SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — H1 2015 Earnings Presentation
45 slides from SpareBank 1 Helgeland's earnings presentation, 2015
Slide 1: Presentation 1. half year 2015
Presentation 1. half year 2015 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation 1. half year 2015 (HSB Group)
Presentation 1. half year 2015 (HSB Group) Main Features Lisbeth Flågeng Profit & Loss Chief Executive Officer Balance Lending Deposits Funding Sverre Klausen Solidity Chief Financial Officer Summary Helgeland Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 3 En drivkraft for vekst på Helgeland
Slide 4: Main features 1st half year
Main features 1st half year Result Gross Profit MNOK 129 (146) • Maintained net interest in NOK and percent • Lower income from financial investments • Moderate write-downs on lending Profitability • ROE (after tax) 8.9 (10.7) % Solidity Strengthened capital adequacy – CET1 ratio 14.2 (12.0) % – tot
Slide 5: Main features 1st half year
Main features 1st half year Lending 6-month growth 3.7 (0.6) % • Retail market 4.4 (0.9) % • Corporate market 2.0 (-0.1) % Deposits 6-month growth 4.5 (5.6) % – good deposit ratio 66.5 (65.9) % • Retail market 7.4 (9.1) % • Corporate market -0.3 (0.2) % Interest rate change Maintained competitivenes
Slide 6: Main features 1st half year
Main features 1st half year New control targets decided board meeting June 2nd: Capital goals • CET1 ratio on 14.0 % and a total capital ratio up towards 17.5 %. Cost target • Annual cost growth on maximum 1.0 % Other financial targets • Dividend policy and ROE target unchanged 6 En drivkraft for ve
Slide 7: Main features 1st half year
Main features 1st half year New real estate agency– REDE Eiendomsmegling AS The new real estate agency operational from June 1st, with accession of CEO September 1st. Helgeland Sparebank owns 40 % and the company has a market share of over 50 %. Upgraded rating from Moody’s In May 2015 the banks rat
Slide 8: Profit & loss
Main Features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 8 En drivkraft for vekst på Helgeland
Slide 9: Result
Result Good result so far this year Stabile net interest • Reduction of mortgage interest rates is covered through reduction of deposit interest rates and lower deposit costs ROE • Target minimum 10 % • Per 30.06.15 8.9 (10.7) % Engangs- effekt 45 9 En drivkraft for vekst på Helgeland
Slide 10: Key figures
Key figures Keyfigures in % of average BTA Commentary Net interest 2% 1,77% • Maintained from 2013 Net commissions • 0,33 % - stabile level 1,01% 1,02% Operating costs 1% • weak increase since 2013 Losses on lending 0,33% • Moderate level so far this year 0,09% -0,01% 0% 2011 2012 2013 2014 30.06.15
Slide 11: Profit & loss
Profit & loss Helgeland Sparebank (group) Profit & loss (MNOK) Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Net interest- and credit provision earnings 113 114 116 115 112 114 Net provision earnings 19 22 22 19 21 20 Other operatios income 1 1 2 3 2 1 Ordinary operations cost 62 61 63 77 67 63 Re
Slide 12: Net interest
Net interest Development net intr.(mnok.) and % of average Commentary BTA 150 Net interest maintained 114 116 115 112 114 Still strong competition regarding price. 100 • Last reduction of the mortgage interest rate is 1,76 % 1,77 % conducted 01.09.15, 1,75 % 1,75 % 1,74 % covered through reduction 5
Slide 13: Operating cost
Operating cost Development operating cost (mnok) and % of Development operating cost (mnok) and % of BTA income 100 300 263 77 233 239 218 75 67 61 63 63 200 50 57,0 % 130 48,2 % 48,1 % 38,1 % 40,1 % 100 25 1,02% 0,99% 0,95% 1,01% 1,02% 0 0 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 2011 2012 2013 2014
Slide 14: Balance
Main features Profit& Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 14 En drivkraft for vekst på Helgeland
Slide 15: Total assets
Total assets BTA whereby lending and deposits (MNOK) Commentary 30.000 Adapted Liquidity reserve 25.985 25.738 26.152 24.594 22.802 21.590 Lending • 30.06.15 21.6 (20.8) bn 20.000 • 12-month growth MNOK 766 14.350 Deposits • 30.06.15 14.3 (13.7) bn. 10.000 • 12-month growth MNOK 629 0 2011 2012 2013
Slide 16: Lending
Main features Profit & Losses Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 16 En drivkraft for vekst på Helgeland
Slide 17: Credit growth
Credit growth 12-month credit growth Commentary 20% Lending growth PM 67,6 BM 32,4 Helge Norge 16,1 • 12-month growth 3.7 (1.6) % % land 15% % % 83,9 % RM Share 10% • Goal minimum 60 % • Per 30.06.15 67.6 (65.8) % 5% Share in Helgeland region • Per 30.06.15 83.9 (84.2) % 0% -5% 2011 2012 2013 2014 3
Slide 18: 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% 5% 5% 0% 0% -5% -5% 2011 2012 2013 2014 30.06.15 2011 2012 2013 2014 30.06.15 HSB Helgeland corp. Statistic Norway corp. HSB Helgeland pers. Statistic Norway pers. Commentary
Slide 19: Lending CM
Lending CM Lending distributed in sector Commentary Good diversification in the CM Real estate 12,7 % lending portfolio and very loyal 13,2 % 6,3 % corporate customers Farming and forestry 5,8 % CM of total lending 32.7 (34.2) Construction and power 4,2 % 4,0 % % Transport and services 3,3 % Food pr
Slide 20: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss Commentary 200 Good portfolio quality net non-performing and other 150 impaired commitments is in a relatively low level. Weak 100 increase last quarter PD models shows lower 50 1,0 % probability of default in the RM 0
Slide 21: Deposits
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 21 En drivkraft for vekst på Helgeland
Slide 22: Total deposit growth
Total deposit growth 12-month deposit growth Commentary Good deposit growth 20% • 12-mont growth 4.6 (12.5) % RM CM Helge Norway 63,4 36,6 land 7,7 % RM share 15% % % 91,4 • Per 30.06.15 63.4 (63.0) % % Locally in Helgeland 10% •Per 30.06.15 91.4 (91.9) % 5% Deposit ratio • Goal minimum 60 % • Per 3
Slide 23: Deposits CM and RM
Deposits CM and RM 12-month deposit growth corporate market 12-month deposit growth retail market 35% 20% 30% 15% 25% 20% 10% 15% 10% 5% 5% 0% 0% -5% -5% 2011 2012 2013 2014 30.06.15 2011 2012 2013 2014 30.06.15 HSB Helgeland Corp. HSB Helgeland pers. Commentary 12-month growth 4.6 (12.5) % whereby
Slide 24: Deposits CM
Deposits CM Customer deposits Commentary Well diversified deposit Municipalities 12,1 % portfolio in the CM 12,1 % Transport and services 6,0 % 6,0 % Share CM 36.6 (37.0) % of Construction and power 4,9 % total deposits 3,7 % Real estate 3,6 % 3,4 % Food 17 Deposits from municipalities 3,0 % Real In
Slide 25: Deposit development
Deposit development 100 % Deposit development (MNOK) 80 % 15000 60 % 14500 14000 40 % 13500 13000 20 % 12500 12000 0% 11500 11000 10500 Saldo NOK KR 0 - 2 mill Saldo NOK KR 2 - 8 mill Saldo NOK KR over 8 mill Commentary Distribution deposits by size is relatively stable 25 En drivkraft for vekst på
Slide 26: Funding
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 26 26 En drivkraft for vekst på Helgeland
Slide 27: Funding
Funding Commentary Funding development (MNOK) 120% The deposits are the most important source for funding 100% 11,6 % 15,1 % 13,5 % 15,0 % 13,0 % The bank’s mortgage company 80% is rated ‘Aaa’ and will be an 24,1 % 33,4 % 30,5 % 26,8 % 25,9 % important source for funding in 60% the time ahead 40% 56
Slide 28: Funding
Funding Commentary Maturity of loans (MNOK) Good and long term funding 2.500 Share long term funding 82.0 % (78.8) % 2.000 Combined duration of 2,5 500 630 (2,5) years. Duration in the 1.500 285 mortgage company increased to 3.1 years 1.000 400 1.475 Maximum limit for transferring 1.400 1.400 600 to
Slide 29: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS LTV-allocation 30.06.15 Cover pool HEBO 45 40 1-40 24% 40 38 35 33 33 33 30 31 41-50 29 28 15% 30 27 28 25 23 23 22 20 20 51-60 19% 20 15 61-70 22% 10 5 71-75 11% 0 mar. apr. mai. jun. jul. 14 aug. sep. okt. nov. des. jan. feb. mar. apr. mai. jun. 76 ≥ 9% 14 14 14 14 14 14
Slide 30: Liquidity buffers
Liquidity buffers Securities distributed in sectors Commentary The liquidity buffers constitute CB 1 31% NOK 4.0 (4.7)bn. – equal 15.3 38% 11% (17.8) % of total assets. The Municipalities 20% buffer capital consists of cash, Finance, norway 26% deposits in Bank of 16% 20% Norway/banks and interest G
Slide 31: Solidity
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Apendices 31 En drivkraft for vekst på Helgeland
Slide 32: Capital adequacy
Capital adequacy Development capital adequacy Commentary 20% Capital ratio 18% • CET1 14.2 (12.0) % • Core capital 15.6 (13.6) % 2,0 % • Total capital 17.6 (15.7) % 16% 1,4 % The profit is not included. By 14% taking inn 70 %, core capital becomes 14.7 % and total capital 18.1%. 12% 14,2 % Unrealize
Slide 33: HELG – 20 largest owners
HELG – 20 largest owners Per 30. 06. 15 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 1.035.000 5,5 % Sniptind Holding AS 201.801 1,1 % Merrill
Slide 34: EC development and liquidity HELG
EC development and liquidity HELG The price for HELG per 30.06.15 was NOK 59,00 per EC. This is an increase of NOK 4,50 since year end. 34 En drivkraft for vekst på Helgeland
Slide 35: Summary
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 35 En drivkraft for vekst på Helgeland
Slide 36: Prospects and priorities
Prospects and priorities Result • Still good basis operation, adaption of mortgage – and deposit interest rates • Stronger competition for good corporate customers and lower growth in the corporate market challenges the net interest rate • Prepared for a moderate decline in the net interest rate • T
Slide 37: Prospects and priorities
Prospects and priorities Profitable growth, futuristic and leading bank in Helgeland • To continue the work with systematic processing of our own customers and offensive work towards new customers • Exploit opportunities for collaboration with a new market leading real estate agency • New CM leaders
Slide 38: Property price development
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 1st half year 2015 is 7.2 % • Property price increase in Helgeland was slightly weaker with an increase of 6.1 % in
Slide 39: Unemployment in %
Unemployment Commentary Unemployment in Helgeland 6 There is not a significant difference in unemployment 5 between the 4 largest Unemployment in % 4 municipalities in Helgeland. Alstahaug has a slightly higher 3 unemployment. 2 After 2nd quarter 2015 Brønnøy, Vefsn og Rana is 1 tending towards the
Slide 40: Prospects and priorities
Prospects and priorities Helgeland region • Balanced expectation to the regions economic outlooks in 2015/2016 • Large investments in infrastructure • Improvement/rebuilding of E6 through Helgeland is initiated fall 2015 – total investment of NOK 4,5bn. • Statskraft and Helgelandskraft med a total i
Slide 41: Thank you for your attention!
Thank you for your attention! EN DRIVKRAFT FOR VEKST 41 En drivkraft for vekst på Helgeland
Slide 42: Appendices
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 42 En drivkraft for vekst på Helgeland
Slide 43: Business development and ownership
Business development and ownership 100 % 7,9 % Gavestiftelse 40 % 7,5 % Egenkapitalbeviseier 48 % 10,0 % 43 En drivkraft for vekst på Helgeland
Slide 44: Management and organisational structure
Management and organisational structure Board of Directors Assistant secretary Internal Auditor Brit Søfting Chief Executive Marit Jakobsen Officer Lisbeth Flågeng Director of Director of Chief Financial Chief Business Chief Human Chief Chief Risk Corporate Retail Market Officer Development Resource
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