SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q3 2018 Earnings Presentation
52 slides from SpareBank 1 Helgeland's earnings presentation, 2018
Slide 1: En drivkraft for vekst på Helgeland
Presentation Q3 2018 En drivkraft for vekst på Helgeland 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation per 30.09.18 (HSB Group)
Presentation per 30.09.18 (HSB Group) Main Features Hanne Nordgaard Helgeland Chief Executive Officer Profit & loss Lending Deposits Funding Sverre Klausen Chief Financial Officer Solidity Prospects and priorities Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main features per 30.09.18
Main features per 30.09.18 Gross profit MNOK 219 (276) ROE 7.2 (9.2) % Total assets 32.8 (30.9) bn Solidity CET1 14.9 (15.0) % Add. 50 % of net profit CET1 15,4 % Lower result after loan losses last quarter 3 En drivkraft for vekst på Helgeland
Slide 4: Main features Helgeland Invest AS
Main features Helgeland Invest AS, presentation by CEO Ståle Indregård Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 4 En drivkraft for vekst på Helgeland
Slide 5: Property price development
Property price development Price development - sold apartments in NOK/sqm 80.000 Price development was 70.000 negative 3nd quarter, -0.7 in Helgeland and 0.2 % in 60.000 Oslo. Oslo 50.000 Trondhei 40.000 m Bodø 30.000 20.000 10.000 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2
Slide 6: Stabile property price development
Stabile property price development Price development - sold villas in NOK/sqm Price increase in Helgeland 70.000 was 0.5 % and -1.3 % in 60.000 Oslo 3nd quarter 50.000 Oslo 40.000 Trondheim Bodø 30.000 Helgeland 20.000 10.000 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2
Slide 7: Unemployment
Unemployment Unemployment in %, Norge, Nordland og Unemployment in Helgeland Helgeland (1,6%) and in Nordland(1,7%) 3,50% is lower than Norway(2,3%) 3,25% overall. 3,00% 2,75% 2,50% 2,25% 2,00% 1,75% 1,50% 1,25% 1,00% Norge Nordland Helgeland 7 En drivkraft for vekst på Helgeland
Slide 8: Profit & loss
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 8 En drivkraft for vekst på Helgeland
Slide 9: Result
Result 350 Change in gross profit (MNOK) 350 8,0 -4,0 7,0 -75,0 Good result 300 4,0 3,0 300 Gross profit MNOK 219 250 250 200 200 • Higher write-downs on lending • Increased income from financial 150 150 investments 276 100 219 100 • Increased other income, sales of building and plot 50 50 0 0 9 En
Slide 10: Profit
Profit Profit developement (MNOK) Result 30.09.18 500 452 40% Gross profit MNOK 219 35% • Net ROE 7.2 % 400 85 348 30% Gross profit Q3 283 280 107 • Write-down stock value Frende Holding 300 72 25% (reacted value) MNOK 15 and Brage Finans 49 219 20% MNOK 4,6 92 200 106 101 • Profit share Helgeland I
Slide 11: Net interest
Net interest Development net intr.(mnok.) and % of average BTA Decrease in 2018 200 • Still strong competition regarding price, especially mortgages 142 147 141 141 140 150 • Change in interest rate from 14th of 1,84% 1,84% 1,79% November will increase the net 1,75% 1,70% interest rate. 100 50 0 Q3
Slide 12: Provision
Provision Development net provision income 0,31% 0,33% 0,30% 0,28% 0,27% 82 87 85 86 66 2014 2015 2016 2017 30.09.18 Net provision income (MNOK) In % of BTA 12 En drivkraft for vekst på Helgeland
Slide 13: Helgeland Sparebank - product companies
Helgeland Sparebank - product companies 7.9 % Frende is owned by 15 individual saving banks. Frende Insurance consist of the companies Frende Life insurance and Frende damage insurance. The company is owned by Helgeland Sparebank, thirteen other individual saving banks 7.5 % and Must invest AS. The
Slide 14: Operating costs
Operating costs Operating cost (mnok) and % of income 100 Costs in % of income 75 71 72 69 71 • Cost in % of income wo far this year was 39.2 % 67 50 38,8% 39,6% 41,4% 42,5% 34,3% 25 0 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Operation cost Operation cost % 14 En drivkraft for vekst på Helgeland
Slide 15: Loss on commitments
Loss on commitments Loss In relation to a restructuring on 0,41 % a corporate commitment, a single loss of MNOK 40 got been 0,25 % recognized in the 2nd. quarter. 0,23 % In this quarter additional MNOK 0,14 % 0,15 % 0,10 % 15 in is increased on the same 0,04 % corporate commitment. 48 32 36 66 8 83
Slide 16: Profit & loss
Profit & loss Helgeland Sparebank (group) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Net interest- and credit provision earnings 135 141 142 147 141 141 140 Net provision earnings 20 22 21 23 22 22 22 Other operatios income 1 1 0 2 1 3 6 Ordinary operations cost 69 68 71 67 72 69 71 Res
Slide 17: Lending
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 17 En drivkraft for vekst på Helgeland
Slide 18: Growth
Growth Lending retail market Lending corporate market 18.410 9.096 17.434 8.2 % 8.468 7.4 % 5.1 % 5.6 % 16.593 7.824 30.09.16 30.09.17 30.09.18 30.09.16 30.09.17 30.09.18 18 En drivkraft for vekst på Helgeland
Slide 19: Credit growth
Credit growth 12-month credit growth Credit growth HSB 20% • 12-month growth 6.2 (6.3) % 15% Locally in Helgeland • Per Q3 83.0 (84.5) % 10% PM share 5% 6,2 % • Target minimum 60 % 5,8 % • Per Q3 66.9 (67.3) % 0% -5% 2014 2015 2016 2017 30.09.18 HSB Helgeland total Statistic Norway total 19 En drivk
Slide 20: Credit growth CM
Credit growth CM 12-month credit growth corporate market 20% 12 month growth CM 7.4 (8.2) % 15% 10% 7,4 % 5% 6,0 % 0% -5% 2014 2015 2016 2017 30.09.18 HSB Helgeland corp. Statistic Norway corp. 20 En drivkraft for vekst på Helgeland
Slide 21: Credit growth RM
Credit growth RM 12-month credit growth retail market 20% 12 month growth RM 5.6 (5.1) % 15% • The bank’s market shares are stable 10% 5,8 % 5% 5,6 % 0% -5% 2014 2015 2016 2017 30.09.18 HSB Helgeland pers. Statistic Norway pers. 21 En drivkraft for vekst på Helgeland
Slide 22: Lending CM
Lending CM Lending distributed in sector Good diversification in the CM lending portfolio and loyal 12,6 % corporate customers Real estate 11,6 % 5,3 % Share CM of total lending 33.1 Farming and forestry (32.7) % or MNOK 9 096 5,2 % 5,0 % (8 468) Construction and power 4,7 % 3,3 % Transport and serv
Slide 23: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss Net non-performing and other impaired commitments amounts to 600 MNOK 488 an increase of MNOK 305 500 since year end. This amounts to 1.8 % of gross loans 400 The increase in the last quarter is 300 mainly due to the b
Slide 24: Deposits
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 24 En drivkraft for vekst på Helgeland
Slide 25: Deposit growth
Deposit growth 12-month deposit growth 12-month growth 2.1 (6.8) % 20% RM share • Per Q3 58.2 (56.8) % 15% Locally in Helgeland 10% •Per Q3 89.3 (90.9) % Deposit ratio 5% 3,0 % • Target minimum 60 % 2,1 % • Per Q3 62.1 (64.6) % 0% -5% 2014 2015 2016 2017 30.09.18 HSB total Helgeland Statistic total
Slide 26: Deposit growth CM
Deposit growth CM 12-month deposit growth corporate market 35% 12-month growth CM -1.1 (10.3) % 30% 25% 20% 15% 10% 5% 0% 0,9 % -1,1 % -5% -10% 2014 2015 2016 2017 30.09.18 HSB Helgeland Corp. Statistic Norway Corp. 26 En drivkraft for vekst på Helgeland
Slide 27: Deposit growth RM
Deposit growth RM 12-month deposit growth retail market 20% 12-month growth RM 4.6 (4.3) % 15% 10% 5,3 % 5% 4,6 % 0% -5% 2014 2015 2016 2017 30.09.18 HSB Helgeland pers. Statistic Norway pers. 27 En drivkraft for vekst på Helgeland
Slide 28: Deposits CM
Deposits CM Customer deposits Municipalities 11,4 % Well diversified deposit 10,3 % portfolio in the CM Transport and services 10,1 % 10,6 % 6,5 % Share CM 41.8 (43.2) % or Construction and power 3,5 % MNOK 7 140 (7 219) of total Farming and forestry 4,8 % deposits 5,2 % Real estate 3,9 % 5,6 % Depo
Slide 29: Deposit development
Deposit development 100 % 18 000 000 000 90 % 17 000 000 000 80 % 70 % 16 000 000 000 60 % 15 000 000 000 Over 8 mill 50 % Mellom 2 og 8 mill. 14 000 000 000 40 % 30 % Mellom 1 og 2 mill. 13 000 000 000 20 % Under 1 mill. 12 000 000 000 10 % 0% 11 000 000 000 okt. 14 okt. 15 okt. 16 okt. 17 jul. 14
Slide 30: Funding
Main features Helgeland Profit & Loss Lending Deposits Funding Solidity Prospects and priorities Appendices 30 En drivkraft for vekst på Helgeland
Slide 31: Funding
Funding Funding development (MNOK) 120% 100% 2,2 % 2,2 % 2,8 % 2,1 % 2,4 % 15,0 % 13,4 % 17,5 % 19,3 % 24,1 % 80% 25,9 % 25,7 % 19,2 % 18,7 % 19,6 % 60% 40% 56,9 % 58,7 % 60,5 % 59,9 % 53,9 % 20% 0% 2014 2015 2016 2017 30.09.18 Deposits Swap agreement Senior CB FO 31 En drivkraft for vekst på Helgel
Slide 32: Funding
Funding Maturity of loans (MNOK) 3.000 Good and long term funding 2.500 Share long term funding 90.2 (83.2) % 2.000 1.000 1.500 1.500 Combined duration of 2.9 1.500 1.500 (2.9) years. Duration in the 526 mortgage company 3.2 years 1.000 500 200 0 2019 2020 2021 2022 2022 2024 Senior CB 32 En drivkra
Slide 33: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland boligkreditt AS, fully owned by Helgeland Sparebank • Net profit MNOK 39.3 (34.5). • CET1 ratio of 19.7 (15.9) % • standard method with 35% mortgage weights • Gross loans amounts to MNOK 6 998 (6 074) and CB MNOK 6 231 (5 304) Good security in the lending portfoli
Slide 34: Solidity
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 34 En drivkraft for vekst på Helgeland
Slide 35: Liquidity buffer
Liquidity buffer Sector distribution interest portfolio 37% CB 1 29% 3% Interest bearing securities: Finance, Norway 0% • Duration portfolio 2.0 (2.1) years 15% • 99 % rated A- or better Government 18% • 97 % CB or state-/ municipal 40% guaranteed bonds Municipalites 51% 1% Municipality papers are a
Slide 36: Capital adequacy
Capital adequacy Development capital adequacy Capital ratio 22% • CET1 14.9 (15.0) % 20% • Core capital 16.5 (16.7) % 1,8 % • Total capital 19.0 (18.5) % 18% 1,7 % 2,5 % 1,8 % 2,6 % 2,5 % 1,6 % 1,6 % If 50 % of the profit is included, CET1 16% 2,4 % 1,4 % 1,6 % would be 15.4 % and total capital 19.5
Slide 37: HELG – the 20 largest owners
HELG – the 20 largest owners Parent bank Per 30. 09. 18 Numbers % share Numbers % share Sparebankstiftelsen Helgeland 7.255.020 34,8 % Landkreditt Utbytte 300.000 1,4 % Pareto AS 1.949.392 9,3 % Catilina Invest AS 256.046 1,4 % VPF Nordea Norge 1.407.987 6,7 % VPF Nordea Avkastning 244.270 1,2 % Mer
Slide 38: HELG – the 20 largest local owners
HELG – the 20 largest local owners Parent bank Per 30. 09. 18 Numbers % share Antall % % share Sparebankstiftelsen Helgeland 7.255.020 34,76 % Torghatten ASA 16.824 0,08 % Helgeland Kraft AS 377.691 1,81 % Harald Svendsen 13.710 0,07 % Vigner Olaisen AS 144.653 0,69 % Dan Erik Kjellnø 13.000 0,06 %
Slide 39: HELG – EC development and liquidity
HELG – EC development and liquidity 2016 2017 Q3 2017 Q3 2018 EC fraction 75.1% 76.5% 76.5% 76.3% Number of EC's 20,9 20,9 20,9 20,9 Stock exchange price 81,0 88,0 80,5 84,5 Stock value 1.692,9 1.839,2 1.682,5 1.766,1 Accounted equity per EC 101 108 106 112 Profit per EC 13,5 9,5 7,6 6,5 Dividend pe
Slide 40: Prospects and priorities
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 40 En drivkraft for vekst på Helgeland
Slide 41: Strategy – strategic platform 2019-2021
Strategy –strategic platform 2019-2021 Vision Strategic goals (4 that are critical to fulfilling the vision) Priority strategic actions/projects Business idea (1-3 per strategic goal) Identity Credit- Market IT – Customer - strategy strategy Strategy concept PM • Financial Communication- HR strategy
Slide 42: A driving force for growth on Helgeland
Vision A driving force for groth on Helgeland 42 En drivkraft for vekst på Helgeland
Slide 43: Business idea
Business idea From what we have today: Helgeland Sparebank shall be a profitable and leading bank in Helgeland. The bank will sell financial products and services to residential customers, small and medium-sized businesses, municipalities and institutions linked to Helgeland. Something simpler: Helg
Slide 44: Helgeland Sparebank Real and engaged - simply
Identity Helgeland Sparebank Real and engaged - simply 44 En drivkraft for vekst på Helgeland
Slide 45: Strategic goal
Strategic goal Finance Community Involvement Helgeland Sparebank will have a profitability level with Helgeland Sparebank will be a visible driver for growth and comparable banks cooperation at Helgeland Organization Market Position Helgeland Sparebank should be an attractive and Helgeland Sparebank
Slide 46: Financial targets
Financial targets ROE: CET1: 10 % 15.0 % Dividend ratio: Cost growth: 50 % <= 1 % Of the dividend basis 46 En drivkraft for vekst på Helgeland
Slide 47: Prospects and priorities
Prospects and priorities Prospects – Strategies: revision / establishment – Strategic projects / measures • Profitability project • Leadership Development • Impetus concept – Target and measurement – Implementing 47 En drivkraft for vekst på Helgeland
Slide 48: Appendices
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 48 En drivkraft for vekst på Helgeland
Slide 49: Balance
Balance Helgeland Sparebank (group) 30.09.18 30.09.17 Change liquid assets 598 630 -32 Net lending to customers 27.254 25.749 1.505 Certificates and shares 4.664 4.209 455 Other assets 286 342 -56 Assets 32.802 30.930 1.872 Deposits from customers 17.077 16.721 356 Money market financing 11.267 10.2
Slide 50: Helgeland Sparebank – Subsidiary and associated companies
Helgeland Sparebank – Subsidiary and associated companies 100 % Helgeland Boligkreditt has concession as a credit company with permission to issue covered bonds. The company will ensure stable and long-term financing for the Group under competative conditions. Helgeland Invest AS is an investment co
Slide 51: Helgeland Sparebank
Helgeland Sparebank ➢ Vision: a driving force for growth in Helgeland. ➢ Business concept: to be a profitable and the leading bank in Helgeland. The bank provides financial products and services to consumers, small and medium-sized businesses, municipalities and other institutions related to Helgela
Slide 52: Contact information
Contact information Head office Board of directors Postal address Postboks 68, 8601 Mo i Rana Ove Brattbakk, chairman Visiting address Jernbanegata 15, 8622 Mo i Rana Bjørn Audun Risøy, deputy chairman Eva Monica Hestvik Phone number 75 11 90 00 Inga Marie Lund Web www.hsb.no Nils Terje Furunes Orga