Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — FY2016 Earnings Presentation
79 slides from Sparebank 1 Nord-norge's earnings presentation, Feb 15, 2017
Slide 1: Preliminary accounts 2016
Preliminary accounts 2016 Tromsø/Oslo 15 February 2017
Slide 2: 2016: Very good result – increased dividend
2016: Very good result – increased dividend 2016 profit before tax NOK 1 Return on equity 12.0 % (9.1 544 mill (NOK 1 033 mill) %) Reduced costs (- 2.4 %) Moderate loan losses NOK compared with 2016 (excl. 213 mill (NOK 200 mill). NOK restructuring costs) 64 mill in Q4 Proposed dividend per share; C
Slide 3: Very good profitability and financial strength
Very good profitability and financial strength 15,0 % 12,5 % 13,9 % 12,3 % 13,1 % 9,9 % 10,3 % 12,2 % 12,0 % 9,0 % 9,1 % 8,5 % 2011 2012 2013 2014 2015 2016 Ren kjernekapital Common equityi %tier inkl 1% andel av share incl resultat Return on equity capital Egenkapitalrentabilitet 3 of result
Slide 4: Improved profitability 2015 - 2016
Improved profitability 2015 - 2016 141 - 13 38 260 Milli mill kroner) 36 1 544 49 (Beløp NOK 1 033 31.12.15 Netto renteinnt. inkl 31.12.15 Net interest income Net fee, Netto commision Inntekter fra finansielle Andre driftsinntekter Net income from Other operating Sum kostnader Total costs Tap Net lo
Slide 5: Quarterly summary - profit and loss account
Quarterly summary - profit and loss account (Amounts in NOK million) 4Q16 3Q16 2Q16 1Q16 4Q15 Net interest income 434 423 401 386 390 Net fee-, commision and other operating income 234 228 249 213 222 Net income from financial investments 116 157 156 80 46 Total net income 784 808 806 679 658 Total
Slide 6: Strategic measures have been effective…
Strategic measures have been effective… Core business cultivated: Exit from Russia, Nord Physical presences reduces Kapitalforvaltning and Bank 1 from 71 branches in 2012 to Oslo. SNN Invest wound up and downsizing of corporate lending in 38 in 2016 BN Bank according to plan Improved SME service Cou
Slide 7: …and more have been initiated
…and more have been initiated Strengthened physical Redesign of service processes presence and strength of (LEAN) with digital assistants sales through further (robots) adjustments and content of the distribution network Development of a Norwegian Competence, capacity and digital wallet through the
Slide 8: Profitable growth. SME efforts have been successful
Profitable growth. SME efforts have been successful Deposit volume Lending volume Retail banking market Retail incl. SpareBank 1 Boligkreditt 30 651 69 647 28 688 63 874 27 007 6,2 % 6,8 % 59 826 6,8 % 9,0 % 31.12.14 31.12.15 31.12.16 31.12.14 31.12.15 31.12.16 Business Business/public market 26 640
Slide 9: Good results from subsidiaries
Good results from subsidaries SpareBank 1 Finans Nord-Norge EiendomsMegler 1 Nord-Norge • Pre-tax profit NOK 86 mill (NOK 124,2 mill) • Pre-tax profit NOK 27,3 mill (NOK • Good growth and increased profitability 27,2 mill) • Total assets: NOK 4 933 mill • Market leader in North Norway • Strong syner
Slide 10: Strengthens position in a region of growth
Strengthenes position in a region of growth Significantly higher growth compared Relatively small oil sector (around 2 to Norway as a whole: GDP-growth in % of the economy). New field in Northern Norway; approximately 4 % production and considerable in 2015 (mainland Norway 0.7 %). planned explorati
Slide 11: Extraordinary high dividend payout ratio; 60 % Group profit
Extraordinary high dividend payout ratio; 60 % The Board of Directors’ proposed profit allocation for the Group Dividend NOK 3.45: 60 % 346 mill Equity certificate owners: NOK 581 mill Retained share of profits: 46,4% 40 % 235 mill Group profit 1 253 mill kr Sparebankstiftelsen 200 mill 53,6% Commun
Slide 12: Financial targets and future outlook
Financial targets and future outlook Continued strong competition. The pressure on interest margins is expected to NRI continue in 2017. Decreased capital markets funding cost is expected to contrbute positively in 2017 (assuming stable capital market rates) Average targeted cost increase 0 %. Reduc
Slide 13: Contact information
Contact information: SpareBank 1 Nord-Norge P o Box 6800 N-9298 Tromsø CEO Jan-Frode Janson CFO Rolf Eigil Bygdnes Tel + 47 909 75 183 Tel +47 905 19 774 Homepage and internet bank: www.snn.no Equity capital certificates in general: www.egenkapitalbevis.no
Slide 14: Appendix
Appendix 1. About SpareBank 1 Nord-Norge 2. Main financial figures 3. Credit area 4. Liquidity 5. Macro and economic trends 6. SpareBank 1 Group and Alliance 14
Slide 15: SpareBank 1 Nord-Norge
SpareBank 1 Nord-Norge 354 900 retail customers Established in 1836 25 336 corporate customers Sparebanken Nord-Norge since 1989 14 844 Clubs and associations Listed on Oslo Stock Exchange since 1994 Lending volume NOK 96,3 bill Financial group house offering a SpareBank 1 Alliance since 1996 comple
Slide 16: Organisation of the financial services Group
Organisation of the financial services Group SpareBank 1 Finans Nord-Norge AS | Equity stake 100 % | Eiendomsmegler 1 Nord-Norge AS | 100 % | SpareBank 1 Regnskapshuset Nord-Norge AS | 100 % | Subsidiaries SpareBank 1 Nord-Norge Forvaltning ASA | 100 % | Nord-Norge Eiendom IV AS |100 % | SpareBank 1
Slide 17: Equity Certificates (EC) - holder structure by geography
Equity Certificates (EC) - holder structure by geography 10,3 13,8 13,8 20,3 20,6 21,9 23,4 28,6 64,1 65,6 65,5 61,1 60,6 59,1 57,6 53,2 25,5 19,0 18,2 20,6 20,7 18,6 18,8 19,0 2012 2013 2014 2015 1Q16 2Q16 3Q16 4Q16 Holders residing in Northern Norway Other Norwegian holders Foreign holders 17
Slide 18: The 20 largest EC holders
The 20 largest EC holders Number of Share Equity of total Certificate Change in Equity Certificate holders Equity Certificates capital number of ECs PARETO AKSJE NORGE 3.448.699 3,44 % -835.443 THE NORTHERN TRUST COMP 3.151.670 3,14 % 1.028.451 MP PENSJON PK 2.720.503 2,71 % 0 FLPS - PRINC ALL SEC S
Slide 19: The 20 largest EC holders residing in Northern Norway
The 20 largest EC holders residing in Northern Norway Number of Share of total Equity Certificate holders Equity Certificates Equity Certificate capital SPAREBANKSTIFTELSEN SPAREBANK 1 NORD-NORGE 1.411.606 1,41 % KARL DITLEFSEN 547.543 0,55 % NORGES RÅFISKLAG 423.175 0,42 % DAHL FISKERI AS 374.883 0
Slide 20: Why invest in SpareBank 1 Nord-Norge?
Why invest in SpareBank 1 Nord-Norge? o The northern Norwegian macroeconomy is showing few signs of weakening o Focus on core business is reducing volatility in the results o Strong regional base and community part-ownership providing a very good competitive position o The SpareBank 1 Alliance is co
Slide 21: Financial figures – additional information
Financial figures – additional information 21
Slide 22: Key figures
Key figures Common equity tier 1% Net non-performing Renand impaired commitments kjernekapitaldekning (Group) inkl andel resultat Return on equityEK-rentabilitet capital (ROE) Return on equity 15,0 % 13,9 % 13,1 % 12,5 % 12,2 % 12,0 % 12,3 % 9,9 % 10,3 % 9,0 % 9,1 % 8,5 % 2011 2012 2013 2014 2015 4.
Slide 23: Preliminary accounts 2016 – Group
Preliminary accounts 2016 – Group PRE-TAX PROFIT NOK 1 544 mill (NOK 1 033 mill) RETURN ON EQUITY 12.0 % (9.1 %) REDUCED COSTS (- 2.4 %) compared with as of Q4 2015 (excl. restructuring costs) MODERATE LOAN LOSSES NOK 213 mill (NOK 200 mill), NOK 61 mill in Q4 DIVIDEND Proposed dividend per share of
Slide 24: Profit and loss account - Group
Profit and loss account - Group (Amounts in NOK million) 31.12.16 31.12.15 31.12.15 Net interest income 1 644 1 512 1 512 Net fee-, commision and other operating income 924 933 933 Net income from financial investments 509 249 249 Total net income 3 077 2 694 2 694 Total costs 1 320 1 461 1 461 Resu
Slide 25: Capital adequacy ratio – Group
Capital adequacy ratio – Group The 14.5 % CET-1 goal is achieved CET Ren1kjernekapitaldekning incl floor inkl. resultat inkl. gulv Myndighetskrav ren Minimum regulatory kjerne CET 1 level31.12.16 15,0 % Pilar Lower2-krav limit Pilar 2 13 % 13,9 % 1,5 % Capital cons buffer Bevaringsbuffer 2,5 % Count
Slide 26: Net interest income - Group
Net interest income - Group Mill kr. 474 465 446 447 448 434 40 42 57 47 61 48 423 434 385 390 386 401 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Net interest income Commissions from Boligkreditt 2015 2016 26 Net interest income incl Boligdkreditt: 1 772 1 821
Slide 27: Quarterly results – net interest income
Quarterly results – net interest income (Amounts in NOK million) 4Q16 3Q16 2Q16 1Q16 4Q15 Interest and similar income from loans to and claims on credit institutions -2 4 2 2 6 Interest and similar income from loans to and claims on customers 616 593 584 578 597 Interest and similar income from cert
Slide 28: Changes in net interest income
Changes in net interest income Including commisions from Boligkreditt. Measured against average funding cost
Slide 29: Lending margin, Parent bank
Lending margin, Parent bank The interest margin is defined as the difference between the customer lending interest rate and average 3 month NIBOR
Slide 30: Deposit margins, Parent bank
Deposit margins, Parent bank The interest margin is defined as the difference between average 3 month NIBOR and the customer deposit interest rate
Slide 31: Net fee- and other operating income
Net fee- and other operating income excl commisions from Boligkreditt Mill kr. 202 194 186 174 165 165 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 4Q16 3Q16 2Q16 1Q16 4Q15 3Q15 2015 2016 Net fee- and other operating income (excl commission income from Boligkreditt): 674 747
Slide 32: Net fee- and other operating income - Group
Net fee- and other operating income - Group 4Q16 3Q16 2Q16 1Q16 4Q15 (Amounts in NOK million) Payment transmission income 63 76 63 61 60 Commissions insurance 44 37 37 39 37 Guarantee commissions 4 5 5 5 5 Estate agency 33 35 39 26 27 Assets management 13 12 11 11 11 Other commissions 16 21 24 14 19
Slide 33: Income from financial investments
Income from financial investments (Amounts in NOK million) 4Q16 3Q16 2Q16 1Q16 2016 2015 Endring Dividends 1 0 73 0 74 8 66 Income from joint ventures 76 94 109 87 366 399 -33 Net value changes on shares 14 20 -41 -14 -21 -50 29 Net value changes on certificates and bonds 26 46 18 6 0 0 0 Net value
Slide 34: Group operating costs
Group operating costs Mill kr 451 375 336 311 318 316 2,12 % 1,59 % 1,67 % 1,43 % 1,41 % 1,39 % 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Total costs Perc.of aver.tot.ass. 2015 2016 34 Total costs excl. restructuring costs: 1 326 1 285
Slide 35: Group operating costs
Group operating costs (Amounts in NOK million) 31.12.16 31.12.15 Change Wages and salaries 540 713 - 173 Pension costs 53 36 17 Social costs 96 101 -5 Total personnel costs 689 850 - 161 Administration costs 377 368 9 Total personnel- and general administration costs 1 066 1 218 - 152 Depreciation a
Slide 36: Operating expenses - Group
Operating expenses - Group (Amounts in NOK million) 4Q16 3Q16 2Q16 1Q16 4Q15 Wages and salaries 136 139 133 132 248 Pension costs 24 12 10 8 4 Social costs 35 19 19 23 36 Total personnel costs 195 170 161 163 288 Development costs 25 31 31 32 34 Electronic data processing costs 18 19 19 18 16 Market
Slide 37: Moderate losses on loans and guarantees
Moderate losses on loans and guarantees Mill kr 0,59 % 321 213 195 200 172 0,21 % 0,22 % 0,19 % 0,26 % 101 0,20 % 2011 2012 2013 2014 2015 31.12.16 Net losses Net losses in % of gross lending incl Boligkreditt
Slide 38: Core banking operations
Core banking operations (excl. income from financial investments) (Amounts in NOK million) 4Q16 3Q16 2Q16 1Q16 4Q15 Net interest income 434 423 401 386 390 Net fee- and commission income 191 206 204 185 198 Other operating income 43 22 45 28 24 Total costs excl restructuring costs 349 316 318 311 34
Slide 39: Group companies result before tax
Group companies result before tax (Amounts in NOK 1000) 31.12.16 31.12.15 SpareBank 1 Finans Nord-Norge AS 86 012 124 287 SpareBank 1 Regnskapshuset Nord-Norge AS 13 125 5 773 EiendomsMegler 1 Nord-Norge AS 27 260 27 183 SpareBank 1 Nord-Norge Forvaltning ASA 2 640 2 386 Subsidiaries core operations
Slide 40: Adjusted dividend policy – maximum payout ratio
Adjusted dividend policy – maximum payout ratio has been removed • The Bank’s ownership policy should contribute to the Equity Certificate being an attractive and liquid financial instrument. • It is an objective of equal treatment of the ownership groups • Earlier maximum payout ratio of 50 % has b
Slide 41: Allocation of earnings – Parent Bank
Allocation of earnings – Parent Bank (Amounts in NOK million) Parent Bank's profit after tax 1.456,1 Suggested cach dividend of NOK 3.45 will be distributed to certificate holders as of Allocated to cash dividend 346,4 Allocated to dividend equalisation fund 328,6 28.03.17. Total to EC-holders 46,36
Slide 42: Key figures balance sheet
Key figures balance sheet 31.12.16 31.12.15 Change Change % Total assets 90 501 85 403 5 098 6,0% Gross lending 70 763 64 053 6 710 10,5% Loans and advances to customers incl 96 287 88 403 7 884 8,9% SpareBank 1 Boligkreditt and Næringskreditt Deposits from customers 53 870 48 087 5 783 12,0%
Slide 43: Lending volume
Lending volume Retail incl. SpareBank 1 Boligkreditt 28 % 69 647 72 % 63 874 59 826 9,0 % 6,8 % 31.12.14 31.12.15 31.12.16 Retail incl. SpareBank 1 Boligkreditt Business/ Public Business/public market 38 % 62 % 26 640 25 289 24 529 -3,0 % 8,6 % 31.12.14 31.12.15 31.12.16 Retail excl. SpareBank 1 Bol
Slide 44: Deposit volume
Deposit volume Business Retail banking market 30 651 28 688 27 007 6,2 % 6,8 % 13 384 -0,5 %13 313 8,8 % 14 484 31.12.14 31.12.15 31.12.16 31.12.14 31.12.15 31.12.16 Public Business 26,9 % 8 735 13,3 % 6 086 43,5 % Retail 5 372 Public 56,9 % 16,2 % 31.12.14 31.12.15 31.12.16
Slide 45: Credit area
45 Credit area SpareBank NORD-NORGE
Slide 46: Lending portfolio - comments
Lending portfolio - comments o Good growth in retail lending, with focus on commitments qualifying for SpareBank 1 Boligkreditt (covered bond company) o High growth in corporate market lending last 12 months o The portfolio and new commitments in corporate sector lending are diversified o Decreased
Slide 47: Distribution on segments shows good diversification
Distribution on segments shows good diversification Loan portfolio including Boligkreditt SPB1 Boligkreditt 26 % Construction building 2 % Other service industry 2 % Agriculture, fisheries, fish farming 5 % Other 19 % Wage-earners 46 % Transport and wholsesale 6 % Property Maritime sector 0 % manage
Slide 48: Portfolio - exposure as of 31.12.16, parent bank
Portfolio - exposure as of 31.12.16, parent bank 45.000 42.157 40.000 35.000 30.000 27.202 25.000 22.246 NOK mill 20.000 15.000 10.000 7.432 5.000 2.573 1.236 682 128 420 0 Næringskreditt Boligkreditt Low risk Medium risk High risk Default/impaired Retail market Corporate market SB1 Boligkreditt SB1
Slide 49: Portfolio – changes last 12 months, parent bank
Portfolio – changes last 12 months, parent bank 8.000 7.000 6.829 6.000 5.000 4.000 NOK mill 3.000 2.000 1.740 1.081 1.000 0 Næringskreditt Boligkreditt Low risk Medium risk High risk Default/impaired -475 -128 -3 -170 -1.000 -685 -1.319 49-2.000 SB1 Boligkreditt Retail market Corporate market SB1 N
Slide 50: Portfolio - exposure distributed by size
Portfolio - exposure distributed by size Loans distributed by size of exposure and share of total exposure Share of loanexposure Dec 2016 Share of loanexposure Dec 2015 79,2 % 78,3 % 10,4 % 9,9 % 5,3 % 6,6 % 5,1 % 5,3 % Below 10 mnok 10 - 100 mnok 100 - 250 mnok Above 250 mnok Numbers includes SB 1
Slide 51: Portfolio – LTV mortgage loans
Portfolio – LTV mortgage loans 100,0 % 92,0 % 91,3 % • 97.2 % of exposures are 90,0 % within 85 % of the 80,0 % collaterals market value 70,0 % 60,0 % 50,0 % • Exposures above 85 % are 40,0 % 2.8 % 30,0 % 20,0 % 10,0 % 5,2 % 5,5 % 1,4 % 1,6 % 1,4 % 1,6 % 0,0 % Below 70 % 70 - 85% 85 - 100 % Above 10
Slide 52: Portfolio – Commercial Real Estate
Portfolio – Commercial Real Estate Housing Ass.; 5,2 % Above 250 MNOK; 5,11% 0 - 5 MNOK; 13,84% Others (small Residential commitments); Development / 27,6 % Investment; 15,9 % 100 - 250 MNOK; 17,40% Shops / shopping centres; 17,3 % Combination- buildings; 9,7 % 5 - 30 MNOK; 33,38% 30 - 100 MNOK; 30,
Slide 53: Low oil related exposure
Low oil related exposure Other; 2,8 % • Oil related exposure amounts to NOK 1,790 Industry; 8,5 % mill Supply base; 41,1 % • The exposure represents 1.9 % of total lending incl. Næring- and Boligkreditt • Average weighted probability of default 1.15 % • A total of NOK 86.9 mill are non-performing or
Slide 54: Portfolio – Offshore Supply Vessels (OSV)
Portfolio – Offshore Supply Vessels (OSV) AHTS; 5,7 % • OSV amounts to NOK 852 mill • Average weighted probability of default 1.28 % Standby/area contingency; 42,0 % • Total amount of 8 vessels* • Weighted age 5.4 years* • Average weighted contract length 2.9 years* incl. one vessel laid up PSV; 52,
Slide 55: Portfolio – Supply bases
Portfolio – Supply bases Other; 2,8 % Industry; 8,5 % • Supply base exposure amounts to NOK 736 Supply base; 41,1 % mill • Average weighted probability of default 1.28 % • Customers with long term contracts with solid and strong partners gives good cash flows in the short and long term Offshore supp
Slide 56: Portfolio – Industry and Other
Portfolio – Industry and Other Other; 2,8 % Industry; 8,5 % • The sector “Industry and Other” amounts to NOK 101 mill, divided into Industry NOK Supply base; 41,1 % 151 mill and Other NOK 50 mill • Average weighted probability of default: Industry 1.35 % and Other 3.66 % • A total of NOK 86.9 mill n
Slide 57: Non-performing commitments
Non-performing commitments Mill kr 0,67 % 0,64 % 0,57 % 0,53 % 0,48 % 95 222 499 245 211 184 415 301 270 256 4Q15 1Q16 2Q16 3Q16 4Q16 Other doubtful commitments Non-performing commitments Gross non-performing and impaired commitments in % of gross lending incl. Acency loans
Slide 58: Loan losses: The Group's write-downs
Loan losses: The Group's write-downs Write-downs 4th quarter 4th quarter 2016 2015 2016 (iso) 2015 (iso) Individual write-downs Retail market 4 0 0 0 Corporate market 32 165 -2 67 SpareBank 1 Finans Nord-Norge 53 8 17 2 Other group units 0 -19 0 -42 Total individual write-downs 89 154 15 27 Collecti
Slide 59: Liquidity
59 Liquidity SpareBank NORD-NORGE
Slide 60: Funding instruments 31.12.2016
Funding instruments 31.12.2016 T1 HYBRID, NOK 2% OTHER LIABILITIES, NOK 0% NOK BONDS 64 % SUBORDINATED LOAN CAPITAL, NOK 4% SEK BONDS 5% USD BONDS 2% CHF BONDS 10 % EUR BONDS 13 % 60
Slide 61: Maturity profile 31.12.2016
Maturity profile 31.12.2016 Capital markets funding (excl. SPABOL) • Good diversification in terms of maturities 6.000 • NOK 21 942 mill in capital 5.000 market funding exclusive of SB1 Boligkreditt 4.000 • SpareBank 1 Boligkreditt is an Mill NOK 3.000 important funding source. 2.000 Mortgage loans
Slide 62: Macro and Economic trends
62 Macro and Economic trends SpareBank NORD-NORGE
Slide 63: Stable, low unemployment
Stable, low unemployment 63 Source: NAV, «Hovedtall for arbeidsmarkedet»
Slide 64: Seafood – strong export growth
Seafood – strong export growth • 22% growth in seafood export Export value of fish from Northern Norway value from Northern Norway in Million NOK 2016 vs. 2015. 30.000 25.000 • Increased prices is the 20.000 contribution to the growth, not 15.000 volume. 10.000 • More than 70 % of total export 5.000
Slide 65: Tourism – good growth in overnight stays
Tourism – good growth in overnight stays • Total number of overnight stays Overnight stays , and share of total is increasing, and Northern overnight stays in Norway. Norway take a larger part of the 4.000.000 12% total overnight stays in Norway. 3.500.000 11% 3.000.000 10% • Firm growth in foreign
Slide 66: Oil and gas – new fields increase activity
Oil and gas – new fields increase activity • Four fields in production: Norne, Snøhvit, Skarv and Goliat Demand from oil companies ‒ First oilfield open in Barents Sea. Repurchases will further increase the total demand • Aasta Hansteen og Polarled ‒ Polarled – pipeline completed in 2015 ‒ Productio
Slide 67: The activity in construction is solid, but the growth is slowing down
The activity in construction is solid, but the growth is slowing down 67 Source: Statistics Norway, «Omsetning i bygge- og anleggsvirksomhet og Ordreindeks for bygge- og anleggsvirksomhet»
Slide 68: Retail sales grows more in Northern Norway
Retail sales grows more in Northern Norway Kilde: SSB, retail sales 68
Slide 69: Regional house prices lower than the Norwegian average
Regional house prices lower than the Norwegian average, but the price growth is high 69 Source: Eiendom Norge, Finn.no and Eiendomsverdi AS, «Boligprisstatistikk»
Slide 70: Credit growth corporates
Credit growth corporates Credit growth corporates. 12 mth growth 12,0 10,0 8,0 8,6 6,0 % 4,0 2,0 2,0 0,0 -2,0 -4,0 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4 2016K2 2016K4 SNN, Corporate clients Norway, Corporates Source: Statistics Norway; «kredittvekst», SpareBank 1 Nord-Norge; lending growth 70
Slide 71: Credit growth households
Credit growth households Credit growth households. 12 mth growth 10 9,0 9 8 7 6 6,4 5 % 4 3 2 1 0 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4 2016K2 2016K4 SNN, Retail clients Norway, Households Source: Statistics Norway; «kredittvekst», SpareBank 1 Nord-Norge; lending growth 71
Slide 72: Deposit growth corporates
Deposit growth corporates Deposit growth corporates. 12 mth. growth 10 8,8 8 7,7 6 4 % 2 0 -2 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4 2016K2 2016K4 SNN, Corporate clients Norway, Corporates Source: Statistics Norway; «pengemengde», SpareBank 1 Nord-Norge; deposit growth 72
Slide 73: Deposit growth households
Deposit growth households Deposit growth households. 12 mth. growth 10 8 6,8 6 % 4 4,1 2 0 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4 2016K2 2016K4 SNN, Retail clients Norway, Households Source: Statistics Norway; «pengemengde», SpareBank 1 Nord-Norge; deposit growth 73
Slide 74: SpareBank 1 Group and Alliance
SpareBank 1 Group and Alliance 74
Slide 75: The idea behind the SpareBank 1 Alliance
The idea behind the SpareBank 1 Alliance The banks in the alliance want to: Achieve Share Achieve Retain their own Still be able to exploit critical level development economies name and continue each bank’s proximity to of costs of scale as independent their local market competence legal entities 75
Slide 76: The SpareBank 1 Alliance
The SpareBank 1 Alliance SAM-SPAR SpareBank 1 Mobilbetaling AS SpareBank 1 Gruppen AS (SB1G) Banksamarbeidet DA (BS) (mCASH) SpareBank 1 Forsikring AS EiendomsMegler 1 SpareBank 1 Kredittkort AS (Life insurance) Norge AS (Credit card) SpareBank 1 Skadeforsikring AS SpareBank 1 SpareBank 1 Boligkredi
Slide 77: Pre-tax operating profit. SpareBank 1 Gruppen
Pre-tax operating profit. SpareBank 1 Gruppen 4th quarter (MNOK) 653 580 443 393 2013 2014 2015 2016 For the full year (MNOK) 2,406 • Return on equity for the full year: 2,019 1,659 1,617 2016 19.1 % 2015 17.2 % 2014 28.0 % 2013 20.3 % 77 2013 2014 2015 2016
Slide 78: SpareBank 1 Alliance – lending composition
SpareBank 1 Alliance – lending composition as of Q3 2016 % 14 12 10 8 6 4.6 4 3.9 2 0 2009 2010 2011 2012 2013 2014 2015 3Q16 Lending growth Deposit growth • Total lending: approx. NOK 730 bn. • Mortgages: approx. NOK 500 bn. • Share of mortgages bought by Boligkreditt: approx. 35 % 78
Slide 79: SpareBank 1 Alliance – market position
SpareBank 1 Alliance – market position as of Q3 2016 Market share loans SB1 Alliance, Norway • 2nd largest banking group in the market 22 % 20.7 • More than 20 % national market share 20 17.3 18 in residential mortgages 16 • Regional market share leader with 30- 14 50% shares 12 10 2010 2011 2012 20
SpareBank 1 Nord-Norge — FY2016 Earnings Presentation on 6ix