Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q2 2021 Earnings Presentation
53 slides from Sparebank 1 Nord-norge's earnings presentation, Aug 12, 2021
Slide 1: 2Q 2021
2Q 2021 Tromsø, 12 August 2021 Liv B. Ulriksen, CEO Bengt Olsen, CFO
Slide 2: Highlights
C1) Highlights SpareBank NORD-NORGE oO
Slide 3: Highlights first half 2021
Highlights first half 2021 The obvious choice for people and businesses «Better than anyone else, we shall understand and do what’s important for people and businesses in Northern Norway» Main bank retail 35 % Main bank SME 36 % Real estate agency 36 % Accounting 20 % Secured financing 21,5 % 3
Slide 4: A good first half
A good first half cET1 Return on equity capital Cost/income Group 17.2% 17,5% 18,0 % 15,8 % 149% 14,5.% 43,1% 14,2% 13,0% 41.2% 398% 400% 39,14 12,9 % 2017 2018 2019 2020 © = 30.06.21 2017 2018 2019 2020 30.06.21 2017 2018 2019 2020 = 30.06.21 SpareBank (1) NORD-NORGE
Slide 5: Subsidiaries – results before tax
Subsidiaries – results before tax 5
Slide 6: From Product to Finance Framework
From Product to Finance Framework Accessing capital markets • SNN’s Green Product Framework has a focus on greenifying SNN’s loan asset base. The Framework was established to strengthen The Group’s work on climate risk in the portfolio, its conformance with new regulation and requirements, and to pl
Slide 7: From the retail side
From the retail side • Overview of credit cards and consumer loans from other banks, so that customers get an overview of their entire finances • Launched new tool for pension savings. Provides customers with an overview of their future pension and the opportunity for be tter planning of retirement
Slide 8: From the corporate side
From the corporate side • 18 percent of all new Norwegian companies are started in SpareBank 1's digital solution, called “Starting a Business” • National launch of Bank + Accounting. Increased traffic and more comprehensive customer journey through data-driven development. Used by 14 per cent of th
Slide 9: Outlook
2 } Outlook SpareBank NORD-NORGE oO
Slide 10: Emerging optimism within the SME's
Emerging optimism within the SME’s 11
Slide 11: Public sector characterized by tight finances
Public sector characterized by tight finances 12
Slide 12: Access to labor – the main hurdle?
Access to labor – the main hurdle? 13
Slide 13: Status and outlook in Northern Norway
Status and outlook in Northern Norway 16
Slide 14: Ambitions for growth and increased market share
Ambitions for growth and increased market share Expected growth for SpareBank 1 Nord-Norge in 2021 Retail market: 3-6 % Corporate market: 5-7 % Corporate growth within companies and industries with an expected low negative impact of Coronavirus. 17
Slide 15: Financial status
3) Financial status SpareBank 1) NORD-NORGE
Slide 16: Group financial highlights and key figures
Group financial highlights and key figures 19
Slide 17: Quarterly development
Quarterly development cET1 Return on equity capital Cost/income Group 18,0% 17,2% 175% 17,4% 15,8 % 15,4 % 149% 145% 12,9% 13,0% 2017 2018 2019 2020. «©1Q21) =2Q21 2017 2018 2019 2020 =©1Q21 = =2Q21 20 43,1% 412% 398% 400% “416% 36,9 % 2017 2018 =©2019 2020. « 1Q21 = =2Q21 SpareBank (1) NORD-NORGE
Slide 18: Result before tax - last quarter
Result before tax - last quarter 21
Slide 19: Net interest income - Group
Net interest income - Group 22
Slide 20: Low losses
Low losses Net losses in % of Net losses gross lending incl. interm. loans Retail Corporate 23
Slide 21: Lending growth
Lending growth Retail Corporate 24
Slide 22: Retail Market
Retail Market Retail (excl. Commission com.loans loans 25
Slide 23: Corporate Banking
26 Corporate Banking Lending growth Development in lending margin (iso) 36 066 +0,8% ie 38 109 39.495 | 31.03.20 30.06.20 30.09.20 31.12.20 31.03.21 30.06.21 2,90% 2,58% 2,57% 2,46% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Lending growth (YTD) 10,9 % 10,9 % 9,5 % 9,8% 84% 7.8% 31.03.20 30.06.20 30.09.20 31.12.
Slide 24: Deposit growth
Deposit growth Retail Market Corporate Banking Public Market en 30.06.19 30.06.20 30.06.21 30.06.19 30.06.20 30.06.21 30.06.19 30.06.20 30.06.21 Deposits gross 27 SpareBank (1) NORD-NORGE
Slide 25: Development in deposit margins
Development in deposit margins Retail Corporate 28
Slide 26: Long term financial targets
Long term financial targets < 40 % C/I ratio > 12 % > 50 % ROE Dividend payout ratio 15 % CET-1 29
Slide 27: Financial outlook
30 Financial outlook ROE >12 % CET-1 Ratio: 15 % C/l< 40% Pay out ratio >50% A lower average Nibor in Q2 has had a positive effect on lending margins, but weakened an already low deposit margin. Low centralbank rate and though competition on the retail market continues to put a pressure on margins T
Slide 28: Why invest in SpareBank 1 Nord-Norge
Why invest in SpareBank 1 Nord-Norge 31
Slide 29: Contacts
Contacts Management Liv B. Ulriksen CEO +47 957 31 130 liv.bortne.ulriksen@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 32
Slide 30: Appendix
A) Appendix SpareBank 1) NORD-NORGE
Slide 31: A solid bank for Northern Norway
A solid bank for Northern Norway 34
Slide 32: Development in lending margins
Development in lending margins Corporate Retail 35
Slide 33: Company structure
Company structure SpareBank 1 Boligkreditt AS SpareBank 1 SpareBank 1 Finans Nord- Eiendomsmegler 1 Nord- SpareBank 1 Gruppen AS 19,5 % | Financial services 18,14 % | Covered Bond company Næringskreditt AS Norge AS Norge AS 8,45 % | Funding/property Loan/consumer finance/leasing Real estate brokerag
Slide 34: Geographical distribution of ownership
Geographical distribution of ownership Foreign holders Other Norwegian holders Holders residing in Northern Norway 37
Slide 35: The 20 largest EC holders
38 The 20 largest EC holders EC Holders Number of Ecs o Share of EC Capital PARETO INVEST AS PARETO AKSJE NORGE VERDIPAPIRFOND The Northern Trust Comp, London Br GEVERAN TRADING CO LTD VPF EIKA EGENKAPITALBEVIS MP PENSJON PK State Street Bank and Trust Comp. Brown Brothers Harriman & Co. FORSVARETS
Slide 36: Cost development - Group
Cost development - Group Cost/income Group Group operating costs 39
Slide 37: Operating expenses - Group
Operating expenses - Group 40
Slide 38: Net fee- and other operating income - Group
Net fee- and other operating income - Group 41
Slide 39: Risk exposure - Group
Risk exposure - Group Non-performing /impaired High risk 100,0% Medium risk Low risk 42
Slide 40: Changes in exposure last 12 months - Group
Changes in exposure last 12 months - Group 3 022 1 942 6 533 Non-performing /impaired High risk Medium risk Low risk 43
Slide 41: Exposure distributed by size
Exposure distributed by size* 30.06.2020 30.06.2021 44 *Incl. parent bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt
Slide 42: LTV mortgage loans
LTV mortgage loans LTV is distributed by balance and 30.06.2020 is based on the market value of the collateral: • 97.6 % of the gross exposure is within 85 % of the collateral 30.06.2021 market value • Only 1.1 % of the gross exposure is higher than 100 % of the collateral market value • Very small
Slide 43: Reduced use of interest-only loans
Reduced use of interest-only loans Corporate Retail 46
Slide 44: Declining demand for liquidity loans with state guarantee
Declining demand for liquidity loans with state guarantee Liq.loans % of max state guarantee Number of loans 47
Slide 45: Diversified portfolio in commercial real estate
Diversified portfolio in commercial real estate 48
Slide 46: Still low oil related exposure
Still low oil related exposure Oil related exposure amounts to NOK 873 mill • The exposure represents 0.61 % of total exposure including covered bond companies • Average weighted probability of default 1.93 % • A total of NOK 43 mill are non-performing or impaired commitments • The activity within o
Slide 47: Oil related portfolio
Oil related portfolio • Exposure amounts to NOK 568 mill • Exposure amounts to NOK 259 mill • Exposure amounts to NOK 47 mill. including • Average weighted probability of default 2.62 % • Average weighted probability of default is 0.235% Industry NOK 46 mill and Other NOK 1 mill • Total amount of 7
Slide 48: Loan losses - Group
Loan losses - Group The Group’s annualized losses is -0.11 % (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 0.56 % of total exposure, Expected loss share: 36.85 % Commitments in step 2: 8.93 % of total exposure, Expected loss share: 3.73 %
Slide 49: Funding
Funding NOK 23 035 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 38 307 mill had been transferred as of 30.06.21 Amount of gross maturities of capi
Slide 50: Ambitious goals for climate risk and sustainability
Ambitious goals for climate risk and sustainability Sustainability and climate risk are included in our business- and risk strategy A framework for the link between green lending and green capital market funding has been developed. The framework is based on important business sectors in the north, i
Slide 51: 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 • The alliance are in the forefront of incorporating SpareBank 1 Nord-Norge technological innovation into its distribution channels.
Slide 52: SpareBank 1 Alliance companies
SpareBank 1 Alliance SpareBank 1 SMN SpareBank 1 SR-Bank SpareBank 1 Samspar SpareBank 1 LO Nord-Norge Østlandet BN Bank SpareBank 1 SpareBank 1 Gruppen Boligkreditt SpareBank 1 Alliance companies SpareBank 1 SpareBank 1 Fremtind SpareBank 1 Kreditt Næringskreditt Forsikring (65%) Forvaltning SpareB
Slide 53: Noen som har et fint bilde til avslutning?
Noen som har et fint bilde til avslutning? 56
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