SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Q3 2022 Earnings Presentation
41 slides from SpareBank 1 Helgeland's earnings presentation, October 2022
Slide 1: Presentation Q3 2022
Presentation Q3 2022 - A driving force for growth in Helgeland
Slide 2: Presentation per 30.09.22 (SBH Group)
Presentation per 30.09.22 (SBH Group) Hanne Nordgaard Main Features and market Chief Executive Officer Events Q3 Profit & loss Lending Deposits Sverre Klausen Funding Chief Financial Officer Solidity Prospects and priorities Appendices Anne Ekroll Chief Financial Officer from 01.11.22
Slide 3: Financial targets
SpareBank 1 Helgeland Financial targets is the profitable and leading local bank that builds future Helgeland Profitable ROE >11 % The bank has a ROE target on level with comparable banks, p.t. 11 %. In the transformation year 2022 it is not expected to fulfil the long term target for ROE. Solid CET
Slide 4: Main features per 30.09.22
Main features per 30.09.22 Gross profit ROE* MNOK 382 (250) 8.3 (7.2) % *Adjusted for hybrid capital Total assets Solidity NOK 38.2 (36,6) bn. CET1 19,0 (19.6) %
Slide 5: Unemployment
Unemployment Unemployment in %, Norge, Nordland and Helgeland 12% Under the covid-19 pandemic, the unemployment increased significant 11% from Q4 2019 to Q1 2020. 10% The unemployment in Helgeland and 9% Nordland is lower than Norway 8% overall. 7% • Norway 1.6 % 6% • Nordland 1.2 % 5% • Helgeland 0
Slide 6: Housing price development
Housing price development Price development - sold apartments in Price development - sold villas in NOK/sqm 100 000 90 000 NOK/sqm 90 000 80 000 80 000 70 000 70 000 Oslo 60 000 Oslo 60 000 Trondhei 50 000 Trondheim 50 000 m Bodø Bodø 40 000 40 000 Helgeland 30 000 30 000 20 000 20 000 10 000 10 000
Slide 7: Sustainability in SpareBank 1 Helgeland
Sustainability in Sparebank 1 Helgeland • Newly employed manager for sustainability is well into the job. • Sustainability is integrated in the banks targets- and strategy documents • Business strategy • Risk- and capital strategy • Market-, purchasing-, finance-, credit strategy among others • New
Slide 8: Main features and market
Main features and market Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 9: Summary Q3
SpareBank 1 Helgeland (group) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Summary Q3 Net interest- and credit comission earnings Net comission earnings 168 36 174 46 184 38 202 41 Other operatios income -1 2 2 4 Ordinary operations cost 141 94 91 95 The improvement in the quarterly PLA is mainly related to Resu
Slide 10: Summary Q3 continued
Summary Q3 continued… SpareBank 1 Helgeland (group) Net interest- and credit comission earnings Net comission earnings Q4 2021 Q1 2022 Q2 2022 Q3 2022 168 36 174 46 184 38 202 41 Other operatios income -1 2 2 4 Ordinary operations cost 141 94 91 95 Result basic operations 63 128 133 152 Write-downs
Slide 11: Profit & loss
Main features and market Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 12: Profit
Profit Profit development Profit 384 390 382 Gross profit of MNOK 382 (250) pr 110 135 30.09.22. 264 131 96 65 15 • ROE of 8.3 %* 78 (ROE is adjusted for hybrid capital) 104 85 78 150 8,3% 147 93 93 40 2019 2020 2021 30.09.22 Q1 Q2 Q3 Q4 ROE %
Slide 13: Gross profit
Gross profit Gross profit is MNOK 132 higher than in the same period last year. • Increase in net interest is related to the acquisition in the fourth quarter 2021. The interest rate increase with effect from August Change in gross profit (MNOK) 11th, interest rate regulation on the banks debt late
Slide 14: Net interest
Net interest • Net interest and commission income amounts to MNOK 202 in the third quarter against MNOK 184 last quarter. 6 8 202 • The interest rate increase with effect from 8 184 2.07% August 11th, interest regulation on the banks 174 168 debt late in the quarter and decrease in total 148 1.87% a
Slide 15: Commission income (MNOK)
Commission income (MNOK) 46 41 8 38 36 36 1 6 8 2 Comission on loans transferred to 1 mortgage company 2 12 Guarantee commission 22 22 0.47% 12 1 8 0.43% Commission income insurance - 7 0.37% 0.38% (general, life, saving and pension) Commission income payment 22 services 18 18 In % of total assets 1
Slide 16: Operating costs
Operating costs Operating cost (mnok) and % of income 44 • Costs are over the banks target in the second quarter (cost/income <40%) 97 95 1 94 91 • So far this year, cost/income is 42,0 %. 79 74.0% • Loss on financial assets and liabilities deducted, the 46.4% cost % in the quarter would be 38.5 %.
Slide 17: Loss on commitments
Loss on commitments • MNOK 5 in loss so far this year, whereof MNOK 2 in the third quarter of 2022. 0.24% 0.18% 0.20% 65 51 64 0.01% 5 2019 2020 2021 30.09.2022 Net loss MNOK Net loss in % of gross lending
Slide 18: Lending
Main features and market Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 19: 12-month credit development (SpaBol included)
12-month credit development (SpaBol included) CM 26.0 % RM Development gross lending (MNOK) 74.0 % 44000 Development gross lending CM/RM (MNOK)) 39000 44000 39000 34000 34000 9 743 29000 0,1 % 9 752 -1,8 % 9 573 -0,1 % 9 474 29000 6,2 % 24000 24000 8 350 9,9 % 9 176 19000 37 005 36 910 36 867 36 810
Slide 20: Lending CM
Lending CM Real estate - Allocation pr segment Lending distributed in sector 10.9 % 7% Real estate 1% Boligeiendom 9.7 % 18 % 4% Tomter 5.1 % Farming and forestry 3% Industribygg 3.9 % 2% Næringseiendom 3.4 % Construction and power 2.2 % 4% Forretningsbygg 6.4 % Bygg under oppføring Transport and se
Slide 21: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss 600 • Net non-performing and other impaired 500 commitments amounts to MNOK 229, a reduction of MNOK 3 from year end. 400 300 200 1.1 % 1.1 % 0.7 % 0.7 % 100 0 2019 2020 2021 30.09.2022 Net commitments exposed to loss
Slide 22: Deposits
Main features and market Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 23: Deposit development
Deposit development 31 000 Deposit development (MNOK) Deposit decelopment CM/RM (MNOK) 31 000 26 000 26 000 21 000 21 000 9 811 9 876 9 657 9 365 16 000 4,8 % 0,7 % -2,2 % 16 000 8 688 4,3 % 9 064 3,3 % 23 552 24 144 24 731 24 152 11 000 20 612 20 816 11 000 14 187 14 333 14 855 14 495 6 000 6 000 1
Slide 24: Deposit development
Deposit development 100 % 90 % 27 000 80 % 70 % 25 000 60 % 23 000 Over MNOK 8 50 % 21 000 Between MNOK 2-8 40 % 19 000 Between MNOK 1-2 30 % 17 000 Under MNOK 1 20 % 15 000 10 % 13 000 0% 11 000 jan. 16 nov. 16 mai. 19 mar. 15 jun. 16 feb. 18 apr. 17 des. 18 jan. 21 nov. 21 sep. 17 jun. 21 apr. 22
Slide 25: Deposits CM
Deposits CM Customer deposits Well diversified deposit portfolio Municipalities 13.9 % 12.9 % in the CM 11.2 % Transport and services 11.7 % Share CM 40.0 (43.5)% or MNOK Construction and power 3.3 % 3.1 % 9 657 (9 064) of total deposits 2.0 % Farming and forestry 2.8 % Deposits from municipalities
Slide 26: Funding
Main features and market Events Q3 Profit & Loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 27: Funding
Funding Funding development • Customer deposit share has increased in 2022 2.5 % 2.5 % 2.6 % 2.4 % 2.5 % 17.1 % 14.2 % 22.0 % 22.2 % 21.1 % 11.4 % 13.0 % 12.2 % 11.3 % 17.1 % 67.4 % 71.9 % 63.1 % 64.9 % 58.4 % 2018 2019 2020 2021 30.09.2022 Deposits Senior CB FO
Slide 28: Funding due
Funding due High quality and long-term funding Innlån forfallstruktur (mill. kr.) Share long term funding 76.7% (81.0)% Combined duration of 2.1 (2.4) years. Duration in the mortgage 1 317 1 500 company 2.0 years 1 500 1 000 853 800 150 500 500 190 300 2022 2023 2024 2025 2026 2027 2028 2029 Senior
Slide 29: Liquidity buffer
Liquidity buffer Interest bearing securities: Sector distribution interest portfolio • Duration portfolio 1.8 (1.2) years • 99.4 % rated A- or better • 98.4 % CB or state-/ municipal CB 1 42% guaranteed bonds 28% Municipality papers are actively used 40% as short-term liquidity placements. Municipal
Slide 30: Transfer of loans to mortgage companies
Transfer of loans to mortgage companies Maximum limit for transfer is 35 % of the Group’s gross lending, and 50 % of gross lending RM. Per 30.09.22 transfer degree is 31.1 and 41.7 % with a total of MNOK 11 485 transferred to the mortgage companies. Helgeland boligkreditt AS is fully owned by SpareB
Slide 31: Solidity
Main features and market Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices Foto: Hans Petter Sørensen
Slide 32: Capital adequacy
Capital adequacy Development capital adequacy Capital ratio • CET1 19.0 (19.6)% 24% • Core capital 21.1 (23.0)% 22% 2.5 % • Total capital 23.6 (25.6)% 2.6 % 2.3 % 20% 2.5 % 1.7 % 2.1 % • Inclusive 50 % of the profit, CET1 and total 2.0 % capital adequacy amounts to 19.7 % and 24.3 18% 2.4 % 1.7 % %.
Slide 33: HELG – the largest owners and geographical owner structure
HELG – the 20 largest owners and geographical owner structure Geographical owner structure (%) 5.4 5.5 5.2 5.0 14.3 14.2 14.0 15.0 14.7 42.7 42.7 43.1 42.3 42.6 60.4 60.2 60.3 60.5 43.0 43.1 42.9 42.7 42.7 34.2 34.3 34.5 34.5 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Lo
Slide 34: Prospects and priorities
Main features and market Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 35: Prospects ahead
Prospects ahead ▪ Entrance in the SpareBank1 alliance. ▪ The associated transactions will affect the operations and the costs in 2021 and 2022. The groups long term profitability targets can not be expected fulfilled before 2023 ▪ Profitability is expected strengthened in a long term perspective, an
Slide 36: Prospects ahead
Prospects ahead ▪ Operation cost for the basic operation is expected to maintain stable but slightly over upper target of 40 % in 2022. ▪ The losses in 2022 is expected to remain low, but expectation og normalized losses (0,18 % of gross lending) in 2023 is maintained. It lies uncertainty regarding
Slide 37: Appendices
Main features and market Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 38: Profit & loss
Profit & loss SpareBank 1 Helgeland (group) Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Net interest- and credit comission earnings 140 149 150 144 144 148 168 174 184 202 Net comission earnings 24 23 26 28 21 22 36 46 38 41 Other operatios income 0 2 2 1 0 4 -1 2
Slide 39: HELG – EC development and liquidity
HELG – EC development and liquidity 31.12.19 31.12.20 31.12.21 30.09.22 EC fraction opening balance 76.4 % 76.4 % 77.3 % 79.9 % Number of EC's 20.9 20.9 27.0 27.0 price 84.0 86.0 131 115 Stock exchange value 1 756 1 797 3 537 3 105 Accounted equity per EC 119 129 124 130 Profit per EC 10.6 12 5.5 7.
Slide 40: SpareBank 1 Helgeland
SpareBank 1 Helgeland • Vision: a driving force for growth in Helgeland. • Business concept: SpareBank 1 Helgeland is the profitable and leading local bank building future Helgeland. • Offices: The Bank has offices in Mo i Rana, Mosjøen, Sandnessjøen and Brønnøysund. • Total assets incl. transferred
Slide 41: Contact information
Contact information Board of directors Head office Bjørn Krane, chairman Postal address: Postboks 68, 8601 Mo i Rana Rolf Eigil Bygdnes, deputy chairman Visiting address: Jernbanegata 15, 8622 Mo i Rana Marianne Terese Steinmo Siw Moxness Phone number 75 11 90 00 Kennteth Normann Web www.sbh.no Solr
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