SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Q1 2021 Earnings Presentation
42 slides from SpareBank 1 Helgeland's earnings presentation, 2021
Slide 1: Presentation Q1 2021 - A driving force for growth in Helgeland
Presentation Q1 2020 - A driving force for growth in Helgeland
Slide 2: Presentation per 31.03.21 (SBH Group)
Presentation per 31.03.21 (SBH Group) Main Features Hanne Nordgaard Events Q1 Chief Executive Officer Profit & loss Lending Deposits Funding Sverre Klausen Solidity Chief Financial Officer Prospects and priorities Appendices
Slide 3: Main features per 31.03.21
Main features per 31.03.21 Gross profit MNOK 93 (40) ROE* 8.2 (2.8) % Total assets 34.6 (33.6) bn Solidity CET1 19.9 (17.2) % *Adjusted for hybrid capital
Slide 4: Financial targets
Financial targets ROE target of 11 % from 2023. In the years 2020, 2021, and ROE the transformation year 2022 it is not expected to fulfil the long >11 % term target for ROE. New target for CET1 is fulfilled by the end of the quarter, and CET1 takes in to account expected increase in buffer targets
Slide 5: Unemployment
Unemployment Under the covid-19 pandemic, the unemployment increased significant from Q4 2019 to Q1 Unemployment in %, Norge, Nordland and Helgeland 2020. 12,00% Nationally, 119 300 people, or 4.2 11,00% % of the work force was registered unemployed at the end 10,00% of Mars. This is an increase of
Slide 6: Housing price development
Housing price development Price development - sold villas in NOK/sqm Price development - sold apartments in NOK/sqm 80.000 100.000 90.000 70.000 80.000 60.000 70.000 Oslo 50.000 Oslo 60.000 Trondheim Trondheim 40.000 Bodø 50.000 Bodø Helgeland 40.000 30.000 Helgeland 30.000 20.000 20.000 10.000 Q1 2
Slide 7: Events Q1
Main features Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 8: Events Q1
Events Q1 • Implementation of phase 1 in the project Helgeland 1 medio Mars with associated transfer to the SpareBank 1 alliance platforms • Stable profit from the basis operation • Net interest income of MNOK 144, down MNOK 6 from last quarter. Mainly related to high liquidity entrance and a leave
Slide 9: Status entrance in SpareBank1/SamSpar and the acquisition from SNN
Status entrance in SpareBank1/SamSpar and the acquisition from SNN • Approximately 300 coworkers in SpareBank 1 Helgeland, Sparebank 1 Utvikling, SamSpar, SpareBank 1 NordNorge and Tieto-Evry is involved in this project. • Milestones 2021: • 1. mars SpareBank 1 Helgeland bought 15 % of the shares in
Slide 10: Profit & loss
Main features Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 11: Profit
Profit Profit development Profit Q1 Gross profit MNOK 93 348 • Net ROE 8,2 % (hybrid excluded) 110 135 185 96 65 76 85 93 49 150 8,2% 94 93 93 40 -34 2018 2019 2020 31.03.21 Q1 Q2 Q3 Q4 ROE %
Slide 12: Gross profit
Gross profit Change in gross profit (MNOK) Gross profit MNOK 93 100 20,0 100 • Reduced net interest as a consequence of price 90 90 competition and adaption in relation to the interest 80 2,0 3,0 - 80 rate changes in 2020. High liquidity entrance in Q1 70 39,0 70 provides a slightly weaker net inter
Slide 13: Net interest
Net interest Development net intr.(mnok.) and % of average BTA • Price competition and adaption in relation to the interest rate changes in 2020 provides a weaker net interest 159 150 than last year. 149 144 140 1,91% • High liquidity entrance in the first 1,76% quarter provides a slightly weaker ne
Slide 14: Commission income (MNOK)
Commission income (MNOK) 100 97 90 8 7 86 8 8 33 30 Guarantee commission 32 0,34% 29 Commission income insurance - 0,30% (general, life, saving and pension) 0,29% 0,28% 0,28% Commission income payment 28 59 60 services 50 2 49 13 In % of total assets 13 2017 2018 2019 2020 31.03.2021 Commission inco
Slide 15: Operating costs
Operating costs Operating cost (mnok) and % of income Costs are slightly higher than on the banks 77 target for cost level of 40 % of total income. This is as expected, and is related to additional costs as a consequence of the Helgeland 1 40 project and lower income. 6 23 90 3 80 78 73 73 62,4% 58,
Slide 16: Development total assets and man-years
Development total assets and man-years 177 177 177 177 Total assets per man-year (MNOK) 168 164 34,1 34,6 246 33 33,2 230 232 152 31,9 220 148 150 148 215 29,4 143 141 193 27,1 26 25,8 24,6 165 22,8 154 139 145 20,1 130 115 Number of man years Total assets (billion NOK) Total assets per man-year (MN
Slide 17: Loss on commitments
Loss on commitments MNOK 3 in loss so far this year. The write-down is partly a consequence of calculated loss and partly a product of statements of earlier depreciated commitments. The write- downs this quarter is considered low. 0,89% 0,24% 0,18% 0,04% 249 65 51 3 2018 2019 2020 31.03.21 Net loss
Slide 18: Lending
Main features Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 19: 12-month credit development
12-month credit development Lending corporate market Lending retail market 9.496 18.691 18.831 18.631 8.903 -4.6 % -6.2 % 8.495 0.7 % -1.1 % 31.03.19 31.03.20 31.03.21 31.03.19 31.03.20 31.03.21 The decrease in lending for the corporate market is mainly related to the leave of one large corporate co
Slide 20: Credit development
Credit development 12-month credit development corporate market 12-month credit development retail market 16% 16% 11% 11% 6% 6% 1% 1% -4% -4% -9% -9% 2018 2019 2020 31.03.2021 2018 2019 2020 31.03.2021 SBH Helgeland corp. Statistic Norway corp. SBH Helgeland pers. Statistic Norway pers. 12-month cre
Slide 21: Lending CM
Lending CM Lending distributed in sector 11,1 % Good diversification in the CM Real estate 10,9 % lending portfolio and loyal corporate customers 5,0 % Farming and forestry 4,9 % Share CM of total lending 31.3 4,1 % (32.1)% or MNOK 8 495 Construction and power 3,7 % (8 903) 6,1 % Transport and servi
Slide 22: 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 MNOK 368, an 600 increase of MNOK 52 from year end. 500 The increase is mainly related to changes in the default commitment definition. It is individual loss
Slide 23: Deposits
Main features Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 24: Deposit development
Deposit development Deposit development corporate market (12-month) Deposit development retail market (12-month) 35% 20% 30% 25% 15% 20% 10% 15% 10% 5% 5% 0% 0% -5% -10% -5% 2018 2019 2020 31.03.2021 2018 2019 2020 31.03.2021 SBH Helgeland Corp. Statistic Norway Corp. SBH Helgeland pers. Statistic N
Slide 25: Deposit development
Deposit development 100 % 23 000 000 000,00 90 % 80 % 21 000 000 000,00 70 % 19 000 000 000,00 60 % Over 8 mill 50 % 17 000 000 000,00 Mellom 2 og 8 mill. 40 % Mellom 1 og 2 mill. 15 000 000 000,00 30 % Under 1 mill. 20 % 13 000 000 000,00 10 % 0% 11 000 000 000,00 jul. 15 jul. 16 jul. 17 jul. 18 ju
Slide 26: Deposits CM
Deposits CM Customer deposits Well diversified deposit portfolio Municipalities 11,0 % 12,8 % in the CM 10,3 % Transport and services 13,0 % Share CM 43.6 (41.7)% or MNOK Construction and power 3,5 % 8 810 (7 523) of total deposits 3,8 % Farming and forestry 1,7 % 3,0 % Deposits from municipalities
Slide 27: Funding
Main features Events Q1 Profit & Loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 28: Funding
Funding Funding development 2,1 % 2,5 % 2,5 % 2,6 % 2,5 % 19,3 % 22,0 % 22,2 % 21,1 % 19,5 % 11,3 % 11,9 % 18,7 % 17,1 % 12,2 % 63,1 % 64,9 % 66,2 % 59,9 % 58,4 % 2017 2018 2019 2020 31.03.2021 Deposits Senior CB FO
Slide 29: Funding due
Funding due High quality and long term Maturity of loans (MNOK) funding Share long term funding 81.6% (93.1)% Combined duration of 2.4 1.500 1.500 (2.7) years. Duration in the 1.500 mortgage company 2.5 years 620 525 920 1.000 800 403 500 300 2021 2022 2023 2024 2025 2026 2027 2028 2029 Senior Cover
Slide 30: Liquidity buffer
Liquidity buffer Interest bearing securities: Sector distribution interest portfolio • Duration portfolio 1.5 (1.6) years • 98.6 % rated A- or better • 98.3 % CB or state-/ municipal 31% guaranteed bonds CB 1 30% Municipality papers are actively used 46% as short term liquidity placements. Municipal
Slide 31: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland boligkreditt AS, fully owned by SpareBank 1 Helgeland • Net profit MNOK 14.3 (15.7) • CET1 ratio of 19.0 (17.3)% • standard method with 35% mortgage weights • Gross loans amounts to MNOK 7 197 (7 753) and CB MNOK 6 230 (6 773) Good security in the lending portfoli
Slide 32: Solidity
Main features 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% Capital ratio 2,6 % 22% 2,6 % • CET1 19.9 (17.2)% 20% 2,5 % 1,7 % • Core capital 21.6 (18.9)% 1,7 % • Total capital 24.3 (21.4)% 18% 1,7 % 2,4 % 1,7 % 16% 1,6 % 1,6 % Leverage ratio: 10.4 (9.8)%. 14% 19,9 % 18,8 % 17,2 % 12% 15,8 % 15,3 % 10% 8% 2017
Slide 34: HELG – the largest owners
HELG – the 20 largest owners Parent bank Per 31.03.21 Number % share Number % share Sparebankstiftelsen Helgeland 7 315 020 35.0 % Catilina Invest AS 296 546 1.4 % Pareto Invest AS 1 949 392 9.3 % VPF Nordea Avkastning 240 370 1.2 % VPF Nordea Norge 1 067 487 5.1 % VPF Nordea Kapital 238 245 1.1 % V
Slide 35: HELG – the largest local owners
HELG – the 20 largest local owners Geografical owner structure (%) 15,4 14,8 14,7 13,1 12,5 14,3 14,2 14,0 41,8 42,9 42,4 43,9 44,4 42,7 42,7 43,1 42,8 42,3 42,9 43,0 43,1 43,0 43,1 42,9 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Local owners (Helgeland) Other norwegian owners F
Slide 36: HELG – EC development and liquidity
HELG – EC development and liquidity Development HELG vs OSEEX - last 12 months 80% 180.000 31.12.18 31.12.19 31.12.20 31.03.21 70% 160.000 EC fraction opening balance 76.3 % 76.4 % 76.4 % 76.3 % 60% 140.000 Number of EC's 20.9 20.9 20.9 20.9 50% 120.000 price 69.5 84.0 86.0 107 Volume HELG 40% 100.0
Slide 37: Prospects and priorities
Main features Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 38: Prospects ahead
Prospects ahead ▪ Positive future ahead despite of corona ▪ Low unemployment, large public and private projects, rising housing prices and stable turnover numbers is factors that supports this. ▪ Entrance in the SpareBank1 alliance. ▪ The associated transactions will affect the operations 2021, and
Slide 39: Appendices
Main features Events Q1 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 40: Profit & loss
Profit & loss SpareBank 1 Helgeland (group) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Net interest- and credit provision earnings 142 145 156 159 159 140 149 150 144 Net provision earnings 23 22 25 30 24 24 23 26 28 Other operatios income 2 0 1 2 1 0 2 2 1 Ordinary oper
Slide 41: 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 42: 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 Tone Helen Hauge Web www.sbh.no Birg
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