Rogaland Sparebank · OSL:ROGS
Rogaland Sparebank — Sandnes Sparebank — Q4 2021 Earnings Presentation
39 slides from Rogaland Sparebank's earnings presentation, February 2022
Slide 1: 4th Quarter Results and Preliminary Results for 2021
4th Quarter Results and Preliminary Results for 2021
Slide 2: Content
Content: Summary of Q4 and 2021 Customers and Market Key Figures
Slide 3: Sandnes Sparebank continues the good trend
Sandnes Sparebank continues the good trend ROE YTD Summary: • Profit after tax MNOK 281 (261) 350 9,6 % 9,7 % • Return on equity after tax of 9.7% (9.0%) 10,0 % 300 9,0 % 8,8 % • Profit per EK certificate (EPS) of NOK 8.5 (7.9) 277 281 250 7,5 % • 8,0 % 244 261 Lending growth of 5.5% (4.9%) 200 197
Slide 4: Customer dividend for the fifth year in a row - a differentiator
Customer dividend for the fifth year in a row - a differentiator - Deposits and loans up to 2 MNOK qualify for the calculation of customer dividends. - Customer dividends will vary from year to year as a result of the bank's earnings trend and dividend ratio - The final dividend for 2021 will be app
Slide 5: Loan Growth at 5,5 % YoY
Loan Growth at 5,5 % YoY Solid growth in both retail and corporate segment 0,06 0,1 5,5 % 0,05 0,08 4,9 % 4,8 % 7,5 % 7,4 % 4,5 % 6,9 % 6,8 % 4,3 % 0,06 6,2 % 5,7 % 0,04 4,0 % 5,3 % 4,6 % 3,9 % 5,0 % 0,04 4,1 3,9 % % 4,1 % 0,03 0,02 1,7 % 2,6 % 2,3 % 0 0,02 -0,7 % -1,1 % -0,02 Gross retail lending 0
Slide 6: Content
Content: Summary of Q4 and 2021 Customers and Market Key Figures
Slide 7: KOI – Customer Satisfaction Index
KOI – «Customer Satisfaction Index» Not translated 100 90 82 79 80 80 78 78 73 69 69 70 63 60 58 50 40 30 2017 2018 2019 2020 2021 KOI PM (snitt for året) KOI BM (årlig undersøkelse) • Kundetilfredshet EPSI måles noe annerledes enn KOI • Den Gule banken, Sandnes Sparebank inngår i Eikagrupperingen i
Slide 8: Local Presence
Local Presence Not translated
Slide 9: Folk 2021
Folk 2021 Not translated The bank invited to a business conference about people for the third time • Om dyktige folk, inspirerende folk, annerledes- tenkende folk og talentfulle folk • Hvordan vi bygger god kultur og gjør folk enda bedre • 300 lokale ledere • Kompetanse • Nettverksbygging https://ww
Slide 10: Sandnes Sparebank Arena
Sandnes Sparebank Arena Not translated Roller ski arena that puts Sandnes on the map
Slide 11: Stavanger
Stavanger Not translated New advisers and solid lending growth over the last three months
Slide 12: «New» Corporate Department
«New» Corporate Department ▪ New way of working ▪ Raised competence, sharpened responsibility ▪ Increased customer orientation in all roles ▪ Efficient workflow ▪ Interaction across ▪ Leverage synergies Lars Kristiansen, direktør bedriftsmarked
Slide 13: Content
Content: Summary of Q4 and 2021 Customers and Market Key Figures
Slide 14: Profitability
Profitability 100 12, 0 % 10,7 % 350 90 9,9 % 9,6 % 9,7 % 9,6 % 10, 0 % 10,0 % 80 300 9,0 % 8,8 % 8,0 % 79 70 7,8 % 277 281 71 73 8,0 % 250 7,5 % 8,0 % 60 244 261 59 200 50 57 6,0 % 197 6,0 % 40 150 4,0 % 30 100 4,0 % 20 2,0 % 50 10 2,0 % 0 0,0 % 0 4Q20 1Q21 2Q21 3Q21 4Q21 2017 2018 2019 2020 2021 -
Slide 15: Net Interest Margin
Net Interest Margin Margin pressure due to low policy rate 1,90% 1,90% 1,81% 1,80% 1,80% 1,73% 1,72% 1,70% 1,70% 1,64% 1,61% 1,60% 1,55% 1,54% 1,60% 1,56% 1,54% 1,54% 1,50% 1,50% 1,40% 1,40% 1,30% 1,30% 1,20% 1,20% 1,10% 1,10% 1,00% 1,00% 4Q20 1Q21 2Q21 3Q21 4Q21 2017 2018 2019 2020 2021 • Interest
Slide 16: Margins on Loans and Deposits
Margins on Loans and Deposits Strong competition and increased NIBOR influences margins 1% 0,42 % 0% 3,28 % 3,12 % 3,15 % 3,07 % 0,34 % 2,92 % 0% 0% 0% 1,92 % 0,06 1,85 % 1,77 % 1,76 % 0,07 % % 0,03 % 0,04 % 0% 0,01 % 1,40 % -0,06 % -0,06 % 0% -0,09 % 0% 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21
Slide 17: Other Income
Other Income Stable increase in other income over time Other Income, quarterly 4Q20 1Q21 2Q21 3Q21 4Q21 2017 2018 2019 2020 2021 154,3 2,1 140,6 135,0 14,8 60,9 122,9 122,6 0,7 5,9 31,5 28,1 27,1 28,9 22,8 34,1 14,4 79,8 27,5 31,8 89,7 14,9 14,1 0,1 0,3 1,0 7,6 48,6 21,6 21,6 22,6 31,9 53,9 49,2 22,
Slide 18: Gross Commission Income
Gross Commission Income Increased activity in Aktiv Eiendom, continuous improvement in the sale of insurance and mutual funds 110, 0 99 25 25 25 2 24 24 89 25, 0 0,6 0,6 0,6 90,0 86 12 0,6 0,5 3 3,0 3,0 2,9 3 2,6 3,4 9 10 5 1,0 1,2 1,4 6 20, 0 1,1 1,5 66 4 4 1,5 1,5 1,5 70,0 6 1,5 2 8 1,6 57 6 4 3 3
Slide 19: Operating Costs
Operating Costs Mål 2019: Strong cost control | One-off costs related to replacement of core banking system 120 350 1,00 314 96 100 300 29 269 269 269 261 0,80 36 26 250 26 28 30 80 74 73 27 72 71 0,60 1 10 9 32 9 9 200 52% 60 45% 45% 44% 44% 0,40 150 40 242 234 242 239 249 0,20 64 69 100 63 62 61 2
Slide 20: Losses on Loans and Guarantees
Losses on Loans and Guarantees Reversal in loss provisions, change of credit model and clarification of individual commitments affects 2021 1% 0% 0,33 % 0% 0% 0% 0% 0,13 % 0% 0% 8 72 0 % -0,01 -3 0% 0,11 % 0,10 % -15 -0,05 % 0% 0,06 % 0% -23 24 25 0% 13 -0,24 % 0% 2017 2018 2019 2020 2021 0% -0,38 %
Slide 21: Loans to Customers by Division, Credit Risk
Loans to Customers by Division, Credit Risk Risk expressed by excpected credit loss (ECL, PDxLGD) Retail Corporate 90 0,50 % 550 4,00 % 80 0,42 % 0,40 % 450 3,11 % 3,00 % 69 70 0,30 % 60 0,24 % 350 2,02 % 2,00 % 0,23 % 316 50 0,19 % 0,18 % 0,20 % 44 1,27 % 42 1,16 % 250 1,00 % 40 37 35 0,10 % 0,75 %
Slide 22: Non-Performing and Doubtful Loans
Non-Performing and Doubtful Loans Stable and declining levels 2,16 % 1,04 % 1,00 % 0,93 % 0,91 % 0,85 % 251 245 231 227 215 1,05 % 1,04 % 0,96 % 0,85 % 463 251 233 220 215 4Q20 1Q21 2Q21 3Q21 4Q21 2017 2018 2019 2020 2021 Net non-performing and doutbful loans Non-performing and doutbful loans Net no
Slide 23: Well Capitalized and Equipped for Further Growth
Well Capitalized and Equipped for Further Growth Common equity tier 1 capital ratio of 16.6 % | Leverage ratio 9.8 % 17,5 % 17,8 % 18% 16,6 % 16,6 % 16,6 % • Counter-Cyclical Buffer increased from 1.0 % to 1.5 % from 15% 30.06.2022 and further to 2.0% from 31.12.2022 12% • Systemic Risk Buffer incre
Slide 24: Dividends to Investors and Customers
Dividends to Investors and Customers 9 80 8,5 8 7,9 7,9 70 7 6,9 60 6 5,6 50 5 40 4 71 63 64 30 60 3 5,9 5,2 5,0 5,4 20 2 34 2,8 1 10 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Utbytte per egenkapitalbevis Earnings per equity capital certificate • Samlet inntjening i løpet av perioden utg
Slide 25: Distribution of profits
Distribution of profits • Dividend policy allows for a dividend rate EOY profits, group level 281,3m -0,9m of up to 75% of the group's profit after tax. Parent bank profits • The group's profit after tax was 281.3 233,8m million, of which profit in the parent bank 63.7% 36.3% amounts to 251.1 millio
Slide 26: Financial Targets for 2021-2024
Financial Targets for 2021-2024 ROE CET1 Dividends 0 0 1 0 0 1 0 1 0 0 1 0 0 1 0 0 50-75% 1 0 >10,0 % 0 17,8 % 74 % 9,7 % 0 17,5 % 1 0 9,6 % 0 1 0 9,0 % 0 16,6 % >16,6 %* 1 63 % 63 % 0 1 0 0 0 1 2019 2020 2021 Target 2024 2019 2020 2021 Target 2024 2019 2020 2021 Target 2024 * Internt mål om + 1 % m
Slide 27: ©
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Slide 28: The Equity Capital Certificate
The Equity Capital Certificate 20 largest owners of equity certificates as at 31.12.2021 No. of equity certificates Share 1. SPAREBANK 1 SR-BANK ASA 3.485.009 15,14 % Pris Avkastning 2. SANDNES SPAREBANK 2.095.171 9,10 % 360 260% 3. HOLMEN SPESIALFOND 1.359.823 5,91 % 340 240% 4. VPF EIKA EGENKAPITA
Slide 29: Solidity – Leverage Ratio
Solidity – Leverage Ratio 12% 12% 10,0 % 10,1 % 10,0 % 9,9 % 10,0 % 9,6 % 9,8 % 9,7 % 9,8 % 9,2 % 9% 9% 6% 6% 3% 3% 0% 0% 4Q20 1Q21 2Q21 3Q21 4Q21 2017 2018 2019 2020 2021 29
Slide 30: Cost to Income Banking Operations
Cost to Income Banking Operations Cost ratio without real estate and conversion costs related to core banking systems 1 1 0 1 0 0 0 0 0 0 43% 42% 42% 44% 49% 0 41% 46% 46% 47% 0 37% 0 0 0 0 0 0 4Q20 1Q21 2Q21 3Q21 4Q21 2017 2018 2019 2020 2021 Cost to income banking operations Cost to income banking
Slide 31: Loans to Customers by Division
Loans to Customers by Division Loans to Customers by Division Retail services 1% Farming 3% Andre sektorer* Public and 1% Buidling & private services construction 3% 4% 32 % 29 % 27 % 28 % 33 % Commercial real estate 16% Retail customers 68 % 71 % 73 % 72 % 72% 67 % 2017 2018 2019 2020 2021 Retail %
Slide 32: Loans to Corporate Customers by Sector - 28% of total lending
Loans to Corporate Customers by Sector - 28% of total lending Focus on reducing risk over time | Strongest growth in farming and SME Housing cooperative 3% Commercial building building Other projects 6% 0% Commercial real estate Land Housing 4% 57% building projects 12% Commercial rental Housing ren
Slide 33: Write-downs on Loans
Write-downs on Loans 2% 1,80 % 2% 2% 1% 107 0,63 % 0,53 % 1% 1,08 % 1% 0,41 % 0,40 % 0,37 % 0% 31 0,64 % 0,63 % 1% 55 -1 % 0,37 % 284 31 25 25 25 -1 % 36 52 14 0% 52 16 19 14 157 44 44 40 46 44 74 -2 % 80 74 61 45 36 38 38 -1% -2 % 4Q20 1Q21 2Q21 3Q21 4Q21 2017 2018 2019 2020 2021 Step 1 provisions
Slide 34: Deposits From Customers
Deposits From Customers 52% 51% 51% 50% 50% 55 % 45 % 4Q20 1Q21 2Q21 3Q21 4Q21 Deposits Retail Deposits Corporate
Slide 35: Liquidity
Liquidity LCR at 198 % | NSFR at 128 % 4.0 00 3.780 2.999.0 00 2.723 2.660 3.225 3.5 00 2.499.0 00 3.0 00 2.574 1.898 2.5 00 1.999.0 00 1.800 1.800 300 3.000 2.000 1.700 2.425 1.499.0 00 2.331 1.5 00 1.300 300 1.015 999.000 1.0 00 825 900 430 1.400 499.000 500 974 800 900 780 395 392 0 - -1.000 - -
Slide 36: Liquidity
Liquidity NOK 2,8 bn. ex. cash | 100 % AA-rated or above Foreign 80% Foreign Municipalities Covered Bonds Domestic (RW0) 10 % Municipalities 4% (RW20) 13 % Gov't Guaranteed 16 % Domestic 20% Covered Bonds 56 % 0% 0% 0% AAA AA A BBB BB
Slide 37: Key Figures
Key Figures 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 2020 2021 Growth assets 4,5 % 5,8 % -6,2 % 0,1 % -0,9 % 5,2 % -2,6 % -1,1 % 3,8 % 0,5 % Growth lending (net) 1,6 % 2,0 % 1,0 % 0,1 % 1,5 % 1,2 % 1,3 % 1,4 % 4,9 % 5,5 % Growth deposits -1,2 % 6,2 % -4,3 % 0,4 % 2,7 % 4,7 % -0,3 % 0,4 % 0,8 % 7,7 %
Slide 38: Definition of Key Figures
Definition of Key Figures Rate of deposits to loans Return on equity after tax OB net loans to customers / OB deposits from customers (Operating profit after taxes / days in the period x days in a year) / ((OB total equity + IB total equity) / 2 [excl. T1 hybrid instruments] Liquidity coverage ratio
Slide 39: This presentation has been prepared solely for promotion purposes of Sandnes Sparebank
This presentation has been prepared solely for promotion purposes of Sandnes Sparebank. The presentation is intended as general information and should not be construed as an offer to sell or issue financial instruments. The presentation shall not be reproduced, redistributed, in whole or in part, wi