Sparebank 1 Sor-norge Asa · OSL:SB1NO
Sparebank 1 Sor-norge Asa — SpareBank 1 SR-Bank — Q1 2017 Earnings Presentation
80 slides from Sparebank 1 Sor-norge Asa's earnings presentation, 2017
Slide 1: Investor Update First Quarter 2017
INVESTOR UPDATE FIRST QUARTER 2017
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although SpareBank 1 SR-Bank believes that the expectations reflected in such forward- looking statements are reasonable
Slide 3: Agenda
Agenda Presentation of SpareBank 1 SR-Bank ASA Introduction to SpareBank 1 SR-Bank ASA Financials Solvency and liquidity position Appendix 3
Slide 4: SR-Bank at a glance
SR-Bank at a glance Banks Market share Second largest Norwegian bank 1 DnB Bank 28,6 Market cap: NOK 16.4 Billion Total assets: NOK 200.2 Billion 2 Nordea Bank Norge (Swedish) 12,0 Total lending: NOK 183.2 Billion 3 Danske Bank (Danish) 6,1 Total deposits: NOK 93.1 Billion No. of branche
Slide 5: One of Norway's most prosperous regions
One of Norway’s most prosperous regions The third largest discovery ever on the NCS was made 140 km …and activity is expected to continue at high levels from our headquarter in 2011 4000 “Johan Sverdrup” compared to existing 250 Investments on NCS 3000 oil fields on the Norwegian 200 continental she
Slide 6: The leading financial group in the southwest of Norway
The leading financial group in the southwest of Norway 1 Rogaland Population 470.000 2 Market share 36% Year of establishment 1839 Market strategy Market leader Unemployment rate 4.4%* 2 Hordaland Population 516.000 Market share 6% Year of establishment 2006 Market strategy Entry/growth Unemployment
Slide 7: SpareBank 1 Alliance: Benefits in economies of scale
SpareBank 1 Alliance: Benefits in economies of scale Owners of the alliance • Economies of scale related to expenses, IT solutions and branding • Separate legal entities – no cross guarantees between owner banks Samspar 19,5% 19,5% 19,5% 19,5% 11,0% 9,6% 1,4% Products, commissions, dividends Sales,
Slide 8: SRBANK's activities
SRBANK’s activities Divisions of Capital Markets Retail Market Corporate Market Administration & Support SpareBank 1 SR-Bank ASA Number of man-years : 30 Number of man-years : 481 Number of man-years : 170 Number of man-years : 208 Fully owned companies Number of man-years : 200 Number of man-years
Slide 9: SRBANK share development
SRBANK Development in Price/Book Relative share price development • Converted from equity certificates to 75 1,2 190 Price shares in 2012. 70 1,1 170 P/B OSEBX 65 1,0 SRBANK 150 Index 100 = Mar. 31st 2016 60 0,9 130 • International 55 p/B NOK 0,8 50 110 ownership is 22.5% 0,7 45 per 1. quarter 2017.
Slide 10: 20 largest shareholders as at March 2017
20 largest shareholders as at March 2017 • Ownership interests: Investor Number Stake Sparebankstiftelsen SR-Bank 72.419.305 28,3% • From Rogaland, Agder-counties and State Street Bank and Trust Co, U.S.A. Nominee 7.804.809 3,1% Hordaland: 46.7% SpareBank 1-stiftinga Kvinnherad 6.226.583 2,4% • Inte
Slide 11: Agenda
Agenda Introduction to SpareBank 1 SR-Bank ASA Financials Financials Solvency and liquidity position Appendix 11
Slide 12: A good result in a still demanding market
A good result in a still demanding market Pre-tax profit for the quarter is NOK 512 million compared to NOK 487 million last year - Return on equity after tax 8.7% Impairment losses on loans is NOK 168 million compared to 150 million last year - 0.37% of gross lending including covered bond comp
Slide 13: Financial targets and estimates for 2017
Financial targets and estimates for 2017 Return on equity CET 1 capital ratio Growth in loans 11,0% 14,7% 14,7% 15,0% 10,0% 8,7% 5,0 % 2,0% - 4,0% 4,0 % 3,0 % 2,0 % 1,0 % 0,5% 0,0 % 2016 Q1 17 Target 2017 2016 Q1 17 Target 2017 2016 Q1 17 Target 2017 -1,0 % -0,9% Normalised growth in costs Impairmen
Slide 14: Key figures – quarterly development
Key figures – quarterly development Return on equity CET 1 capital ratio 14,7% 14,7% 13,4% 13,5% 13,8% 12,2% 9,0% 9,4% 9,5% 8,7% Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Cost/income ratio Earnings per share (NOK) 2,09 1,59 1,68 1,58 43,6% 44,0% 43,3% 1,51 39,4% 37,2% Q1 16 Q2 16 Q
Slide 15: Key figures
Key figures Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Return on equity after tax (%) 8,7 9,5 12,2 9,4 9,0 Net interest margin (%) 1,53 1,50 1,48 1,48 1,44 Impairment losses on loans and guarantees in % of gross loans incl. covered 0,37 0,35 0,35 0,66 0,33 bond companies Non-performing and other problem commitme
Slide 16: Income statement
Income statement Group Income Statement (MNOK) Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Net interest income 739 733 729 711 698 Net commission and other income 371 355 347 389 352 Net income on investment securities 89 139 231 205 79 Total income 1.199 1.227 1.307 1.305 1.129 Total operating expenses 519 540 4
Slide 17: Change in profit 31.03.2016 – 31.03.2017
17 0 100 200 300 400 500 600 31.03.2016 487 Net interest income incl. commission from 36 covered bond companies 24 Other income Net income on 10 investment securities Total operating - 27 expenses Change in profit 31.03.2016 – 31.03.2017 Impairment losses on -18 loans and guarantees 512 31.03.2017
Slide 18: Consolidated income profile
Consolidated income profile 1200 1.087 1.105 1.067 1.065 1.093 1000 311 346 312 325 335 800 37 5 36 43 35 30 41 600 MNOK 400 698 711 729 733 739 200 0 -9 -23 -17 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 -200 Net interest income Commission income from covered bond companies Profit before tax from covered bond c
Slide 19: Lending and deposit margins
Lending and deposit margins Lending margins* 2,66% 2,58% 2,68% 2,75% 2,73% 2,76% 2,72% 2,59% 2,59% 1,95% 1,64% 1,61% 1,56% 1,48% 1,55% 1,58% 1,45% 1,38% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Corporate market Retail market Deposit margins 0,34% 0,29% 0,11% 0,12% 0,24% -0,06% 0,04% -0,
Slide 20: Lending volume and 12 months growth
Lending volume and 12 months growth Corporate Market (incl. Capital Markets) 60 000 12,8 % 13,8 % 12,5 % 15% 40 000 7,1 % 10% MNOK 5,3 % 3,0 % 5% 20 000 -0,5 % 0% -2,3 % -3,5 % 0 -5% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Volume Growth % Retail Market 120 000 100 000 15% 80 000 MNOK 6
Slide 21: Loan portfolio as at 31.03.2017
Loan portfolio as at 31.03.2017 • Gross loans (incl. covered bond companies) as at 31 March 2017 amount Agriculture / forestry / fishing 2,8% to NOK 183.2 billion compared with NOK 2,9% 183.9 billion at the same time the year Industry, Power/water supply and construction 3,6% 3,5% before. Retail tra
Slide 22: Loan to value ratio on home mortgage loans
Loan to value ratio on home mortgage loans • The proportion of loans with a loan-to- 100% value ratio of less than 85% is high. 90% 80% • 90.6% of the exposure is within 85% of 70% 64,5% 64,6% the assessed value of collateral. 60% 50% 40% 30% 25,6% 26,0% 20% 10% 6,3% 5,9% 3,6% 3,5% 0% Below 70 % 70
Slide 23: Lending to the corporate market – risk profile
Lending to the corporate market – risk profile • The quality of the corporate market Corporate lending portfolio distributed by risk class portfolio is good. There is a clearly defined 100% 24,3% 23,5% 26,5% 24,8% 23,3% framework that sets limits on what is 80% 60% funded and conditions for particul
Slide 24: Deposits volume and 12 month growth
Deposits volume and 12 month growth Corporate Market* • Last 12 months deposits increased by NOK 6.1 billion to 93.1 billion. 50.000 26,1% 25% • 40.000 17,7% Corresponds to an increase in the period 13,9% 15,4% 14,0% 30.000 MNOK of 7.0%. 5% 20.000 -2,4% -6,5% -6,8% -10,0% 10.000 • Increased deposit
Slide 25: Operating expenses
Operating expenses MNOK Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Personnel expenses 295 293 282 296 295 Financial activity tax 11 0 0 0 0 Total personnel expenses 306 293 282 296 295 IT expenses 75 87 83 78 73 Marketing 16 23 17 20 14 Other administrative expenses 21 23 15 16 15 Total administrative expenses 1
Slide 26: Impairment losses on loans / Non-performing commitments
Impairment losses on loans/ Non-performing and doubtful commitments Impairment losses on loans Non-performing and doubtful commitments 0,66% 1,15% 1,18% 1,21% 1,23% 0,92% 33 0,37% 0,35% 0,35% 0,33% 1.007 1.141 1.235 1.514 1 943 20 272 45 60 167 1.154 142 1.070 116 872 90 754 739 Q1 16 Q2 16 Q3 16 Q4
Slide 27: Agenda
Agenda Introduction to SpareBank 1 SR-Bank ASA Financials Financials liquidity position Solvency and liquidity position Appendix 27
Slide 28: Funding
Funding • Well diversified funding. Deposits to loans ratio • Funding indicator 1* is 113.6% on consolidated 100,0% basis. 80,0% 59,4% 60,4% 58,3% 58,6% 57,6% 56,1% 57,2% 55,4% 54,5% 60,0% • Good liquidity 40,0% ‒ Net refinancing need over the next 12 months is 20,0% NOK 2.0 billion. 0,0% ‒ Liquidit
Slide 29: An established borrower in the Euromarket
An established borrower in the Euromarket 120 Senior Unsecured NDASS 2 02/17/2021 120 40 Covered Bond DNBNO 0¼ 04/18/2023 40 OPBANK 2 03/03/2021 100 100 SPABOL 0⅜ 03/09/2023 SEB 2 02/19/2021 80 SRBANK 2⅛ 04/14/2021 80 20 SRBANK0 ¾ 01/23 20 Bps. Bps. Bps. Bps. 60 60 40 40 0 0 20 20 0 0 -20 -20 Issuer
Slide 30: Stronger capital ratio
Stronger capital ratio • SpareBank 1 SR-Bank is compliant with 20% capital requirements as at 31.03.2017. 18% 17,5% 16% • SpareBank 1 SR-Bank received IRB Advanced 16,8% 15,6% approval for the corporate market portfolio 14% 15,2% 14,3% in 2015. 12,9% 12% 10% • The use of different risk weights in th
Slide 31: RWA home mortgages
RWA home mortgages • RWA on home mortgages reflects a solid and stable portfolio. 23,0 % 22,8 % 22,5 % 22,5 % 22,5 % 22,3 % 22,0 % 22,0 % RWA 21,5 % 21,0 % 20,5 % 20,0 % 31.03.16 30.06.16 30.09.16 31.12.16 31.03.17 Home mortgages as defined in the Norwegian IRB framework; residential property must m
Slide 32: Common Equity Tier 1 being strengthened
Common Equity Tier 1 being strengthened in line with stricter regulatory requirements • The target CET 1 level is 15.0% in 2017. The target expected to be reached through good ROE ROE ROE profitability. ROE 16,00% ROE 10,8% 10,0% 8,7% 16,00% 14,2% 14,0% 14,0% 14,00% ROE 14,00% • Countercyclical buff
Slide 33: Outlook
Outlook Major infrastructure projects helps to ensure good conditions for the region's business and population growth, with moderate unemployment. Expectations concerning future market performance improved somewhat in the last months, but some uncertainty still exists about the group's market ar
Slide 34: Agenda
Agenda Introduction to SpareBank 1 SR-Bank ASA Financials Solvency and liquidity position Appendix 1) Oil related portfolio 2) Macro 3) Norwegian housing and mortgage markets 4) SpareBank 1 SR-Bank ASA 34
Slide 35: SpareBank 1 SR-Bank has a well diversified portfolio
SpareBank 1 SR-Bank has a well diversified portfolio 7.9% (8.1%) of total EAD is related to oil operations SpareBank 1 SR-Bank* has total BNOK 204.9 (200.1) EAD per 31.03.2017 BNOK 16.0 (16.2) EAD is related to oil operations Corporate market excl. oil Oil service; 2,3% operations; 25,9% (2,4%) (25,
Slide 36: Oil services - total NOK 4.7 billion
Oil services - total NOK 4.7 billion (NOK 4.8 billion as at 31.12.2016) Exploration and concept studies Oil services • EAD NOK 0.4 billion • EAD NOK 4.7 billion, 2.3% of the bank's total EAD • Average weighted probability of default 1.3% • Average weighted probability of default for the oil services
Slide 37: Oil and gas - total NOK 1.8 billion
Oil and gas - total NOK 1.8 billion (NOK 1.6 billion as at 31.12.2016) Exploration financing Exploration and production companies • EAD NOK 0,2 billion • EAD NOK 1.6 billion, 0.9% of the bank's total EAD • Average weighted probability of default 0.8% • Average weighted probability of default for the
Slide 38: Offshore - total NOK 9.5 billion
Offshore - total NOK 9.5 billion (NOK 9.8 billion as at 31.12.2016) Offshore Service Vessels Offshore • EAD NOK 6.7 billion, average weighted • EAD NOK 9.5 billion, 4.7% of the bank's total EAD probability of default is 2.1%, weighted average • Average weighted probability of default for the offshor
Slide 39: Offshore Service Vessels - total NOK 6.7 billion
Offshore Service Vessels - total NOK 6.7 billion (NOK 6.9 billion as at 31.12.2016) Offshore Service Vessels • Most customers with long history as a borrower in SpareBank 1 SR-Bank 3.000 EAD per age of OSV excl. accomodation • Most of the companies are listed on stock exchange or family owned 2.500
Slide 40: Offshore Service Vessels – largest customer group
Offshore Service Vessels – largest customer group Number of vessels • Well diversified portfolio. One commitment of 1 10 NOK 1.2 billion, rest of NOK 810 million or lower 2 8 3 8 • Total EAD for the portfolio is NOK 6.7 billion of which; 4 2 5 30 • NOK 5.9 billion consists of 12 restructured commitm
Slide 41: Agenda
Agenda Introduction to SpareBank 1 SR-Bank ASA Financials Solvency and liquidity position Appendix 1) Oil related portfolio 2) Macro 3) Norwegian housing and mortgage markets 4) SpareBank 1 SR-Bank ASA 41
Slide 42: A unique situation with a continuing budget surplus
A unique situation with a continuing budget surplus… Economic Indicators (%) 2011 2012 2013 2014 2015 2016E 2017P GDP mainland, annual change (%) 1,9 3,8 2,3 2,3 1,1 0,7 1,5 Household consumption, annual change (%) 2,3 3,5 2,7 1,7 2,1 1,5 2,1 Public consumption, annual change (%) 1,0 1,6 1,0 2,9 2,2
Slide 43: The unemployment rate has been reduced
The unemployment rate has been reduced Rogaland still somewhat above the national average Norwegian unemployment rate, %, registered (NAV), seasonal adj., monthly 6 5 Norway Rogaland 4 Hordaland Vest-Agder 3 Norway, SSB AKU-unempl. rate 2 1 0 mar. 02 mar. 03 mar. 04 mar. 05 mar. 06 mar. 07 mar. 08 m
Slide 44: Employment by sector
Employment by sector Employment in Norway and the region in 2015. Share (%) in sectors 40% 35% 30% 25% 20% 15% 10% 5% 0% South-west coast (Hordaland, Rogaland, Agder) Norway Source: Statistics Norway and IRIS (International Research Institute of Stavanger) (IRIS) 44
Slide 45: The decline in oil industry abates
The decline in oil industry abates Marked downturn in 2015 and 2016, expected to flatten in 2017 • Petroleum activity fell in 2015 and 2016 Petroleum activity on Norwegian Continental Shelf. BNOK (2016 NOK) after reaching record levels in 2014. Total activity has fallen by close to 30% from 350 2014
Slide 46: Norwegian seafood exports increasing
Norwegian seafood exports increasing Norwegian seafood exports (BNOK) 100 50% 90 40% 80 70 30% 60 50 20% 40 10% 30 20 0% 10 0 -10% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Other (incl. white fish) Salmon and trout Annual change total (%). Right hand side Source: Norwegian Seafood Counc
Slide 47: Norwegian hotels – guest nights by foreign and domestic
Norwegian hotels – guest nights by foreign and domestic Norwegian hotels and similar establishments. Guest nights, by foreign and domestic 25.000.000 6.000.000 5.000.000 20.000.000 4.000.000 15.000.000 3.000.000 10.000.000 2.000.000 5.000.000 1.000.000 0 0 nov.98 nov.10 nov.85 nov.86 nov.87 nov.88 n
Slide 48: Norwegian exports and imports
Norwegian exports and imports Norwegian exports and imports (MNOK), monthly 120.000 80.000 40.000 0 -40.000 -80.000 Exports of oil and gas Exports mainland Norway Exports Imports Exports fish Net exports Source: Thomson Reuters Datastream and SpareBank 1 SR-Bank 48
Slide 49: Norwegian krone vs key currencies
Norwegian krone vs key currencies Norwegian krone vs key currencies 16 14 12 10 8 6 4 2 0 1993 1998 2003 2008 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1994 1995 1996 1997 1999 2000 2001 2002 2004 2005 2006 2007 2009 2010 2011 2012 2013 2014 2015 2016 2017 NOK per USD NOK per
Slide 50: Retail trade increasing in Norway
Retail trade increasing in Norway In Rogaland, the level is somewhat higher than a year ago 12% Retail sales (excl.auto), annual change from same 2-month period previous year 10% 8% Norway 6% Rogaland Hordaland 4% Agder Oslo 2% 0% -2% -4% mar.10 jun.12 mar.09 jun.09 jun.10 mar.11 jun.11 mar.12 mar.1
Slide 51: Norwegian Economy – GDP
Norwegian Economy – GDP GDP growth rates 10 Norwegian economy, global economy and the oil price, annual change (%) 110 5 60 0 10 -5 -40 1989 1997 1980 1981 1982 1983 1984 1985 1986 1987 1988 1990 1991 1992 1993 1994 1995 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 52: Norway balance of payments and government budget
Norway balance of payments and government budget Norway BOP and gov't budget (BNOK), quarterly figures 160.000 120.000 80.000 40.000 0 -40.000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Balance of payments (BOP), current account surplus Government budge
Slide 53: Norway oil fund and GDP
Norway oil fund and GDP Norwegian oil fund and GDP (BNOK), quarterly figures 8.000.000 400% 7.000.000 350% 6.000.000 300% 5.000.000 250% 4.000.000 200% 3.000.000 150% 2.000.000 100% 1.000.000 50% 0 0% 2008 2009 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005
Slide 54: Agenda
Agenda Introduction to SpareBank 1 SR-Bank ASA Financials Solvency and liquidity position Appendix 1) Oil related portfolio 2) Macro 3) Norwegian housing and mortgage markets 4) SpareBank 1 SR-Bank ASA 54
Slide 55: House prices increasing in Norway. Flattening out in Rogaland
House prices increasing in Norway. Flattening out in Rogaland House prices. NOK per sqm. Average all. Monthly 80.000 70.000 Rogaland 60.000 Hordaland Vest-Agder 50.000 Oslo Norway 40.000 30.000 20.000 10.000 0 mar. 03 mar. 04 mar. 05 mar. 06 mar. 07 mar. 08 mar. 09 mar. 10 mar. 11 mar. 12 mar. 13 ma
Slide 56: Housing and mortgage markets – Key characteristics
Housing and mortgage markets – Key characteristics Mortgage • Total size approximately NOK 2,600 billion (USD 325bn, €300bn) • Private banks (incl. savings banks) are the dominant suppliers of mortgages Household credit growth Market with over 95% market share (12 months growth rate) • Scheduled rep
Slide 57: Population change and completed housing units
Norwegian housing and mortgage markets – Population change and completed housing units Source: Statistics Norway and Investor presentation March 2017 from SpareBank 1 Boligkreditt AS 57
Slide 58: Norwegian Housing and Mortgage Market
Norwegian Housing and Mortgage Market - Adjusted price developments Index of House Prices, Norway, Monthly (Jan 2005 = 100) Source: Eiendomsverdi through September 2016 and SpareBank 1 Boligkreditt AS projections and indexation 58
Slide 59: Aggregate household indebtedness
Aggregate household indebtedness Total Debt burden in per cent of household income (after tax) Norway: • All HH debts included in the statistic, question of int’l comparability • High home ownership (mortgage debt rather than rent commitments) • Generous benefits (pensions, healthcare, education, ch
Slide 60: Agenda
Agenda Introduction to SpareBank 1 SR-Bank ASA Financials Solvency and liquidity position Appendix 1) Oil related portfolio 2) Macro 3) Norwegian housing and mortgage markets 4) SpareBank 1 SR-Bank ASA 60
Slide 61: Our vision: the customer's first choice in Southern and Western Norway
Our vision: the customer's first choice in Southern and Western Norway Objectives Financial goals • SpareBank 1 SR-Bank's objectives are to stimulate growth • Return on equity of 11% after tax in 2017. The longer term and development in the region target is a minimum of 12%. • Top 50% return on equi
Slide 62: SpareBank 1 Alliance
SpareBank 1 Alliance Owners of the alliance • All credit decisions are made at the local banks • Economies of scale related to expenses, IT solutions, marketing and branding Samspar 19,5% 19,5% 19,5% 19,5% 11,0% 9,6% 1,4% Products, commissions, dividends Sales, loan portfolios, capital Companies dir
Slide 63: Balance sheet
Balance sheet Balance sheet (MNOK) 31.03.2017 31.03.2016 Cash and balances with central banks 965 1.497 Balances with credit institutions 7.148 5.059 Net loans to customers 158.628 154.221 Certificates, bonds and other fixed-income securities 22.078 20.963 Financial derivatives 4.329 5.403 Shares, o
Slide 64: Net commission and other income
Net commission and other income MNOK Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Payment facilities 63 60 75 63 54 Savings/placements 51 45 45 44 51 Insurance products 52 50 48 50 50 Commission income real estate broking 93 85 87 107 68 Guarantee commission 25 31 24 31 28 Arrangement- and customer fees 13 33 14 2
Slide 65: Net income on investment securities
Net income on investment securities MNOK Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Dividends* 5 5 0 97 8 Investment income, associates 63 78 90 112 104 Securities gains/losses 25 50 105 -36 -66 - of which capital change in shares and certificates 7 42 63 -33 -21 - of which capital change in certificates and bon
Slide 66: Subsidiaries
Subsidiaries MNOK 31.03.17 31.03.16 EiendomsMegler 1 SR-Eiendom AS Number of sales 1.611 1.211 Operating profit before tax 5 -6 SpareBank 1 SR-Finans AS* Total assets (BNOK) - 7 Operating profit before tax - 43 SR-Forvaltning AS Total assets under management (BNOK) 10 9 Operating profit before tax 8
Slide 67: Ownership interests
Ownership interests MNOK 31.03.17 31.03.16 SpareBank 1 Gruppen AS Interest ownership 19,5 % 19,5 % Profit after tax 71 55 Adjusted profit previous years -4 6 SpareBank 1 Boligkreditt AS Interest ownership 13,9 % 16,7 % Profit after tax -18 18 Adjusted profit previous years 0 4 SpareBank 1 Næringskre
Slide 68: Impairment losses on loans and guarantees
Impairment losses on loans and guarantees Losses on loans in income statement (MNOK) Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Corporate customers 162 131 109 258 82 Retail customers 5 11 7 14 8 Change in collective impairment losses on loans 1 20 45 33 60 Net impairment losses on loans 168 162 161 305 150 31.0
Slide 69: SpareBank 1 SR-Bank has a moderate risk profile
SpareBank 1 SR-Bank has a moderate risk profile in which no single event should be capable of seriously harming the bank's financial position • The core purpose of the banking industry is to create value by assuming deliberate and acceptable risk • SpareBank 1 SR-Bank therefore invests significant r
Slide 70: Risk profile of the loan portfolio
Risk profile of the loan portfolio • SpareBank 1 SR-Bank has a solid loan portfolio. Distributed by risk class 100% 80% • 1 January 2017, SpareBank 1 SR-Bank and its 60,2% 59,3 % 60% wholly owned subsidiary, SpareBank 1 SR-Finans 40% 29,3% 30,9 % carried out a parent/subsidiary merger. Q1 2017 20% 1
Slide 71: Low concentration of individual LGRs in the lending portfolio
Low concentration of individual LGRs in the lending portfolio Distributed by loss given realisation (LGR) • There is a clearly defined strategy behind this portfolio composition. The growth and 100% risk profile are managed, for example, through special credit strategy limits for concentration risk.
Slide 72: Risk profile – Lending to the retail market
Risk profile – Lending to the retail market Retail market portfolio distributed by risk class • The quality of the retail market portfolio is considered to be good and has low 100% 2,5% 2,5% 2,3% 2,4% 2,9% 16,9% 16,1% 15,8% 15,7% 18,8% potential losses. 80% 60% 40% 80,6% 81,4% 81,9% 81,9% 78,3% • Th
Slide 73: Historical LTV development for home mortgage loans
Historical LTV development for home mortgage loans Total home mortgages incl. loans in cover pool SpareBank 1 SR-Bank ASA 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 31.03.2015 30.09.2015 31.03.2016 30.09.2016 31.03.2017 31.03.2015 30.09.2015 31.03.2016 30
Slide 74: Lending to commercial property
Lending to commercial property Lending to commercial property Housing • NOK 27.6 billion, 15.1 % of the bank’s total cooperative; 4,7% loans. (4,9%) Real estate management; 1,7% (1,8%) • The portfolio is characterised by lending to commercial properties for leasing with long- term contracts and fina
Slide 75: Liquidity portfolio
Liquidity portfolio Liquidity buffer – survival period Liquidity portfolio 32 Of which, 30 securities 28 classified to 26 24 NOK amortised 22 NOK billion 20 Category million Share % cost, MNOK 18 16 Norwegian government/municipal 296 1% 0 14 12 10 SSA/Foreign guaranteed 7.252 33 % 189 8 6 Covered bo
Slide 76: Investments in bonds and certificates
Investments in bonds and certificates Risk category Rating NOK Million Share Very low risk AAA, AA+, AA and AA- 21.711 98,4 % Low risk A+, A and A- 0 0,0 % Moderate risk Not rated 108 0,5 % High risk Not rated 144 0,7 % Very high risk Not rated 106 0,5 % Total portfolio 22.070 100,0 % Of which liqui
Slide 77: Rating
Rating Moody’s Fitch Long-term debt A1 Long-term IDR A- Outlook Negative Outlook Stable Updated 10 April 2017 Updated 26 January 2017 Ratinghistory AAA/Aaa AA+/Aa1 AA/Aa2 AA-/Aa3 A+/A1 Moody's A/A2 A-/A3 Fitch BBB/Baa BB/Ba B 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 78: SRBANK as at March 2017
SRBANK as at March 2017 • Trading volume in Q1 2017: 15.1% (4.6%) 31.03.2017 2016 2015 2014 2013 2012 • Ownership interests: Share price 64,25 60,75 39,30 52,50 60,25 37,20 • From Rogaland, Agder-counties and Hordaland: 46.7% Stock value (MNOK) 16.432 15.537 10.051 13.427 15.409 9.514 • Internationa
Slide 79: Dividend policy
Dividend policy “The financial objective of SpareBank 1 SR-Bank ASA is to achieve earnings that yield adequate, stable returns on the bank’s equity, thereby creating value for owners through competitive returns in the form of dividends and share appreciation. In determining the level of the annual d
Slide 80: Contact Details
Management Contact Details Arne Austreid CEO Tel.: +47 900 77 334 E-mail: arne.austreid@sr-bank.no Inge Reinertsen CFO Tel.: +47 909 95 033 E-mail: inge.reinertsen@sr-bank.no Adress Investor Relations Stian Helgøy Bjergsted Terrasse 1 Investor Relations Postboks 250 4066 Stavanger Tel.: +47 906 52 1