Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q2 2024 Earnings Presentation
46 slides from Sparebank 1 Nord-norge's earnings presentation, Aug 8, 2024
Slide 1: 2Q 2024
2Q 2024 August 8th 2024 Hanne Karoline Kræmer, CEO Bengt Olsen, CFO
Slide 2: Highlights
C1) Highlights NORD-NORGE SpareBank 1)
Slide 3: The Obvious Choice for People and Businesses!
The Obvious Choice for People and Businesses!
Slide 4: Highlights YTD
Highlights YTD Pre-tax profit ROE 1 889 MNOK (1 641) 18.2 % (16.1 %) CET1 ratio C/I ratio Losses 17.3 % (17.5) 33.5 % (34.5) 51 MNOK (-27) SpareBank NORD-NORGE 1)
Slide 5: Satisfying Financial Results
Satisfying Financial Results * Including 50 % of the 1Q24 result 5
Slide 6: Subsidiaries – Earnings Before Tax
Subsidiaries – Earnings Before Tax 6
Slide 7: Outlook
2 } Outlook SpareBank NORD-NORGE oO
Slide 8: Composition of the Groups Total Income
Composition of the Groups Total Income SNN SB1 Gruppen 8
Slide 9: Status and Outlook in Northern Norway
Status and Outlook in Northern Norway 9
Slide 10: Ambitions for Lending Growth and Market Share
Ambitions for Lending Growth and Market Share Expected lending 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 cou
Slide 11: Financial status
3] Financial status SpareBank 1) NORD-NORGE
Slide 12: Group Financial Highlights and Key Figures
Group Financial Highlights and Key Figures 12
Slide 13: Quarterly Development
Quarterly Development T * Including 50 % of the 1Q24 result 13
Slide 14: Strong Capital Base
Strong Capital Base CET1 Pillar 1 P2R Buffer req P2G min.requirement * Including 50 % of the 1Q24 result 14
Slide 15: Earnings Before Tax - Last Quarter
Earnings Before Tax - Last Quarter (Amounts in NOK million) 15
Slide 16: Net Interest Income - Group
Net Interest Income - Group (Amounts in NOK million) 16
Slide 17: Low Losses
Low Losses Net losses in % of Net losses gross lending incl. interm. loans (Amount in NOK million) Retail Corporate 18
Slide 18: Lending Growth
Lending Growth Retail Corporate 19
Slide 19: Retail Market
Retail Market Retail (excl. Commission com.loans loans 20
Slide 20: Corporate Banking
21 Corporate Banking Lending growth Development in lending margin (iso) 47,325 48,843, 1Q23 2Q23 3Q23 4Q23 2024 2.5% 2.5% 2.5% 2.5% 1Q23 2023 3Q23 4Q23 1Q24 2024 Lending growth (12 mth) 14.4% 15.5% 13.8% 14.6 % 10.3% 9.4% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 SpareBank NORD-NORGE 1)
Slide 21: Deposit Growth
22 Deposit Growth Retail Market Corporate Banking Public Sector 30.06.2022 30.06.2023 30.06.2024 30.06.2022 30.06.2023 30.06.2024 Deposits gross 53% 37% 30.06.2022 30.06.2023 30.06.2024 SpareBank (1) NORD-NORGE
Slide 22: Long Term Financial Targets
Long Term Financial Targets < 40 % C/I ratio > 13 % > 50 % ROE Dividend payout ratio 15.8 % CET1 ratio 24
Slide 23: Financial Outlook
Financial Outlook ROE >13 % CET1 Ratio: 15.8 % C/l< 40% Pay out ratio > 50 % The second quarter of 2024 is the first quarter with full effect of the latest interest hike from Norges Bank from back in December. Despite strong competition on both deposits and mortgages, the full quarter effect has con
Slide 24: Why Invest in SpareBank 1 Nord-Norge
Why Invest in SpareBank 1 Nord-Norge 26
Slide 25: 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 27
Slide 26: Appendix
A) Appendix SpareBank 1) NORD-NORGE
Slide 27: A Solid Bank for Northern Norway
A Solid Bank for Northern Norway * Including 50 % of the 1Q24 result 29
Slide 28: Development in Lending Margins
Development in Lending Margins Corporate Retail 30
Slide 29: 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 16.21 % | Mortgage company Næringskreditt AS Norge AS Norge AS 1.05 % | Mortgage company 85 % | Loan/consumer finance/leasing 85 % | Real esta
Slide 30: Geographical Distribution of Ownership
Geographical Distribution of Ownership Foreign holders Other Norwegian holders Holders residing in Northern Norway 32
Slide 31: The 20 Largest EC Holders
33 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 MP PENSION PK Brown Brothers Harriman & Co. FORSVARETS PERSONELLSERVICE The No
Slide 32: Cost Development - Group
Cost Development - Group Cost/income Group (Amounts in NOK million) Group operating costs 34
Slide 33: Operating Expenses - Group
Operating Expenses - Group (Amounts in NOK million) 35
Slide 34: Net Fee- and Other Operating Income - Group
Net Fee- and Other Operating Income - Group 36
Slide 35: Risk Exposure - Group
Risk Exposure - Group 1,8% Non-performing /impaired High risk Medium risk Low risk 37
Slide 36: Changes in Exposure last Months - Group
Changes in Exposure last 12 Months - Group Non-performing /impaired High risk (Amounts in NOK million) Medium risk Low risk 38
Slide 37: Exposure Distributed by Size
Exposure Distributed by Size* 30.06.2023 30.06.2024 39 *Incl. parent bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt
Slide 38: LTV Mortgage Loans
LTV Mortgage Loans LTV is distributed by balance and 30.06.2023 is based on the market value of the collateral: • 98.7 % of the gross exposure is within 85 % of the collateral 30.06.2024 market value • Only 0.6 % of the gross exposure is higher than 100 % of the collateral market value • The figures
Slide 39: Diversified Portfolio in Commercial Real Estate
Diversified Portfolio in Commercial Real Estate 41
Slide 40: Loan Losses - Group
Loan Losses - Group The Group’s annualized losses is 0.13 % (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 1.21 % of total exposure. Expected loss share: 24.10 % Commitments in step 2: 16.45 % of total exposure. Expected loss share: 1.96 %
Slide 41: The Lending Portfolio
The Lending Portfolio* 43 *) Incl. SpareBank 1 Boligkreditt
Slide 42: Funding
Funding NOK 21,869 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 45,203 mill had been transferred as of 30.06.24 Amount of gross maturities of capi
Slide 43: 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 44: 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 45: 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 46: Noen som har et fint bilde til avslutning?
Noen som har et fint bilde til avslutning? 48
SpareBank 1 Nord-Norge — Q2 2024 Earnings Presentation on 6ix