SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q1 2017 Earnings Presentation
46 slides from SpareBank 1 Helgeland's earnings presentation, 2017
Slide 1: Presentation Q1 2017
Presentation Q1 2017 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation per 31.03.17 (HSB Group)
Presentation per 31.03.17 (HSB Group) Main Features Lisbeth Flågeng Profit & loss Chief Executive Officer Balance Lending Deposits Funding Sverre Klausen Chief Financial Officer Solidity Helgeland Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main features per 31.03.17
Main features per 31.03.17 Result Gross profit MNOK 84 (154) • Adjusted for one-time effect pension, gross profit was MNOK 79 in Q1 2016. • Good profitability in the banks basis operations, net interest increased in NOK and maintained in % • Lower Nibor has given lower prices on lending from Mars. P
Slide 4: Main features per 31.03.17
Main features per 31.03.17 Lending 12-month growth 9.8 (9.1)% • Retail market 8.8 (10.3)% • Corporate market 11.9 (6.9)% Growth in RM is normalized, growth in CM is as expected Deposits 12-month growth 11.9 (4.3)% – good deposit ratio 64.5 (63.3)% • Retail market 4.8 (6.6)% • Corporate market 22.4 (
Slide 5: Main features / Profit & loss
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 5 En drivkraft for vekst på Helgeland
Slide 6: Profit
Profit Profit developement (MNOK) Good result Q1 500 40% Gross profit MNOK 84 • ROE after tax 8,1 % 35% 400 85 Adjusted for one time effect pension 30% (MNOK 75) profit in Q1 2016 was MNOK 79. 300 106 25% 49 20% 73 92 200 88 107 15% 76 59 75 10% 100 80 58 8,1% 66 5% 51 66 71 79 84 0 0% 2013 2014 201
Slide 7: Key figures
Key figures Keyfigures in % of average BTA Stable net interest • 1.83% per 31.03.17 2,5 % Net provisions • 0.27% - reduced from 0.30% 1,83% Operating costs 1,5 % • Flattening 1,14% 0,94% Moderate write-downs on lending 0,5 % 0,27% 0,08% 0,04% -0,5 % 2013 2014 2015 2016 31.03.2017 Gross profit Net in
Slide 8: Profit & loss
Profit & loss Helgeland Sparebank (group) Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1 2017 Net interest- and credit provision earnings 116 121 125 128 133 134 135 Net provision earnings 23 22 20 22 22 21 20 Other operatios income 6 2 2 1 1 2 1 Ordinary operations cost 66 66 65 69 65 72 69 Res
Slide 9: Net interest
Net interest Development net intr.(mnok.) and % of average BTA Increased net interest 150 Still strong competition 133 134 135 125 128 regarding price 121 • Maintained net interest in %. 100 1,84% 1,83% 1,85% 1,82% 1,83% • Reduced credit spread on 1,77% lending • Lower lending costs with falling Nib
Slide 10: Operating costs
Operating costs • Costs in % of BTA unchanged in the quarter • Costs increased with finance tax of MNOK 1.3 in Q1 2017 (One time effect pension 2016 is not included in the calculation above) 10 En drivkraft for vekst på Helgeland
Slide 11: Balance
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 11 En drivkraft for vekst på Helgeland
Slide 12: Balance
Balance Helgeland Sparebank (group) 31.03.17 31.12.16 Change Assets liquid assets 579 602 -23 Net lending to customers 25 089 24 632 457 Shares/investments in AC and DC 4 106 3 851 255 Debt and equity Deposits from customers 16 270 16 173 97 Money market financing 9 961 9 258 703 Subordinated debt 3
Slide 13: Lending
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 13 En drivkraft for vekst på Helgeland
Slide 14: Credit growth
Credit growth 12-month credit growth Commentary 20% HEBO Credit growth PM 23,1 % BM 32,7 % • 12-month growth 9.8 (9.1)% 15% 44,2 % PM share 10% • Target minimum 60% 9,8 % • Per Q1 67.3 (67.9)% 5% 5,3 % Locally in Helgeland • Per Q1 84.0 (83,6)% 0% -5% 2013 2014 2015 2016 31.03.2017 HSB Helgeland tot
Slide 15: Credit growth CM and RM
Credit growth CM and RM 12-month credit growth corporate market 12-month credit growth retail market 20% 20% 15% 15% 11,9 % 10% 10% 8,8 % 6,8 % 5% 5% 2,4 % 0% 0% -5% -5% 2013 2014 2015 2016 31.03.2017 2013 2014 2015 2016 31.03.2017 HSB Helgeland corp. HSB Helgeland pers. Commentary 12-month growth 9
Slide 16: Lending CM
Lending CM Lending distributed in sector Commentary Good diversification in the CM Real estate 13,2 % lending portfolio and very loyal 12,3 % corporate customers 5,6 % Farming and forestry 5,2 % Share CM of total lending 32.7 (32.1)% or MNOK 8 256 4,0 % Construction and power (7 379) 4,9 % 2,8 % Tra
Slide 17: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss Good portfolio quality 200 Net non-performing and other impaired commitments amounts to MNOK 103 (114) 150 Which equals 0.4 (0.5)% of gross loans 100 Total group write-downs • MNOK 87 50 0,6 % 0,5 % 0,5 % 0,4 % • 0.35%
Slide 18: Deposits
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 18 En drivkraft for vekst på Helgeland
Slide 19: Deposit growth
Deposit growth 12-month deposit growth Commentary 20% 12-month growth 11.9 (4.3)% Norway 15% Helgeland 91,0 % 8,3 % PM share • Per Q1 56.1 (59.9)% 10% 11,9 % Locally in Helgeland 7,2 % •Per Q1 91.0 (91.0)% 5% BM Deposit ratio PM 0% 56,1 43,9 • Target minimum 60% % % • Per Q1 64.5 (63.3)% -5% 2013 20
Slide 20: Deposit growth CM and RM
Deposit growth CM and RM 12-month deposit growth corporate market 12-month deposit growth retail market 35% 20% 30% 25% 22,4 % 15% 20% 15,0 % 10% 15% 10% 5% 4,8 % 5% 3,5 % 0% 0% -5% -10% -5% 2013 2014 2015 2016 Q1 2017 2013 2014 2015 2016 Q1 2017 HSB Helgeland Corp. HSB Helgeland pers. Commentary 12
Slide 21: Deposits CM
Deposits CM Customer deposits Commentary Well diversified deposit 9,4 % Municipalities 10,8 % portfolio in the CM 5,7 % Farming and forestry 8,0 % Share CM 43.9(40.1)% or Transport and services 8,9 % MNOK 7 146 (5 836) of total 8,9 % deposits 5,5 % Construction and power 6,3 % 3,3 % Deposits from mu
Slide 22: Deposit development
Deposit development 100 % Deposit 90 % 18 000 80 % 16 000 70 % 14 000 60 % 12 000 50 % abow 8 mill 10 000 40 % between 2 and 8 mill 8 000 between 1 and 2 mill. 30 % 6 000 below 1 mill 20 % 4 000 10 % 2 000 0% - A large share of PM deposits is under MNOK 2 (52.5 % of total deposits). The level is the
Slide 23: Funding
Main features Profit & Loss Balance Lending Deposits Funding Solidity Helgeland Appendices 23 En drivkraft for vekst på Helgeland
Slide 24: Funding
Funding Commentary Funding development (MNOK) 120% Deposits are the most important source for funding. 100% 2,2 % 2,2 % 2,1 % 2,8 % 2,2 % 13,5 % 15,0 % 14,3 % 17,5 % 18,0 % 80% 26,8 % 25,9 % 24,4 % 19,2 % 19,2 % 60% 40% 56,9 % 59,2 % 60,5 % 60,7 % 54,8 % 20% 0% 2013 2014 2015 2016 31.03.2017 Deposit
Slide 25: Funding
Funding Commentary Maturity of loans (MNOK) Good and long term funding 2.500 Share long term funding 2.000 82.7% (87.6)% 500 Combined duration of 2.8 1.500 1.000 1.000 (2.5) years. Duration in the 1.300 mortgage company 3.3 years 1.000 121 1.500 500 500 1.000 1.000 622 650 500 400 0 2017 2018 2019 2
Slide 26: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland boligkreditt AS, fully owned by Helgeland Sparebank • Net profit MNOK 9.6 (9.4). • CET1 ratio of 16.5 (20.1)% • standard method with 35% mortgage weights • Gross loans amounts to MNOK 5 825 (4 604) and CB MNOK 4 922 (3 963) Cover pool ratio of fullness 21 (22)% Co
Slide 27: Liquidity buffers
Liquidity buffers Sector distribution interest portfolio Commentary CB 1 43% The liquidity buffers amounts to 39% NOK 4.1 (3.8) bn. – equal 13.7 12% Finance, Norway 5% (13.7)% of total assets. The buffer 19% capital consists of of cash, Government 16% deposits in Bank of Norway/banks 16% and interes
Slide 28: Solidity
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 28 En drivkraft for vekst på Helgeland
Slide 29: Capital adequacy
Capital adequacy Commentary Development capital adequacy Capital ratio 22% • CET1 15.8 (14.9)% 20% • Core capital 17.5 (16.3)% • Total capital 19.2 (18.2)% 1.7% 18% Well capitalized after placements in 1.7% 2016. Repaid CB of MNOK 150 in 16% 2017 The banks targets, CET1 of 14% minimum 14.5% and tota
Slide 30: Pilar II demands
Pilar II demands Pilar II chronologic after apprival date Commentary 5 4,5 4,5 4,2 The Group has been given a Pilar 2 4 addition of 2.2 % 4 3,4 3,4 3,3 3,4 3,5 3,1 3,1 3 The owners risk of the bank’s 3 3 3 3 2,8 2,7 investment in Helgeland Invest AS is 2,6 2,5 2,6 2,4 2,42,5 2,5 2,3 included in tota
Slide 31: Helgeland
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 31 En drivkraft for vekst på Helgeland
Slide 32: HELG – the 20 largest owners
HELG – the 20 largest owners Per 31.03.17 Numbers % share Numbers % share Sparebankstiftelsen Helgeland 7 255 020 34.8 % Vigner Olaisen AS 294 653 1.4 % Pareto AS 1 949 392 9.3 % Verdipapirfondet Pareto 246 000 1.2 % Merrill Lynch Prof. 1 253 462 6.0 % Catilina invest AS 221 858 1.1 % UBS AG, London
Slide 33: HELG – EC development and liquidity
HELG – EC development and liquidity The price of HELG per 31.03.17. was NOK 80.50 per EC (adjusted for dividend). 81.00 at year end and NOK 60.00 31.03.16. 33 En drivkraft for vekst på Helgeland
Slide 34: Helgeland
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 34 En drivkraft for vekst på Helgeland
Slide 35: Prospects and priorities
Prospects and priorities Result • Profitable growth - Increasing offensive measures in the retail market • Expatriate people from Helgeland • More cooperation with mortgage brokers • Offensive sales organization ensures width sale • Effect from sales of consumer loans through Brage Finans AS • Focus
Slide 36: Stabile property price development
Stabile property price development Property price development in Helgeland compared to larger places (measured by price pr sqm for sold houses). Average national price increase for apartments in 2016 by the end of Mars was 3.2%. • Property price increase in Helgeland was 6.8% in the same period. Bod
Slide 37: Unemployment
Unemployment Unemployment in %, Norway, Nordland og Helgeland Commentary 3,50% Unemployment in Helgeland 3,30% and in Nordland is by the end 3,10% of Mars 2017 slightly lower 2,90% Norway overall. 2,70% 2,50% Overall unemployment in 2,30% Helgeland is 2.3% by the end 2,10% of Mars 2017. 1,90% 1,70%
Slide 38: The future is in the North?
The future is in the North? • The governments north area strategy ― North of Norway is very important for the country – higher growth than nationally ― Will have a crucial part in the changeover Norway is heading against ― Industry, sea food, petroleum, shipping and tourism ― BUT: we have to succeed
Slide 39: The future is in the North?
The future is in the North? • Industry message • The first since 1981 ! • Norway is supposed to be the leading industry – and technology nation • The largest potential is in north of Norway • Green industrial growth in north of Norway • Large water power resources • Minerals • Fish • Competence and
Slide 40: The future is in the North?
The future is in the North? • Industry message • Concrete export strategy with extended GIEK-guarranties • Examin / reinforce capital access • Establish top industry centre with Kongsberggruppen in the lead • Node in Mo Industripark? • Recycling and reuse of resources • Industry in Helgeland is in a
Slide 41: The future is in the North?
The future is in the North? • Norwegian transport plan for 2018-2029 • Finishing large development of E6 in Helgeland, in 2017 NOK 6.5 bn. • Finished in 2021 • New airport in Bodø • 1.5 bn for new large airport in Mo I Rana • MNOK 600 in local financing will make it possible for early start in the N
Slide 42: Thank you for your attention!
The future is in North! Thank you for your attention! EN DRIVKRAFT FOR VEKST 42 En drivkraft for vekst på Helgeland
Slide 43: Appendices
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 43 En drivkraft for vekst på Helgeland
Slide 44: Helgeland Sparebank
Helgeland Sparebank ➢ Helgeland Sparebank is the 10th. largest savings bank in Norway. 100% ➢ Vision: a driving force for growth in Helgeland. ➢ Business concept: to be a profitable and the leading 48% bank in Helgeland. The bank provides financial products and services to consumers, small and mediu
Slide 45: The bank’s organization
The bank’s organization Board of Directors Assistant secretary Internal Auditor Brit Søfting Chief Executive Rolf Tor Jannsen Officer Lisbeth Flågeng Director of Director of Chief Financial Chief Business Chief Human Chief Chief Risk Corporate Retail Market Officer Development Resources Accounting M
Slide 46: Contact information
Contact information Head office Board of directors Postal address Postboks 68, 8601 Mo i Rana Ove Brattbakk, leder Visiting address Jernbanegata 15, 8622 Mo i Rana Stein Andre Herigstad-Olsen, nestleder Phone number 75 11 90 00 Eva Monica Hestvik Web www.hsb.no Bjørn Audun Risøy Organization number