SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q3 2016 Earnings Presentation
46 slides from SpareBank 1 Helgeland's earnings presentation, Oct 24, 2016
Slide 1: Presentation Q3 2016
Presentation Q3 2016 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation per 30.09.16 (HSB Group)
Presentation per 30.09.16 (HSB Group) Main Features Lisbeth Flågeng Profit & loss Chief Executive Officer Balance Lending Deposits Funding Sverre Klausen Chief Financial Officer Solidity Emission Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main features per 30.09.16
Main features per 30.09.16 Result Gross profit MNOK 367 (188) • Still good profitability in the banks basis operations, net interest increased in NOK and in % • Stabile net commission income • Increased result share from associated companies • Moderate write-downs on lending • Pension liability reco
Slide 4: Main features per 30.09.16
Main features per 30.09.16 Lending 12-month growth 10.1 (5.4)% • Retail market 10.8 (7.6)% • Corporate market 8.9 (1.2)% Deposits 12-month growth 11.1 (1.3)% – good deposit ratio 64.2 (63.7)% • Retail market 7.2 (5.4)% • Corporate market 16.9 (-5.2)% Recruitment process new CEO (accession 01.08.17).
Slide 5: Main features / Profit & loss
Main features Profit & loss Balance Lending Deposits Funding Solidity Emission Appendices De syv søstre 5 En drivkraft for vekst på Helgeland
Slide 6: Result
Result Profit developement (MNOK) Profit dev. excl. one time effect 400 40% 400 40% 367 35% 35% 300 283 280 106 30% 300 283 280 277 30% 266 266 49 25% 49 25% 73 92 73 92 106 200 172 88 107 20% 200 172 88 20% 76 59 76 59 92 46 14 % 15% 46 15% 80 80 11 % 100 53 58 10% 100 53 58 10% 66 66 31 154 5% 31
Slide 7: Key figures
Key figures Keyfigures in % of average BTA Net interest - stabile positive development 2,5 % • Improved net interest with 8 bps, from 1.76 to 1.84% from 31.12.2015 1,75% 1,84% Net provisions 1,5 % • 0.31% - stabile level. 0,95% Operating costs • Flattening 0,5 % 0,31% 0,25% Moderate write-downs on l
Slide 8: Profit & loss
Profit & loss Helgeland Sparebank (group) Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Net interest- and credit provision earnings 112 114 116 121 125 128 133 Net provision earnings 21 20 23 22 20 22 22 Other operatios income 2 1 6 2 2 1 1 Ordinary operations cost 67 63 66 66 65 69 65 Res
Slide 9: Net interest
Net interest Development net intr.(mnok.) and % of average BTA Increased net interest 150 Still strong competition 133 125 128 regarding price 121 113 117 • Maintained net interest in %. 100 1,84% 1,83% 1,85% • Interest costs subordinated 1,77% 1,77% 1,77% bonds are recognized in equity in 2016, pro
Slide 10: Operating costs
Operating costs Development operating cost (mnok) and % of income Development operating cost (mnok) and % of BTA 100 300 270 263 233 239 74 75 66 69 199 63 65 65 200 50 49,3% 47,9% 43,6% 41,6% 38,3% 36,8% 100 25 0,99% 0,95% 1,01% 1,03% 0.95% 0 0 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 2012 2
Slide 11: Balance
Main features Profit & loss Balance Lending Deposits Funding Solidity Emission Appendices 11 En drivkraft for vekst på Helgeland
Slide 12: Balance
Balance Helgeland Sparebank (konsern) 30.09.16 30.09.15 Endring Likvider 655 461 194 Netto Utlån 24 266 22 012 2 254 Verdipapirer og aksjer 3 600 3 713 -113 Øvrige aktiva 345 372 -27 Eiendeler 28 866 26 558 2 308 Innskudd fra kunder 15 651 14 093 1 558 Pengemarkedfinansiering 9 718 9 489 229 Øvrig g
Slide 13: Lending
Main features Profit & loss Balance Lending Deposits Funding Solidity Emission Appendices 13 En drivkraft for vekst på Helgeland
Slide 14: Credit growth
Credit growth 12-month credit growth Commentary 20% Credit growth • 12-month growth 10.1 (5.4)% 15% PM share 10% 10,1 % • Target minimum 60% • Per Q3 67.9 (67.5)% 5% 5,0 % Locally in Helgeland • Per Q3 84.1 (83,6)% 0% -5% 2012 2013 2014 2015 30.09.16 HSB Helgeland total Statistic Norway total 14 En
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% 10% 10% 10,8 % 8,9 % 5% 5% 6,1 % 3,0 % 0% 0% -5% -5% 2012 2013 2014 2015 30.09.16 2012 2013 2014 2015 30.09.16 HSB Helgeland corp. HSB Helgeland pers. Commentary 12-mont growth 10.1 (
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 12,9 % corporate customers 5,7 % Farming and forestry 5,3 % Share CM of total lending 32.1 (32.5)% or MNOK 7 824 4,1 % Construction and power (7 187) 4,3 % 3,2 % 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 110 (122) 150 Which equals 0.5 (0.6)% of gross loans 100 Increased group write-downs with MNOK 8 so far this year. • Overall
Slide 18: Deposits
Main features Profit & loss Balance Lending Deposits Funding Solidity Emission Appendices 18 En drivkraft for vekst på Helgeland
Slide 19: Deposit growth
Deposit growth 12-month deposit growth Commentary 20% 12-month growth 11.1 (1.3)% Norge Helgeland 8,1 % 15% 91,2 % PM share • Per Q3 58.2 (60.3)% 10% 11,1 % Locally in Helgeland •Per Q3 91.2 (91.2)% 5% 5,6 % BM Deposit ratio 0% PM 58,2 41,8 • Target minimum 60% % % • Per Q3 64.2 (63.7)% -5% 2012 201
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% 15% 20% 16,9 % 10% 15% 10% 6,9 % 7,2 % 5% 5,2 % 5% 0% 0% -5% -10% -5% 2012 2013 2014 2015 30.09.2016 2012 2013 2014 2015 30.09.2016 HSB Helgeland Corp. HSB Helgeland pers. Commenta
Slide 21: Deposits CM
Deposits CM Customer deposits Commentary Well diversified deposit 9,6 % Municipalities 10,9 % portfolio in the CM 3,1 % Farming and forestry 6,1 % Share CM 41.8(39.7)% or Transport and services 9,7 % MNOK 6 544 (5 597) of total 8,7 % deposits 5,2 % Construction and power 5,0 % 3,7 % Deposits from mu
Slide 22: Funding
Main features Profit & Loss Balance Lending Deposits Funding Solidity Emission Appendices 22 En drivkraft for vekst på Helgeland
Slide 23: Funding
Funding Commentary Funding development (MNOK) 120% Deposits are the most important source for funding, 100% 15,1 % 13,5 % 15,0 % 14,3 % 16,5 % Deposit and CB increased 80% share 30,5 % 26,8 % 25,9 % 24,4 % 21,4 % 60% 40% 54,8 % 56,9 % 59,2 % 60,1 % 49,7 % 20% 0% 2012 2013 2014 2015 30.09.2016 Deposi
Slide 24: Funding
Funding Commentary Maturity of loans (MNOK) Good and long term funding 2.500 Share long term funding 2.000 81.2% (81.4)% 500 Combined duration of 2.7 1.500 388 1.000 1.000 (2.6) years. Duration in the mortgage company 3.3 years 1.000 900 1.500 Increase in senior 2021 1.265 concerns a new loan from 5
Slide 25: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS 126,0 % Stress test HEBO Helgeland boligkreditt AS, fully owned by Helgeland Sparebank 124,0 % Net profit MNOK 27.5 (27.1). 122,0 % Gross loans amounts to MNOK 5 445 120,0 % (4 312) and CB MNOK 4 633 (3 673) 118,0 % CET1 ratio of 17.5 (16.2)% (standard 116,0 % method with 3
Slide 26: Liquidity buffers
Liquidity buffers Sector distribution interest portfolio Commentary CB 1 39% The liquidity buffers amounts to 41% NOK 3.7 (3.8) bn. – equal 13.0 15% Finance, Norway 8% (14.3)% of total assets. The 19% buffer capital consists of of cash, Government 14% deposits in Bank of Municipalites 18% Norway/ban
Slide 27: Solidity
Main features Profit & loss Balance Lending Deposits Funding Solidity Emission Appendices 27 En drivkraft for vekst på Helgeland
Slide 28: Capital adequacy
Capital adequacy Commentary Development capital adequacy Capital ratio 20% • CET1 13.8 (13.9)% • Core capital 15.1 (15.3)% 18% • Total capital 17.0 (17.3)% Profit is not included in the calculation. If 16% we take in 60% of the profit, CET1 1,8 % becomes 15.0%. One time effect 1,3 % conversion of pe
Slide 29: Emission
Main features Profit & loss Balance Lending Deposits Funding Solidity Emission Appendices 29 En drivkraft for vekst på Helgeland
Slide 30: Prospects and priorities
Prospects and priorities Result • Continued focus on profitable growth and width sale • Particular market window in Helgeland provides opportunities for profitable growth • Offensive sales organization ensures width sale • Focus on good consulting in the customer dialogue • Maintaining the net inter
Slide 31: Particularly high activity expected over the next 12-18 months
Particularly high activity expected over the next 12-18 months • Helgeland is less affected by the downturn in the oil/oil service than many other parts of the country. The activity as a whole is therefore higher than nationally. In addition, DNB has closed several offices in the region, providing e
Slide 32: The population in Helgeland have increased steadily since 2006-2008
The population in Helgeland have increased steadily since 2006-2008 # Personer 1811 Bindal 86 500 1812 Sømna 1813 Brønnøy 1815 Vega 86 000 1816 Vevelstad 1818 Herøy (Nordl.) 85 500 1820 Alstahaug 1822 Leirfjord 1824 Vefsn 85 000 1825 Grane 1826 Hattfjelldal 1827 Dønna 84 500 1828 Nesna 1832 Hemnes 1
Slide 33: 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 from January 1st 2016 to October 1st 2016 was 13.0%. • Property price increase in Helgeland was 7.6% in the
Slide 34: … supported by low unemployment
… supported by low unemployment Unemployment in %, Norway, Nordland and Helgeland Commentary 3,50% Unemployment in Helgeland 3,30% follows the national trend while 3,10% Helgeland lays lower than 2,90% Nordland overall and Norway 2,70% overall. 2,50% 2,30% Overall unemployment in 2,10% Helgeland is
Slide 35: Overview of planned transactions
Overview of planned transactions Private placement • Private placement with gross proceeds up to MNOK 130, with the aim to support strong growth in the region, expected the next 12-18 months. • The private placement is expected published along with Q3/16 October 24th at 16.30 (CET). • "Overnight Acc
Slide 36: New ownership ratio (example)
New ownership ratio (example) Commentary A placement of MNOK 130 will increase the ownership ratio from Ownership ratio per 30.06.16 Ownership ratio upon emission 75,1 % to 76,5 %, based on the balance per June 30th 2016, and taken to account the interim report. (If the new ownership ratio was calcu
Slide 37: Profit contribution from increased lending (example)
Profit contribution from increased lending (example) Commentary Profit contribution from increased lending 40,0 36,0 MNOK 130 will give the bank growth NOKm 29,2 capital to grow risk-weighted assets 30,0 24,3 (RWA) of NOK 0,9 bn. (CET1 target: 14.5 %) 20,0 CM PM If all the weight capacity is allocat
Slide 38: Private placement
Private placement • Successful placement • Heavily oversubscribed • Good support from existing and new owners • Issue price NOK 70 • Repair offering of up to approximately MNOK 22 38 En drivkraft for vekst på Helgeland
Slide 39: Thank you for your attention!
Thank you for your attention! EN DRIVKRAFT FOR VEKST 39 En drivkraft for vekst på Helgeland
Slide 40: Appendices
Main features Profit & loss Balance Lending Deposits Funding Solidity Emission Appendices 40 En drivkraft for vekst på Helgeland
Slide 41: Helgeland Sparebank
Helgeland Sparebank Helgeland Sparebank is the12th. largest savings bank in Norway. 100% Vision: a driving force for growth in Helgeland. 48% Business concept: to be a profitable and the leading bank in Helgeland. The bank provides financial products and services to consumers, small and medium
Slide 42: Profitable growth supports financial goals
Profitable growth supports financial goals New capital target decided in September 2016. Other financial targets are unchanged. To provide the owners a good and stable long term yield in the form of dividends and capital appreciation. The aim is equal treatment of our two owner groups. Up to 50 % of
Slide 43: HELG – the largest owners
HELG – de 20 største eierne Per 30.09.16 Numbers % share Numbers % share Sparebankstiftelsen Helgeland 6.599.598 35,3 % Verdipapirfondet Pareto 269.000 1,4 % Pareto AS 1.570.836 8,4 % Bergen Kommunale pensj. 266.380 1,4 % UBS AG, London Branc A/C 1.198.900 6,4 % Catilina invest AS 198.008 1,1 % Merr
Slide 44: HELG – EC development and liquidity
HELG – EC development and liquidity The price of HELG per 30.09.16. was NOK 67.50 per EC. This is an increase of NOK 8.50 since year end. 44 En drivkraft for vekst på Helgeland
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