SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q2 2016 Earnings Presentation
45 slides from SpareBank 1 Helgeland's earnings presentation, 2016
Slide 1: Presentation Q2 2016
Presentation Q2 2016 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation per 30.06.16 (HSB Group)
Presentation per 30.06.16 (HSB Group) Main Features Lisbeth Flågeng Profit & loss Chief Executive Officer Balance Lending Deposits Funding Sverre Klausen Chief Financial Officer Solidity Summary Helgeland Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: 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 40% me
Slide 4: Main features per 30.06.16
Main features per 30.06.16 Result Gross profit MNOK 261 (129) • Still good profitability in the banks basis operations, net interest increased in NOK and maintained in% • Pension liability recognized as income by conversion to defined contribution in Q1 • Increased income by shares of profit from as
Slide 5: Main features per 30.06.16
Main features per 30.06.16 Lending 12-month growth 10.7 (7.3)% • Retail market 10.3 (6.6)% • Corporate market 11.4 (2.0)% Deposits 12-month growth 8.3 (4.6)% – good deposit ratio 65.0 (66.5)% • Retail market 7.4 (5.3)% • Corporate market 9.6 (3.4)% Rating • Maintained Moodys rating of the bank with
Slide 6: Main features / Profit & loss
Main features Profit & loss Balannce Lending Deposits Funding Solidity Summary Helgeland Appendices Vega 6 En drivkraft for vekst på Helgeland
Slide 7: Result
Result Profit developement (MNOK) Profit dev. excl. one time effect Good result Q2 Gross profit MNOK 261 400 40% 400 40% • ROE after tax 13,3% and 35% 35% 10,5% excluding one 300 283 280 30% 300 283 280 30% time effect by conversion 266 261 266 49 to defined contribution 25% 49 25% 73 92 73 92 and g
Slide 8: Key figures
Key figures Keyfigures in% of average BTA Net interest - stabile positive development 2,5 % • Improved net interest with 8 bps, from 1.76 to 1.84% from 1,89% 31.12.2015 1,84% Net provisions 1,5 % • 0.30% - stabile level. 0,97% Operating costs • Flattening, Slightly down form 0,5 % 0,30% 31.12.15 0,2
Slide 9: Profit & loss
Profit & loss Helgeland Sparebank (group) Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Net interest- and credit provision earnings 115 112 114 116 121 125 128 Net provision earnings 19 21 20 23 22 20 22 Other operatios income 3 2 1 6 2 2 1 Ordinary operations cost 77 67 63 66 66 65 69 Res
Slide 10: Net interest
Net interest Development net intr.(mnok.) and% of average Increased net interest BTA 150 Still strong competition 125 128 regarding price 121 112 113 117 • Last reduction of the mortgage interest rate was 100 conducted 08.06.16, 1,84% 1,83% 1,76% 1,77% 1,77% 1,77% covered through market adaption of
Slide 11: Operating costs
Operating costs Development operating cost (mnok) and % of Development operating cost (mnok) and % of income BTA 100 300 263 270 233 239 74 75 67 66 69 63 65 200 50 134 48,2% 47,9% 49,3% 41,6% 43,6% 38,3% 100 25 0,99% 0,95% 1,01% 1,03% 0,97% 0 0 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 2012 2
Slide 12: Balance
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 12 En drivkraft for vekst på Helgeland
Slide 13: Balance
Balance Helgeland Sparebank (group) 30.06.16 30.06.15 Endring liquid assets 669 740 -71 Net lending to customers 23 804 21 490 2 314 Certificates and shares 3 717 3 620 97 Other assets 346 350 -4 Assets 28 536 26 200 2 336 Deposits from customers 15 536 14 350 1 186 Money market financing 9 836 8 90
Slide 14: Lending
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 14 En drivkraft for vekst på Helgeland
Slide 15: Credit growth
Credit growth 12-month credit growth Commentary 20% Credit growth HEBO 20,5 % Helgeland Norge • 12-month growth 10.7 (3.7)% BM 84,0 % 15,9 % 15% PM 46,9 % 32,6 % PM share 10% 10,7 % • Target minimum 60% • Per Q2 67.4 (67.6)% 5% 4,9 % Locally in Helgeland • Per Q2 84.0 (84.2)% 0% -5% 2012 2013 2014 2
Slide 16: 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% 11,4 % 10% 10% 10,3 % 5% 5% 5,9 % 3,0 % 0% 0% -5% -5% 2012 2013 2014 2015 30.06.16 2012 2013 2014 2015 30.06.16 HSB Helgeland corp. Statistic Norway corp. HSB Helgeland pers. Statisti
Slide 17: Lending CM
Lending CM Lending distributed in sector Commentary Good diversification in the CM 13,2 % lending portfolio and very loyal Real estate 13,4 % corporate customers 5,8 % Share CM of total lending 32.6 Farming and forestry 5,3 % (32.4)% or MNOK 7 783 4,0 % (6 987) Construction and power 4,1 % 3,1 % Tra
Slide 18: Non-performing and other impaired commitments
Non-performing and other impaired commitments Good portfolio quality Net defaulted and com. exp. to loss Net non-performing and other 200 impaired commitments amounts to MNOK 98 (131) 150 Which equals 0.4 (0.6)% of gross loans 100 Increased group write-downs with MNOK 2.5 in Q1 and MNOK 2.5 in Q2 50
Slide 19: Deposits
Main features Profit & loss Balance Lending Deposits Funding Solidity summary Helgeland Appendices 19 En drivkraft for vekst på Helgeland
Slide 20: Deposit growth
Deposit growth 12-month deposit growth Commentary 20% 12-month growth 8.3 (4.6)% Norge Helgeland 8,7 % 15% 90,6 % PM share • Per Q2 59.5 (60.0)% 10% Locally in Helgeland 8,3% •Per Q1 90.6 (91.7)% 5% 4,7% PM BM Deposit ratio 0% 59,5 % 40,5 % • Target minimum 60% • Per Q2 65.0 (66.5)% -5% 2012 2013 20
Slide 21: 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% 20% 10% 15% 9,6 % 7,4 % 10% 5% 5,3 % 5% 2,9 % 0% 0% -5% -10% -5% 2012 2013 2014 2015 30.06.2016 2012 2013 2014 2015 30.06.2016 HSB Helgeland Corp. Statistic Norway Corp. HSB He
Slide 22: Deposits CM
Deposits CM Commentary Customer deposits Well diversified deposit Municipalities 12,1 % portfolio in the CM 10,0 % Farming and forestry 6,0 % 4,8 % Share CM 40.5(40.0)% or Transport and services 3,7 % MNOK 6 287 (5 736) of total 8,9 % deposits Construction and power 3,4 % 6,1 % Real estate 2,9 % Dep
Slide 23: Deposit development
Deposit development Deposit 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 MARS 2013 JULI 2013 SEPTEMBER 2013 MARS 2014 JULI 2014 MARS 2015 JULI 2015 MARS 2016 MAI 2013 MAI 2014 S
Slide 24: Funding
Main features Profit & Loss Balance Lending Deposits Funding Solidity summery Helgeland Appendices Lånan 24 En drivkraft for vekst på Helgeland
Slide 25: Funding
Funding Commentary Funding development (MNOK) 120% Deposits are the most important source for funding, 100% 15,1 % 13,5 % 15,0 % 14,3 % 16,0 % Deposit and CB increased 80% share 30,5 % 26,8 % 25,9 % 24,4 % 21,9 % 60% 40% 54,8 % 56,9 % 59,2 % 60,1 % 49,7 % 20% 0% 2012 2013 2014 2015 30.06.2016 Deposi
Slide 26: Funding
Funding Commentary Maturity of loans (MNOK) Good and long term funding 2.500 Share long term funding 2.000 79.3% (83.0)% 500 630 Combined duration of 2.6 1.500 1.000 1.000 (2.5) years. Duration in the mortgage company 3.2 years 1.000 1.500 800 1.334 500 1.000 1.000 577 350 0 2016 2017 2018 2019 2020
Slide 27: Funding
Funding Credit spread output on both Senior and Covered Bonds changed al lot last fall as a result of turmoil in the banking market. However, we have seen an improvement in the last months and is back at a slightly lower level. 27 En drivkraft for vekst på Helgeland
Slide 28: Funding
Funding Funding, proportion Senior and Covered Commentary Maximum limit for transferring to Helgeland Boligkreditt is stated to 30% of gross loans. Per 30.06.16 20.5% is 42% transferred. 58% Empowered mortgages might increase the transfer to 25% Senior Covered 28 En drivkraft for vekst på Helgeland
Slide 29: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Stresstest HEBO, reduced value of security and loss from high risk customers 2.500.000.000 124,0 % Helgeland boligkreditt AS 2.250.000.000 122,0 % LTV-group: Gross profit MNOK 18.1 (18.5). 1-40 2.000.000.000 120,0 % CET1 ratio of 19.2 (15.9)% (standard 41-50 method with 35%
Slide 30: Liquidity buffers
Liquidity buffers Securities distributed in sectors Commentary CB 1 38% The liquidity buffers amounts to 40% NOK 3.9 (4.0) bn. – equal 13.6 16% Finance, Norway 10% (15.2)% of total assets. The 17% buffer capital consists of of cash, Government 16% deposits in Bank of 20% Norway/banks and interest Mu
Slide 31: Solidity
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices Rødøy 31 En drivkraft for vekst på Helgeland
Slide 32: Capital adequacy
Capital adequacy Commentary Development capital adequacy Capital ratio 20% • CET1 14.0 (14.2)% • Core capital 14.4 (15.6)% 18% • Total capital 17.2 (17.6)% 16% 1,8% Changing the definition of mass 1,4% market segmented in Q2 2016 14% represents a decrease of approximately 0,25- percentage 12% points
Slide 33: Summary
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices Aldersundet 33 En drivkraft for vekst på Helgeland
Slide 34: Prospects and priorities
Prospects and priorities Result • Continued focus on core business and profitable growth • Strong competition in the retail market is met with an offensive sales organization an focus on good consulting in the customer dialogue • Several factors challenges the net interest. • Competition • Further r
Slide 35: Helgeland
Helgeland • The seafood industry – Record growth first half – Salmon prices – Low exchange rate – Breeding companies' 2015 financial statements documenting "all time high – "Nova Sea AS – 33 licenses – 250 employees – 1.5 mnok in res before tax every day – Exports over 1 billion NOK – Extended marke
Slide 36: Helgeland
Helgeland • The tourism industry – High occupancy in the region accommodation industry – Increasing interest in Helgeland as destination? – The exchange rate? – Summary / statistics in Q 3 36 En drivkraft for vekst på Helgeland
Slide 37: Helgeland
Helgeland • Construction industry: High activity – E 6 development 2016-2018 – Provides greater local effects than foreseen – New hydropower plants – Several major apartment development projects and new public buildings • Export industry – Low exchange rate – Full activity, but a major focus on effi
Slide 38: Property price development (per quarter)
Property price development (per quarter) Price development - sold apartments in NOK/sqm Price development - sold villas in NOK/sqm 70.000 60.000 60.000 50.000 50.000 Helgeland 40.000 Helgeland 40.000 Oslo Oslo 30.000 Trondheim Trondheim 30.000 Bodø 20.000 Bodø 20.000 10.000 10.000 0 0 Property price
Slide 39: Unemployment
Unemployment Commentary Unemployment in %, Norge, Nordland og Helgeland 3,50% There is a certain difference in 3,30% unemployment between the 3,10% regions in Helgeland, but 2,90% rather variable over time. 2,70% 2,50% Overall unemployment in 2,30% Helgeland is 2.3% by the end 2,10% of Q2 2016. 1,90
Slide 40: Thank you for your attention!
Thank you for your attention! EN DRIVKRAFT FOR VEKST 40 En drivkraft for vekst på Helgeland
Slide 41: Appendices
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 41 En drivkraft for vekst på Helgeland
Slide 42: HELG – the 20 largest owners
HELG – de 20 største eierne Per 30. 06. 16 Numbers % s hare Numbers % s hare Sparebankstiftelsen Helgeland 6.599.598 35,3 % Helgeland Kraft AS 340.494 1,8 % Pareto AS 1.570.836 8,4 % Verdipapirfondet Pareto 269.000 1,4 % UBS AG, London Branc A/C 1.198.900 6,4 % Sniptind Holding AS 179.061 1,0 % Merr
Slide 43: HELG – EC development and liquidity
HELG – EC development and liquidity The price of HELG per 30.06.16. was NOK 62.00 per EC. This is an increase of NOK 3.00 since year end. 43 En drivkraft for vekst på Helgeland
Slide 44: The bank's organization
The bank’s organization Board of Directors Assistant secretary Internal Auditor Brit Søfting Chief Executive Rolf EInum Officer Lisbeth Flågeng Director of Director of Chief Financial Chief Business Chief Human Chief Chief Risk Corporate Retail Market Officer Development Resources Accounting Managem
Slide 45: 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