SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Q1 2022 Earnings Presentation
41 slides from SpareBank 1 Helgeland's earnings presentation, 2022
Slide 1: Presentation Q1 2022 - A driving force for growth in Helgeland
Presentation Q1 2022 - A driving force for growth in Helgeland
Slide 2: Presentation per 31.03.22 (SBH Group)
Presentation per 31.03.22 (SBH Group) Main Features and market Hanne Nordgaard Events Q1 Chief Executive Officer Profit & loss Lending Deposits Funding Sverre Klausen Solidity Chief Financial Officer Prospects and priorities Appendices
Slide 3: Changes in the banks key positions
Changes in the banks key positions Sverre Klausen ends his sin career as CFO after 41 years in the bank from forth quarter 2022, and enters a new part time position as general manager in Sparebankstiftelsen Helgeland (the banks largest owner). The bank has started the process of hiring a new CFO. Sv
Slide 4: Financial targets
SpareBank 1 Helgeland Financial targets is the profitable and leading local bank that builds future Helgeland Profitable ROE >11 % The bank has a ROE target on level with comparable banks, p.t. 11 %. In the transformation year 2022 it is not expected to fulfil the long term target for ROE. Solid CET
Slide 5: Main features per 31.03.22
Main features per 31.03.22 Gross profit ROE* MNOK 147 (93) 10.8 (8.2) % *Adjusted for hybrid capital Total assets Solidity NOK 39.6 (34,6) bn. CET1 18,1 (19.9) %
Slide 6: Unemployment
Unemployment Unemployment in %, Norge, Nordland and Helgeland 12,00% Under the covid-19 pandemic, the unemployment increased significant 11,00% from Q4 2019 to Q1 2020. 10,00% The unemployment in Helgeland and 9,00% Nordland is lower than Norway 8,00% overall. 7,00% • Norway 2.0 % 6,00% • Nordland 1
Slide 7: Housing price development
Housing price development Price development - sold apartments in NOK/sqm Price development - sold villas in NOK/sqm 100.000 80.000 90.000 70.000 80.000 70.000 60.000 Oslo 60.000 50.000 Oslo Trondheim Trondheim 50.000 Bodø 40.000 Bodø 40.000 Helgeland Helgeland 30.000 30.000 20.000 20.000 10.000 10.0
Slide 8: Sustainability in Sparebank Helgeland
Sustainability in Sparebank 1 Helgeland • Internal sustainability target in relation to own CO2 footprint • Mapping of our creditors in relation to sustainable purchase • Increase the consciousness around sustainability with our employees. • System introduced to map sustainability and climate risk i
Slide 9: Sustainability
Sustainability New sustainability strategy Issued green My climate footprint is Sparebank1 Helgeland obligations (1 billion) launched in the internet banking Green Map ESG risk Product framework Green in the lending portfolio products in the markedet Q2-21 Q3-21 Q4-21 Q2-22 Q3-22 Q4-22
Slide 10: Main features and market
Main features and market Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 11: Summary Q1
Summary Q1 SpareBank 1 Helgeland (group) Net interest- and credit provision earnings Q2 2021 144 Q3 2021 148 Q4 2021 168 Q1 2022 174 Net provision earnings 21 22 36 46 Other operatios income 0 4 -1 2 • Strong result - Stable basis operation Ordinary operations cost 82 80 141 94 Result basic operatio
Slide 12: Profit & loss
Main features and market Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 13: Profit
Profit Profit development Profit Q1 384 High gross profit of MNOK 147 (93) in the first quarter. 110 135 264 • ROE of MNOK 10.8 % 15 (ROE is adjusted for hybrid capital) 65 96 78 147 The strong result in Q1 is affected by these ont- 85 78 time events: 150 10,8% 147 • Dividend is recognized from Spar
Slide 14: Gross profit
Gross profit Gross profit is MNOK 56 higher than in the same period last year • Increase in net interest in 2021 is related to the acquisition in the fourth quarter. The interest rate Change in gross profit (MNOK) increase with effect from February 1st draws the net interest up, while higher funding
Slide 15: Net interest
Net interest Development net intr.(mnok.) and % of average BTA • Net interest and commission income amounts to MNOK 174 in the first quarter. • This is MNOK 6 higher than last quarter. The interest rate increase with effect from 8 8 February 1st draws the net interest up, while 174 168 higher fundin
Slide 16: Commission income (MNOK)
Commission income (MNOK) 46 8 36 1 Comission on loans transferred to 8 28 mortgage company 2 2 22 Guarantee commission 22 0,47% 21 8 1 1 Commission income insurance - 13 7 36 0,37% (general, life, saving and pension) 7 Commission income payment 0,29% 22 services 18 In % of total assets 0,25% 14 0,25
Slide 17: Operating costs
Operating costs Operating cost (mnok) and % of income 44 • Costs are within the banks target in the first quarter (cost/income <40%) 97 3 5 1 94 • Cost % when profit from financial assets are deducted 78 77 79 74,0% is 42.5 %. 49,0% 45,8% 43,9 % 46,0 % 45,1% 44,5 % 50,8 % 38,8% 38,8 % Q1 2021 Q2 202
Slide 18: Loss on commitments
Loss on commitments • MNOK 1 in loss in the first quarter of 2022. • Annualized, this amounts to 0.01 % of gross lending in the quarter. 0,24% 0,18% 0,20% 65 51 64 0,00% 2019 2020 2021 31.03.2022 Net loss MNOK Net loss in % of gross lending 1
Slide 19: Lending
Main features and market Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 20: 12-month credit development (SpaBol included)
12-month credit development (SpaBol included) CM 26.4 % RM 73.6 % Lending corporate market (MNOK) Lending retail market (MNOK) 27.262 27.158 9.743 9.752 8.956 9.176 8.495 8.350 18.978 19.148 18.733 18.631 -5,1 % -1,7 % 9,9 % -0,5 % 1,9 % -0,4 % 6,2 % 0,1 % 0,9 % 42,4 % Q4 2020 Q1 2021 Q2 2021 Q3 202
Slide 21: Lending CM
Lending CM Lending distributed in sector Real estate 10,9 % Good diversification in the CM 9,5 % lending portfolio and loyal corporate 4,9 % customers Farming and forestry 3,9 % 3,7 % Share CM of total lending 29.7 Construction and power 2,3 % (31.3)% or MNOK 9 558 (8 495) 5,0 % Transport and servic
Slide 22: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss 600 500 • Net non-performing and other impaired commitments amounts to MNOK 216, a 400 decrease of MNOK 16 from year end. 300 200 1,1 % 1,1 % 100 0,7 % 0,7 % 0 2019 2020 2021 31.03.2022 Net commitments exposed to loss
Slide 23: Deposits
Main features and market Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 24: Deposit development
Deposit development Customer deposits corporate market (MNOK) Customer deposits retail market (MNOK) 9.811 14.187 14.333 9.064 9.365 8.811 8.688 11.412 11.924 11.752 7.902 10.782 -5,1 % -1,7 % 9,9 % 5,8 % 4,5 % 1,0 % 6,2 % 0,1 % -1,4 % 20,7 % Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q4 2020 Q
Slide 25: Deposit development
Deposit development 100 % 90 % 27 000,00 80 % 25 000,00 70 % 23 000,00 60 % 21 000,00 Over 8 mill 50 % Mellom 2 og 8 mill. 19 000,00 40 % Mellom 1 og 2 mill. 17 000,00 30 % Under 1 mill. 15 000,00 20 % 13 000,00 10 % 11 000,00 0% nov. 18 apr. 19 mai. 16 mar. 17 jun. 18 feb. 15 okt. 16 jan. 18 feb. 2
Slide 26: Deposits CM
Deposits CM Customer deposits Well diversified deposit portfolio 12,8 % Municipalities 12,0 % in the CM 13,0 % Transport and services 11,2 % Share CM 40.6 (43.6)% or MNOK 9 811 (8 810) of total deposits 3,8 % Construction and power 3,1 % 1,7 % Farming and forestry 2,5 % Deposits from municipalities
Slide 27: Funding
Main features and market Events Q1 Profit & Loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 28: Funding
Funding Funding development 2,5 % 2,5 % 2,6 % 2,4 % 2,4 % 21,1 % 17,1 % 16,5 % 22,0 % 22,2 % 13,0 % 12,3 % 12,2 % 11,3 % 17,1 % 64,9 % 67,4 % 68,8 % 58,4 % 63,1 % 2018 2019 2020 2021 31.03.2022 Deposits Senior CB FO
Slide 29: Funding due
Funding due maturity structure loans (MNOK) High quality and long-term funding Share long term funding 75.4% (81.6)% Combined duration of 2.3 (2.4) 1.500 years. Duration in the mortgage 1.500 company 2.2 years 1.500 977 1.000 1.000 800 500 500 500 300 2022 2023 2024 2025 2026 2027 2028 2029 Senior C
Slide 30: Liquidity buffer
Liquidity buffer Interest bearing securities: Sector distribution interest portfolio • Duration portfolio 1.9 (1.5) years • 99.4 % rated A- or better • 99.1 % CB or state-/ municipal CB 1 42% guaranteed bonds 31% Municipality papers are actively used Municipalities 38% as short-term liquidity placem
Slide 31: Transfer of loans to mortgage companies
Transfer of loans to mortgage companies Maximum limit for transferring is 35 % of the Group’s gross lending, and 50 % of gross lending RM. Per 31.12.22 transfer degree is 31.2 and 42.1 % with a total of MNOK 11 504 transferred to the mortgage companies. Helgeland boligkreditt AS is fully owned by Sp
Slide 32: Solidity
Main features and market Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices Foto: Hans Petter Sørensen
Slide 33: Capital adequacy
Capital adequacy Development capital adequacy 24% 22% 2,6 % Capital ratio 2,3 % 2,3 % • CET1 18.1 (19.9)% 20% 2,5 % 1,7 % 2,0 % • Core capital 20.1 (21.6)% 18% 2,4 % 1,7 % 2,0 % • Total capital 22.5 (24.3)% 16% 1,6 % • Leverage ratio: 9.1 (10.4)%. 14% 18,8 % 17,9 % 18,1 % • Pilar II requirements fro
Slide 34: HELG – largest owners and geographical owner structure
HELG – the 20 largest owners and geographical owner structure Geographical owner structure (%) 5,4 5,5 13 13 14 14,2 14 15 14,7 44 44 43 43 43 42 43 60 60 43 43 43 43,1 42,9 42,7 42,7 34,2 34,3 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Local owners (Helgeland) Other nor
Slide 35: HELG – EC development and liquidity
HELG – EC development and liquidity Development HELG vs OSEEX - last 12 months 70% 140.000 31.12.19 31.12.20 31.12.21 31.03.22 60% EC fraction opening balance 76.4 % 76.4 % 77.3 % 79.9 % 120.000 50% Number of EC's 20.9 20.9 27.0 27.0 100.000 40% price 84.0 86.0 131 134 Volume HELG Change (%) 80.000
Slide 36: Prospects and priorities
Main features and market Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 37: Prospects ahead
Prospects ahead ▪ Entrance in the SpareBank1 alliance. ▪ The associated transactions will affect the operations and the costs in 2021 and 2022, and the groups long term profitability targets can not be expected fulfilled in this period. ▪ Profitability is expected strengthened in a long term perspec
Slide 38: Appendices
Main features and market Events Q4 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 39: Profit & loss
Profit & loss SpareBank 1 Helgeland (group) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Net interest- and credit provision earnings 159 159 140 149 150 144 144 148 168 174 Net provision earnings 30 24 24 23 26 28 21 22 36 46 Other operatios income 2 1 0 2 2 1 0 4
Slide 40: SpareBank 1 Helgeland
SpareBank 1 Helgeland • Vision: a driving force for growth in Helgeland. • Business concept: SpareBank 1 Helgeland is the profitable and leading local bank building future Helgeland. • Offices: The Bank has 4 offices in Mo i Rana, Mosjøen, Sandnessjøen and Brønnøysund. • SpareBank 1 Helgeland is the
Slide 41: Contact information
Contact information Board of directors Head office Bjørn Krane, chairman Postal address: Postboks 68, 8601 Mo i Rana Rolf Eigil Bygdnes, deputy chairman Visiting address: Jernbanegata 15, 8622 Mo i Rana Marianne Terese Steinmo Siw Moxness Phone number 75 11 90 00 Kennteth Normann Web www.sbh.no Solr
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