SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q4 2015 Earnings Presentation
47 slides from SpareBank 1 Helgeland's earnings presentation, 2016
Slide 1: Presentation Q4 2015
Presentation Q4 2015 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation Q4 2015 (HSB Group)
Presentation Q4 2015 (HSB Group) Main Features Lisbeth Flågeng Profit & Loss Chief Executive Officer Balance Lending Deposits Funding Sverre Klausen Chief Financial Officer Solidity Summary Helgeland Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 3 En drivkraft for vekst på Helgeland
Slide 4: Main features per 31.12.15
Main features per 31.12.15 Result Gross profit MNOK 280 (283) • Still good profitability in the banks basis operation, increased net interest in NOK and maintained in %. • Costs in NOK equals last year before one-time effect of downsizing packages of MNOK 7.5. • Moderate write-downs on lending Profi
Slide 5: Main features per 31.12.15
Main features per 31.12.15 Lending 12-month growth 8.2 (0.6) % • Retail market 9.2 (3.0) % • Corporate market 6.3 (-3.9) % Deposits 12-month growth 5.0 (5.7) % – good deposit ratio 64,0 (65,9) % • Retail market 7.2 (6.8) % • Corporate market 1.6 (4.0) % Market research mortgage customers December 20
Slide 6: Helgeland Invest AS
Helgeland Invest AS • Shareholding 48.3 % - strategic investment – access to capital and expertise for local businesses • Associated company (significant influence, but not control) • The accounting treatment of HI – The company has been rated as an investment company where the portfolio companies w
Slide 7: Interest-bearing securities
Interest-bearing securities • The bank’s accounting principles for interest-bearing securities – Available for sale • All changes in value recognized in the extended income statement • Previously, changes in value below cost was recorded against profit, this is reversed in the fourth quarter (MNOK 1
Slide 8: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices Lovund/Træna 8 En drivkraft for vekst på Helgeland
Slide 9: Result
Result Profit development (MNOK) Good result in 2015 400 30% Increased net interest • Funding cost slightly 25% affected by increased credit 300 283 280 266 spread 49 20% 73 92 Costs 200 172 88 15% • Unchanged in NOK before 133 46 76 59 one-time effect on 10% downsizing packages 27 53 9,3 % 100 80 3
Slide 10: Key figures
Key figures Key figures in % of BTA Commentary 2% Net interest 1,76% • Increased from 2013 1,07% Net provisions 1% 1,03% • 0,33 % - increased level Operating costs 0,33% • Flattening costs 0,12% 0% 0,08% Moderate write-downs on lending -1% 2011 2012 2013 2014 2015 Gross profit Net interest Net provi
Slide 11: Profit & loss
Profit & loss Helgeland Sparebank (group) Profit & loss (MNOK) Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Net interest- and credit provision earnings 113 114 116 115 112 114 116 121 Net provision earnings 19 22 22 19 21 20 23 22 Other operatios income 1 1 2 3 2 1 6 2 One-time co
Slide 12: Net interest
Net interest Development net intr.(mnok.) and % of average BTA Commentary 150 Increased net interest 121 116 115 112 114 116 Still strong competition regarding price 100 • Last reduction of the mortgage interest rate was 1,76% 1,77% 1,77% 1,77% conducted 01.12.15, 1,75% 1,74% covered through market
Slide 13: Operating cost
Operating cost Development operating cost (mnok) and % of Development operating cost (mnok) and % of BTA income 100 300 270 263 77 233 239 74 218 75 67 66 63 63 200 50 57,0 % 48,2 % 47,9 % 49,3 % 40,1 % 41,6 % 100 25 1,02% 0,99% 0,95% 1,01% 1,03% 0 0 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 2
Slide 14: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 14 En drivkraft for vekst på Helgeland
Slide 15: Total assets
Total assets BTA whereby lending and deposits (MNOK) 30.000 27.132 25.985 25.798 24.594 22.802 22.541 20.000 14.418 10.000 0 2011 2012 2013 2014 2015 Total Asset Lending Deposits 15 En drivkraft for vekst på Helgeland
Slide 16: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 16 En drivkraft for vekst på Helgeland
Slide 17: Credit growth
Credit growth 12-month credit growth Commentary 20% Credit growth PM 67,7 CM 32,3 Helge Norge 15,8 • 12-month growth 8.2 (0.6) % % land 15% % % 84,1 % PM Share 10% • Target minimum 60 % 8,2 % • Per Q4 67.7 (67.1) % 5% 5,3 % Locally in Helgeland • Per Q4 84.1 (83.8) % 0% -5% 2011 2012 2013 2014 2015
Slide 18: 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% 10% 10% 9,2 % 6,3 % 6,2 % 5% 5% 3,1 % 0% 0% -5% -5% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 HSB Helgeland corp. HSB Helgeland pers. Commentary 12-month growth 8.2 (0.6) % wh
Slide 19: Lending CM
Lending CM Lending distributed in sector Commentary Good diversification in the CM Real estate 13,1 % lending portfolio and very loyal 13,3 % corporate customers Farming and forestry 6,3 % 5,7 % Share CM of total lending 32.3 Construction and power 3,9 % (32.9) % or MNOK 7 275 4,1 % (6 850) Transpor
Slide 20: Real estate
Real estate Real estate sorted by sector Rental sorted on geograpgy 3,6 % 7,5 % 1,3 % PURCHASE AND SALE 6,8 % 0,1 % 4,0 % OF OWN PROPERTY 5,4 % Rana SHARE APARTMENTS Alstahaug RENTAL OF OWN OR Vefsn 14,9 % 52,7 % LEASED PROPERTY Oslo 87,5 % REAL ESTATE Brønnøy BROKERAGE 16,2 % Others PROPERTY MANAGE
Slide 21: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss Commentary 200 Good portfolio quality Reduction net non-performing 150 and other impaired commitments 100 No direct exposure to the oil sector 50 1,0 % 0,5 % 0,6 % 0,5 % 0,3 % Increased group write-downs • Overall asse
Slide 22: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 22 En drivkraft for vekst på Helgeland
Slide 23: Deposit growth
Deposit growth 12-month deposit growth Commentary 20% Good deposit growth PM CM Helge land Norge • 12-month growth 5.0 (5.7) % 62,9 37,1 8,2 % 15% % % 91,1 % PM-share 10% • Per Q4 62.9 (61.6) % Locally in Helgeland 5% 5,0 % •Per Q4 91.1 (91.6) % 3,1 % 0% Deposit ratio • Target minimum 60 % -5% • Per
Slide 24: Deposits CM and RM
Deposits CM and RM 12-month deposit growth corporate market 12-month deposit growth retail market 35% 20% 30% 25% 15% 20% 10% 15% 10% 7,2 % 5% 5,1 % 5% 1,6 % 0% 0,5 % 0% -5% -10% -5% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 HSB Helgeland Corp. HSB Helgeland pers. Commentary 12-month growth
Slide 25: Deposits CM
Deposits CM Customer deposits Commentary Well diversified deposit Municipalities 11,0 % portfolio in the CM 9,1 % Transport and services 6,1 % 5,8 % Share CM 37.1 (38.4) % or Construction and power 5,9 % MNOK 5 354 (5 270) of total 6,7 % deposits Real estate 3,1 % 3,4 % Industry Food 19 % 3,2 % Real
Slide 26: Deposit development
Deposit development 100 % 90 % Total deposit development 80 % 70 % Balance over MNOK 16 000,00 60 % 8 14 000,00 50 % 12 000,00 40 % Balance MNOK 2-8 10 000,00 30 % 8 000,00 6 000,00 20 % 4 000,00 10 % Balance MNOK 1-2 2 000,00 0% 0,00 DESEMBER… DESEMBER… DESEMBER… APRIL 2013 APRIL 2014 APRIL 2015 FE
Slide 27: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices Svartisen 27 27 En drivkraft for vekst på Helgeland
Slide 28: Funding
Funding Commentary Funding development (MNOK) 120% The deposits are the most important source for funding 100% 11,6 % 15,1 % 13,5 % 15,0 % 14,3 % 80% 33,4 % 26,8 % 25,9 % 24,4 % 30,5 % 60% 40% 54,8 % 56,9 % 59,2 % 50,9 % 49,7 % 20% 0% 2011 2012 2013 2014 2015 Deposits Swap agreement Senior CB FO 28
Slide 29: Funding
Funding Commentary Maturity of loans (MNOK) Good and long term funding 2.500 Share long term funding 2.000 81.4 % (83.8) % 630 285 Combined duration of 2.6 1.500 424 (2.5) years. Duration in the 750 1.000 mortgage company increased 1.000 to 3.2 years 1.400 1.500 1.331 Maximum limit for transferring
Slide 30: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Stresstest HEBO, reduced value of security and loss from high risk customers 2.250.000.000 123,0 % Helgeland Boligkreditt AS 2.000.000.000 121,0 % LTV-group: Gross profit MNOK 38.1 (47.1) 1-40 1.750.000.000 119,0 % CET1 ratio 15.6 (16.7)% (standard 41-50 method with 35 % mo
Slide 31: Liquidity buffers
Liquidity buffers Securities distributed in sectors Commentary CB 1 34% The liquidity buffers constitute 3.8 43% (4.3) bn. – equal 14.2 (16.7) % of 21% Finance, Norway 15% total assets. The buffer capital Government 17% consists of of cash, deposits in 18% Bank of Norway/banks and 16% Municipalites
Slide 32: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 32 En drivkraft for vekst på Helgeland
Slide 33: Proposed disposal of profit 2015
Proposed disposal of profit 2015 Commentary Allocation of profit 2015 120 Increased distribution ratio • 37.4 (31.8) % 98 100 100 Earnings per equity certificate 86 • NOK 8.40 in the parent bank 80 and NOK 8.20 in the HSB group 59 60 51 The board proposes dividend for 47 2015: 40 34 • Dividend basis
Slide 34: Capital adequacy
Capital adequacy Development capital adequacy Commentary 20% Capital ratio • CET1 15.2 (13.4) % 18% • Core Capital 16.5 (14.8) % 1,8 % • Total capital 18.4 (17.2) % 16% 1,4 % Unrealized gains full effect 2015 • Frende, Visa Europa and 14% Helgeland Invest The banks targets, CET1 of at 12% least 14.0
Slide 35: HELG – largest owners
HELG – 20 largest owners Parent bank Per 31. 12. 15 Numbers % s hare Numbers % s hare Sparebankstiftelsen Helgeland 6 599 598 35.3 % Helgeland Kraft AS 340 494 1.8 % Pareto AS 1 570 836 8.4 % Verdipapirfondet Pareto 269 000 1.4 % UBS AG, London Branc A/C 1 148 900 6.1 % Sniptind Holding AS 201 801 1
Slide 36: EC development and liquidity HELG
EC development and liquidity HELG The price for HELG per 31.12.15. was NOK 59,00 per EC. This is an increase of NOK 4,00 since year end. 36 En drivkraft for vekst på Helgeland
Slide 37: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices Høgtuva 37 En drivkraft for vekst på Helgeland
Slide 38: Prospects and priorities
Prospects and priorities Result • Continued focus on core business and profitable growth • The growth in the retail market on a lower level than 2015 ? Increased effect of collocation with our «own» real estate. • DNB’s closure of 3 of 4 offices on Helgeland gives opportunities • The growth in the c
Slide 39: Helgeland – status and future views
Helgeland – status and future views • Individual companies as subcontractors to the oil industry have large variations in activity – layoffs / redundancies – frames especially the Alstahaug region – rising unemployment and slower housing market? • The regions industrial companies benefit from favour
Slide 40: Helgeland – status and future views
Helgeland – status and future views • Population trends lower than nationally – particularly challenging in age between 25 – 40 years – Increasing study offers at Campus Helgeland – numbers of students is up to 1000 per 31.12.15 – Structure off research environment – close teamwork with the industry
Slide 41: Property price development
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 2015 was 8.6 %. • Property price increase in Helgeland was 3.9 % in the same period. Villas had in 2015 an nation
Slide 42: Unemployment in %
Unemployment Unemployment in Helgeland Commentary 4 There is a certain difference in 3,5 unemployment between the regions in Helgeland, but Unemployment in % 3 rather variable over time. 2,5 Overall unemployment in Helgeland is 2,4 % by the end 2 of 2015. 1,5 At the same time, 1 unemployment nationa
Slide 43: Thank you for your attention!
Thank you for your attention! EN DRIVKRAFT FOR VEKST 43 En drivkraft for vekst på Helgeland
Slide 44: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices Svartisen 44 En drivkraft for vekst på Helgeland
Slide 45: Business development and ownership
Business development and ownership 100 % 7,9 % Gavestiftelse 40 % 7,5 % 48 % 10,0 % 45 En drivkraft for vekst på Helgeland
Slide 46: The bank's organization
The bank’s organization Board of Directors Assistant secretary Internal Auditor Brit Søfting Chief Executive Marit Jakobsen Officer Lisbeth Flågeng Director of Director of Chief Financial Chief Business Chief Human Chief Chief Risk Corporate Retail Market Officer Development Resources Accounting Man
Slide 47: 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