Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 SR-Bank — Q2 2012 Earnings Presentation
41 slides from Sparebank 1 Ostlandet's earnings presentation, Aug 9, 2012
Slide 1: SpareBank 1 SR-Bank ASA 2nd quarter 2012
SpareBank 1 SR-Bank ASA 2nd quarter 2012 9th August 2012 Page 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although SpareBank 1 SR-Bank believes that the expectations reflected in such forward-looking statements are reasonable,
Slide 3: Highlights
Highlights Year-to-date profit before tax was NOK 798 million (NOK 752 million) – Return on equity after tax was 12.3 % (11.9 %) Profit before tax for the second quarter was NOK 405 million (NOK 416 million) – Return on equity after tax was 11.8 % (12.6 %) Lending growth of 9.3 % and growth in
Slide 4: Key figures
Key figures Return on equity Core capital ratio 13,9 % 12,6 % 12,9 % 11,8 % 11,4 % 10,6 % 10,5 % 10,0 % 9,6 % 7,2 % Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Deposit-to-loan Earnings per share in NOK 66,8 % 67,6 % 1,73 61,9 % 63,2 % 1,58 60,2 % 1,51 1,19 0,86 Q2 11 Q3 11 Q4 11 Q1 1
Slide 5: Outlook
Outlook High oil prices, large new oil discoveries, low unemployment and an increasing housing construction rate in the bank's core area. Good credit quality and low level of defaults; continued low level of losses and write-downs expected. Opportunities for new business with solid customers,
Slide 6: Income statement
Income statement 30.06 30.06 Group Income Statement (MNOK) 12 11 Q2 12 Q1 12 Q4 11 Q3 11 Q2 11 Net interest income 814 851 413 401 448 457 427 Net commission and other income 681 606 379 302 305 281 325 Net return on investment securities 289 201 87 202 111 7 73 Total income 1.784 1.658 879 905 864
Slide 7: Key figures
Key figures 30.06 30.06 12 11 Q2 12 Q1 12 Q4 11 Q3 11 Q2 11 Return on equity after tax (%) 12,3 11,9 11,8 12,9 13,9 7,2 12,6 Net interest margin (%) 1,21 1,28 1,22 1,21 1,34 1,35 1,28 Impairment losses on loans and guarantees in % of gross loans 0,13 0,12 0,13 0,13 0,18 0,11 0,05 -incl. SB1 Boligkre
Slide 8: The group's income profile
The group’s income profile 900 800 700 295 302 259 291 256 600 500 32 11 7 MNOK 11 22 14 41 84 23 46 400 300 457 448 200 427 401 413 100 0 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Net interest income Commission income SB1 Boligkreditt and SB1 Næringskreditt Profit before tax SB1 Boligkreditt and SB1 Næringskre
Slide 9: Lending and deposit margins
Lending and deposit margins Lending margins 2,28% 2,09% 2,13% 1,93% 1,96% 1,97% 2,00% 1,99% 1,96% 1,64% 1,32% 1,39% 1,22% 1,26% 1,19% 1,06% 1,02% 0,99% Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Corporate market Retail market Deposit margins 0,65% 0,69% 0,63% 0,59% 0,56% 0,50% 0,44% 0,27%
Slide 10: Lending volume and 12 months growth
Lending volum and 12 months growth Corporate Market 12,1 % 15% 45 000 11,1 % 11,8 % 35 000 8,9 % 7,2 % 10% 25 000 4,8 % MNOK 15 000 2,9 % 5% 0,3 % 5 000 -1,8 % 0% - 5 000 - 15 000 -5% Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Volume Growth % Retail Market 100 000 16,1 % 17,1 % 17,2 % 17,
Slide 11: Loan portfolio as at 30.06.2012
Loan portfolio as at 30.06.2012 Industry, Power/water supply and construction: Agriculture / forestry / 4,0 (6,3) fishing: 2,8 (2,8) Commodity trade / hotels: 2,0 (2,0) Shipping : 1,4 (1,3) Offshore: 4,7 (5,1) Retail customers: 32,1 (39,4) Real estate: 15,3 (14,5) Service industry: 4,9 (4,6) Total r
Slide 12: Low exposure to the shipping segment
Low exposure to the shipping segment • Lending to conventional shipping Dry cargo; 4,7 % is low and represents 1.4 % of Gas; 3,3 % total lending Product tank; 8,1% Other; 3,4 % Seismic; 7,1 % • Lending to the offshore sector represents 4.7 % of total lending • Lending, undrawn credit limits and guar
Slide 13: Loan to collateral value ratio mortgage loans
Loan to collateral value ratio mortgage loans Loans as percentage of collateral values – mortgages on housing • 2,4 % of the exposure exceed 85 % of the collateral value. 100% 93,3 % • In the case of new customers, the 90% market value of the mortgage object is updated for the first time 3 years 80%
Slide 14: Deposits volume and 12 month growth
Deposits volume and 12 month growth Corporate Market 40 000 20,1 % 19,5 % 20% 16,0 % 30 000 13,3 % 15% MNOK 20 000 6,6 % 10% 4,7 % 10 000 3,3 % 3,0 % 2,5 % 5% 0 0% Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Volume Growth % Retail Market 40 000 20% 30 000 15,1 % 13,6 % 13,9 % 13,7 % 15% 11
Slide 15: Net commission and other income
Net commission and other income 30.06 30.06 MNOK 12 11 Q2 12 Q1 12 Q4 11 Q3 11 Q2 11 Payment facilities 97 99 50 47 52 53 51 Savings/placements 71 75 36 35 34 29 37 Insurance products 69 67 35 34 53 34 34 Commission income real estate (EM1) 223 218 124 99 106 102 122 Guarantee commission 44 35 23 22
Slide 16: Net return on investment securities
Net return on investment securities 30.06 30.06 MNOK 12 11 Q2 12 Q1 12 Q4 11 Q3 11 Q2 11 Dividend 24 19 21 3 1 1 13 Investment income, associates 153 109 53 100 67 33 58 Securities gains/losses 45 -19 -23 68 6 -34 -36 - of which capital change in shares and certificates -19 -5 -34 15 8 -38 -33 - of
Slide 17: Subsidiaries
Subsidiaries MNOK 30.06.12 30.06.11 EiendomsMegler 1 SR-Eiendom AS Number of sales 3.806 3.837 Operating profit before tax 72,2 35,6 SpareBank 1 SR-Finans AS Total assets (BNOK) 5,8 5,1 Operating profit before tax 51,6 41,4 SR-Forvaltning AS Portfolio (BNOK) 6,1 6,4 Operating profit before tax 11,5
Slide 18: Ownership interests
Ownership interests MNOK 30.06.12 30.06.11 SpareBank 1 Gruppen AS (19,5 % interest ownership) Profit after tax 52,1 48,0 Adjusted profit contribution from 2011 9,3 1,9 SpareBank 1 Boligkreditt AS (34,4 % interest ownership) Profit after tax 49,1 15,0 SpareBank 1 Næringskreditt AS (30,7 % interest ow
Slide 19: Operating expenses
Operating expenses 30.06 30.06 MNOK 12 11 Q2 12 Q1 12 Q4 11 Q3 11 Q2 11 Personnel expenses 554 526 279 275 267 273 271 Non-recurring effect, pension-related items -35 -71 -35 - -167 - -71 Total personnel expenses 519 455 244 275 100 273 200 IT expenses 107 107 49 58 61 54 54 Marketing 42 45 21 21 27
Slide 20: Impairment losses on loans and guarantees
Impairment losses on loans and guarantees 30.06 30.06 Losses on loans in income statement (MNOK) 12 11 Q2 12 Q1 12 Q4 11 Q3 11 Q2 11 Corporate customers 89 73 24 65 -11 14 10 Retail customers 9 20 10 -1 35 3 3 Change in collective impairment losses on loans -30 -29 - -30 21 13 - Net impairment losse
Slide 21: Impairment losses on loans
Impairment losses on loans 0,45 550 0,41 0,40 0,38 0,38 0,35 450 0,32 0,30 350 0,25 98 91 Percentage 0,23 MNOK 0,20 250 0,19 24 0,15 0,13 0,13 150 0,10 288 277 5 0,09 0,10 210 0,05 134 50 98 0,00 -30 -50 -0,05 2008 2009 2010 2011 30.06.12 Individual impairment losses on loans Collective impairment l
Slide 22: Non-performing and problem commitments
Non-performing and problem commitments Non-performing commitments Performing problem commitments MNOK MNOK 1,26% 0,49% 1,13% 0,42% 0,42% 0,41% 0,35% 0,34% 0,34% 0,81% 0,82% 0,33% 0,31% 0,72% 0,28% 0,69% 1264 0,64% 0,58% 0,56% 517 395 443 0,47% 415 753 860 348 762 696 30% 33% 32% 39% 26% 23% 31% 35%
Slide 23: Funding and liquidity management
Funding and liquidity management Funding maturity over the next 12 months • Very good liquidity and good access 3,5 3,0 to the market 2,5 BNOK 2,0 1,5 1,0 • Issued about NOK 9,6 billion and 0,5 bought back around NOK 4,3 billion 0,0 feb. 13 apr. 13 jul. 12 aug. 12 nov. 12 mai. 13 sep. 12 okt. 12 des
Slide 24: Solvency
Solvency • At the end of the Q1 2012 the core (Tier 2) 12,7 capital ratio was 11.4 %. 11,9 12,0 11,4 10,9 10,6 • At the end of the Q2 2012, pure core capital 10,2 10,0 was 9.2 %. 10,0 9,3 9,3 9,2 8,6 8,3 • SpareBank 1 SR-Bank's aim is to have a core 8,0 (Tier 1) capital ratio of at least 10 % and a
Slide 25: Appendix
APPENDIX SpareBank 4 SR-BANK
Slide 26: SRBANK per 30.06.2012
SRBANK per 30.06.2012 30.06.12 2011 2010 2009 2008 • Ownership interests as at 30.06.2012: –From Rogaland, Agder-counties and Hordaland: 61,7 % Market price 32,10 40,70 57,00 50,00 27,08 –From abroad: 6,2 % –10 largest: 55,1 % Stock value (MNOK) 8.210 5.182 7.257 6.047 2.434 –20 largest: 60,0 % • Nu
Slide 27: 20 largest shareholders as at 30 June 2012
20 largest shareholders as at 30 June 2012 # Investor Number Stake 1 Sparebankstiftelsen SR-Bank 79.735.551 31,2 % 2 Gjensidige Forsikring ASA 26.483.470 10,4 % 3 SpareBank 1-stiftinga Kvinnherad 6.226.583 2,4 % 4 Folketrygdfondet 5.922.914 2,3 % 5 Odin Norge 5.497.410 2,1 % 6 Frank Mohn AS 5.373.37
Slide 28: Rating
Rating Moody’s Fitch Long-term debt A1 Long-term IDR A- Outlook On review Outlook Stable Outlook Updated 9th march 2012 Updated 24th february 2012 Ratinghistory AAA/Aaa AA+/Aa1 AA/Aa2 AA-/Aa3 A+/A1 Moody's A/A2 A-/A3 Fitch BBB/Baa BB/Ba B 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 P
Slide 29: Savings/placements – portfolio development
Savings/placements – portfolio development 14000 • Assets under management of NOK 12000 11,6 billion as at 30 June 2012 — Increased from NOK 11,2 billion as at 31 december 2011 10000 — 53 986 active savings contracts - NOK 43,0 million in monthly savings 8000 MNOK • Most of the assets are managed by
Slide 30: Liquidity buffer and bond portfolio
Liquidity buffer and bond portfolio Liquidity buffer – survival period Bond portfolio 26 Of which, 24 securities 22 classified to 20 Market value amortised cost 18 Bond investments MNOK Share MNOK BNOK 16 Norwegian state/municipal 4.680 21 % 0 14 12 Foreign covered bonds 1.720 8% 0 10 Swap agreement
Slide 31: Securities investments
Securities investments Risk profile in bond portfolio Stock and Equity certificate Total portfolio • The treasury portfolio Market value Percentage Risk categories Rating MNOK Total Market value has a very low risk Swap agreement AAA 7.741 34 % MNOK Very low risk AAA, AA+, AA and AA- 12.482 55 % Low
Slide 32: Risk profile of SpareBank 1 SR-Bank
Risk profile of SparBank 1 SR-Bank SpareBank 1 SR-Bank’s portfolio distrbuted by risk groups • 91.4 % of the bank's loan exposure 100% 91,4 % 91,6 % satisfies the criteria for low and the lowest risk. Expected losses* in this 80% portion of the portfolio are very limited 60% at 0.04 %. 40% • Exposur
Slide 33: Risk profile of SpareBank 1 SR-Bank
Risk profile of SpareBank 1 SR-Bank • At the end of the second quarter of SpareBank 1 SR-Bank’s portfolio by loss given realisation (LGR) 2012, SpareBank 1 SR-Bank had 28 100% commitments with a loss potential exceeding NOK 100 million if realised. 90% 83,7 % 83,8 % • These commitments represent 4.7
Slide 34: Risk profile in the corporate market portfolio
Risk profile in the corporate market portfolio Development in corporate market’s portfolio distributed by riskgroups • The quality of the corporate portfolio is considered good. 100% 4,9 % 4,6 % 4,6 % 3,9 % 3,7 % 16,1 % 15,1 % 17,0 % 16,8 % 18,7 % 80% • The risk profile has seen a relatively 60% sta
Slide 35: Risk profile in the portfolio of commercial property for rent
Risk profile in the portfolio of commercial property for rent SpareBank 1 SR-Bank`s portfolio in commercial property for • The portfolio in real estate business rent distributed by riskgroups represents the group’s largest concentration in a single sector, and accounts for 15 % of 100% 3,8 % 3,5 % 2
Slide 36: Risk profile in the retail market portfolio
Risk profile in the retail market portfolio Retail market division distributed by risk group • The quality of the retail market 0,5 % 0,6 % 0,3 % 0,3 % 0,2 % portfolio is considered very good and 100% 1,1 % 1,6 % 1,0 % 1,0 % 0,9 % with low potential losses. 80% 60% 98,4 % 97,8 % 98,7 % 98,7 % 98,9 %
Slide 37: Balance sheet
Balance sheet Balance sheet (MNOK) 30.06.2012 30.06.2011 Cash and balances with central banks 290 838 Balances with credit institutions 1.160 650 Net loans to customers 104.597 107.164 Certificates, bonds and other fixed-income securities 22.539 17.484 Financial derivatives 4.102 2.781 Shares, owner
Slide 38: SRBANK's activities
SRBANK’s activities Divisions of SpareBank 1 SR- Capital Markets Retail Market Corporate Market Administration & Support Bank ASA Number of man-years: 40 Number of man-years : 533 Number of man-years : 183 Number of man-years : 208 Fully owned companies Number of man-years : 213 Number of man-years
Slide 39: SpareBank 1 Alliance
SpareBank 1 Alliance Owners of the Sparebanken alliance Samspar Samspar Hedmark • All credit decisions are made at the 19.5 % 19.5 % 19.5 % 19.5 % 12.0 % 10.0 % local banks • Economies of scale related to expenses, Products, commissions, dividends IT solutions, marketing and branding Sales, loan por
Slide 40: Our vision: Recommended by customers
Our vision: Recommended by customers Primary objective Financial targets • SpareBank 1 SR-Bank ASA is commited to value • ROE 13-15 % in a normalized market creation in the bank`s core market area • Sustainable contribution to the value creation process • Top 50 % ROE and cost/income in a Nordic ben
Slide 41: Contact Details
Contact Details Address Management Investor Relations Arne Austreid Vidar Torsøe Bjergsted Terrasse 1 CEO Investor Relations Postboks 250 4066 Stavanger Tel. Tel. +47 900 77 334 +47 970 80 656 Tel. E-mail. E-mail. arne.austreid@sr-bank,no vidar.torsoe@sr-bank.no +47 915 02002 Inge Reinertsen www.sr-