SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Q2 2023 Earnings Presentation
40 slides from SpareBank 1 Helgeland's earnings presentation, 2023
Slide 1: Presentation Q2 2023
Presentation Q2 2023 - A driving force for growth in Helgeland
Slide 2: Presentation 30.06.23 (SBH group)
Presentation 30.06.23 (SBH group) Hanne Nordgaard Anne Ekroll Chief Executive Officer Chief Financial Officer
Slide 3: Main features
Intern - Helgeland • Main features
Slide 4: Financial targets
Intern - Helgeland Financial targets Profitable ROE The bank has a ROE target on level with comparable >11 % banks, p.t. 11 %. Solid CET1 The target for CET1 of 17.5 % includes a buffer of 1.3 %. >17.5 % Efficient Cost growth Long term cost target of 40 % of income C/I: <40 % Responsible Dividend ra
Slide 5: Main features per 30.06.23
Main features per 30.06.23 Gross Profit ROE* MNOK 331 (251) 11.3 (8.8) % *adjusted for hybrid capital Solidity Total assets CET 18,9 37.4 (39.2) mrd. Kr (19,1) %
Slide 6: Driving force for sustainable growth, competence and cooperation
Intern - Helgeland Driving force for sustainable growth, competence and cooperation Sustainability in the bank • New sustainability strategy was decided in December 2022. •The banks first sustainability report delivered for 2022, integrated in the annual financial report. •TDCF analysis of climate r
Slide 7: Profit & loss
Intern - Helgeland • Profit & loss
Slide 8: Summary Q2
Summary Q2 SpareBank 1 Helgeland (group) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net interest- and credit comission earnings 202 223 233 233 Net comission earnings 41 39 36 40 Other operatios income 4 0 2 4 Ordinary operations cost 95 101 101 100 Result basic operations 152 161 170 177 Write-downs lending a
Slide 9: Summary Q2
Intern - Helgeland Summary Q2 Stable basis operation, but the PLA is affected by increased write-downs. • Net interest of MNOK 233, at the same level as last quarter. • Net commission income of MNOK 44, an increase of MNOK 6 from last quarter. • Net value change on financial investments of MNOK 6, d
Slide 10: Good profit development
Intern - Helgeland Good profit development Profit development (MNOK) Profit 563 181 Strengthened gross profit of MNOK 331 (251) pr. 30.06.23 • ROE of 11.3 %* 331 (ROE is adjusted for hybrid capital) 131 264 15 147 78 104 11.3 % 78 184 147 93 2021 2022 2023 Q1 Serie4 Q3 Q4 ROE %
Slide 11: Solid profit
Intern - Helgeland Solid profit Gross profit is MNOK 80 higher than for the corresponding period last year. • Increase in net interest Change in gross profit (MNOK) 450 • Reduction in commission income is 36 -16 -44 related to bonus commission of -5 400 108 350 MNOK 9 recognized in Q1 2022. 300 250
Slide 12: Good development in net interest
Intern - Helgeland Good development in net interest • Net interest and commission income amounts to MNOK 233 in Q2, at the same level as last quarter. 7 6 4 • In % of average total assets, net 233 233 6 223 202 interest and commission income is 2.47% 2.47% 2.47 %, at the same level as last 2.32% qua
Slide 13: Stable commission income
Intern - Helgeland Stable commission income 46 41 8 38 39 Season variation Comission on loans transferred to 36 1 6 4 mortgage company • Increase in commission income from 8 2 1 7 payment services last quarter. 1 Guarantee commission 12 1 22 12 • Increase in commission income from 0.47% 12 the corre
Slide 14: Stable and healthy cost development
Intern - Helgeland Stable and healthy cost development. Operating cost (mnok) and % of income • The costs are within target (cost/income <40 %). 101 101 100 95 41.6 % 35.1 % 34.2 % 35.3 % Q3 2022 Q4 2022 Q1 2023 Q2 2023 Operation cost Operation cost %
Slide 15: Increased write-downs
Intern - Helgeland Increased write-downs 0.60% • MNOK 37 in write-downs in the 0.50% second quarter against MNOK 10 last quarter. 0.40% • Increased write-downs in the quarter with two of the bank’s 0.32% 0.30% corporate customers. 64 0.20% • It is not expected further write- 47 0.20% downs on the cu
Slide 16: Lending
Intern - Helgeland • Lending
Slide 17: Weak lending growth in RM in 2023 (SpaBol included)
Weak lending growth in RM in 2023 (SpaBol included) CM 26,8 % RM 73,2 % 44000 Development gross lending CM/RM (MNOK)) 39000 Development gross lending (MNOK) 39000 10 043 37000 9 968 9 863 9 573 34000 9 474 -1,0 % 4,1 % 1,1 % 0,8 % 35000 29000 33000 24000 37 426 37 408 37 347 36 867 36 810 19000 3100
Slide 18: Lending CM – good industry spread
Intern - Helgeland Lending CM – good industry spread Lending distributed in sector • Good diversified lending Real estate 10.5 % portfolio in the CM and loyal 11.6 % corporate customers. Share Farming and forestry 4.5 % CM of total lending 33.3 (29.6) % 4.8 % equals MNOK 9 825 (9 365) Construction a
Slide 19: Lending CM – Real estate
Intern - Helgeland Lending CM – Real estate • Low vacancy in all segments on the real estate side. Under coverage on Real estate - allocation pr segment housing and industrial areas. • 52 % of real estate categorized in low 9% 4% risk. 26 % in best middle risk class. 95 % 1% Boligeiendom 18 % of the
Slide 20: Non-performing and impaired commitments
Intern - Helgeland Non-performing and impaired commitments • Net non-performing and impaired commitments amounts to MNOK 369, Net defaulted and com. exp. to loss an increase of MNOK 125 in 2023. 600 • The increase is related to single 500 customers that have gone in default for various reasons. 400
Slide 21: Deposits
Intern - Helgeland • Deposits
Slide 22: Increase in deposits in the quarter
Increase in deposits in the quarter Deposit development (MNOK) 31 000 Deposit decelopment CM/RM (MNOK) 26 000 10 071 10 637 10 715 9 876 21 000 9 657 16 000 -2,2 % 10,1 % 0,7 % -6,0 % 25 377 25 327 25 129 24 731 24 152 11 000 15 256 14 855 14 662 14 492 14 495 6 000 -2,3 % 4,0 % 1,0 % -0,2 % -2,4 %
Slide 23: Good and stable deposit allocation
Good and stable deposit allocation 100 % 90 % Development deposits (MNOK) 27 000 80 % 25 000 70 % 23 000 60 % Over MNOK 8 21 000 50 % Between MNOK 2-8 19 000 40 % Between MNOK 1-2 17 000 30 % Under MNOK 1 15 000 20 % 13 000 10 % 11 000 0% feb. 20 sep. 19 okt. 21 jun. 23 aug. 22 des. 15 mar. 17 jun.
Slide 24: Deposits CM
Intern - Helgeland Deposits CM Customer deposits Municipalities 12.9 % 13.2 % • Good diversity in the deposit 11.7 % Transport and services 11.6 % portfolio in the CM. Construction and power 3.1 % 2.7 % • Share CM deposits amounts to 39.8 Farming and forestry 2.8 % (39.9) % or MNOK 10 071 (9 876) of
Slide 25: Funding
Intern - Helgeland • Funding
Slide 26: Funding – Increased deposit ratio
Intern - Helgeland Funding – Increased deposit ratio Funding development • Share customer deposits has 2.4 % increased in 2023 as a 2.5 % 2.6 % 17.1 % 13.0 % 11.4 % consequence of transferred 10.2 % 8.7 % loans to SpaBol. 13.0 % 74.4 % 77.4 % 67.4 % 2021 2022 30.06.2023 Deposits Senior CB FO
Slide 27: Funding due
Intern - Helgeland Funding due • Share long term funding 77.9 % (79.9) % • Combined duration of 2.2 (2.3) years. Duration in the mortgage company of 2.2 years. 1 500 1 139 1 000 276 605 500 500 500 227 300 2023 2024 2025 2026 2027 2028 2029 Senior OMF
Slide 28: Liquidity buffer
Intern - Helgeland Liquidity buffer Interest bearing securities: • Duration portfolio 1.7 (2.0) years • 99.5 % rated A- or better Sector distribution interest portfolio • 98.4 % is OMF or state/ municipality guaranteed bonds. 44% CB 1 • Municipality papers are actively 44% used as short-term liquidi
Slide 29: Transfer of loans to mortgage companies
Transfer of loans to SpareBank 1 Boligkreditt is 2.51 % mortgage companies owned by SpareBank 1 Helgeland Maximum limit for transfer to mortgage companies is • SpareBank 1 Boligkreditt (SpaBol) is an issuer of covered bonds maximum 35 % of the groups gross lending, and 50 % that is jointly owned by
Slide 30: Solidity
Intern - Helgeland • Solidity
Slide 31: Good capital adequacy
Intern - Helgeland Good capital adequacy Development capital adequacy Capital adequacy • The banks capital adequacy is 2.5 % 2.4 % higher than the target. 2.3 % 2.0 % 2.1 % • The board of directors assumes 2.0 % that the capital is used for future growth or alternatively distributed through higher f
Slide 32: Prospects ahead
Intern - Helgeland • Prospects ahead
Slide 33: Unemployment Recruitment
Unemployment Recruitment The region experience a shortage of Unemployment in Helgeland and in Nordland is lower qualified labour. Further corporate than for Norway overall. establishments will reduce the access further. Norway: 1.7 % Nordland: 1.2 % Helgeland: 1.0 % The green shift provides large op
Slide 34: Prospects ahead
Prospects ahead Net interest is expected to maintain relatively stable in the time to come, ROE target of 11 % after tax from last part with some increase due to the last of 2023 is expected fulfilled for 2023 interest rate increases. For the corporate market, an increase in Stable commission income
Slide 35: Appendices
Intern - Helgeland • Appendices
Slide 36: Profit & loss
Profit & loss SpareBank 1 Helgeland (group) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net interest- and credit comission earnings 144 144 148 168 174 184 202 223 233 233 Net comission earnings 28 21 22 36 46 38 41 39 36 40 Other operatios income 1 0 4 -1 2 2 4 0
Slide 37: HELG-EC development and OSEEX last 12 months
HELG- EC development and OSEEX last 12 months 31.12.20 31.12.21 31.12.22 30.06.23 EC fraction opening balance 76.4 % 77.3 % 79.9 % 79.9 % Number of EC's 20.9 27.0 27.0 27.0 price 86.0 131 120 125.0 Stock exchange value 1 797 3 537 3 240 3 375 Accounted equity per EC 129 124 135 131 Profit per EC 12
Slide 38: 50 % north norwegian ownership
Intern - Helgeland 50 % north norwegian ownership 20 largest owners Sparebankstiftelsen Helgeland Foreign owners 28.1 % 4% SpareBank 1 Nord-Norge 20.0 % Pareto Invest AS 7.9 % VPF Eika Egenkapital 4.7 % Verdipapirfondet Nordea Norge Verd 3.7 % Spesialfondet Borea Utbytte 2.2 % Other norwgian J.P. Mo
Slide 39: SpareBank 1 Helgeland
Intern - 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 offices in Mo i Rana, Mosjøen, Sandnessjøen and Brønnøysund. • Total asset
Slide 40: Contact information
Contact information Main office Posal address: Postboks 68, 8601 Mo i Rana Visiting address: Jernbanegata 15, 8622 Mo i Rana Tel: 75 11 90 00 Web: www.sbh.no Organization number: 937 904 029 Management Hanne Nordgaard CEO 416 85 777 – Hanne.Nordgaard@sbh.no Investor Relations Anne Ekroll CFO 913 36
SpareBank 1 Helgeland — Q2 2023 Earnings Presentation on 6ix