Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — Sparebanken Hedmark — Q1 2014 Earnings Presentation
24 slides from Sparebank 1 Ostlandet's earnings presentation, Apr 29, 2014
Slide 1: Sparebanken Hedmark First quarter 2014
Sparebanken Hedmark First quarter 2014 Presentation of financial results CEO Richard Heiberg 29.04.2014
Slide 2: About Sparebanken Hedmark
About Sparebanken Hedmark • Sparebanken Hedmark is the leading provider of financial products to people, companies and the public sector in Hedmark • Norway's largest self-owned savings bank: – NOK 7.1 billion in equity – NOK 47 billion in total assets – NOK 63 billion in commercial volume (incl. lo
Slide 3: Highlights – first quarter 2014
Highlights – first quarter 2014 • Satisfactory performance and higher return on equity – Return on equity: 13.4 % (4.9 %) – Profit/loss after tax (Group): MNok 226 (74) • Very good financial strength – An equity ratio on 15 per cent of the unweighted balance sheet places the bank among the most soli
Slide 4: Result before tax for Group and Parent Bank
Result before tax for Group and Parent Bank Result before tax accumulated - Group Result before tax accumulated – Parent bank 300 200 265 180 250 150 200 134 116 150 100 139 130 100 83 50 50 40 0 0 Q1-11 Q1-12 Q1-13 Q1-14 Q1-11 Q1-12 Q1-13 Q1-14 4
Slide 5: Profit/loss first quarter 2014 (Group)
Profit/loss first quarter 2014 (Group) Q1 2014 Q1 2013 2013 Net interest income 240 227 1008 Net commission income 130 77 370 Other income 56 46 189 Total operating expenses 242 231 916 Result bankoperation before losses 184 119 651 Losses on loans and guarantees 12 3 72 Result bankoperation after l
Slide 6: Income statement isolated quarter (Group)
Income statement isolated quarter (Group) Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Net interest income 240 263 266 252 227 Net commission income 130 100 104 89 77 Other income 56 46 49 48 46 Total operating expenses 242 235 223 227 231 Result bankoperation before losses 184 174 196 162 119 Losses on
Slide 7: Specification of results (Group)
Specification of results (Group) (Nok million) Q1 2014 Q1 2013 2013 Parent Bank's profit before tax 180 40 622 Dividends received from subsidiaries and joint ventures -58 -27 -123 Profit /loss attributable to: SpareBank 1 Gruppen AS 26 37 132 Bank 1 Oslo Akershus AS 85 8 133 SpareBank 1 Boligkreditt
Slide 8: Financial results by quarter (Group)
Financial results by quarter (Group) Profit/loss before tax excl. profit from other financial assets and liabilitites Profit/loss before tax 350 280 290 298 271 300 270 254 265 250 211 260 200 251 250 150 240 237 100 50 230 0 220 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Net re
Slide 9: Specification of the consolidated profit (Group)
Specification of the consolidated profit (Group) Change in profit before tax Q1 2013 vs Q1 2014 350 300 1 11 9 250 126 200 150 63 265 100 13 50 83 0 Profit before tax Q1 Net interest income Net commission and Result from Net income from Operating expenses Losses Profit before tax Q1 2013 other incom
Slide 10: Net interest income (Group)
Net interest income (Group) Interest income excl. Commission from covered bond companies Interest income incl. commission from covered bond companies 350 2,30 % 350 2,25 % 2,25 % 300 300 57 2,21 % 60 2,21 % 2,21 % 2,20 % 49 63 2,20 % 37 250 2,15 % 250 27 17 41 27 2,13 % 2,15 % 200 200 2,10 % 2,07 %
Slide 11: Net commission and other income (Group)
Net commission and other income (Group) 200 5 180 19 160 17 140 44 18 8 20 120 9 19 16 17 22 9 100 16 38 12 22 19 80 30 31 21 17 18 60 15 13 40 57 60 63 49 20 41 0 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Commission from covered bond companies Real estate brokerage Income from accounting Payment transmission I
Slide 12: Net income from financial assets and liabilities (Group)
Net income from financial assets and liabilities (Group) 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Dividends 12 12 12 18 Net profit from ownership interest 113 113 101 99 48 54 Profit/loss and change in value of bond and certificates -45 -45 -45 10 19 -37 Profit/loss and change in value of shares
Slide 13: Operating expenses (Group)
Operating expenses (Group) Q1 Q4 Q3 Q2 Q1 2014 2014 2013 2013 2013 2013 Payroll 102 102 91 90 86 92 Pension costs 13 13 11 13 12 12 Social security expenses 21 21 22 19 18 20 Total personnel expenses 136 136 124 122 116 125 Total operating expenses and other expenses 69 69 78 67 75 67 Total personne
Slide 14: Losses on loans and guarantees (Group)
Losses on loans and guarantees (Group) Quarterly losses isolated Yearly losses -160 -140 -146 -120 -50 -100 -45 -80 -40 -43 -60 -72 -35 -40 -50 -50 -42 -20 -30 -12 0 -25 2009 2010 2011 2012 2013 Q1 2014 -23 -23 -20 -22 Defaulted and doubtful commitments 1.000 1,85 % 2,00 % -15 1,75 % 800 1,80 % -10
Slide 15: Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard)
Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard) 2,30% 2.27% 2.26% 2.25% 2.21% 2.21% 2.19% 2,20% 2.13% 2.14% 2.11% 2,10% 2.01% 2.01% 2,00% 1.94% 1,90% Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 SH 15
Slide 16: Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard)
Interest margin Parent bank (incl. Boligkreditt and excl. Mastercard) 2,70% 2.61% 2.62% 2.59% 2,60% 2.54% 2.55% 2.52% 2.49% 2,50% 2.42% 2.42% 2,40% 2.36% 2.30% 2,30% 2.24% 2,20% 2.18% 2.17% 2.16% 2.08% 2.09% 2,10% 2.07% 2.05% 2.04% 2.00% 2,00% 1.98% 1.93% 1,90% .1.83% 1,80% Q2 2011 Q3 2011 Q4 2011 Q
Slide 17: Main figures Sparebanken Hedmark (Group)
Main figures Sparebanken Hedmark (Group) Q1 2014 Q1 2013 2013 Profitability Return on equity capital after tax 13.4 % 4.9 % 11.0 % Total operating costs in relation to total income 46.6 % 72.8 % 50.1 % From the balance sheet Deposits rom customers in relation to gross loans to customers 81.2 % 82.0
Slide 18: Balance sheet (Group)
Balance sheet (Group) 31.03.2014 31.03.2013 31.12.2013 ASSETS Cash and deposits with central banks 376 540 572 Loans to and receivables from credit institutions 791 309 699 Loans to and receivables from customers 36.640 35.328 36.936 Financial papers 5.200 5.576 5.647 Investments in subsidiaries, as
Slide 19: Development in balance sheet (Nok billion) (Group)
Development in balance sheet (Nok billion) (Group) Gross loans incl. Loans transferred to covered bond companies Development in assets and business volume 60,0 12,0 % 70,0 62.6 62.6 56.7 10,0 % 60,0 53.0 50,0 49.6 51.6 52.4 52.6 44.3 46.1 49.0 50.8 50,0 46.7 48.1 8,0 % 38.4 40,0 45.0 45.8 40,0 6,0 %
Slide 20: Development in Tier 1 ratio (Group)
Development in Tier 1 ratio (Group) As at 1. July 2013 the Government has 18,0 % implemented new capital adequacy requirements: Core Tier 1: Minimum 9 % 16,0 % 16.9 % 0.2 % Tier 1: Minimum 10,5 % 16.2 % 0.4 % Capital adequacy ratio: 15.1 % 15.2 % 15.1 % Minimum 12,5 % 14,0 % 14.1 % 13.2 % 12,0 % 11.
Slide 21: Composition of loans and receivables from customers (Group)
Composition of loans and receivables from customers (Group) Composition of loans incl. covered bond companies Composition of loans excl. covered bond companies Commercial Other; 2.401 Corporate services; 1.786 banking; 42.8 % Primary Retail banking; Private customers; industries; 3.367 57.2 % 21.406
Slide 22: Liquidity reserves
Liquidity reserves • The figure shows the distribution of the bank's liquidity reserve as at 31.03.2014 6000 105 5000 1000 4000 258 284 3000 5384 2000 3446 1000 0 291 Cash Drawing rights in the CPs Other liquid assets Unutilized credit Funds and listed Liquidity reserve Central Bank facilities share
Slide 23: Maturities
Maturities Annual maturities; total to maturity MNOK 8 518 Funding maturities the next 12 months MNOK 300 2000 800 1500 600 1000 400 500 200 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 F-loan Central Bank 0 Bond issues 1205 1468 1300 1380 850 300 200 400 Loans from b
Slide 24: Rating
Rating •On 10 January, Moody's Investor Service confirmed Sparebanken Hedmark's rating (“long-term senior debt and deposit rating”) to A2. •The bank's individual C- rating (standalone financial strength rating) was also confirmed •Both ratings still has stable outlook. 24