SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q3 2014 Earnings Presentation
50 slides from SpareBank 1 Helgeland's earnings presentation, 2014
Slide 1: Presentation Q3 2014
Presentation Q3 2014 En drivkraft for vekst på Helgeland 1
Slide 2: Presentation Q3 2014 (HSB group)
Presentation Q3 2014 (HSB group) Main features Profit & Loss Lisbeth Flågeng Balance Acting Chief Executive Lending Officer Deposits Funding Ranveig Kråkstad Solidity Summary Acting Chief Financial Appendices Officer En drivkraft for vekst på Helgeland 2
Slide 3: Theme: Main features
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 3
Slide 4: Main features 3rd quarter
Main features 3rd quarter Result Good basic operations – gross profit MNOK 235 (193) • Net interest increased by MNOK 22 • Return on financial investments increased by MNOK 38 • Some increased losses on loans and operating costs • Normalised losses in Q3 Profitability Improved return on equity 11,7
Slide 5: Main features 3rd quarter
Main features 3rd quarter Lending Reduced 12-month growth 0,8 (7,4) % – reduced growth in CM in line with the bank’s targets • Retail Market 3,3 (7,9) % • Corporate Market -3,6 (6,4) % Deposits Increased 12-month growth 10,9 (13,0) % – deposit ratio 66,4 (60,3) % • Retail Market 9,3 (6,6) % • Corpor
Slide 6: Theme: Profit & Loss
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 6
Slide 7: Profit & Loss
Profit & Loss Helgeland Sparebank Good result so far this year Profit development (mnok) Stable net interest 300 266 • Meeting pricing competition by reducing interest rates 235 on mortgages 201 • Reduction on deposits in the 172 same period • Net effect should not lower 150 133 133 the net interest
Slide 8: Result
Result Helgeland Sparebank Good result so far this year Profit development(mnok) and return on equity % Stable net interest 300 266 • Meeting pricing competition by reducing interest rates 235 on mortgages 201 • Reduction on deposits in the 172 same period • Net effect should not lower 150 133 133 t
Slide 9: Key figures
Key figures Helgeland Sparebank Commentary Keyfigures in % of average BTA Net interest 2% • Improved margin from 2011 • Unchanged in last three quarters Net commissions • Stable level from 2011 • Same level as last quarter 1% 0% 2009 2010 2011 2012 2013 30.09.14 Gross profit Net interest Net provisi
Slide 10: Key figures
Key figures Helgeland Sparebank Commentary Keyfigures in % of average BTA Net interest 2% • Improved margin from 2011 • Unchanged in last three quarters Net commissions • Stable level from 2011 • Same level as last quarter Operating costs 1% • Decreasing costs from 2009 • Flattening in 2014 Losses o
Slide 11: Key figures
Key figures Helgeland Sparebank Commentary Keyfigures in % of average BTA Net interest 2% • Improved margin from 2011 • Unchanged in last three quarters Net commissions • Stable level from 2011 • Same level as last quarter Operating costs 1% • Decreasing costs from 2009 • Flattening in 2014 Losses o
Slide 12: Key figures
Key figures Helgeland Sparebank Commentary Keyfigures in % of average BTA Result, net interest, net- 1,02 % commission and financial Gross profit investments improved 1,20 % 1,70 % Operating costs almost Net interest 1,76 % unchanged and somewhat increased losses on lending 0,30 % (individual commit
Slide 13: Profit & Loss
Profit & Loss Helgeland Sparebank (group) Profit & loss (MNOK) Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Net interest- and credit provision earnings 117 118 113 114 116 Net provision earnings 22 20 19 22 22 Other operatios income 1 3 1 1 2 Ordinary operations cost 59 62 62 61 63 Result basic operation
Slide 14: Net interest
Net interest Helgeland Sparebank Commentary Development net intr.(mnok.) and % of average BTA 150 Net interest somewhat down toward 2014, maintained from 118 Q1 to Q3 117 113 114 116 Still strong price competition • The bank has signalled a 1.82 % reduction on the mortgage 1.79 % 1.75 % 1.75 % 1.75
Slide 15: Operating cost
Operating cost Helgeland Sparebank Commentary Development operating cost (mnok) and % of income 80 Relatively flat cost development in NOK toward 63 2014. 62 62 61 59 The cost percent still at a low level. The challenge is increased 41,5 % 42,2 % 44,6 % 40 38,1 % 40,1 % payroll tax from 01.07. The H
Slide 16: Theme: Balance
Theme Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 16
Slide 17: Total Assets
Total Assets Helgeland Sparebank Commentary BTA (MNOK) 30.000 Controlled growth – reduction 25.985 26.378 of corporate commitments 24.594 22.802 20.160 18.376 15.000 0 2009 2010 2011 2012 2013 30.09.14 Total Asset En drivkraft for vekst på Helgeland 17
Slide 18: Total Assets
Total Assets Helgeland Sparebank Commentary BTA whereby lending (MNOK) 30.000 The reason for a flattening 25.985 26.378 BTA is the reduction in 24.594 corporate commitments 22.802 20.978 20.160 Lending 18.376 • Q3 NOK 20.9 (20.8)bn. • 12-month growth MNOK 15.000 175 • 9-month growth MNOK 270 0 2009
Slide 19: Total Assets
Total Assets Helgeland Sparebank Commentary BTA whereby lending and deposits (MNOK) 30.000 The reason for a flattening 25.985 26.378 BTA is the reduction in 24.594 corporate commitments 22.802 20.978 20.160 Lending 18.376 • Q3 NOK 20.9 (20.8)bn. 13.918 • 12-month growth MNOK 15.000 175 • 9-month gro
Slide 20: Theme: Lending
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 20
Slide 21: Credit growth
Credit growth Helgeland Sparebank Commentary 12-month credit growth Controlled lending growth • 12-month growth 0.8 (7.4)% • 9-month growth 1.3 (4.2)% PM BM Helgeland Norway 66,1 % 33,9 % 83,8 % 16,2 % RM-share • Goal at least 60 % • Per Q3 – 66.1 (64.6) % Helgeland’s share • Per Q3 – 83.8 (83.0) %
Slide 22: Credit growth CM and RM
Credit growth CM and RM Helgeland Sparebank Helgeland Sparebank 12-month credit growth retail market 12-month credit growth personal market 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% 2009 2010 2011 2012 2013 30.09.14 2009 2010 2011 2012 2013 30.09.14 HSB Helgeland corp. Statistic Norway corp. HSB H
Slide 23: Lending CM
Lending CM Helgeland Sparebank Commentary Lending distributed in sector Well diversified lending 12,7 % portfolio in CM and very loyal Real estate 12,9 % customers. 6,4 % Farming and forestry Lending to CM constitute NOK 6,4 % 7.1 (7.4) bn. 4,4 % Construction and power 4,0 % CM share of total lendin
Slide 24: Non-performing and other impaired commitments
Non-performing and other impaired commitments Helgeland Sparebank Commentary Net defaulted and com. exp. to loss 200 Still good portfolio quality Non-performing and other 150 impaired commitments are levelling out 100 The development of defaults in the portfolio is monitored closely. Consistent foll
Slide 25: Theme: Deposits
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 25
Slide 26: Total deposit growth
Total deposit growth Helgeland Sparebank Commentary 12-month deposit growth Very good deposit growth • 12-month growth 10.9 (13.0) % PM BM 38,8 % Helgeland 91,6 % Norway 8,4 % • 9-month growth 7.2 (12.0)% 61,2 % RM-share • Per Q3 – 61.2 (62.1) % 10,9 % Helgeland’s share •Per Q3 – 91.6 (92.0) % 5,2 %
Slide 27: Deposits CM and RM
Deposits CM and RM Helgeland Sparebank Helgeland Sparebank 12-month deposit growth for businesses 12-moth deposit growth for households 35% 20% 30% 15% 25% 20% 10% 15% 10% 5% 5% 0% 0% -5% -5% 2009 2010 2011 2012 2013 30.09.14 2009 2010 2011 2012 2013 30.09.14 HSB Helgeland Corp. Statistic Norway Cor
Slide 28: Deposits CM
Deposits CM Helgeland Sparebank Commentary Customer deposits Well diversified deposit Municipalities 13,2 % portfolio in CM 11,1 % Transport and services 6,1 % Deposits from CM constitute 6,1 % NOK 5.4 (4.8) bn. Construction and power 3,8 % 7,0 % CM share 38.8 (37.9) % of Real estate 4,0 % 3,5 % tot
Slide 29: Theme: Funding
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 29
Slide 30: Funding
Funding Helgeland Sparebank Commentary Funding development (MNOK) 30.000 Deposits are the main source for funding The Bank’s covered bond company is rated Aaa, and will continue to be an important source for funding ahead 15.000 12.989 13.919 9.883 10.429 11.211 8.615 9.100 0 2008 2009 2010 2011 201
Slide 31: Funding
Funding Helgeland Sparebank Commentary Maturity of loans (MNOK) 2.500 Strong and long-term funding Share of long-term funding 2.000 85.0 % (78.4) % 500 630 Combined duration of 2.5 (2.5) 1.500 900 285 years 1.000 Planning a gradually increased 400 duration in the covered bond 1.500 1.400 1.400 compa
Slide 32: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland Sparebank Commentary LTV-allocation 30.09.14 Combined LTV 53 (51) % 1-40 25% Cover pool • Qualified loans MNOK 4,179 (4,745) 41-50 15% • Deposits MNOK 230 (246) • OC-level 33 (24) % 51-60 20% CB loans NOK 3.3bn. (of which MOK 0.3bn. are owned 61-70 24% by the pare
Slide 33: Liquidity buffers
Liquidity buffers Helgeland Sparebank Commentary Securities distributed in sectors The liquidity buffers constitute 25% NOK 4.6 (4.5) bn. – equal to 17.5 CB 1 30% (17.4) % of Total Assets 28% Finance, Norway 22% The buffer capital consists of 16% Government 14% cash, deposits in BoN/banks and 19% fi
Slide 34: Theme: Solidity
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 34
Slide 35: Capital adequacy
Capital adequacy Helgeland Sparebank Commentary Development capital adequacy Capital ratio 18 % • CET1 12.5 (11.2) % • Core capital 13.7 (12.8) % 16 % • Total capital 16.0 (14.9) % 2,1 % 2,1 % 14 % Positive effect from Basel III - 1,6 % transitional rules are gradually 1,6 % 12 % neutralised from CE
Slide 36: HELG – largest owners
HELG – 20 largest owners Parent bank Per 30.09.14 Numbers % share Numbers % share Sparebankstiftelsen Helgeland 6 599 598 35.3 % Helgelandskraft As 340 494 1.8 % MP Pensjon PK 1 032 203 5.5 % Lamholmen AS 315 389 1.7 % USB AG, London Branc A/C 1 000 000 5.3 % Merill Lynch Prof. 208 500 1.1 % Pareto
Slide 37: EC development and liquidity HELG
EC development and liquidity HELG The good price development have continued also into Q3 2014 A completed down-sale from Sparebankstiftelsen in 2014 contributes to increasing the number of ECs in circulation – so far this year there have been traded 5,750 million ECs, where 3,000 million were from S
Slide 38: Theme: Summary
Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 38
Slide 39: Prospects and priorities
Prospects and priorities Increased competitiveness • Adapted mortgage interest rates and deposit rates in the retail- and corporate market • Increasing awareness of content in «Best in customer experiences» • Concrete measures to increase the growth in the retail market Technology innovation – a fut
Slide 40: Prospects and priorities
Prospects and priorities Result • Still god basic operations • Maintaining the net interest • Good results in production companies • Official rating – strengthened position in the capital market • Increased payroll tax challenges the bank’s target achievement on the cost area • Reduced number of ann
Slide 41: Prospects and priorities
Prospects and priorities The Helgeland region Helgeland is defined by a stable and diverse labour market, with a combination of solid export businesses and large governmental enterprises • No sign of increased unemployment • Large construction activity in private and public sectors • Solid income in
Slide 42: Thank you for your attention!
Thank you for your attention! A DRIVING FORCE FOR GROWTH En drivkraft for vekst på Helgeland
Slide 43: Theme: Appendices
Theme RANA ALSTAHAUG Main features Profit & Loss VEFSN BRØNNØY Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 43
Slide 44: Helgeland – The most beautiful coastline in Norway
Helgeland – The most beautiful coastline in Norway En drivkraft for vekst på Helgeland 44
Slide 45: HSB – wide ranging investment in knowledge
HSB – wide ranging investment in knowledge Helgeland Sparebank Helgeland Sparebank Antall underviste elever skoleåret 2013/14 Millionstøtte til forskning og høgskoletilbud siden 2010 Ungdoms- Videregående skole skole Forskning Høgskoletilbud 1.018 elever 185 elever 8,4 mill. kr. 5,2 mill. kr. Knowle
Slide 46: HSB – a documented driving force
HSB – a documented driving force The association’s 100 year anniversary: Stories of the bank "Throughout the development of Nova Sea, the company has benefited greatly from working with Helgeland Sparebank. In spite of difficult times and balancing on the brink of bankruptcy, the bank has contribute
Slide 47: A driving force for growth on Helgeland
A driving force for growth on Helgeland Norway’s 12th largest savings bank of 108 banks – 15 offices in 13 municipalities in the Helgeland region Bank total assets of NOK 26 billion and a market share of 50% • An independent regional bank with no alliances and quoted on the stock exchange - The on
Slide 48: Management and organisational structure
Management and organisational structure Board of directors Acting Chief Executive Officer Assistant and GM Helgeland Lisbeth Flågeng Internat auditor Boligkreditt AS Marit Jakobsen Brit Søfting Deputy CEO and Chief Executive, Chief Investments Chief Business Chief Human Acting Chief Chief Risk Chief
Slide 49: Business development and ownership
Business development and ownership Board Styre of directors Acting Chief Executive Officer Assistant and GM Helgeland Lisbeth Flågeng Internat auditor Boligkreditt AS Marit Jakobsen Brit Søfting Deputy CEO and Chief Executive, Chief Investments Chief Business Chief Human Acting Chief Chief Risk Chie
Slide 50: Contact information
Contact information Head office Board of Directors Postal address Postboks 68, 8601 Mo i Rana Thore Michalsen, Chair Visiting address Jernbanegata 15, 8622 Mo i Rana Ove Brattbakk, Deputy Chair Phone 75 11 90 00 Gislaug Øygarden Web www.hsb.no Monica Skjellstad Organisation number 937904029 Stein An