Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q2 2023 Earnings Presentation
49 slides from Sparebank 1 Nord-norge's earnings presentation, August 2023
Slide 1: 2Q 2023
2Q 2023 August 2023 Liv B. Ulriksen, CEO Bengt Olsen, CFO Photo: Rune Dahl
Slide 2: Highlights
@ Highlights SpareBank ¢ NORD-NORGE
Slide 3: Highlights YTD
Highlights YTD Pre-tax profit ROE 1 641 MNOK (995) 16,9 % (10,2 %) CET1 ratio C/I ratio Losses 17,5 % (19,3 %) 34,5 % (44,7 %) -27 MNOK (-15) NORD-NORGE SpareBank (1)
Slide 4: The obvious choice for people and businesses!
The obvious choice for people and businesses!
Slide 5: Subsidiaries – results before tax
Subsidiaries – results before tax 5
Slide 6: Satisfying financial results
Satisfying financial results 6
Slide 7: Outlook
2 } Outlook SpareBank ¢ NORD-NORGE
Slide 8: High activity in the region
High activity in the region Norwa y 2023 Northern >90 da ys Norwa y 2022 30-90 da ys 2021 2020 8
Slide 9: Two important industries in the north
Two important industries in the north Billion, NOK Northern N-N, share of Northern N-N, share of Norway total guest nights Norway total seafood in Norway exports 99
Slide 10: Status and outlook in Northern Norway
Status and outlook in Northern Norway 10
Slide 11: Ambitions for growth and increased market share
Ambitions for growth and increased market share Expected growth for SpareBank 1 Nord-Norge in 2023 Retail market: 2-5 % Corporate market: 4-7 % The bank is strongly capitalized, and the region is well positioned for further economic growth. The turmoil in the capital markets leads to increased uncer
Slide 12: Financial status
(3 } Financial status SpareBank ¢ NORD-NORGE
Slide 13: Group financial highlights and key figures
Group financial highlights and key figures 13
Slide 14: Quarterly development
Quarterly development CET1 ratio Return on equity capital Cost/income Group 1s8% 193% isg% 19,1% 173% 17,3% 175% 46,9 % 42,7 % 39,9% 35,9% 346% 33.9% 1Q22 2Q22 3Q22 4Q22 1023 2Q23 1Q22 2Q22 3Q22 4Q22) 1Q23 2023 1Q22 2Q22 3Q22 4Q22 1Q23 2023 4 SpareBank (1) NORD-NORGE
Slide 15: Strong capital base
Strong capital base CET1 Pillar 1 P2R Buffer req P2G min.requirement 15
Slide 16: Result before tax - last quarter
Result before tax - last quarter (Amounts in NOK million) 16
Slide 17: Net interest income - Group
Net interest income - Group (Amounts in NOK million) 17
Slide 18: Low losses
Low losses Net losses in % of Net losses gross lending incl. interm. loans Corporate Retail 19
Slide 19: Lending growth
Lending growth Retail Corporate 20 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 20: Retail Market
Retail Market Retail (excl. Commission com.loans loans 21 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 21: Corporate Banking
Corporate Banking 22 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 22: Deposit growth
Deposit growth 23 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 23: Development in deposit margins
Development in deposit margins Retail Corporate 24
Slide 24: Long term financial targets
Long term financial targets < 40 % C/I ratio > 13 % > 50 % ROE Dividend payout ratio 16,5 % CET1 ratio 25
Slide 25: Financial outlook
26 Financial outlook ROE >13 % CET1 Ratio: 16.5 % C/l< 40% Pay out ratio > 50% Lending margins and provisions from SpareBank 1 Boligkreditt have decreased in Q2 based on the steepening of the yield curve. The increase in NIBOR have had a postitiv effect on deposit margins. This is as expected with t
Slide 26: Why invest in SpareBank 1 Nord-Norge
Why invest in SpareBank 1 Nord-Norge 27
Slide 27: Contacts
Contacts Management Liv B. Ulriksen CEO +47 957 31 130 liv.bortne.ulriksen@snn.no Bengt Olsen CFO +47 975 89 560 bengt.olsen@snn.no Investor Relations Terje Karlstad Investor Relations +47 411 22 220 terje.karlstad@snn.no 28
Slide 28: Appendix
A} Appendix SpareBank ¢ NORD-NORGE
Slide 29: A solid bank for Northern Norway
A solid bank for Northern Norway 30
Slide 30: Development in lending margins
Development in lending margins Corporate Retail 31
Slide 31: Company structure
Company structure SpareBank 1 Boligkreditt AS SpareBank 1 SpareBank 1 Finans Nord- EiendomsMegler 1 Nord- SpareBank 1 Gruppen AS 19,50 % | Financial services 15,58 % | Mortgage company Næringskreditt AS Norge AS Norge AS 2,71 % | Mortgage company 85 % | Loan/consumer finance/leasing 85 % | Real esta
Slide 32: Geographical distribution of ownership
Geographical distribution of ownership Foreign holders Other Norwegian holders Holders residing in Northern Norway 33
Slide 33: The 20 largest EC holders
34 The 20 largest EC holders EC Holders Number of ECs o Share of EC Capital Pareto Invest Norge AS Pareto Aksje Norge Verdipapirfond Geveran Tradinf CO LTD VPF Eika Egenkapitalbevis Kommunal Landspensjonskasse Gjensidige MP Pensjon PK The Northern Trust Comp, London Br Brown Brothers Harriman & Co.
Slide 34: Cost development - Group
Cost development - Group Cost/income Group (Amounts in NOK million) Group operating costs 35
Slide 35: Operating expenses - Group
Operating expenses - Group (Amounts in NOK million) 36
Slide 36: Net fee- and other operating income - Group
Net fee- and other operating income - Group 37
Slide 37: Risk exposure - Group
Risk exposure - Group Non-performing /impaired High risk 100,0% Medium risk Low risk 38
Slide 38: Changes in exposure last months - Group
Changes in exposure last 12 months - Group 8 299 Non-performing /impaired High risk (Amounts in NOK million) Medium risk Low risk 39
Slide 39: Exposure distributed by size
Exposure distributed by size* 30.06.2022 30.06.2023 40 *Incl. parent bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt
Slide 40: LTV mortgage loans
LTV mortgage loans LTV is distributed by balance and 30.06.2022 is based on the market value of the collateral: • 98.9 % of the gross exposure is within 85 % of the collateral 30.06.2023 market value • Only 0.6 % of the gross exposure is higher than 100 % of the collateral market value • The figures
Slide 41: Diversified portfolio in commercial real estate
Diversified portfolio in commercial real estate 42
Slide 42: Low oil related exposure
Low oil related exposure Oil related exposure amounts to NOK 778 mill • The exposure represents 0.52 % of total exposure including covered bond companies • Average weighted probability of default 1.42 % • A total of NOK 25 mill are non-performing or impaired commitments • The activity within oil and
Slide 43: Loan losses - Group
Loan losses - Group The Group’s annualized losses is -0.08 % (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 0.69 % of total exposure. Expected loss share: 27.74 % Commitments in step 2: 8.88 % of total exposure. Expected loss share: 3.28 %
Slide 44: The lending portfolio
The lending portfolio* 45 *) Incl. SpareBank 1 Boligkreditt
Slide 45: Funding
Funding NOK 23 476 mill in capital market funding exclusive of SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt is important funding sources. In total NOK 40 348 mill had been transferred as of 30.06.23 Amount of gross maturities of capi
Slide 46: Achieving goals for sustainability
Achieving goals for sustainability • ESG-classified portfolio aligned with EUs taxonomy* • Major contribution to the SDGs (175 mill in 2021) • Green product framework and Green Finance Framework established special for the Arctic region • 41% women in leadership positions • 24% reduction in greenhou
Slide 47: SpareBank 1 Alliance
SpareBank 1 Alliance • The SpareBank 1-alliance consists of 14 banks • Operate exclusively in Norway • Norway’s most extensive branch network with approx. 350 branches SpareBank 1 Nord-Norge (Tromsø) • The alliance is in the forefront of incorporating technological innovation into its distribution c
Slide 48: SpareBank 1 Alliance companies
SpareBank 1 Alliance SpareBank 1 SMN SpareBank 1 SR-Bank SpareBank 1 Samspar SpareBank 1 LO Nord-Norge Østlandet SpareBank 1 BN Bank SpareBank 1 SpareBank 1 Gruppen SpareBank 1 Alliance companies Markets Boligkreditt SpareBank 1 SpareBank 1 SpareBank 1 SpareBank 1 Fremtind Modhi Mobilitet Holding Kr
Slide 49: Noen som har et fint bilde til avslutning?
Noen som har et fint bilde til avslutning? 50
SpareBank 1 Nord-Norge — Q2 2023 Earnings Presentation on 6ix