SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Q3 2021 Earnings Presentation
42 slides from SpareBank 1 Helgeland's earnings presentation, 2021
Slide 1: Q3 2021 Presentation - A driving force for growth in Helgeland
Presentation Q3 2021 - A driving force for growth in Helgeland
Slide 2: Presentation per 30.09.21 (SBH Group)
Presentation per 30.09.21 (SBH Group) Main Features Hanne Nordgaard Events Q3 Chief Executive Officer Profit & loss Lending Deposits Funding Sverre Klausen Solidity Chief Financial Officer Prospects and priorities Appendices
Slide 3: Main features per 30.09.21
Main features per 30.09.21 Gross profit MNOK 250 (255) ROE* 7.2 (8.4) % Total assets 36.6 (33.6) bn Solidity CET1 19.6 (17.3) % *Adjusted for hybrid capital
Slide 4: Financial targets
Financial targets ROE target of 11 % from 2023. In the years 2020, 2021, and ROE the transformation year 2022 it is not expected to fulfil the long >11 % term target for ROE. New target for CET1 is fulfilled by the end of the quarter, and CET1 takes in to account expected increase in buffer targets
Slide 5: Unemployment
Unemployment Under the covid-19 pandemic, the unemployment increased significant from Q4 2019 to Q1 2020. Unemployment in %, Norge, Nordland and Helgeland Nationally, 67 600 people, or 2.4 % 12,00% of the work force was registered 11,00% unemployed at the end of Mars. This is an decrease of 0.5 % fr
Slide 6: Housing price development
Housing price development Price development - sold apartments in Price development - sold villas in NOK/sqm 100.000 80.000 NOK/sqm 90.000 70.000 80.000 60.000 70.000 Oslo Oslo 50.000 60.000 Trondheim Trondheim 50.000 40.000 Bodø Bodø 40.000 Helgeland Helgeland 30.000 30.000 20.000 20.000 10.000 10.0
Slide 7: Events Q3
Main features Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 8: Events Q2
Events Q2 • Stable profit from the basis operation • Net interest income of MNOK 148, up from 144 last quarter. • Write-downs on lending amounted to MNOK 19. Large parts of the write-downs in third quarter is related to a write-down on a corporate commitment within fisheries and aquaculture. • The a
Slide 9: Status entrance in SpareBank1/SamSpar and the acquisition from SNN
Status entrance in SpareBank1/SamSpar and the acquisition from SNN • Milestones 2021: • 15. mars SpareBank 1 Helgeland entered the SpareBank 1 alliance and changed name to SpareBank 1 Helgeland. • Change of digital platform for SpareBank 1 Helgelands customers and employees. • Bought 3 % of the shar
Slide 10: Profit & loss
Main features Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 11: Profit
Profit Profit development Profit Q3 Gross profit MNOK 250 384 390 • Net ROE 7,2 % (hybrid excluded) 110 135 250 185 96 65 78 76 85 78 49 150 7,2% 94 93 93 40 -34 2018 2019 2020 30.09.21 Q1 Q2 Q3 Q4 ROE %
Slide 12: Gross profit
Gross profit Gross profit MNOK 250 (255). Change in gross profit (MNOK) • Reduced net interest as a consequence of price 300 300 competition and adaption in relation to the interest -12,0 - 27,0 rate changes in 2020. High liquidity entrance 250 -74,0 250 60,0 2,0 provides a slightly weaker net inter
Slide 13: Net interest
Net interest Development net intr.(mnok.) and % of average BTA • High liquidity entrance in the first 149 150 148 quarter provides a slightly weaker net 144 144 interest than expected. This is mainly related to lower return on the liquidity 1,75% 1,76% 1,73% placements, together with corresponding 1
Slide 14: Commission income (MNOK)
Commission income (MNOK) 100 97 90 8 7 86 8 8 33 30 71 Guarantee commission 4 32 29 Commission income insurance - 0,30% 27 (general, life, saving and pension) 0,29% 0,28% 0,28% 0,27% Commission income payment 28 59 60 services 49 50 40 In % of total assets 2017 2018 2019 2020 30.09.2021 Commission i
Slide 15: Operating costs
Operating costs Operating cost (mnok) and % of income Costs are over the banks target for cost level of 77 40 % of total income. This is as expected, and is related to additional costs as a consequence of the Helgeland 1 project and lower income. 40 90 3 5 1 78 77 79 73 62,4% 56,2% 49,0% 45,1% 45,8%
Slide 16: Development total assets and man-years
Development total assets and man-years 177 177 177 177 Total assets per man-year (MNOK) 36,6 168 259 164 34,1 33 33,2 31,9 230 232 152 150 220 148 148 215 29,4 143 141 193 27,1 26 25,8 24,6 165 22,8 154 139 145 20,1 130 115 Number of man years Total assets (billion NOK) Total assets per man-year (MN
Slide 17: Loss on commitments
Loss on commitments MNOK 29 in loss so far this year, hereof MNOK 19 in Q3 The write-down is partly a consequence of calculated loss and partly a product of statements of earlier depreciated commitments. The write-downs this quarter is considered low. Large parts of the write-down in 3rd quarter is
Slide 18: Lending
Main features Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 19: 12-month credit development
12-month credit development Lending corporate market Lending retail market 9.657 18.824 18.796 19.148 8.903 9.176 -7.8 % 3.1 % -0.1 % 1.9 % 30.09.19 30.09.20 30.09.21 30.09.19 30.09.20 30.09.21 With background in the technological limitations that lies, the corporate commitments from SpareBank 1 Nor
Slide 20: Credit development
Credit development 12-month credit development corporate market 12-month credit development retail market 16% 16% 11% 11% 6% 6% 1% 1% -4% -4% -9% -9% 2018 2019 2020 30.09.2021 2018 2019 2020 30.09.2021 SBH Helgeland corp. Statistic Norway corp. SBH Helgeland pers. Statistic Norway pers. 12-month cre
Slide 21: Lending CM
Lending CM Lending distributed in sector Real estate 10,5 % Good diversification in the CM 10,9 % lending portfolio and loyal corporate Farming and forestry 5,0 % customers 5,1 % Construction and power 4,1 % Share CM of total lending 32.4 3,4 % (32.1)% or MNOK 9 176 Transport and services 6,1 % (8 9
Slide 22: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss Net non-performing and other impaired 600 commitments amounts to MNOK 327, an increase of MNOK 11 from year end. 500 The increase is mainly related to changes in 400 the default commitment definition. It is individual
Slide 23: Deposits
Main features Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 24: Deposit development
Deposit development Deposit development corporate market (12-month) Deposit development retail market (12-month) 35% 20% 30% 15% 25% 20% 10% 15% 10% 5% 5% 0% 0% -5% -10% -5% 2018 2019 2020 30.09.2021 2018 2019 2020 30.09.2021 SBH Helgeland Corp. Statistic Norway Corp. SBH Helgeland pers. Statistic N
Slide 25: Deposit development
Deposit development 100 % 23 000 000 000,00 90 % 80 % 21 000 000 000,00 70 % 19 000 000 000,00 60 % Over 8 mill 50 % 17 000 000 000,00 Mellom 2 og 8 mill. 40 % Mellom 1 og 2 mill. 15 000 000 000,00 30 % Under 1 mill. 20 % 13 000 000 000,00 10 % 0% 11 000 000 000,00 jun. 21 jun. 19 jun. 20 jun. 17 ju
Slide 26: Deposits CM
Deposits CM Customer deposits Well diversified deposit portfolio 12,2 % Municipalities 13,1 % in the CM Transport and services 10,6 % 11,6 % 3,1 % Share CM 43.5 (41.3)% or MNOK Construction and power 3,8 % 9 064 (7 670) of total deposits Farming and forestry 2,4 % 2,7 % Real estate 5,6 % Deposits fr
Slide 27: Funding
Main features Events Q3 Profit & Loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 28: Funding
Funding Funding development 2,1 % 3,3 % The bank issued its first green bonds 2,5 % 2,5 % 2,6 % 19,8 % during september. As of 30.09.21, 19,3 % 21,1 % 22,0 % 22,2 % this corresponded to 1 bn of total 11,3 % 14,4 % senior loans by approximately 2-2,5 18,7 % 12,2 % 17,1 % bp «greenium» at issuance. 63
Slide 29: Funding due
Funding due Maturity of loans (MNOK) High quality and long term funding Share long term funding 81.0% (97.5)% 1.867 1.500 Combined duration of 2.4 1.500 (2.7) years. Duration in the mortgage company 2.2 years 920 920 1.000 1.000 800 189 500 250 300 87 2021 2022 2023 2024 2025 2026 2027 2028 2029 Sen
Slide 30: Liquidity buffer
Liquidity buffer Sektorfordeling renteportefølje Interest bearing securities: • Duration portfolio 1.5 (1.4) years • 99.0 % rated A- or better 28% • 98.8 % CB or state-/ municipal OMF 1 (ratet) guaranteed bonds 27% 49% Municipality papers are actively used Kommune 49% as short term liquidity placeme
Slide 31: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland boligkreditt AS is fully owned by SpareBank 1 Helgeland • Net profit MNOK 42.2 (50.9) • CET1 ratio of 18.6 (17.3)% • standard method with 35% mortgage weights • Gross loans amounts to MNOK 7 349 (7 659) and CB MNOK 6 366 (6 361) Good security in the lending portfo
Slide 32: Solidity
Main features Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices Foto: Hans Petter Sørensen
Slide 33: Capital adequacy
Capital adequacy Development capital adequacy 24% 2,5 % 22% 2,6 % Capital ratio 3,4 % 20% 2,5 % 1,7 % • CET1 19.6 (17.3)% 18% 1,7 % 2,4 % • Core capital 23.0 (19.0)% 1,6 % 1,7 % • Total capital 25.6 (21.6)% 16% 1,6 % 14% Leverage ratio: 10.9 (9.8)%. 19,6 % 18,8 % 17,2 % 12% 15,8 % 15,3 % 10% 8% 2017
Slide 34: HELG – the 20 largest owners
HELG – the 20 largest owners Parent bank Per 30.09.21 Number %-share Antall %-share Sparebankstiftelsen Helgeland 7 315 020 35.0 % Catilina Invest AS 296 546 1.4 % Pareto Invest AS 1 972 692 9.5 % VPF Nordea Avkastning 240 370 1.2 % VPF Nordea Norge 1 067 487 5.1 % VPF Nordea Kapital 238 245 1.1 % B
Slide 35: HELG – the 20 largest local owners
HELG – the 20 largest local owners Geografical owner structure (%) 15,4 14,8 14,7 13,1 12,5 14,3 14,2 14,0 15,0 14,7 41,8 42,9 42,4 43,9 44,4 42,7 42,7 43,1 42,3 42,6 42,8 42,3 42,9 43,0 43,1 43,0 43,1 42,9 42,7 42,7 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Loc
Slide 36: HELG – EC development and liquidity
HELG – EC development and liquidity Development HELG vs OSEEX - last 12 months 70% 160.000 31.12.19 31.12.20 30.09.21 60% 140.000 EC fraction opening balance 76.4 % 76.4 % 76.3 % 50% 120.000 Number of EC's 20.9 20.9 20.9 Volume HELG 40% 100.000 price 84.0 86.0 122 Change (%) 30% 80.000 Stock exchang
Slide 37: Hovedtrekk Hendelser Q3 Resultat
Hovedtrekk Hendelser Q3 Resultat Utlån Innskudd Finansiering Soliditet Utsiktene fremover Vedlegg
Slide 38: Prospects ahead
Prospects ahead Positive future ahead despite of corona Low unemployment, large public and private projects, rising housing prices and stable turnover numbers is factors that supports this. Entrance in the SpareBank1 alliance. The associated transactions will affect the operations 2021, and
Slide 39: Appendices
Main features Events Q3 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 40: Profit & loss
Profit & loss SpareBank 1 Helgeland (group) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Net interest- and credit provision earnings 145 156 159 159 140 149 150 144 144 148 Net provision earnings 22 25 30 24 24 23 26 28 21 22 Other operatios income 0 1 2 1 0 2 2 1
Slide 41: 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 4 offices in Mo i Rana, Mosjøen, Sandnessjøen and Brønnøysund. • SpareBank 1 Helgeland is the
Slide 42: 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 Linda Brennbakk, permanent deputy me
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