Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q4 2023 Earnings Presentation
49 slides from Sparebank 1 Nord-norge's earnings presentation, Feb 8, 2024
Slide 1: 4Q 2023
4Q 2023 February 8th 2024 Hanne Karoline Kræmer, CEO Bengt Olsen, CFO
Slide 2: Highlights
C1) Highlights SpareBank NORD-NORGE oO
Slide 3: Highlights YTD
Highlights YTD Pre-tax profit ROE 3 273 MNOK (2 364) 16.4 % (11.9 %) CET1 ratio C/I ratio Losses 17.1 % (17.3 %) 36.0 % (40.3 %) 116 MNOK (63) NORD-NORGE SpareBank (1)
Slide 4: The obvious choice for people and businesses!
The obvious choice for people and businesses!
Slide 5: Satisfying financial results
Satisfying financial results 5
Slide 6: Subsidiaries – results before tax
Subsidiaries – results before tax 6
Slide 7: Outlook
2 } Outlook SpareBank NORD-NORGE oO
Slide 8: High value creation and employment in Northern Norway
High value creation and employment in Northern Norway Ri pple effect Core bus iness 8 Source: Nofima 2023
Slide 9: 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 2019 9
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 2024 Retail market: 2-4 % Corporate market: 4-7 % The Group is well capitalized. Underlying market growth is lower than in many years, but the region is well positioned compared to the rest of the country.
Slide 12: Financial status
3) Financial status SpareBank 1) NORD-NORGE
Slide 13: Group financial highlights and key figures
Group financial highlights and key figures 13
Slide 14: Quarterly development
14 Quarterly development CET1 ratio Return on equity capital Cost/income Group 18.8% 17.3% 17.3% 175% 176% 71% 3Q22) 4Q22) «-1Q23)-2Q233Q23) 4Q23 3Q22 4Q22 19.1% 1Q23 2Q23 3Q23 18.8% 4Q23 39.9% 3Q22 4Q22 1023 2Q23 3Q23 4Q23 SpareBank NORD-NORGE 1)
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: Development in net interest income
Development in net interest income Net interest in % of average assets NII 19
Slide 19: Low losses
Low losses Net losses in % of Net losses gross lending incl. interm. loans (Amount in NOK million) Retail Corporate 20
Slide 20: Lending growth
Lending growth Retail Corporate 21 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 21: Retail Market
Retail Market Retail (excl. Commission com.loans loans 22
Slide 22: Corporate Banking
Corporate Banking Lending growth aH pes 43 837 45 168 47 325 48 843 3Q22 4Q22 1023 2Q23 3Q23 4023 23 Development in lending margin (iso) 3Q22 4Q22 1023 2Q23 3Q23 4Q23 Lending growth (12 mth) 15.5% 14.4% 3022 4022 1023 2023 3023 4023 SpareBank NORD-NORGE 1)
Slide 23: Deposit growth
Deposit growth 24 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 24: Long term financial targets
Long term financial targets < 40 % C/I ratio > 13 % > 50 % ROE Dividend payout ratio 15.8 % CET1 ratio 26
Slide 25: Proposed dividend for 2023
Proposed dividend for 2023 Total dividend for 2023 NOK 7,0/EC Ex date March 15th 2024 A pay out ratio of 61.6 % mean that the northern norwegian society will receive NOK 813 million Pay out ratio Dividend 27
Slide 26: Financial outlook
Financial outlook ROE >13 % CET1 Ratio: 15.8 % C/l< 40% Pay out ratio > 50 % Lending margins and provisions from SpareBank 1 Boligkreditt have continued to decreased in Q4 based on the hike from the central bank. The increase in NIBOR have had a postitiv effect on deposit margins. If the markets exp
Slide 27: Why invest in SpareBank 1 Nord-Norge
Why invest in SpareBank 1 Nord-Norge 29
Slide 28: Contacts
Contacts Management Hanne Karoline Kræmer CEO +47 414 70 483 Hanne.karoline.kramer@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 30
Slide 29: Appendix
A) Appendix SpareBank 1) NORD-NORGE
Slide 30: A solid bank for Northern Norway
A solid bank for Northern Norway 32
Slide 31: Development in lending margins
Development in lending margins Corporate Retail 33
Slide 32: 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 15.70 % | Mortgage company Næringskreditt AS Norge AS Norge AS 1.05 % | Mortgage company 85 % | Loan/consumer finance/leasing 85 % | Real esta
Slide 33: Geographical distribution of ownership
Geographical distribution of ownership Foreign holders Other Norwegian holders Holders residing in Northern Norway 35
Slide 34: The 20 largest EC holders
36 The 20 largest EC holders EC Holders Number of ECs o Share of EC Capital PARETO AKSJE NORGE VERDIPAPIRFOND PARETO INVEST NORGE AS VPF EIKA EGENKAPITALBEVIS Geveran Trading Company LTd KOMMUNAL LANDSPENSIONSKASSE GJENSI Brown Brothers Harriman & Co. MP PENSION PK FORSVARETS PERSONELLSERVICE The No
Slide 35: Cost development - Group
Cost development - Group Cost/income Group (Amounts in NOK million) Group operating costs 37
Slide 36: Operating expenses - Group
Operating expenses - Group (Amounts in NOK million) 38
Slide 37: Net fee- and other operating income - Group
Net fee- and other operating income - Group 39
Slide 38: Risk exposure - Group
Risk exposure - Group 1,8% Non-performing /impaired High risk 100.0% Medium risk Low risk 40
Slide 39: Changes in exposure last months - Group
Changes in exposure last 12 months - Group 6,148 Non-performing /impaired High risk (Amounts in NOK million) Medium risk Low risk 41
Slide 40: Exposure distributed by size
Exposure distributed by size* 31.12.2022 31.12.2023 42 *Incl. parent bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt
Slide 41: LTV mortgage loans
LTV mortgage loans LTV is distributed by balance and 31.12.2022 is based on the market value of the collateral: • 98.7 % of the gross exposure is within 85 % of the collateral 31.12.2023 market value • Only 0.5 % of the gross exposure is higher than 100 % of the collateral market value • The figures
Slide 42: Diversified portfolio in commercial real estate
Diversified portfolio in commercial real estate 44
Slide 43: Loan losses - Group
Loan losses - Group The Group’s annualized losses is 0.32 % (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 0.87 % of total exposure. Expected loss share: 31.57 % Commitments in step 2: 14.09 % of total exposure. Expected loss share: 2.70 %
Slide 44: The lending portfolio
The lending portfolio* 46 *) Incl. SpareBank 1 Boligkreditt
Slide 45: Funding
Funding NOK 22,413 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 44,648 mill had been transferred as of 31.12.23 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 • Green product framework and Green Finance Framework established special for the Arctic region • 41% women in leadership positions • 24% reduction in greenhouse gas emissions • E
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? 51
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