Rogaland Sparebank · OSL:ROGS
Rogaland Sparebank — Sandnes Sparebank — Q2 2022 Earnings Presentation
41 slides from Rogaland Sparebank's earnings presentation, Aug 11, 2022
Slide 1: Financial Reporting 2nd Quarter 2022
Financial Reporting 2nd Quarter 2022 Sandnes 08.11.2022
Slide 2: Content
Content: Q2 Summary Customers and Market Eika Key Figures
Slide 3: Stable good results through turbulent times
Den Gule Banken, Sandnes Sparebank Stabile good results through turbulent times ROE Summary: 280 11,2 % 12,0 % • Profit after tax MNOK 169,4 (149,6) 10,7 % 10,1 % 10,2 % 10,3 % • ROE on equity after tax 11,2 % (10,3 %) 230 10,0 % • Profit per ECC (EPS) of NOK 5,1 (4,6) 180 8,0 % 169 • Lending growth
Slide 4: Content
Content: Q2 Summary Customers and Market Eika Key Figures
Slide 5: Loan growth at 6,1 % YoY
Loan growth at 6,1 % YoY Solid growth in retail market 0,07 0,12 0,06 6,1 % 0,1 9,9 % 5,5 % 5,2 % 0,08 0,05 4,9 % 7,4 % 7,5 % 7,6 % 4,8 % 6,9 % 6,8 % 4,5 % 0,06 6,2 % 4,3 % 0,04 4,0 % 4,6 % 5,0 % 3,9 % 4,1 4,1 % 0,04 3,9 % 0,03 0,02 1,7 % 0 0,02 -0,7 % -0,3 % -1,1 % -0,02 -2,9 % 0,01 -0,04 -3,5 % Gr
Slide 6: Strategic organic growth in the retail market
Strategic organic growth in the retail market 0,12 • Customer experiences as a 0,1 9,9 % basis for growth • An organization that wants 0,08 7,6 % something 7,4 % 7,5 % 0,06 6,9 % 6,2 % • Retail lending increased by NOK 1,7 mrd (9,9 %) YoY 5,0 % 0,04 3,9 % 4,1 % • Retail lending increased by MNOK 599
Slide 7: Strategic organic growth in the retail market
Strategic organic growth in the retail market Retail lending growth FY22 • Cost and growth in line with budget • Positive economic contribution YTD 255 368 92 58 217 at the end of 2023 • 14 newly employed customer - 200 400 600 800 1.000 advisors Sandnes Stavanger Sola Oslo Other
Slide 8: Næringslivsdag på Blink 22
Et spennende program samlet næringslivet (not translated) Næringslivsdag på Blink 22 • Omdømme, merkevare og kultur • Næringslivsdagen er et samarbeid med Dagens Næringsliv, Sandnes kommune og Den Gule Banken, Sandnes Sparebank Amund Djuve i samtale med Terese Johaug og Petter Nortug Lars Kristianse
Slide 9: BLINK 2022 – successful event - strengthens the brand
BLINK 2022 – successful event - strengthens the brand
Slide 10: Content
Content: Q2 Summary Customers and Market Eika Key Figures
Slide 11: Eika – Good products and improved solutions
Eika – Good products and improved solutions Competitive solutions Good and competitive products • Insurance • Fund savings • Creditcard Digital products • New and improved mobile banking in the retail market • One of the best financial advisor solutions within the retail market in Norway, developed
Slide 12: Status converting to Tietoevry
Status converting to Tietoevry Improved competetiveness Reduced costs • MNOK 50-60 in increased costs in 2021/2022, so far under budget • Estimated annual savings of 15-20 MNOK for Sandnes Sparebank from 2024 • Estimated payback period between 3-4 years Future-oriented customer solutions • Forward-l
Slide 13: A more robust strategy
A more robust strategy For Den Gule Banken and for Eika Alliansen A more robust strategy for Den Gule Banken • Lower risk • Development based on regulatory requirements in Norway • Development based on customer needs in the Norwegian market • Lower costs • To a greater extent, standarized solutions
Slide 14: Eika – a good investment
Eika – a good investment Eika, a well-run and profitable alliance with good operations and good products 900 Den Gule Banken bought 8,0 % in 2014 823 800 Owns 8,75% as of 06.30.22 701 684 700 600 570 266 MNOK dividends received in the period 553 496 509 198 MNOK change in value during the period 500
Slide 15: Content
Content: Q2 Summary Customers and Market Eika Key Figures
Slide 16: Profitability
Profitability Stable results despite a troubled macroeconomic period 140 16, 0 % 11,2 % 350 13,5 % 120 14, 0 % 9,6 % 9,7 % 10,0 % 300 9,0 % 8,8 % 12, 0 % 100 10,7 % 103 277 9,6 % 250 261 281 8,0 % 9,0 % 10, 0 % 244 80 7,8 % 200 79 8,0 % 73 6,0 % 60 66 150 169 59 6,0 % 40 100 4,0 % 4,0 % 20 2,0 % 50
Slide 17: Net Interest Margin
Net Interest Margin Interest rate changes towards customers are beginning to take effect. Still som lag in interest margin as a result of an increase in Nibor Net interest Margin, Quarterly Net Interest Margin, Yearly 1,90% 1,90% 1,80% 1,80% 1,73% 1,72% 1,70% 1,70% 1,64% 1,58% 1,57% 1,60% 1,54% 1,60
Slide 18: Margins on Loans and Deposits
Margins on Loans and Deposits Strong competion and rising NIBOR-rates affects margins 1% 0,83 % 1% 3,15 % 3,07 % 0,74 % 0,74 % 2,92 % 2,77 % 2,81 % 1% 0,63 % 0% 0,42 % 0,34 % 1,92 % 1,76 % 0% 1,40 % 0,04 % 1,15 % 1,17 % 0% 0,03 % -0,09%% -0,06 0% 2Q21 3Q21 4Q21 1Q22 2Q22 2Q21 3Q21 4Q21 1Q22 2Q22 Len
Slide 19: Other income
Other income Solid dividend from Eika Gruppen, turbulent equity and interest rate markets affect financial securities 2Q21 3Q21 4Q21 1Q22 2Q22 2018 2019 2020 2021 1H22 75,8 154,3 140,6 2,1 135,0 14,8 60,9 25,1 0,7 122,6 31,5 114,8 5,9 1,7 28,9 4,6 39,0 14,4 22,8 34,1 79,8 31,8 89,7 0,3 14,1 48,2 13,
Slide 20: Gross Commission Income
Gross Commission Income Increased activity in AktivEiendom, continuous improvement in the sale of insurance and mutual funds 27 110, 0 25 0,5 25 25 24 99 25, 0 0,6 0,6 3,5 2 0,6 0,5 89 3,0 3,7 1,3 86 12 2,9 90,0 3 3,4 1,4 3 20, 0 1,2 1,4 1,4 9 10 5 1,5 1,5 1,5 1,3 4 6 1,6 4 70,0 8 6 8,4 57 15, 0 7,9
Slide 21: Operating Costs
Operating Costs Mål 2019: Some increase in personellcost, Conversion of the core bank system is a little under budget 120 400 1,00 314 100 96 350 29 86 0,80 300 269 269 36 26 77 261 80 74 73 11 - - 28 30 0,60 9 10 250 27 9 9 52% 9 60 45% 44% 44% 46% 200 0,40 162 150 11 40 278 19 0,20 68 65 234 242 2
Slide 22: Losses on Loans and Guarantees
Losses on Loans and Guarantees Low losses through the corona pandemic, consistently stable and good credit quality 0% 0,13 % 0% 0,11 % 0,10 % 0% 8 0% 0,03 % 0,06 % 0,02 % 0% 1 2 0% 24 25 -3 0,02 % -0,05 % 0% 13 0% 3 0% -15 0% 2018 2019 2020 2021 1H22 0% 0% -32 0% -0,24 % 0% -0,13 % 0% 0% 2Q21 3Q21 4
Slide 23: Loans to Customers by Division, Credit Risk
Loans to Customers by Division, Credit Risk Risk expressed by expected creditloss (ECL, PDxLGD) Retail Corporate 60 0,30 % 250 2,50 % 0,24 % 0,25 % 2,02 % 2,00 % 50 0,23 % 0,20 % 200 194 0,19 % 44 0,19 % 1,50 % 0,18 % 42 1,27 % 0,15 % 1,16 % 40 1,00 % 37 36 35 0,10 % 150 0,75 % 0,73 % 0,50 % 30 0,05
Slide 24: Non-Performing and Doubtful Loans
Non-Performing and Doubtful Loans Stable and declining levels 0,93 % 0,91 % 0,85 % 0,83 % 0,81 % 231 227 215 214 213 1,05 % 1,04 % 0,96 % 0,85 % 0,81 % 251 233 220 215 213 2Q21 3Q21 4Q21 1Q22 2Q22 2018 2019 2020 2021 1H22 Net non-performing and doutbful loans Non-performing and doutbful loans Net no
Slide 25: Well Capitalized and Equipped for Further Growth
Well Capitalized and Equipped for Furter Growth CET 17,9 % including profit for the year | Leverage ratio 9,2 % • Effect by implementation of SME-2 + 0,7% CET-1 is included 18% 17,4 % 0,5 % • Increased value of ownership in Eika increases CET-1 with 0,5% 15% by year-end 12% • Counter-Cyclical Buffer
Slide 26: Financial Targets for 2021-2024
Financial Targets for 2021-2024 ROE CET1 Dividends 0 0 1 0 0 1 0 1 0 0 1 0 0 1 0 0 50-75% 1 0 >10,0 % 0 17,8 % 74 % 9,7 % 0 17,5 % 1 0 9,6 % 0 1 0 9,0 % 0 16,6 % >16,6 %* 1 63 % 63 % 0 1 0 0 0 1 2019 2020 2021 Mål 2024 2019 2020 2021 Mål 2024 2019 2020 2021 Mål 2024 * Internt mål om + 1 % management
Slide 27: ©
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Slide 28: Appendix
Den Gule Banken Sandnes Sparebank Appendix
Slide 29: The Equity Certificate
The Equity Certificate 20 largest owners of equity certificates as at 30.06.2022 No. of equity certificates Share 1. Sparebank 1 SR-Bank ASA, Finansavdelingen 3.485.009 15,14 % Pris Avkastning 2. Sandnes Sparebank 2.087.071 9,07 % 400 300% 3. Holmen Spesialfond 1.259.823 5,47 % 380 280% 4. VPF EIKA
Slide 30: Solidity – Leverage Ratio
Solidity –Leverage Ratio 12% 12% 10,1 % 10,0 % 9,9 % 10,0 % 9,6 % 9,8 % 9,7 % 9,8 % 9,2 % 9,2 % 9% 9% 6% 6% 3% 3% 0% 0% 1Q21 2Q21 3Q21 4Q21 1Q22 2017 2018 2019 2020 2021 30
Slide 31: Cost to Income Banking Operations
Cost to Income Banking Operations Cost ratio without real estate and conversion costs related to core banking systems 1 1 0 0 0 0 0 0 0 0 0 0 46% 48% 44% 42% 42% 44% 0 0 41% 40% 37% 35% 0 0 0 0 0 0 0 0 2Q21 3Q21 4Q21 1Q22 2Q22 2018,00 2019 2020 2021 1H22 Cost to income banking operations Cost to inc
Slide 32: Loans to Customers by Division
Loans to Customersby Division The share of lending to the retail market has increased significantly over tha past 5 years Retail services 1% Farming 3% Other* Public and private services 1% Buidling & 2% construction 3% 29 % 27 % 27 % 26 % 32 % Commercial real estate 16% Retail customers 74% 71 % 73
Slide 33: Loans to Corporate Customers by Sector
Loans to Corporate Customers by Sector-27% of total lending Largest growth in agriculture and SME Housing cooperative Commercial Other 3% building 4% building projects 0% Housing Commercial real building Land estate projects 3% 60% 11% Housing rental Commercial 15% rental Other* 64% 5% Buidling & co
Slide 34: Lending to corporate customers by size
Lending to corporate customers by size Growth in small businesses| Reduction in large corporates over MNOK 100 6,0 4,0 20 18 3,5 5,1 5,2 5,0 5,0 5,0 5,0 16 3,0 14 14 4,0 2,5 12 11 11 12 2,0 9 10 3,0 2,1 8 1,5 1,7 1,6 2,0 2,1 1,5 1,4 1,6 6 1,7 1,0 1,5 1,5 1,4 1,4 1,3 4 1,0 1,3 1,2 0,5 2 0,0 0,0 - 201
Slide 35: Write-downs on Loans
Write-downs on Loans 2% 1% 2% 1% 0,41 % 0,40 % 0,37 % 0,37 % 0,35 % 1,08 % 1% 0% 86 0,64 % 0,63 % 1% 16 0,37 % 0,35 % 19 14 12 13 -1 % 31,0 25,3 0% 40 46 46 44 48 -1 % 35,7 52,1 13,6 13 -1% 157 44,2 48 -2 % -1% 45 38 80 74 36 38 32 38 32 -2 % -2% 2Q21 3Q21 4Q21 1Q22 2Q22 2018 2019 2020 2021 1H22 Ste
Slide 36: Deposits From Customers
Deposits From Customers 52% 51% 53% 51% 51% 55 % 45 % Deposits Retail Deposits Corporate 2Q21 3Q21 4Q21 1Q22 2Q22
Slide 37: Liquidity
Liquidity LCR at 252% | NSFR at 131 % 4.000 3.780 3.499.0 00 3.140 3.500 3.225 2.975 2.937 2.999.0 00 3.000 2.650 2.534 2.192 2.499.0 00 2.500 300 3.000 1.999.0 00 2.000 2.425 2.456 1.700 1.499.0 00 1.500 1.300 300 2.650 892 999.000 792 1.000 1.400 403 499.000 934 500 90 780 800 684 - 90 -1.000 - -
Slide 38: Liquidity
Liquidity NOK 3,7 bn. ex. cash 75% Foreign Foreign Municipalities Covered Bonds Domestic (RW0) 10 % Municipalities 5% (RW20) 13 % Gov't Guaranteed 18 % 24% Domestic Covered Bonds 53 % 0% 0% 1% AAA AA A BBB BB • BB is an interest fund
Slide 39: Key Figures
Key Figures 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1H21 1H22 Growth assets -6,2 % 0,1 % -0,9 % 5,2 % -2,6 % -1,1 % 5,7 % 1,1 % -2,1 % 2,9 % Growth lending (net) 1,0 % 0,1 % 1,5 % 1,2 % 1,3 % 1,4 % 1,3 % 2,0 % 4,0 % 6,1 % Growth deposits -4,3 % 0,4 % 2,7 % 4,7 % -0,3 % 0,4 % 2,7 % 5,0 % 3,3 % 8,0 %
Slide 40: Definition of Key Figures
Definition of Key Figures Rate of deposits to loans Return on equity after tax OB net loans to customers / OB deposits from customers (Operating profit after taxes / days in the period x days in a year) / ((OB total equity + IB total equity) / 2 [excl. T1 hybrid instruments] Liquidity coverage ratio
Slide 41: This presentation has been prepared solely for promotion purposes
This presentation has been prepared solely for promotion purposes of Sandnes Sparebank. The presentation is intended as general information and should not be construed as an offer to sell or issue financial instruments. The presentation shall not be reproduced, redistributed, in whole or in part, wi