Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — Sparebanken Hedmark — Q3 2013 Earnings Presentation
24 slides from Sparebank 1 Ostlandet's earnings presentation, Nov 1, 2013
Slide 1: Sparebanken Hedmark Q3-2013 Presentation of financial results
Sparebanken Hedmark Q3-2013 Presentation of financial results CEO Richard Heiberg 1 November 2013
Slide 2: About Sparebanken Hedmark
About Sparebanken Hedmark • Sparebanken Hedmark is the leading provider of financial products to people, companies and the public sector in Hedmark • Norway's largest self-owned savings bank: – NOK 6.5 billion in equity – NOK 46 billion in total assets – NOK 60 billion in commercial volume (incl. lo
Slide 3: Highlights – third quarter 2013
Highlights – third quarter 2013 Agenda • Improved return on equity - 13.8 per cent in third quarter • Improved earnings from banking operations • High activity – lending growth last 12 months 9.2 per cent • Significant contributions from the partly owned companies Bank 1 Oslo Akershus and SpareBank
Slide 4: Result before tax for Group and Parent Bank
Result before tax for Group and Parent Bank Result before tax for the quarter isolated - Group Result before tax for the quarter isolated – Parent bank 300 180 160 250 271 162 140 154 200 120 100 150 180 101 150 152 80 90 100 60 40 50 20 0 0 Q3-2010 Q3-2011 Q3-2012 Q3-2013 Q3-2010 Q3-2011 Q3-2012 Q3
Slide 5: Profit/loss third quarter 2013 (Group)
Profit/loss third quarter 2013 (Group) Q3-2013 Q3-2012 Net interest income 745 713 Net commission income 270 176 Other income 143 141 Total operating expenses 681 641 Result bank operation before losses 477 389 Losses on loans and guarantees 29 19 Result bank operation after losses 448 370 Dividends
Slide 6: Income statement Q3-2013 (Group)
Income statement Q3-2013 (Group) Q3 2013 Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Net interest income 266 252 227 242 242 230 Net commission income 104 89 77 74 63 63 Other income 49 48 46 44 51 45 Total operating expenses 223 227 231 223 205 213 Result bankoperation before losses 196 162 119 137 151
Slide 7: Specification of results (Group)
Specification of results (Group) (Nok million) Q3-2013 Q3-2012 Parent Bank's profit before tax 460 397 Dividends received from subsidiaries and joint ventures -124 -101 Profit /loss attributable to: SpareBank 1 Gruppen AS 97 65 Bank 1 Oslo Akershus AS 99 19 SpareBank 1 Boligkreditt AS 11 16 Eiendoms
Slide 8: Financial results by quarter (Group)
Financial results by quarter (Group) Profit/loss before tax excl. profit from other financial assets and liabilitites Profit/loss before tax 350 300 271 290 250 237 300 250 200 211 200 170 150 150 109 100 88 82 100 50 50 0 0 Q4- 2012 Q1-2013 Q2-2013 Q3-2013 Q4- 2012 Q1-2013 Q2-2013 Q3-2013 Net resul
Slide 9: Specification of the consolidated profit (Group)
Specification of the consolidated profit (Group) Change in profit before tax Q3-2012 vs Q3-2013 800 700 -43 -10 116 -40 600 96 500 32 400 300 590 439 200 100 0 Profit before tax Net interest Net commission Result from Net income from Operating Losses Profit before tax Q3-2012 income and other income
Slide 10: Net interest income (Group)
Net interest income (Group) Interest income excl. Commission from cover bond companies Interest income incl. commission from cover bond companies 350 2,35 % 350 2,30 % 2,29 % 2,30 % 300 300 57 2,25 % 49 2,25 % 37 250 9 27 250 10 10 17 41 2,21 % 2,21 % 27 2,20 % 2,20 % 200 200 2,15 % 2,13 % 2,15 % 15
Slide 11: Net commission and other income (Group)
Net commission and other income (Group) 160 140 8 20 120 9 19 10 9 22 17 22 100 16 16 15 12 16 15 19 80 30 14 16 31 23 18 60 28 15 18 16 13 40 15 16 57 49 20 37 41 27 27 0 Q2-2012 Q3-2012 Q4-2012 Q1-2013 Q2-2013 Q3-2013 Commission from BK and NK Real estate brokerage Income from accounting Payment t
Slide 12: Net income from financial assets and liabilities (Group)
Net income from financial assets and liabilities (Group) Q3 2013 Q2 2013 Q1 2013 Q4 2012 Q3 2012 Dividends 18 Net profit from ownership interest 99 53 54 -5 46 Net profit from shares and other securities -7 Profit/loss and change in value of bond and certificates 10 19 -37 -21 -114 Profit/loss and c
Slide 13: Operating expenses (Group)
Operating expenses (Group) Q3 Q2 Q1 Q4 Q3 2013 2013 2013 2012 2012 Payroll 90 86 92 87 86 Pension costs 13 12 12 3 11 Social security expenses 19 18 20 20 18 Total personnel expenses 122 116 125 110 115 Total operating expenses and other expenses 67 75 67 77 61 Total personnel- and operating expense
Slide 14: Losses on loans and guarantees (Group)
Losses on loans and guarantees (Group) Quarterly losses isolated Yearly losses -30 -160 -140 -146 -120 -25 -26 -100 -80 -23 -23 -22 -60 -20 -40 -50 -50 -42 -20 -29 -15 0 2009 2010 2011 2012 Q3-13 Defaulted and doubtful commitments -12 -10 1.000 1,85 % 2,00 % 1,76 % 1,75 % 800 1,80 % 1,39 % 1,40 % 1,
Slide 15: Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard)
Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard) 2,40 % 2,36 % 2,30 % 2,25 % 2,26 % 2,21 % 2,18 % 2,19 % 2,20 % 2,13 % 2,14 % 2,11 % 2,10 % 2,01 % 2,01 % 2,00 % 1,94 % 1,90 % Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 15
Slide 16: Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard)
Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard) 2,80 % 2,68 % 2,70 % 2,61 % 2,59 % 2,60 % 2,54 % 2,51 % 2,52 % 2,49 % 2,50 % 2,42 % 2,42 % 2,40 % 2,36 % 2,30 % 2,30 % 2,24 % 2,20 % 2,26 % 2,10 % 2,17 % 2,18 % 2,00 % 2,06 % 2,07 % 2,08 % 2,05 % 2,04 % 2,00 % 1,90 % 1,98 % 1,93 %
Slide 17: Main figures Sparebanken Hedmark (Group)
Main figures Sparebanken Hedmark (Group) Q3 2013 Q3 2012 2012 Profitability Return on equity capital after tax 10,3 % 7,9 % 7,0 % Total operating costs in relation to total income 52,4 % 58,6 % 60,3 % From the balance sheet Deposits rom customers in relation to gross loans to customers 79,7 % 80,4 %
Slide 18: Balance sheet
Balance sheet 30.09.2013 30.09.2012 31.12.2012 ASSETS Cash and deposits with central banks 313 210 236 Loans to and receivables from credit institutions 314 357 294 Loans to and receivables from customers 37.022 34.527 35.200 Financial papers 4.843 5.732 5.958 Investments in subsidiaries, associates
Slide 19: Development in balance sheet (Nok billion)
Development in balance sheet (Nok billion) Gross loans incl. Loans transferred to cover bond companies Development in assets and business volume 54,0 12,0 % 70,0 51.6 60.3 52,0 56.7 50.8 10,0 % 60,0 53.0 49.6 50,0 49.0 44.3 46.1 48.1 8,0 % 50,0 35.8 38.4 48,0 46.7 40,0 45.8 6,0 % 30.4 46,0 44.6 45.0
Slide 20: Development in Tier 1 ratio (Group)
Development in Tier 1 ratio (Group) Tier 1 ratio for Parent bank 18,0 % (30.09): 20.8 % 16,0 % 16.9 % 0.5 % 15.1% 15.2 % 15.3% 14,0 % 14.1 % 13.2 % 12,0 % 12.7 % 11.5 % 10,0 % 8,0 % 6,0 % 4,0 % 2,0 % 0,0 % 2006 2007 2008 2009 2010 2011 2012 Q3-2013 As at 1. July 2013 the Government has Core Tier 1 r
Slide 21: Composition of loans and receivables from customers (Group)
Composition of loans and receivables from customers (Group) Gross loans by sector and industry incl. Cover bond companies Composition of loans incl. Cover bond companies Commercial services; 1.879 Primary Other; 424 industries; 3.379 Corporate Wholesale and retail trade; 1.037 banking 31.5 % Private
Slide 22: Liquidity reserves
Liquidity reserves • The figure shows the distribution of the bank's liquidity reserve as at 30.9.13 • The grey bar indicates a haircut of 10 %. 6000 5000 384 90 4000 1000 338 241 90 3000 4689 2000 3043 1000 0 225 Cash Drawing rights in the CPs Other liquid assets Unutilized credit facilities Funds
Slide 23: Maturities
Maturities Annual maturities; total to maturity MNOK 8 294 Funding maturities the next 12 months MNOK 1 549 800 2000 600 1500 400 1000 500 200 0 0 201 201 201 201 201 201 201 202 202 202 202 202 202 202 202 202 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 F-loan, Central Bank 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bond i
Slide 24: Rating
Rating • On 2 July, Moody's confirmed Sparebanken Hedmark's A2 rating and said it had a stable outlook. – Moody's put it under review for possible downgrading in March due to our increased stake in Bank 1 Oslo Akershus AS – The bank's individual C- rating (standalone financial strength rating) was a