4) % 5.1 (5.2) % 21.6 (17.0) % 21.4 (21.7) % 6.0 (7.1) % 22.0 (24.3) % 11.2 (14.7)
Slide 31: Return on ordinary customer portfolio with guarantee
SpareBank 1 Livsforsikring Return on ordinary customer portfolio with guarantee as of 30.09.10 Percent Norwegian shares 1.7 Foreign shares 3.3 Money market 1.8 Norwegian bonds 4.6 Foreign bonds 8.2 Held to maturity 4.1 Real estate 7.1 0 2 4 6 8 10 31
Slide 32: Booked return on customer portfolios with guarantee year to date
SpareBank 1 Livsforsikring Booked return on customer portfolios with guarantee year to date Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 2010 2010 2010 2010 2010 2010 2010 2010 5 4.0 4 3.8 3.2 3.1 3 2.8 Percent 2.1 2 1.6 1.6 1 0 SpareBank 1 Storebrand Vital Nordea 32 Source: company presentations
Slide 33: Balance sheet as of 30 September 2010
SpareBank 1 Livsforsikring Balance sheet as of 30 September 2010 Year to date Year Figures in MNOK 2010 2009 2009 Intangible assets 28 61 38 Investments 2,837 2,013 2,498 Reinsurance's part of insurance obligations 228 217 221 Accounts receivable 119 585 90 Other assets 170 300 241 Prepayed liabilit
Slide 34: Skadeforsikring Group: Profit year to date 2010
SpareBank 1 Skadeforsikring Group Profit year to date 2010 Q3 Q2 Q1 Q3 Year to date Year Figures in MNOK 2010 2010 2010 2009 2010 2009 2009 Gross written premium 1,059.1 1,171.9 1,325.2 944.7 3,556.2 3,266.8 4,271.2 Net earned premium 1,077.0 1,007.0 965.4 971.0 3,049.4 2,831.3 3,814.3 Net incurred
Slide 35: Allocation of financial assets
SpareBank 1 Skadeforsikring Group Allocation of financial assets As of 30.09.2010 *) 65.3 (64.3) % Bonds held as current assets Bonds held to maturity 11.5 (11.0) % Real state Stocks 14.6 (14.4) % Bank Hedgefond 0.1 (0.3) % 0.1 (2.9) % 8.4 (7.1) % NOK 8.1 (8.2) billion * Figures in brackets are as o
Slide 36: ODIN Forvaltning: Profit year to date 2010
ODIN Forvaltning Profit year to date 2010 Q3 Q2 Q1 Q3 Year to date Year Figures in MNOK 2010 2010 2010 2009 2010 2009 2009 Management fees 78.0 79.6 78.3 66.9 235.9 170.2 244.8 Subscription and redemption fees 0.0 0.0 0.0 6.1 0.0 19.1 25.9 Total operating income 78.0 79.6 78.3 73.0 235.9 189.3 270.7
Slide 37: Effect realisation from profitability project: SpareBank 1 Skadeforsikring
EFFECT REALISATION FROM PROFITABILITY PROJECT SUB-PROJECT SpareBank 1 Skadeforsikring REPORT DATE 15/10/2010 Realised effects by quarter Realised staff reduction by quarter (MNOK) (annual full-time equivalents) 84 48 48 48 Planned 79 80 Planned Realised so far Realised so far 57 47 37 31 18 15 15 22
Slide 38: Effect realisation from profitability project
EFFECT REALISATION FROM PROFITABILITY PROJECT SUB-PROJECT SpareBank 1 Livsforsikring REPORT DATE 15/10/2010 Realised effects by quarter Realised staff reduction by quarter (MNOK) (annual full-time equivalents) 191 101 Planned Planned 94 94 172 Realised so far 166 Realised so far 162 150 79 78 78 137
Slide 39: Delta project behind schedule on staff reductions
The Delta profitability project was behind schedule in respect of staff reductions. This is a result of giving priority to measures that have the best profitability effect, irrespective of whether or not they have an impact on staff numbers REALISED EFFECTS AS OF 30 SEPTEMBER 2010 (excluding Bank 1
Slide 40: Effect realisation from profitability project: Bank 1 Oslo
EFFECT REALISATION FROM PROFITABILITY PROJECT SUB-PROJECT Bank 1 Oslo REPORT DATE 15/10/2010 Realised effects by quarter Realised staff reduction by quarter (MNOK) (annual full-time equivalents) 89 21 21 21 Planned 84 Planned 19 19 Realised so far Realised so far 18 71 70 71 61 59 12 46 44 10 9 29 7