Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — Sparebanken Hedmark — Q1 2013 Earnings Presentation
37 slides from Sparebank 1 Ostlandet's earnings presentation, 2013
Slide 1: Sparebanken Hedmark Q1-2013
Sparebanken Hedmark Q1-2013
Slide 2: Sparebanken Hedmark
Sparebanken Hedmark
Slide 3: Sparebanken Hedmark
Sparebanken Hedmark • Sparebanken Hedmark is the leading provider of financial services to individuals, businesses and public sector in Hedmark. – Sparebanken Hedmark: • 25 branches in Hedmark • 2 branches in Oppland • 1 branch in Akershus • NOK 44 billion in total assets • NOK 57.6 billion in busin
Slide 4: Corporate management
Corporate management CEO Richard Heiberg Director of PR Director of Risk Management Siv Stenseth Vidar Nordheim COO CFO Dag-Arne Hoberg Tore Anstein Dobloug Director of Organisation and HR Eldar Kjendlie Director of Director of General Manager Corporate Division Retail Division Investment centre Nil
Slide 5: Subsidiaries, joint ventures and associated companies
Sparebanken Hedmark Subsidiaries, joint ventures and associated companies Sparebanken Hedmark Subsidiaries Associated Joint ventures companies SpareBank 1 Finans Bank 1 Oslo og Torggt. 22 AS Østlandet AS Akershus AS 50 % 100 % 12 % EiendomsMegler 1 SpareBank 1 SpareBank 1 Hedmark Eiendom Gruppen AS
Slide 6: Financial information
Financial information Sparebanken Hedmark - Group
Slide 7: Main features Q1-2013 (Q1-2012) - Group
Main features Q1-2013 (Q1-2012) - Group Profit Group 200 •Pre-tax profit: MNOK 83 (130) 180 180 •Profit after tax: MNOK 74 (105) 160 •Return on equity after tax: 4.9 (7.5) 140 157 152 per cent 139 138 120 130 •Net interest income: 2.07 (2.25) per 121 122 116 117 100 106 105 cent of average assets 80
Slide 8: Income statement - Group
Income statement - Group Q1 Q1 2013 2012 2012 Net interest income 227 241 955 Net commission and other income 123 95 435 Dividends 7 Net profit from ownership interests 54 44 Net income from financial assets/liabilities -88 -29 36 Total net income 317 351 1433 Total operating expenses before losses
Slide 9: Specification of the consolidated profit - Group
Specification of the consolidated profit - Group 120 2 1 100 17 -27 5 0 80 8 60 37 40 83 20 40 0 *) Dividends received from subsidiaries and joint ventures
Slide 10: Financial results quarterly (isolated figures)
Financial results quarterly (isolated figures) - Group Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 (NOK million) 2013 2012 2012 2012 2012 2011 2011 2011 2011 Net interest income 227 242 242 230 241 246 244 244 237 Net commission and other income 123 118 114 108 95 110 61 59 55 Net income from financial assets and li
Slide 11: Changes in profit compared to 2012 - Group
Changes in profit compared to 2012 - Group 180 160 10 -5 140 28 -59 120 100 -14 80 -8 60 130 40 83 20 0
Slide 12: Key figures
Key figures - Group Q1 2013 Q1 2012 2012 Profit/loss before tax in % of average assets 0,76 % 1,21 % 1,22 % Profit/loss after tax in % of average assets 0,67 % 0,98 % 0,93 % Return on equity capital after tax 4,9 % 7,50 % 7,00 % Interest margin including loans to SpareBank 1 Boligkreditt AS 2,19 % N
Slide 13: Interest income and net interest income as % of average assets
Interest income and net interest income as % of average assets - Group 250 2,35 % 2,31 % 2,30 % 2,29 % 2,29 % 245 2,30 % 2,25 % 2,24 % 2,25 % 240 2,21 % 2,20 % 235 2,13 % 2,15 % 230 2,07 % 2,10 % 225 2,05 % 220 2,00 % 237 244 244 246 241 230 242 242 227 215 1,95 % Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12
Slide 14: Net interest income inclusive commissions from SpareBank 1 Boligkreditt AS
Net interest income inclusive commissions from SpareBank 1 Boligkreditt AS - Group 300 37 27 250 10 10 9 17 41 11 27 • As at 31.03.2013 total commission from SpareBank 200 1 Boligkreditt AS amounted to MNOK 41. • NOK 13.4 billion was 150 transferred to SpareBank 1 244 244 246 241 242 242 Boligkredit
Slide 15: Net commission income and other operating income
Net commission income and other operating income - Group Q1 Q4 Q3 Q2 Q1 2013 2013 2012 2012 2012 2012 Guarantee commission 3 3 3 3 4 3 Insurance services 17 17 16 16 15 16 Commission from loans transferred to SpareBank 1 Boligkreditt AS 41 41 37 27 27 17 Commission from payment transmission 17 17 17
Slide 16: Other income as % of total income
Other income as % of total income -Group 180 41,5 % 45 % 160 35,5 % 35,9 % 40 % 163 140 31,3 % 31,8 % 35 % 29,1 % 138 28,1 % 120 134 27,5 % 30 % 100 20,5 % 110 113 25 % 100 80 92 89 20 % 60 15 % 61 40 10 % 20 5% 0 0% Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Other income (quarterly) As %
Slide 17: Net income on financial investments
Net income on financial investments -Group Q1 Q4 Q3 Q2 Q1 2013 2013 2012 2012 2012 2012 Dividends 7 0 Net profit from ownership interest 54 54 -5 46 10 44 Net profit from other financial assets and liabilities -88 -88 -21 -47 38 -29 Net income from financial assets and liabilities -34 -34 -26 -1 55
Slide 18: Operating expenses
Operating expenses - Group Percentage of total operating Q1 Q4 Q3 Q2 Q1 2013 expenses 2013 2012 2012 2012 2012 Personnel expenses 125 54,1 % 125 110 114 112 121 Administration expenses an other operating expenses 97 42,0 % 97 104 82 92 93 Depreciation 9 3,9 % 9 9 9 9 9 Total operating expenses befor
Slide 19: Balance sheet - Group
Balance sheet - Group 31.03.2013 31.03.2012 31.12.2012 ASSETS Cash and deposits with central banks 540 346 236 Loans to and receivables from credit institutions 309 72 294 Loans to and receivables from customers 35.328 34.162 35.200 Financial papers 5.576 5.216 5.958 Investments in subsidiaries, ass
Slide 20: Development of total assets and business volumes
Development of total assets and business volumes - Group 0 70.000 56.749 57.689 60.000 53.003 49.603 50.000 46.055 44.313 38.420 40.000 35.828 30.447 30.000 20.000 10.000 0 2005 2006 2007 2008 2009 2010 2011 2012 Q1-2013 Assets Loans transf erred to Spb BK Business volume Business volume= Assets inc
Slide 21: SpareBank 1 Boligkreditt
SpareBank 1 Boligkreditt • Transferred loans NOK 13.4 Highest quality cover pools billion globally (ranked by theoretical cover pool losses): • Ownership 7.8 % • AAA rating. One of the highest quality cover pools globally. Type of Issuer Programme Country SEB AG Public Sector Germany West LB Public
Slide 22: Development in capital adequacy
Development in capital adequacy - Group 18,0 % 16,0 % 16,9 % 15,8 % 14,0 % 15,1 % 15,2 % 14,1 % 12,0 % 13,2 % 12,7 % 10,0 % 11,5 % 9,0 % 8,0 % 6,0 % 4,0 % 2,0 % 0,0 % 2006 2007 2008 2009 2010 2011 2012 Q1 2013 Capital adequacy Minimum regulatory requirement Capital adequacy ratio from 2011 are calcu
Slide 23: Development in return on equity after tax
Development in return on equity after tax - Group 16,0 % 14,0 % 13,5 % 12,0 % 12,6 % 10,0 % 8,0 % 9,2 % 7,7 % 7,5 % 6,0 % 7,0 % 5,5 % 4,0 % 4,9 % 2,0 % 0,0 % 2007 2008 2009 2010 2011 2012 Q1 C Q1 2013 2013* * Corrected for changes in value adjumstments.
Slide 24: Development in equity
Development in equity - Group 7.000 6.000 6.044 6.136 5.534 5.000 5.325 4.759 4.000 4.398 4.156 3.647 3.000 2.000 1.000 - 2006 2007 2008 2009 2010 2011 2012 Q1 2013
Slide 25: Gross lending to customers – growth over last 12 months
Gross lending to customers – growth over last 12 months (including loans transferred to SpareBank 1 Boligkreditt AS) - Group 60.000 10,0 % 8,9 % 9,0 % 50.000 7,7 % 7,8 % 7,7 % 8,0 % 7,1 % 6,9 % 6,8 % 6,7 % 6,5 % 6,4 % 7,0 % 40.000 6,3 % 6,3 % 5,8 % 6,0 % 30.000 5,0 % 48.999 48.091 46.746 45.787 45.0
Slide 26: Gross lending – by sector
Gross lending– by sector (Including loans transferred to SpareBank 1 Boligkreditt) - Group Commercial Other; 2.045 services; 1.629 Primary industries; 3.183 Wholesale and retail trade; 1.069 Real estate; 6.017 Building and Private construction; customers; 1.207 33.848
Slide 27: Volume of deposits and growth in deposits over last 12 months
Volume of deposits and growth in deposits over last 12 months -Group 35.000 14,0 % 12,3 % 30.000 12,0 % 25.000 9,3 % 10,0 % 8,5 % 8,6 % 7,6 % 7,8 % 20.000 8,0 % 5,9 % 5,9 % 5,5 % 5,6 % 5,7 % 15.000 6,0 % 4,3 % 10.000 3,2 % 4,0 % 5.000 2,0 % 24.215 23.850 25.592 25.251 25.957 27.760 29.155 22.817 24.
Slide 28: Losses
Losses -Group Losses per quarter Q1-10 to Q1-13 Distribution of losses -35 -30 -32 -25 Leasing -2,0 -26 -20 -23 -23 -23 -22 -15 -10 -12 Corporate market -5 -3 -3 0 5 8 2 2 10 10 Retail market -1,0 15 0,0 -0,5 -1,0 -1,5 -2,0 -2,5
Slide 29: Yearly losses on loans and guarantees
Yearly losses on loans and guarantees - Group -160 -140 -146 -120 -100 -80 -76 -60 -40 -50 -50 -42 -20 -24 -24 -3 0 2006 2007 2008 2009 2010 2011 2012 Q1 2013
Slide 30: Total defaulted and doubtful commitments
Total defaulted and doubtful commitments - Group 900 831 844 765 800 729 700 617 600 595 616 500 539 578 400 476 300 200 100 226 236 228 150 141 - 2009 2010 2011 2012 Q1 2013 Individual write-downs on loans and guarantees Net defaulted and doubtful commitments Total defaulted and doubtful commitment
Slide 31: Liquidity reserves
Liquidity reserves • The figure shows the distribution of the bank's liquidity reserve as at 31.3.13. • The reserve is MNOK 5 301. • Green bar indicates a haircut of 10 per cent.
Slide 32: Funding maturities the next 12 months
Funding maturities the next 12 months. Total to maturity MNOK 2 184. 800 600 400 200 - apr.13 mai.13 jun.13 jul.13 aug.13 sep.13 okt.13 nov.13 des.13 jan.14 feb.14 mar.14 Utstedt sertifikat Innlån fra annen bank Utstedt obligasjon F-lån Norges Bank
Slide 33: Annual maturities
Annual maturities Total to maturity MNOK 7 680. 2.000 1.500 1.000 500 - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 F-lån Norges Bank 76 - - - - - - - - - - - - - - Utstedt obligasjon 600 1.249 1.205 1.345 1.000 1.030 - 300 - - - - - - - - Innlån fra annen bank -
Slide 34: Rated A2 by Moody's: strengths, challenges, prospects
• Rated A2 by Moody’s • Strengths: – Strong brand and market position in the County of Hedmark – Solid and stable earnings from retail operations and SMB – High solvency (Core 1 capital) – Benefits from the SpareBank 1 Alliance • Challenges: – Credit risk geographical – Credit risk large customers –
Slide 35: Financial information – Parent Bank
Financial information Sparebanken Hedmark – Parent Bank
Slide 36: Main features - Parent bank
Main features - Parent bank • The pre-tax profit totalled . Profit Parent Bank MNOK 40 (116). 250 • Operating costs accounted 200 for 80.9 (59.6) per cent of 191 total income. 150 172 162 154 154 • Losses still remain low. 134 100 116 104 107 93 90 82 69 69 50 64 52 40 36 0 Q1-11 Q2-11 Q3-11 Q4-11 Q
Slide 37: Income statement - Parent bank
Income statement - Parent bank Q1 Q1 2013 2012 2012 Net interest income 188 216 834 Net commission and other income 84 56 287 Dividends 7 Net profit from ownership interests 31 34 93 Net income from financial assets/liabilities -88 -29 -59 Total net income 215 277 1.162 Total operating expenses befo