SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q4 2016 Earnings Presentation
43 slides from SpareBank 1 Helgeland's earnings presentation, 2017
Slide 1: Presentation Q4 2016
Presentation Q4 2016 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation per 31.12.16 (HSB Group)
Presentation per 31.12.16 (HSB Group) Main Features Lisbeth Flågeng Profit & loss Chief Executive Officer Balance Lending Deposits Funding Sverre Klausen Chief Financial Officer Solidity Helgeland Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main features per 31.12.16
Main features per 31.12.16 Result Gross profit MNOK 452 (280) • Good profitability in the banks basis operations, net interest increased in NOK and maintained in % • Increased profit share from associated companies • Pension liability recognized as income by conversion to defined contribution in Q1
Slide 4: Main features per 31.12.16
Main features per 31.12.16 Lending 12-month growth 9.8 (8.2)% • Retail market 9.3 (9.2)% • Corporate market 10.9 (6.3)% Deposits 12-month growth 12.2 (5.0)% – good deposit ratio 65.4 (64.0)% • Retail market 6.1 (7.2)% • Corporate market 21.2 (1.6)% Interest rate increase from 05.01.17 • Mortgages 0.
Slide 5: Main features Profit & loss Balance
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 5 En drivkraft for vekst på Helgeland
Slide 6: Profit
Profit Profit developement (MNOK) Profit dev. excl. one time effect 500 40% 500 40% 452 35% 364 35% 400 85 400 30% 30% 266 283 280 106 25% 266 283 280 85 25% 300 300 49 20% 49 20% 73 92 73 92 106 200 172 88 107 200 172 88 76 15% 76 15% 59 13% 59 92 46 46 10% 10% 10% 100 53 80 58 100 53 80 58 66 5% 6
Slide 7: Key figures
Key figures Keyfigures in % of average BTA • Improved net interest with 8 bps, from 1.76 to 1.84% from 2,5 % 31.12.2015 Net provisions 1,84% • 0.30% - stabile level. 1,60% 1,5 % Operating costs • Flattening 0,96% Moderate write-downs on lending 0,5 % 0,30% Gross profit 0,26% 0,13% • Increased profit
Slide 8: Profit & loss
Profit & loss Helgeland Sparebank (group) Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Net interest- and credit provision earnings 114 116 121 125 128 133 134 Net provision earnings 20 23 22 20 22 22 21 Other operatios income 1 6 2 2 1 1 2 Ordinary operations cost 63 66 66 65 69 65 72 Res
Slide 9: Net interest
Net interest Development net intr.(mnok.) and % of average BTA Increased net interest 150 Still strong competition 133 134 125 128 regarding price 121 117 • Maintained net interest in %. 100 1,84% 1,83% 1,85% 1,82% • Interest costs subordinated 1,77% 1,77% bonds are recognized in equity in 2016, pro
Slide 10: Operating costs
Operating costs Cost focus – reduced costs • 0.5% cost growth in 2016 • Adaption of man years • Continuous improvement of work processes • Predictable pension plan will provide future cost reduction • One time effect pension is not included in the calculation above 10 En drivkraft for vekst på Helge
Slide 11: Main features Profit & loss Balance
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 11 En drivkraft for vekst på Helgeland
Slide 12: Balance
Balance Helgeland Sparebank (group) 31.12.16 31.12.15 Endring Liquid assets 602 601 1 Net lending to customers 24 632 22 444 2 188 Bonds and shares 3 851 3 729 122 Other assets 298 358 -60 Assets 29 383 27 132 2 251 Deposits from customers 16 173 14 418 1 755 Securities issued 9 258 9 549 -291 Other
Slide 13: Main features Profit & loss Balance
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 13 En drivkraft for vekst på Helgeland
Slide 14: Credit growth
Credit growth 12-month credit growth Commentary 20% Credit growth • 12-month growth 9.8 (8.2)% 15% PM share 10% • Target minimum 60% 9,8 % • Per Q4 67.6 (67.7)% 5% 4,8 % Locally in Helgeland • Per Q4 84.0 (84,4)% 0% -5% 2012 2013 2014 2015 2016 HSB Helgeland total Statistic Norway total 14 En drivkr
Slide 15: Credit growth CM and RM
Credit growth CM and RM 12-month credit growth corporate market 12-month credit growth retail market 20% 20% 15% 15% 10% 10,9 % 10% 9,3 % 6,4 % 5% 5% 2,0 % 0% 0% -5% -5% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 HSB Helgeland corp. HSB Helgeland pers. Commentary 12-month growth 9.8 (8.2)% wh
Slide 16: Lending CM
Lending CM Lending distributed in sector Commentary Good diversification in the CM Real estate 13,3 % lending portfolio and very loyal 12,5 % corporate customers 5,7 % Farming and forestry 5,4 % Share CM of total lending 32.4 (32.3)% or MNOK 8 013 4,1 % Construction and power (7 275) 4,5 % 2,9 % Tra
Slide 17: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss Good portfolio quality 200 Net non-performing and other impaired commitments amounts to MNOK 113 (75) 150 Which equals 0.5 (0.4)% of gross loans 100 Increased group write-downs with MNOK 8 so far this year. 50 0,5 % 0,
Slide 18: Main features Profit & loss Balance
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices Træna 18 En drivkraft for vekst på Helgeland
Slide 19: Deposit growth
Deposit growth 12-month deposit growth Commentary 20% 12-month growth 12.2 (5.0)% Helgeland Norway 15% 91,0 % 8,3 % PM share • Per Q4 56.3 (59.5)% 10% 12,2 % Locally in Helgeland •Per Q4 91.0 (91.1)% 5% 5,2 % BM Deposit ratio 0% PM 56,3 43,7 • Target minimum 60% % % • Per Q4 65.4 (64.0)% -5% 2012 20
Slide 20: Deposit growth CM and RM
Deposit growth CM and RM 12-month deposit growth corporate market 12-month deposit growth retail market 35% 20% 30% 25% 15% 21,2 % 20% 10% 15% 10% 7,7 % 6,1 % 5% 5% 4,1 % 0% 0% -5% -10% -5% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 HSB Helgeland Corp. HSB Helgeland pers. Commentary 12-month
Slide 21: Deposits CM
Deposits CM Customer deposits Commentary Well diversified deposit 9,1 % Municipalities 10,9 % portfolio in the CM 4,9 % Farming and forestry 7,9 % Share CM 43.7(40.5)% or Transport and services 9,1 % MNOK 7 069 (5 834) of total 8,6 % deposits 6,7 % Construction and power 6,0 % 3,4 % Deposits from mu
Slide 22: Deposit development
Deposit development 18.0 00.0 00.000 17.0 00.0 00.000 16.0 00.0 00.000 15.0 00.0 00.000 14.0 00.0 00.000 13.0 00.0 00.000 12.0 00.0 00.000 11.0 00.0 00.000 10.0 00.0 00.000 9.0 00.0 00.000 8.0 00.0 00.000 JULI 2013 JULI 2014 JULI 2015 JULI 2016 APRIL 2013 APRIL 2014 APRIL 2015 APRIL 2016 JANUAR 2013
Slide 23: Main features Profit & Loss Balance
Main features Profit & Loss Balance Lending Deposits Funding Solidity Helgeland Appendices 23 En drivkraft for vekst på Helgeland
Slide 24: Funding
Funding Commentary Funding development (MNOK) 120% Deposits are the most important source for funding, 100% 1,0 % 2,2 % 2,2 % 2,1 % 2,8 % 15,1 % 13,5 % 15,0 % 14,3 % 17,5 % Deposit and CB increased 80% share 30,5 % 26,8 % 25,9 % 24,4 % 19,2 % 60% 40% 54,8 % 56,9 % 59,2 % 60,5 % 49,7 % 20% 0% 2012 20
Slide 25: Funding
Funding Commentary Maturity of loans (MNOK) Good and long term funding 2.500 Share long term funding 2.000 88.2% (81.4)% 500 Combined duration of 2.8 1.500 1.000 1.000 (2.5) years. Duration in the mortgage company 3.1 years 1.000 1.000 272 1.500 500 1.000 1.000 500 838 600 200 0 2017 2018 2019 2020
Slide 26: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS 135 % Stresstest HEBO Helgeland boligkreditt AS, fully owned by Helgeland Sparebank Net profit MNOK 33.1 (38.1). 130 % Gross loans amounts to MNOK 5 629 (4 311) and CB MNOK 4 523 (3 673) 125 % CET1 ratio of 17.1 (15.6)% (standard method with 35% mortgage weights). 120 % Cov
Slide 27: Liquidity buffers
Liquidity buffers Sector distribution interest portfolio Commentary CB 1 43% The liquidity buffers amounts to 40% NOK 3.9 (3.8) bn. – equal 13.2 15% Finance, Norway 7% (14.1)% of total assets. The buffer 18% capital consists of of cash, Government 16% deposits in Bank of Norway/banks 16% and interes
Slide 28: Main features Profit & loss Balance
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 28 En drivkraft for vekst på Helgeland
Slide 29: Proposed disposal of profit 2015
Proposed disposal of profit 2015 Commentary Allocation of profit 2015 Increased distribution ratio 155 150 • 41.9 (37.4)%. One-time effect on pension conversion is entirely 135 supplied EC ( MNOK 41.6 equal 115 reserve and MNOK 13.8 savings 98 100 bank fund) and are thus not in the 95 86 dividends 7
Slide 30: Capital adequacy
Capital adequacy Commentary Development capital adequacy Capital ratio 22% • CET1 16.1 (15.2)% • Core capital 18.7 (16.5)% 20% • Total capital 20.5 (18.4)% 1,8 % 1,8 % 18% Successful EC placements that overall 2,6 % 1,8 % strengthened the banks CET1 by MNOK 16% 148, and subordinated bonds that incre
Slide 31: Main features Profit & loss Balance
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 31 En drivkraft for vekst på Helgeland
Slide 32: HELG – the 20 largest owners
HELG – the 20 largest owners Per 31.12.16 Numbers % share Numbers % share Sparebankstiftelsen Helgeland 7 255 020 34.8 % Vigner Olaisen AS 294 653 1.4 % Pareto AS 1 937 392 9.3 % Verdipapirfondet Pareto 269 000 1.3 % Merrill Lynch Prof. 1 253 462 6.0 % Catilina invest AS 221 858 1.1 % UBS AG, London
Slide 33: HELG – EC development and liquidity
HELG – EC development and liquidity The price of HELG per 31.12.16. was NOK 81.00 per EC. This is an increase of NOK 22.00 or 37.2% in 2016. 33 En drivkraft for vekst på Helgeland
Slide 34: Prospects and priorities
Prospects and priorities Result • Focus on profitable growth and width sale • Offensive sales organization ensures width sale • Focus on good consulting in the customer dialogue • Stronger highlighting of the bank’s significance for Helgeland • Maintaining the net interest. • Exploit the potential i
Slide 35: Stabile property price development
Stabile property price development Property price development in Helgeland compared to larger places (measured by price pr sqm for sold houses). Average national price increase for apartments in 2016 was 10.8%. • Property price increase in Helgeland was 7.2% in the same period. Bodø 7.9% og Oslo 17.
Slide 36: Unemployment
Unemployment Unemployment in %, Norway, Nordland og Helgeland Commentary 3,50% Unemployment in Helgeland 3,30% and in Nordland has by the 3,10% end of the year a better 2,90% development than Norway 2,70% overall. At the same time 2,50% Helgeland is in a lower level 2,30% than Nordland overall and 2
Slide 37: The world doesn’t work without Nordland
An export total of 25,3 billion - Seafood about 14 billion - Metals, chemicals about 11 billion The world doesn’t work without Nordland - -Helgeland 9 billion overall 40% of aluminum used in beer/soda cans are produced in Mosjøen 11% of the world’s salmon is produced in Nordland 75% of all paper mag
Slide 38: Well positioned
Well positioned • Record low unemployment (2.3%) Helgeland 2,1% • Less affected by weak economic conditions in the petroleum industries Slightly reduced activity in the Alstadhaug region • High corporate profitability (9,4%) National average 6,1% • High export value of seafood and industry (25
Slide 39: Thank you for your attention!
Thank you for your attention! EN DRIVKRAFT FOR VEKST 39 En drivkraft for vekst på Helgeland
Slide 40: Main features Profit & loss Balance
Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 40 En drivkraft for vekst på Helgeland
Slide 41: Helgeland Sparebank
Helgeland Sparebank Helgeland Sparebank is the12th. largest savings bank in Norway. 100% Vision: a driving force for growth in Helgeland. 48% Business concept: to be a profitable and the leading bank in Helgeland. The bank provides financial products and services to consumers, small and medium
Slide 42: The bank’s organization
The bank’s organization Board of Directors Assistant secretary Internal Auditor Brit Søfting Chief Executive Rolf Tor Jannsen Officer Lisbeth Flågeng Director of Director of Chief Financial Chief Business Chief Human Chief Chief Risk Corporate Retail Market Officer Development Resources Accounting M
Slide 43: Contact information
Contact information Head office Board of directors Postal address Postboks 68, 8601 Mo i Rana Ove Brattbakk, leder Visiting address Jernbanegata 15, 8622 Mo i Rana Stein Andre Herigstad-Olsen, nestleder Phone number 75 11 90 00 Eva Monica Hestvik Web www.hsb.no Bjørn Audun Risøy Organization number