SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Q4 2023 Earnings Presentation
43 slides from SpareBank 1 Helgeland's earnings presentation, February 2024
Slide 1: Presentation Q4 2023
Presentation Q4 2023 - A driving force for growth in Helgeland
Slide 2: Presentation 31.12.23 (SBH group)
Presentation 31.12.23 (SBH group) Hanne Nordgaard Anne Ekroll Chief Executive Officer Finansdirektør
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 31.12.23
Main features per 31.12.23 Gross Profit ROE* MNOK 650 (563) 10.4 (10.0) % *adjusted for hybrid capital Solidity Total assets CET 18,4 36.9 (38.6) mrd. Kr (19.0) %
Slide 6: Profit & loss
Intern - Helgeland • Profit & loss
Slide 7: Summary Q4
Summary Q4 SpareBank 1 Helgeland (group) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net interest- and credit comission earnings 233 233,2 254 265 Net comission earnings 36 40 40 39 Other operatios income 2 4 1 2 Ordinary operations cost 101 100 100 113 Result basic operations 170 177 195 193 Write-downs lendin
Slide 8: Summary Q4
Intern - Helgeland Summary Q4 The PLA this quarter is affected by increased costs, loss on financial assets and high write-downs in lending. • Net interest of MNOK 265, an increase of MNOK 11 from last quarter. • Net commission income of MNOK 41, same as last quarter. • Net value change and gains/lo
Slide 9: Improved annual profit
Intern - Helgeland Improved annual profit Profit development (MNOK) Profit 650 563 Strengthened gross profit of MNOK 137 650 (563) pr. 31.12.23 181 • ROE of 10.4 %* 183 (ROE is adjusted for hybrid capital) 264 131 15 147 78 104 10,4 % 78 184 147 93 2021 2022 2023 Q1 Q2 Q3 Q4 ROE %
Slide 10: PLA affected by high income and write-downs in lending
Intern - Helgeland PLA affected by high income and write-downs in lending Gross profit is MNOK 87 higher than for the corresponding period last year. • High increase in net interest Change in gross profit (MNOK) 900 • Increased operating costs and write- -7 -33 downs. 202 14 -89 800 700 600 • Reduct
Slide 11: Good development in net interest
Intern - Helgeland Good development in net interest • Net interest and commission income 3 3 265 amounts to MNOK 265 in Q4, an 7 6 254 increase of MNOK 11 from last 233 233 2,80% 2,67% quarter 2,40% 2,43% • In % of average total assets, net interest and commission income is 2,37% 2,27% 2.80 %, up fr
Slide 12: Stable commission income
Intern - Helgeland Stable commission income 40 40 39 39 36 3 3 4 6 1 Comission on loans transferred to 1 2 7 2 mortgage company 1 14 12 12 Guarantee commission 13 12 0,43% 0,42% 0,42% Commission income insurance - 0,40% 0,41% (general, life, saving and pension) 22 22 22 Commission income payment ser
Slide 13: Increased costs this quarter
Intern - Helgeland Increased costs this quarter • The costs are within target (cost/income <40 %). Operating cost (mnok) and % of income • Increase this quarter is related to • Increased wages and social costs of MNOK 7 (including annual gift to employees of MNOK 4) 113 • Increase of other operating
Slide 14: High level of write-downs
Intern - Helgeland High level of write-downs • MNOK 43 in Q4 2023 against MNOK 11 last quarter 0,60% • The write-downs in the quarter is a combination of 0,50% • Individual write-downs • Model based write-downs 0,40% as a consequence of marking for payment reliefs, 0,30% increased lending volume 0,2
Slide 15: Lending
* Main features * Profit & loss * Lending * Deposits * Funding * Solidity * Prospects ahead Appendices
Slide 16: Weak lending growth in RM in 2023 (SpaBol included)
Weak lending growth in RM in 2023 (SpaBol included) CM 27,9 % RM 72,1 % 44000 Development gross lending CM/RM (MNOK)) 39000 Development gross lending (MNOK) 39000 10.591 10.043 37000 34000 9.979 9.968 9.863 1,1 % 0,8 % -0,6 % 6,1 % 35000 29000 24000 33000 37.982 19000 37.453 37.426 37.408 37.347 310
Slide 17: Lending CM – good industry spread
Intern - Helgeland Lending CM – good industry spread • Good diversified lending Lending distributed in sector portfolio in the CM and 12,2 % loyal corporate customers. Real estate 11,1 % Share CM of total lending Farming and forestry 5,0 % 4,8 % 35.3 (31.2) % equals MNOK 3,9 % Construction and… 2,6
Slide 18: Lending CM
Intern - Helgeland Lending CM • Low vacancy in all segments on the real estate side. Under coverage on housing and industrial areas. Real estate - allocation pr segment • 51 % of real estate categorized in low risk. 22 % in best middle risk class. 93 % Boligeiendom of the real estate mass is in Nord
Slide 19: Non-performing and impaired commitments
Intern - Helgeland Non-performing and impaired commitments • Net non-performing and impaired commitments Net defaulted and com. exp. to loss amounts to MNOK 390, • Decrease of MNOK 61 from 600 last quarter 500 • Increase of MNOK 146 from 400 last year • The increase so far this 300 quarter is relate
Slide 20: Deposits
Intern - Helgeland • Deposits
Slide 21: Stable deposit level
Stable deposit level Deposit development (MNOK) 31.000 Deposit decelopment CM/RM (MNOK) 26.000 10.071 10.715 10.637 9.446 9.812 21.000 16.000 0,7 % -6,0 % -2,6 % -3,7 % 25.046 25.377 25.327 24.683 25.129 11.000 15.256 15.237 15.234 14.662 14.492 6.000 1,0 % -0,2 % -1,1 % -1,4 % 1,2 % 4,1 % -0,1 % -0
Slide 22: Stable deposit allocation
Stable deposit allocation 100 % 90 % 27.000 Development deposits (MNOK) 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% des. 18 des. 19 apr. 18 apr. 19 des. 20 des. 21 des. 22 des. 23 apr. 2
Slide 23: Deposits CM
Intern - Helgeland Deposits CM Customer deposits Municipalities 11,5 % • Good diversity in the deposit 12,9 % portfolio in the CM. Transport and services 9,9 % 15,2 % Construction and power 4,9 % • Share CM deposits amounts to 38.3 2,4 % (42.3) % or MNOK 9 446 (10 637) of Farming and forestry 3,3 %
Slide 24: Funding
Intern - Helgeland • Funding
Slide 25: Funding – Increased deposit ratio
Intern - Helgeland Funding – Increased deposit ratio Funding development • Share customer deposits has increased in 2023 as a 2,4 % 2,5 % 2,3 % consequence of transferred 17,1 % 13,0 % 10,7 % 9,1 % loans to SpaBol. 10,2 % 13,0 % 74,4 % 77,9 % 67,4 % 2021 2022 2023 Deposits Senior CB FO
Slide 26: Funding due
Intern - Helgeland Funding due • Share long term funding 78.1 % (78.1) % • Combined duration of 2.2 (2.1) years. Duration in the mortgage company of 2.1 years. 1.500 969 500 1.000 430 500 500 500 500 2024 2025 2026 2027 2028 2029 Senior OMF
Slide 27: Liquidity buffer
Intern - Helgeland Liquidity buffer Interest bearing securities: • Duration portfolio 1.7 (1.7) years • 98.3 % rated A- or better Sector distribution interest portfolio • 98.0 % is OMF or state/ municipality guaranteed bonds. 45% CB 1 • Municipality papers are actively 42% used as short-term liquidi
Slide 28: Transfer of loans to mortgage companies
Transfer of loans to SpareBank 1 Boligkreditt is 3.09 % 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 29: Solidity
Intern - Helgeland • Solidity
Slide 30: Good capital adequacy
Intern - Helgeland Good capital adequacy Development capital adequacy Capital adequacy • The banks capital adequacy is 2,5 % higher than the target. 2,3 % 1,9 % 2,0 % 2,0 % 2,0 % • The board of directors assumes that the capital is used for future growth, investment in Samspar and SpareBank 1 compan
Slide 31: Proposed allocation of profit 2023
Intern - Helgeland Proposed allocation of profit 2023 Allocation of profit 2023 (MNOK) 291 277 Increased distribution ratio 476 • 75.0 (75.0) %. Dividend basis is MNOK 485 147 • The parent bank’s profit adjusted for unrealized gains and interests 92 97 perpetual bonds. 86 86 70 74 65 The board propo
Slide 32: Proposed allocation of profit 2023 Dividend basis parent bank
Intern - Helgeland Proposed allocation of profit 2023 75.0 % Dividend NOK 10.8: MNOK 291 EC owners MNOK 388 Dividend basis parent bank Withheld: 79.9 % 25.0 % MNOK 97 MNOK 486 20.1 % Community dividend 75.0 % MNOK 73 Community capital: MNOK 97 25.0 % Withheld: MNOK 24
Slide 33: Dividend development
Intern - Helgeland Dividend development Dividend development 75,0 % 75,0 % 50,0 % 50,0 % 41,9 % 41,0 % 25,6 % 25,0 % 12,0 % 1,80 3,8 4,0 1,6 2,7 3,1 3,2 10,3 10,8 2013 2016 2017 2018 2019 2020 2021 2022 2023 Dividend proposed (NOK Dividend ratio (%)
Slide 34: 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 2023 • The banks second sustainability report delivered for 2023, integrated in the annual financial report. The bank is working toward
Slide 35: Prospects ahead
Intern - Helgeland • Prospects ahead
Slide 36: Unemployment Recruitment
Unemployment Recruitment The region experience a shortage of Unemployment in Helgeland and in Nordland is lower qualified labour. To realize further than for Norway overall. corporate establishments, the region will need people to move here. It is Norway: 1.9 % initiated several projects to succeed
Slide 37: Prospects ahead
Prospects ahead ROE target of 11 % after tax is expected fulfilled in 2024. For the corporate market, an increase in activity is expected in the period towards Net interest is expected to strengthen 2026. further after interest rate increase. It is expected low market growth in the retail market in
Slide 38: Appendices
Intern - Helgeland • Appendices
Slide 39: Profit & loss
Profit & loss SpareBank 1 Helgeland (group) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net interest- and credit comission earnings 148 168 174 184 202 223 233 233 254 265 Net comission earnings 22 36 46 38 41 39 36 40 40 39 Other operatios income 4 -1 2 2 4 0 2 4
Slide 40: 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 31.12.23 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 86,0 131 120 130,0 Stock exchange value 1.797 3.537 3.240 3.510 Accounted equity per EC 129 124 135 138 Profit per EC 12
Slide 41: 55 % north norwegian ownership
Intern - Helgeland 55 % north norwegian ownership 20 largest owners Foreign owners 4% Sparebankstiftelsen Helgeland 28,1 % SpareBank 1 Nord-Norge 20,0 % Pareto Invest AS 7,9 % VPF Eika Egenkapital 4,8 % Verdipapirfondet Nordea Norge Verd 3,7 % Other norwgian Spesialfondet Borea Utbytte 2,1 % owners
Slide 42: 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 43: 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
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