Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — FY2017 Earnings Presentation
82 slides from Sparebank 1 Nord-norge's earnings presentation, Feb 8, 2018
Slide 1: Preliminary accounts 2017
Preliminary accounts 2017 Tromsø 8 February 2018
Slide 2: SpareBank 1 Nord-Norge – the world’s northernmost financial group
SpareBank 1 Nord-Norge – the world’s northernmost financial group Northern Norway: 35 % of Norway’s land area and 482,000 inhabitants 354,900 retail customers 25,336 corporate customers Established in 1836 14,844 clubs and associations Financial group offering a complete financial sector product ran
Slide 3: Preliminary annual accounts 2017 - Group
Preliminary annual accounts 2017 - Group PRE-TAX PROFIT NOK 1 764 mill (NOK 1 544 mill) RETURN ON EQUITY 12.9 % (12.0 %). 4Q ISO: 14.7 % C/I-RATIO 41.2 % (42.9 %) MODERATE LOAN LOSSES NOK 184 mill (NOK 213 mill) CET-1 RATIO 14.9 % (15.0 %) PROPOSED CASH DIVIDEND NOK 4.00 per equity certificate (3.45
Slide 4: Solidity is built – rate of return sustained
Solidity is built – rate of return sustained Return on Return on equity / Common equity Equity Tier I % incl share of result 13,9 % 15,0 % 14,9 % 12,3 % 12,5 % 13,1 % 12,9 % 10,3 % 12,2 % 12,0 % 9,0 % 9,1 % 2012 2013 2014 2015 2016 2017 4 Common Equity Tier I % incl share of result Return on equity
Slide 5: Strategic measures have been effective
Strategic measures have been effective Core business cultivated Streamlined and renewed staffing Adjustment of physical presence New digitized processes Cooperation on innovation Source: Nils Christian Øyen, SpareBank 1 Markets 5
Slide 6: International focus on the Arctic as a resource area
International focus on the Arctic as a resource area Food Important commodity supplier Energy The world’s New fields provide increased activity best and Experiences cleanest Good growth within tourism Minerals Extensive mineral resources The world’s leading arctic competence Map: The Economy of the
Slide 7: Strong macroeconomic outlook
Strong macroeconomic outlook Area Status Outlook Area Status Outlook Macro Construction Seafood Merchandising Tourism Oil and gas 7
Slide 8: Northern Norwegian business sector – SMEs, profitable and solid
Northern Norwegian business sector – SMEs, profitable and solid Northern Norway Norway NOK NOK Annual turnover 11,1 mill 20,0 mill Employees 9.6 11.1 Operating margin 10 % 9% Equity ratio 29 % 25 % *Weighted average Source: Konjunkturbarometer for Nord-Norge 8
Slide 9: Somewhat reduced housing prices in the north
Somewhat reduced housing prices in the north Source: Eiendom Norge, Finn.no og Eiendomsverdi AS, Boligprisstatistikk 9
Slide 10: Ownership provides diversified income and underlying values
Ownership provides diversified income and underlying values Other joint product Group SpareBank 1 Gruppen companies o Kredittkort (credit card) o SB1 Markets o BN Bank o SB1 Forsikring (insurance) o Vipps o Odin (fund management) o Bank Axept o Conecto (debt collection) o BankID o Finans o Næringskr
Slide 11: Innovation provides the world’s best payment infrastructure
Innovation provides the world’s best payment infrastructure 11
Slide 12: The combination of near and digital implies #superlocal
The combination of near and digital implies #superlocal 12 12
Slide 13: Competitors’ closure of branches has led to rapid SME growth
Competitors’ closure of branches has led to rapid SME growth Other sparebank Other bank *Main bank in the SME market (%). Source: KANTAR TNS 13
Slide 14: …and a pronounced preference among the region’s personal customers
…and a pronounced preference among the region’s personal customers Which bank do you prefer? Preference in retail market (%). Source: KANTAR TNS 14
Slide 15: Considerable increase in foreign ownership (number and share)
Considerable increase in foreign ownership (number and share) Shareholding foreign shareholders Eierandel utenlandske As of 31.12.17 aksjonærer *Per 31.12 30% NONG 25% MING SRBANK 20% 15% 10% 5% Kilde: Oslo Børs 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Stein H
Slide 16: Broad and strong ownership among management and employees
Broad and strong ownership among management and employees 116.876 78.918 72.292 77.724 35.198 More than 90 % Numbers of EC certificates as of 31 December 2017 of all employees in the Group own EC certificates 63.788 84.537 79.793 102.563 63.159 16
Slide 17: Quarterly summary – Profit and loss account
Quarterly summary – Profit and loss account (Amounts in NOK million) 4Q17 3Q17 2Q17 1Q17 4Q16 Net interest income 461 450 437 422 434 Net fee-, commision and other operating income 265 255 248 224 234 Net income from financial investments 194 119 124 115 116 Total net income 920 824 809 761 784 Tota
Slide 18: Changes in P & L last quarter
Changes in P & L last quarter 75 - 31 22 20 1 (Amounts in NOK million) 510 423 3Q17 NII incl provision NCI excl provision Investment income Costs Losses 4Q17 from SB1 BK from SB1 BK 18
Slide 19: Other income - development
Other income - development 325 343 350 433 481 602 625 673 747 747 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 19 19 Andre Otherinntekter ekscommissions income excl prov fra formidlingslån from intermediary loans
Slide 20: Cost income ratio
Cost income ratio 57,9 % 57,0 % 53,8 % 54,2 % 51,6 % 52,3 % 47,2 % 44,4 % 42,9 % 41,2 % 814 796 872 1.036 1.120 1.209 1.328 1.461 1.320 1.366 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Sum costs kostnader Cost/income ratio Kostnadsprosent Group konsern 20
Slide 21: Net loan losses, customer loans and guarantees
Net loan losses, customer loans and guarantees Mill kr 0,38 % Net losses 4Q 2017 in isolation: NOK 37 mill 0,23 % 0,22 % 0,17 % 321 200 213 184 2014 2015 2016 2017 Net losses Net losses in % of gross lending incl Boligkreditt 21
Slide 22: Considerable lending growth
Considerable lending growth Retail incl. SpareBank 1 Boligkreditt Corporate/public Business/public market 76 158 69 647 29 327 26 640 63 874 9,0 % 9,3 % 24 529 8,6 % 10,1 % 31.12.15 31.12.16 31.12.17 31.12.15 31.12.16 31.12.17 Lending growth retail market 4Q ISO: 2.0 % Lending growth corporate marke
Slide 23: Group profit (after interest fund bonds)
Board’s proposal for profit allocation of the Group’s result Dividend NOK 4.00: 60.5% Group profit (after interest fund bonds) Equity certificate owners NOK 401,6 mill NOK 663,5 mill Retained share of profits: 46.4% 39.5% NOK 1 431,1 mill NOK 261,9 mill , 53.6% Community dividend: 60.5% NOK 464,7 mi
Slide 24: Dividend: Target and historical figures
Dividend: Target and historical figures • Excess capital will not be used for activites outside the core business • Instrument for future repayment to owners: ‒ Dividend ‒ Buyback NONG – not considered adequate due to unequal treatment of ownership groups NOK % 4,50 70 59,8 60,53 4,00 60 3,50 3,00 5
Slide 25: Financial targets and outlook
Financial targets and outlook CET-1 ratio: > 12 % ROE > 14,5 % C/I ratio: Divided payout ratio: < 40 % > 50 % 25
Slide 26: Why invest in SpareBank 1 Nord-Norge?
Why invest in SpareBank 1 Nord-Norge? 1 Strong position in an attractive growth region 2 Ambitious cost and modernization measures provide profitable operations 3 Focus on core business has implied reduced risk Considerable underlying values through high relative ownership in SpareBank 1 Gruppen, 4
Slide 27: 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 28: Appendix
Appendix 1. About SpareBank 1 Nord-Norge 2. Financial figures – additional information 3. Credit area 4. Liquidity 5. Northern Norway: Macro and economic trends 6. SpareBank 1 Group and Alliance 28
Slide 29: Facts about northern Norway
Facts about northern Norway 34.9% of Norway’s area 3 counties, 87 municipalities • Nordland: 242,866 residents • Troms: 163,453 residents • Finnmark: 75,605 residents Key industries: Seafood, tourism, agriculture, industry, energy, oil Employees public sector North Norway: 41 % Employees public sect
Slide 30: Company structure
Company structure SpareBank 1 Nord-Norge Associated companies and joint ventures Subsidiaries and second tier subsidiaries SpareBank 1 Gruppen AS SpareBank 1 Finans Nord-Norge AS 19,5 % | Financial services 100 % Loan/consumer finance/leasing SpareBank 1 Betaling AS SpareBank 1 Boligkreditt AS Eiend
Slide 31: Equity Certificates (EC) – holder structure by geography
Equity Certificates (EC) – holder structure by geography 10,3 13,8 13,8 20,3 28,6 32,0 33,0 34,6 35,7 64,1 65,6 65,5 61,1 53,2 49,1 48,1 46,8 45,6 25,5 19,0 20,6 20,7 18,6 18,2 18,9 18,6 18,7 2012 2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17 Holders residing in Northern Norway Other Norwegian holders For
Slide 32: The 20 largest EC holders
The 20 largest EC holders Number of Share of total Equity Certificate holders Equity Certificates Equity Certificate PARETO AKSJE NORGE 3.069.150 3,06 % MP PENSJON PK 2.697.811 2,69 % THE NORTHERN TRUST COMP, LONDON NON-TREATY ACCOUNT 2.655.981 2,65 % STATE STREET BANK AND TRUST COMP A/C CLIENT OMNI
Slide 33: 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 418.375 0,42 % ODD ERIK HANSEN INVEST AS
Slide 34: Financial figures – additional information
Financial figures – additional information 34
Slide 35: Capital adequacy ratio - Group
Capital adequacy ratio - Group CET 1 incl floor CET 1 excl floor 19,2 % 18,1 % 17,9 % 17,7 % 17,3 % 17,4 % 15,1 % 15,0 % 15,3 % 15,4 % 15,4 % 14,9 % 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Leverage ratio - LR incl result Minimum regulatory CET 1 level 7,5 % 7,7 % 31.12.17 7,2 % 7
Slide 36: Profit and loss account - Group
Profit and loss account - Group (Amounts i n NOK mi l l i on) 31.12.17 31.12.16 31.12.16 Net interest income 1 770 1 644 1 644 Net fee-, commision and other operating income 992 924 924 Net income from financial investments 552 509 509 Total net income 3 314 3 077 3 077 Total costs 1 366 1 320 1 320
Slide 37: Net interest income - Group
Net interest income - Group 536 NOK mill 516 494 75 474 469 66 465 57 40 42 47 450 461 423 434 422 437 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Net interest income Commissions from Boligkreditt 37
Slide 38: Quarterly results – net interest income
Quarterly results – net interest income (Amounts i n NOK mi l l i on) 4Q17 3Q17 2Q17 1Q17 4Q16 Interest and similar income from loans to and claims on credit institutions 21 1 2 2 -2 Interest and similar income from loans to and claims on customers 619 612 602 600 616 Interest and similar income fro
Slide 39: Changes in net interest income
Changes in net interest income 0 7 28 8 -10 -16 3 Mill NOK 536 516 NII 3Q17 Deposits margin Deposits margin Lending margin Lending margin Volume Days Other NII 4Q17 corporate retail corporate retail 39 Including commisions from Boligkreditt. Measured against average funding cost
Slide 40: Lending margin, Parent bank
Lending margin, Parent bank The interest margin is defined as the difference between the customer lending 40 interest rate and average 3 month NIBOR
Slide 41: Customer deposit, Parent bank
Customer deposit, Parent bank The interest margin is defined as the difference between average 3 month NIBOR 41 and the customer deposit interest rate
Slide 42: Net fee- and other operating income
Net fee- and other operating income (excl commisions from Boligkreditt) NOK mill 194 191 189 190 186 177 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 42
Slide 43: Net fee- and other operating income - Group
Net fee- and other operating income - Group 4Q17 3Q17 2Q17 1Q17 4Q16 (Amounts i n NOK mi l l i on) Payment facilities 60 74 64 63 63 Insurance products 35 41 42 41 44 Guarantee commissions 3 4 4 4 4 Real estate broking 29 32 34 26 33 Portefolio commission 11 11 12 14 13 Other commissions 21 23 22 16
Slide 44: Income from financial investments
Income from financial investments Group (Amounts in NOK million) 4Q17 3Q17 2Q17 1Q17 4Q16 Dividends 0 0 4 0 1 Income from joint ventures 167 109 78 65 76 Gains/losses from shares in subsidiaries 0 0 15 0 0 Gains/losses and net value changes on shares 30 7 23 13 14 Net value changes on bonds, foreign
Slide 45: Group operating costs
Group operating costs NOK mill. Total costs 375 373 342 326 325 316 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 45 45
Slide 46: Group operating costs
Group operating costs (Amounts i n NOK mi l l i on) 31.12.17 31.12.16 Change Wages and salaries 552 540 12 Pension costs 42 53 - 11 Social costs 114 96 18 Total personnel costs 708 689 19 Administration costs 393 377 16 Total personnel- and general administration costs 1 101 1 066 35 Depreciation an
Slide 47: Operating expenses - Group
Operating expenses - Group (Amounts in NOK million) 4Q17 3Q17 2Q17 1Q17 4Q16 Wages and salaries 150 143 127 133 136 Pension costs 3 13 14 12 24 Social costs 30 28 28 27 35 Total personnel costs 183 184 169 172 195 Development costs 19 33 31 32 25 Electronic data processing costs 31 21 19 19 18 Marke
Slide 48: Group companies result before tax
Group companies result before tax (Amounts i n NOK 1000) 31.12.17 31.12.16 SpareBank 1 Finans Nord-Norge AS 7 002 86 012 SpareBank 1 Regnskapshuset Nord-Norge AS 16 321 13 125 EiendomsMegler 1 Nord-Norge AS 18 118 27 260 SpareBank 1 Nord-Norge Forvaltning ASA 1 656 2 640 Subsidiaries core operations
Slide 49: Key figures balance sheet
Key figures balance sheet (Amounts in NOK million) 31.12.17 31.12.16 Change Change % Total assets 97 186 90 501 6 685 7,4% Gross lending 75 003 70 763 4 240 6,0% Loans and advances to 105 485 96 287 9 198 9,6% customers incl SpareBank 1 Deposits from customers 57 849 53 870 3 979 7,4% 49
Slide 50: Lending volume
Lending volume Retail incl. SpareBank 1 Boligkreditt 28 % Retail incl. SpareBank 1 Boligkreditt 76 158 Business/ 69 647 72 % Public 63 874 9,0 % 9,3 % 31.12.15 31.12.16 31.12.17 Business/public market Retail excl. 39 % SpareBank 1 Boligkreditt 61 % Business/ Public 29 327 26 640 24 529 8,6 % 10,1 %
Slide 51: Deposit volume
Deposit volume Business Retail banking market 32 304 16 588 30 561 13 313 14 574 28 688 6,5 % 5,7 % 9,5 % 13,8 % 31.12.15 31.12.16 31.12.17 31.12.15 31.12.16 31.12.17 Public Business 28,7 % 8 735 8 957 43,5 % 2,5 % Retail 6 086 55,8 % Public 15,5 % 31.12.15 31.12.16 31.12.17 51
Slide 52: Credit area
52 Credit area SpareBank NORD-NORGE
Slide 53: Distribution on segments shows good diversification
Distribution on segments shows good diversification Loan portfolio including Boligkreditt Real Transportation 4 % SpareBank 1 estate 10 Boligkreditt 25 % Fishing and aquaculture 4 % % Manufacturing 2 % Annet 19 % Power and water supply and construction 2 % Service industries 2 % Retail banking marke
Slide 54: Portfolio - exposure as of 31.12.17, parent bank
Portfolio - exposure as of 31.12.17, parent bank 50.000 45.000 43.286 40.000 35.000 32.267 30.000 25.989 NOK mill 25.000 20.000 15.000 10.000 8.283 5.000 1.225 646 1.094 804 147 0 Næringskreditt Boligkreditt Low risk Medium risk High risk Default/impaired Retail market Corporate market SB1 Boligkred
Slide 55: Portfolio – changes last 12 months, parent bank
Portfolio – changes last 12 months, parent bank 6.000 5.066 5.000 4.000 3.743 3.000 NOK mill 2.000 1.129 1.000 851 384 20 -10 -37 0 Næringskreditt Boligkreditt Low risk Medium risk High risk Default/impaired -1.000 -1.478 55-2.000 SB1 Boligkreditt Retail market Corporate market SB1 Næringskreditt
Slide 56: 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 2017 Share of loanexposure Dec 2016 78,6 % 79,2 % 10,1 % 10,4 % 5,0 % 5,3 % 6,3 % 5,1 % Below 10 mnok 10 - 100 mnok 100 - 250 mnok Above 250 mnok Numbers include SB 1
Slide 57: Portfolio – LTV mortgage loans
Portfolio – LTV mortgage loans 100,0 % 92,3 % 92,0 % • 97.5 % of exposures are 90,0 % within 85 % of the 80,0 % 70,0 % collaterals market value 60,0 % 50,0 % • Exposures above 85 % are 40,0 % 2.5 % 30,0 % 20,0 % 10,0 % 5,2 % 5,2 % 1,3 % 1,4 % 1,3 % 1,4 % 0,0 % Below 70 % 70 - 85% 85 - 100 % Above 10
Slide 58: Portfolio – Commercial Real Estate
Portfolio – Commercial Real Estate Housing Ass.; 4,1 % Others (small Above 250 0 - 5 MNOK; 12,1 % Residential commitments); MNOK; 16,3 % Development / 24,1 % Investment; 11,6 % 5 - 30 MNOK; 29,8 % 100 - 250 MNOK; 16,4 % Shops / Combination- shopping buildings; 10,5 centres; % 20,1 % Hotels; 6,5 % In
Slide 59: Portfolio – Oil related exposure
Portfolio – Oil related exposure • Oil related exposure amounts to NOK 1,264 Industry; 8,7 % Other; 1,4 % Supply base; mill 27,0 % • The exposure represents 1.25 % of total lending incl. Næring- and Boligkreditt • Average weighted probability of default 1.09 % • A total of NOK 36 mill are non-perfor
Slide 60: Losses on loans and guarantees and non-performing commitments
Losses on loans and guarantees and non-performing commitments Mill kr Mill kr 0,85 % 0,22 % 321 0,23 % 0,17 % 0,19 % 0,53 % 0,52 % 0,53 % 0,46 % 644 213 200 223 184 211 255 215 301 311 261 263 265 4Q16 1Q17 2Q17 3Q17 4Q17 Other doubtful commitments 2014 2015 2016 2017 Non-performing commitments Net
Slide 61: Loan losses: The Group's write-downs
Loan losses: The Group's write-downs Write-downs 4th quarter 4th quarter 2017 2016 2017 (iso) 2016 (iso) Individual write-downs Retail market -3 4 -1 0 Corporate market 109 32 87 -2 SpareBank 1 Finans Nord-Norge 11 53 6 17 Total individual write-downs 117 89 93 15 Collective write downs and other va
Slide 62: Liquidity
62 Liquidity SpareBank NORD-NORGE
Slide 63: Funding instruments 31.12.2017
Funding instruments 31.12.2017 T1 HYBRID, NOK 2% NOK BONDS 56 % SUBORDINATED LOAN CAPITAL, NOK 3% SEK BONDS 4% USD BONDS 3% CHF BONDS 9% EUR BONDS 23 % 63
Slide 64: Maturity profile 31.12.2017
Maturity profile 31.12.2017 Capital markets funding (excl. SPABOL) • Good diversification in terms of maturities 6.000 • NOK 24 386 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. Mortgage loans of NOK
Slide 65: Liquidity portfolio 31.12.2017
Liquidity portfolio 31.12.2017 Gov. 20 % Covered bonds 64 % Public sector 16 % 65
Slide 66: Macro and Economic trends
66 Macro and Economic trends SpareBank NORD-NORGE
Slide 67: Still good progress in the Northern Norwegian economy
Still good progress in the Northern Norwegian economy GROWTH Continued higher growth in the north, but not as marked as before Seafood exports from Northern Norway continue to increase (5.0%). Limited SEAFOOD short term potential for further growth. Decreasing price trend for salmon Continued progre
Slide 68: Stable, low unemployment
Stable, low unemployment 68 Source: NAV, «Hovedtall for arbeidsmarkedet»
Slide 69: Seafood – export growth
Seafood – export growth Seafood export value from Northern Norway • Still growth in seafood export Jan – November 2017 value from Northern Norway in 2017 – 5.0 % growth compared with 2016. • Relatively good prices and weak Norwegian kroner contribute positively. However, negative pricetrend for salm
Slide 70: Tourism – growth in overnight stays
Tourism – growth in overnight stays • Strong growth in number of overnight stays. • Firm growth in foreign overnight stays, and strong contribution from winter tourism. • Optimistic prospects for world economy and weak Norwegian kroner is positive for the tourism industry. 70 Source: Statistics Norw
Slide 71: 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 oil field opened in the Barents Sea. Repurchases will further increase the total demand • Aasta Hansteen ‒ Production start-up in Q4 2018 • Johan Castberg ‒ Fina
Slide 72: The activity in construction is solid, but growth is lower
The activity in construction is solid, but growth is lower. Firm backlog. 72 Source: Statistics Norway, «Omsetning i bygge- og anleggsvirksomhet og Ordreindeks for bygge- og anleggsvirksomhet»
Slide 73: Lower growth in retail sales, but still higher than Norwegian average
Lower growth in retail sales, but still higher than Norwegian average Kilde: SSB, retail sales 73
Slide 74: Credit growth corporates
74 Credit growth corporates Credit growth corporates. 12 mth growth 12 10 10,1% 8 6 64% x 4 2 ie} 2 NY 4 201404 2015Q2 201504 2016K2 2016K4 2017K2 2017K4 ——=SNN, Corporate clients —— Norway, Corporates SpareBank NORD-NORGE O
Slide 75: Credit growth households
Credit growth households Credit growth households. 12 mth growth 12 10 93% 8 5 | x 6,5% 4 2 0 201404 2015Q2 201504 2016K2 2016K4 2017K2 2017K4 ——SNN, Retail clients ——Norway, Households SpareBank @) NORD-NORGE
Slide 76: Deposit growth corporates
Deposit growth corporates 76
Slide 77: Deposit growth households
Deposit growth households 77
Slide 78: SpareBank 1 Group and Alliance
SpareBank 1 Group and Alliance 78
Slide 79: SpareBank 1 Alliance: National champion, regional focus
SpareBank 1 Alliance: National champion, regional focus • The SpareBank 1 Alliance consists of 14 banks; independent in each their region • Operate exclusively in Norway – Norway’s most extensive branch network • But physical branch structure is changing and SpareBank 1 SpareBank 1 Nord-Norge banks
Slide 80: SpareBank 1 Alliance: Achieving benefits of scale, while being local
SpareBank 1 Alliance: Achieving benefits of scale, while being local • The saving banks are independent banks with very strong regional focus, and operate solely in the regions where they have been active for almost 200 years • The largest Norwegian Savings banks established the SpareBank 1 Alliance
Slide 81: The SpareBank 1 Alliance
The SpareBank 1 Alliance SAM-SPAR SpareBank 1 Gruppen AS (SB1G) Banksamarbeidet DA (BS) SpareBank 1Betaling AS SpareBank 1 Forsikring AS EiendomsMegler 1 (Life insurance) Norge AS SpareBank 1 Kredittkort AS (Credit card) SpareBank 1 Skadeforsikring AS SpareBank 1 (Non-life insurance) Kundesenter AS
Slide 82: Pre-tax operating profit - SpareBank 1 Gruppen
Pre-tax operating profit - SpareBank 1 Gruppen In 4th quarter (MNOK) 773 653 580 393 2014 2015 2016 2017 For the full year (MNOK) 2,406 • Return on equity for the full year: 2,210 2,019 1,617 2017 22.7 % 2016 19.1 % 2015 17.2 % 2014 28.0 % 82 2014 2015 2016 2017
SpareBank 1 Nord-Norge — FY2017 Earnings Presentation on 6ix