SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q2 2017 Earnings Presentation
41 slides from SpareBank 1 Helgeland's earnings presentation, 2017
Slide 1: Presentation Q2 2017
Presentation Q2 2017 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation per 30.06.17 (HSB Group)
Presentation per 30.06.17 (HSB Group) Main Features Lisbeth Flågeng Profit & loss Chief Executive Officer Balance Lending Deposits Funding Sverre Klausen Chief Financial Officer Solidity Helgeland Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main features per 30.06.17
Main features per 30.06.17 Result Gross profit MNOK 175 (261) • Adjusted for one-time effect pension, gross profit was MNOK 185 30.06.16. • Good profitability in the banks basis operations, net interest increased in NOK and % • Lower income from financial investments. • Increased write-downs on lend
Slide 4: Main features per 30.06.17
Main features per 30.06.17 Lending 12-month growth 6.3 (10.7)% • Retail market 6.3 (10.3)% • Corporate market 6.3 (11.4)% Weaker growth in RM, growth in CM is as expected Deposits 12-month growth 9.1 (8.3)% – good deposit ratio 66.7 (65.0)% • Retail market 4.2 (7.4)% • Corporate market 16.3 (9.6)% D
Slide 5: Main features
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 5 En drivkraft for vekst på Helgeland
Slide 6: Profit
Profit Profit developement (MNOK) Good result Q2 500 40% Gross profit MNOK 175 452 • ROE after tax 8,7 % 35% 400 85 Adjusted for one time effect pension 30% (MNOK 76) profit per 30.06.16 was 283 280 MNOK 185. 300 266 106 25% 49 20% 73 92 200 88 106 175 15% 76 59 91 10% 80 76 8,7% 100 58 66 5% 51 66
Slide 7: Key figures
Key figures Keyfigures in % of average BTA Stable net interest • 1.85% per 30.06.17 2,5 % Net provisions • Reduced from 0.30% 30.06.16 1,85% to 0.28% 1,5 % Operating costs 1,17% • Reduced from 0.97% per 0.92% 30.06.16 to 0.92 0,5 % Increased write-downs on lending 0,28% last quarter 0.17% 0,10% -0,5
Slide 8: Profit & loss
Profit & loss Helgeland Sparebank (group) Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1 2017 Q2 2017 Net interest- and credit provision earnings 121 125 128 133 134 135 141 Net provision earnings 22 20 22 22 21 20 22 Other operatios income 2 2 1 1 2 1 1 Ordinary operations cost 66 65 69 65 72 69 68 Res
Slide 9: Net interest
Net interest Development net intr.(mnok.) and % of average BTA Commentary 150 141 Increased net interest 133 134 135 125 128 • Lower lending costs with falling Nibor • Still strong competition 100 1,85% 1,86% regarding price 1,84% 1,83% 1,82% 1,83% 50 0 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1 2017 Q2 201
Slide 10: Operating costs
Operating costs • Costs in % of BTA reduced in the quarter • In costs, new finance tax of MNOK 2.1 per 30.06.17 is included (One time effect pension 2016 is not included in the calculation above) 10 En drivkraft for vekst på Helgeland
Slide 11: Balance
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 11 En drivkraft for vekst på Helgeland
Slide 12: Balance
Balance Helgeland Sparebank (group) 30.06.17 30.06.16 Change liquid assets 823 669 154 Net lending to customers 25 258 23 804 1 454 Certificates and shares 4 110 3 717 393 Other assets 323 346 -23 Assets 30 514 28 536 1 978 Deposits from customers 16 953 15 536 1 417 Money market financing 9 743 9 8
Slide 13: Lending
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland 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 6.3 (10.7)% 15% PM share 10% • Target minimum 60% • Per Q2 67.4 (67.4)% 6,3 % 5% Locally in Helgeland 5,7 % • Per Q2 84.5 (84.0)% 0% -5% 2013 2014 2015 2016 30.06.2017 HSB Helgeland total Statistic Norway total 14 En
Slide 15: Credit growth CM and RM
Credit growth CM and RM Commentary 12-month growth 6.3 (10.7)% whereby CM 6.3 (11.4)% and RM 6.3 (10.3)% - last 3 months, the growth is on national level 15 En drivkraft for vekst på Helgeland
Slide 16: Lending CM
Lending CM Lending distributed in sector Commentary Good diversification in the CM Real estate 13,4 % lending portfolio and very loyal 12,6 % corporate customers 5,3 % Farming and forestry 5,2 % Share CM of total lending 32.6 (32.6)% or MNOK 8 273 4,1 % Construction and power (7 783) 4,9 % 3,5 % Tra
Slide 17: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss Commentary 200 Net non-performing and other impaired commitments amounts to MNOK 228 (98) Which equals 150 0.9 (0.4)% of gross loans Increased non-performing 100 commitments - Two individual commitments, 50 one of them
Slide 18: Deposits
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 18 En drivkraft for vekst på Helgeland
Slide 19: Deposit growth
Deposit growth 12-month deposit growth Commentary 20% 12-month growth 9.1 (8.3)% Norway 15% Helgeland 90,9 % 8,4 % RM share • Per Q2 56.9 (59.5)% 10% Locally in Helgeland 9,1 % 6,8 % •Per Q2 90.9 (90.6)% 5% BM Deposit ratio RM 0% 56,9 43,1 • Target minimum 60% % % • Per Q2 66.7 (65.0)% -5% 2013 2014
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% 16,3 % 10% 15% 14,5 % 10% 5% 4,2 % 5% 3,8 % 0% 0% -5% -10% -5% 2013 2014 2015 2016 Q2 2017 2013 2014 2015 2016 Q2 2017 HSB Helgeland Corp. HSB Helgeland pers. Commentary 12
Slide 21: Deposits CM
Deposits CM Customer deposits Commentary Well diversified deposit 10,0 % Municipalities 12,2 % portfolio in the CM 4,8 % Farming and forestry 6,2 % Share CM 43.1 (40.5)% or Transport and services 8,9 % MNOK 7 313 (6 287) of total 9,3 % deposits 6,1 % Construction and power 5,6 % 3,5 % Deposits from
Slide 22: Deposit development
Deposit development A large share of PM deposits is under MNOK 2 (53 % of total deposits). The level is marginally higher than last quarter end, but slightly declining last 12 months because of the strong growth in corporate deposits. 60.5 % of the deposit is covered by the guarantee scheme 22 En dr
Slide 23: Funding
Main features Profit & Loss Balance Lending Deposits Funding Solidity Helgeland Appendices 23 En drivkraft for vekst på Helgeland
Slide 24: Funding
Funding Commentary Funding development (MNOK) 120% Deposits are the most important source for funding. 100% 2,2 % 2,2 % 2,1 % 2,8 % 2,2 % 13,5 % 15,0 % 14,3 % 17,5 % 17,1 % 80% 26,8 % 25,9 % 24,4 % 19,2 % 18,6 % 60% 40% 56,9 % 59,2 % 60,5 % 62,1 % 54,8 % 20% 0% 2013 2014 2015 2016 30.06.2017 Deposit
Slide 25: Funding
Funding Commentary Maturity of loans (MNOK) Good and long term funding 2.500 Share long term funding 2.000 84.4% (79.3)% Combined duration of 2.9 1.500 403 1.000 1.000 1.300 (2.6) years. Duration in the 500 mortgage company 3.2 years 1.000 1.346 500 1.000 1.000 900 53 750 400 247 0 2017 2018 2019 20
Slide 26: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland boligkreditt AS, fully owned by Helgeland Sparebank • Net profit MNOK 20.8 (18.1). • CET1 ratio of 16.3 (19.2)% • standard method with 35% mortgage weights • Gross loans amounts to MNOK 5 896 (4 898) and CB MNOK 4 756 (4 033) Good security in the lending portfolio
Slide 27: Liquidity buffers
Liquidity buffers Sector distribution interest portfolio Commentary CB 1 39% The liquidity buffers amounts to 38% NOK 4.3 (3.9) bn. – equal 14.3 9% Finance, Norway 3% (13.6)% of total assets. The buffer 17% capital consists of of cash, Government 15% deposits in Bank of Norway/banks 27% and interest
Slide 28: Solidity
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 28 En drivkraft for vekst på Helgeland
Slide 29: Capital adequacy
Capital adequacy Commentary Development capital adequacy Capital ratio (excl. profit 2017) 22% • CET1 15.7 (14.0)% 20% • Core capital 17.3 (15.4)% • Total capital 19.1 (17.2)% 18% 1.8% Well capitalized after placements in 1.7% 2016. Repaid CB of MNOK 150 in 16% 2017 The banks targets, CET1 of 14% mi
Slide 30: Helgeland
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 30 En drivkraft for vekst på Helgeland
Slide 31: HELG – the 20 largest owners
HELG – the 20 largest owners Per 30.06.17 Numbers % share Numbers % share Sparebankstiftelsen Helgeland 7 255 020 34.8 % Vigner Olaisen AS 294 650 1.4 % Pareto AS 1 949 392 9.3 % Catilina invest AS 231 860 1.1 % Merrill Lynch Prof. 1 253 462 6.0 % Landkreditt utbytte 225 000 1.1 % UBS AG, London Bra
Slide 32: HELG – EC development and liquidity
HELG – EC development and liquidity Q2 2017 Q2 2016 2016 2015 EC fraction 76.5 % 75.1 % 75.1 % 75.1 % Number of EC's 20.9 18.7 20.9 18.7 Stock exchange price 84 62 81 59 Stock value 1755.6 1159.4 1692.9 1103.3 Accounted equity per EC 105.7 98.2 101 93.7 Profit per EC 4.7 8,0 13.5 8.4 Dividend per EC
Slide 33: Appendices
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 33 En drivkraft for vekst på Helgeland
Slide 34: Prospects and priorities
Prospects and priorities Result • Profitable growth - strong focus on offensive measures in the retail market • Increased RM resources after closure of 6 small offices • Expatriate people from Helgeland • Cooperation with mortgage brokers • Offensive sales organization ensures width sale and commiss
Slide 35: 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 first half of 2017 was -0.2% (price index). • Property price increase in Helgeland was 6.4% in the same peri
Slide 36: Unemployment
Unemployment Unemployment in %, Norge, Nordland og Helgeland Commentary 3,50% Unemployment in Helgeland 3,30% and in Nordland is by the end 3,10% of June 2017 slightly lower 2,90% Norway overall. 2,70% 2,50% Overall unemployment in 2,30% Helgeland is 1.8% which is 2,10% 0.2%-points under the average
Slide 37: The future is in North! Thank you for your attention
The future is in North! Thank you for your attention! EN DRIVKRAFT FOR VEKST 37 En drivkraft for vekst på Helgeland
Slide 38: Appendices
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 38 En drivkraft for vekst på Helgeland
Slide 39: Helgeland Sparebank
Helgeland Sparebank ➢ Helgeland Sparebank is the 10th. largest savings bank in Norway. 100% ➢ Vision: a driving force for growth in Helgeland. ➢ Business concept: to be a profitable and the leading 48% bank in Helgeland. The bank provides financial products and services to consumers, small and mediu
Slide 40: 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 41: 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