SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q3 2017 Earnings Presentation
50 slides from SpareBank 1 Helgeland's earnings presentation, 2017
Slide 1: En drivkraft for vekst på Helgeland – Presentation Q3 2017
Presentation Q3 2017 En drivkraft for vekst på Helgeland 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation per 30.09.17 (HSB Group)
Presentation per 30.09.17 (HSB Group) Main Features Hanne J. Nordgaard Helgeland Chief Executive Officer Profit & loss Lending Deposits Funding Sverre Klausen Chief Financial Officer Solidity Prospects and priorities Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main features per 30.09.17
Main features per 30.09.17 Gross profit MNOK 276 (367) ROE 9.2 (14.0) % Total assets 30.9 (28.9) bn Solidity CET1 15,4 (13,8) % Profit this year is not included 3 En drivkraft for vekst på Helgeland
Slide 4: Main features 30.09.17
Main features 30.09.17 Retail market 12 month growth RM – Credit growth 5.4% – Deposit growth 4.3 % Corporate market 12 month growth CM – Credit growth 8.2% – Deposit growth 10.3 % 4 En drivkraft for vekst på Helgeland
Slide 5: Financial targets
Financial targets New capital target initiated: ROE: CET1: CET1 increased from 14.5 to 15.0 % 10 % 15.0 % Dividend policy: Half of the profit can be paid out as dividend or gifts Cost growth: Dividend ratio: <= 1 % 50 % 5 En drivkraft for vekst på Helgeland
Slide 6: Helgeland
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 6 En drivkraft for vekst på Helgeland
Slide 7: Macro
Macro Macro Helgeland Nordland Norge Price growth villas 2.8 % 6.5 % 4.2 % Price growth apartments 6.8 % 0.7 % -2.0 % Unemployment 1.6 % 2.0 % 2.5 % Population growth (12 month) 0.5 % 0.8 % Q2 7 En drivkraft for vekst på Helgeland
Slide 8: Stabile property price development
Stabile property price development Price development - sold apartments in NOK/sqm 80.000 Price increase in Helgeland 70.000 was 6.8 % and 8.2 % in 60.000 Oslo 50.000 Helgeland 40.000 Oslo Trondheim 30.000 Bodø 20.000 10.000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 2017 8 En drivkr
Slide 9: Stabile property price development
Stabile property price development Price development - sold villas in NOK/sqm 70.000 Price increase in Helgeland 60.000 was 2.8 % and 8.2 % in Oslo 50.000 Helgeland 40.000 Oslo 30.000 Trondheim 20.000 Bodø 10.000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 2017 9 En drivkraft for vek
Slide 10: Unemployment
Unemployment Unemployment in %, Norway, Nordland og Unemployment in Helgeland Helgeland and in Nordland is slightly 3,50% lower Norway overall. 3,30% 3,10% 2,90% 2,70% 2,50% 2,30% 2,10% 1,90% 1,70% 1,50% Norge Nordland Helgeland 10 En drivkraft for vekst på Helgeland
Slide 11: Helgeland
Helgeland Aquaculture – High export value and Helgeland is the engine in northern Norway – Large potential regarding increased production – Great investment will – Exciting developer environment regarding science and development Power – Helgeland Kraft 15 power plants in the region; produces 1265 GW
Slide 12: Helgeland
Helgeland Contraction – Large contraction activity on the E6 through the whole region – Brønnøysundregistret – new building – Airport – Housing construction Tourism – Increased tourism – Better infrastructure and cooperation – Better adaption and measures for whole year tourism – More event companie
Slide 13: Helgeland
Helgeland Industry – Norway's second largest industrial cluster – High quality, high efficiency – Focus on circular economy – Great export value Retail market – Low prices per square meter – Stable price growth – Number of sold units down 15 % in -17 compared to -16 – Increased turnover speed in Q3;
Slide 14: Profit & loss
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 14 En drivkraft for vekst på Helgeland
Slide 15: Result
Result Change gross profit so far this year Good result 450 32 -1 -17 -9 Gross profit MNOK 276 400 -76 • ROE of 9,2 % 350 300 -20 • Adjusted for one-time effect pension (MNOK 76) gross profit 250 per 30.09.16 was MNOK 291 200 367 150 276 100 50 0 15 En drivkraft for vekst på Helgeland
Slide 16: Profit
Profit Profit developement (MNOK) Good result Q2 500 40% Gross profit MNOK 276 452 • ROE after tax 9.2 % 35% 400 85 Adjusted for one time effect pension 30% (MNOK 76) profit per 30.09.16 was 283 280 276 MNOK 291. 300 266 106 25% 49 20% 73 92 101 200 88 106 15% 76 59 91 10% 80 76 9,2% 100 58 66 5% 51
Slide 17: Net interest
Net interest Development net intr.(mnok.) and % of average BTA Maintained net interest over time 150 133 134 135 141 142 • Still strong competition 128 regarding price • Lower lending costs with falling Nibor and low credit spread 100 1,85% 1,86% 1,83% 1,82% 1,83% 1,84% 50 0 Q2/2016 Q3/2016 Q4/2016
Slide 18: Operating costs
Operating costs Operating cost (mnok) and % of income Costs in % of income 100 • Closing offices Q2 and Q3 • One time effect pension Q3 2017 last CEO 72 71 • New finance tax 2017 75 69 69 68 65 (one-time effect pension is not included in the figure) 50 40,2% 43,4% 38,3% 36,8% 38,2% 38,8% 25 0 Q2/201
Slide 19: Helgeland Sparebank - product companies
Helgeland Sparebank - product companies 7.9 % Frende is owned by 15 individual saving banks. Frende Insurance consist of the companies Frende Life insurance and Frende damage insurance. Remaining shares are owned by thirteen other individual saving banks and Must invest 7.5 % AS. The company has est
Slide 20: Lending
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 20 En drivkraft for vekst på Helgeland
Slide 21: Credit growth
Credit growth 12-month credit growth Credit growth 20% • 12-month growth 6.3 (10.1)% 15% PM share • Target minimum 60% 10% • Per Q3 67.3 (67.9)% 6,3 % Locally in Helgeland 5% 5,6 % • Per Q3 84.3 (84.1)% 0% -5% 2013 2014 2015 2016 30.06.2017 HSB Helgeland total Statistic Norway total 21 En drivkraft
Slide 22: Credit growth CM
Credit growth CM 12-month credit growth corporate market 20% 12 month growth CM 8.2 (8.9) % 15% 10% 8,2 % 5% 3,7 % 0% -5% 2013 2014 2015 2016 30.09.2017 HSB Helgeland corp. Statistic Norway corp. 22 En drivkraft for vekst på Helgeland
Slide 23: Credit growth RM
Credit growth RM 12-month credit growth retail market 20% 12 month growth RM 5.4 (10.8) % 15% 10% 6,6 % 5% 5,4 % 0% -5% 2013 2014 2015 2016 30.09.2017 HSB Helgeland pers. Statistic Norway pers. 23 En drivkraft for vekst på Helgeland
Slide 24: Lending CM
Lending CM Lending distributed in sector Good diversification in the CM lending portfolio and very loyal 12,9 % corporate customers Real estate 12,6 % Share CM of total lending 32.7 5,3 % Farming and forestry (32.1)% or MNOK 8 468 5,3 % (7 824) 4,3 % Construction and power 5,0 % 3,5 % Transport and
Slide 25: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss 200 Net non-performing and other impaired commitments amounts to MNOK 165 150 (110), 0.6 (0.5)% of gross loans 100 50 0,9 % 0,6 % 0,5 % 0,5 % 0,6 % 0,3 % 0 2013 2014 2015 2016 30.06.17 30.09.17 Net commitments exposed
Slide 26: Deposits
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 26 En drivkraft for vekst på Helgeland
Slide 27: Deposit growth
Deposit growth 12-month deposit growth Commentary 20% 12-month growth 6.8 (11.1)% 15% RM share • Per Q3 56.8 (58.2)% 10% Locally in Helgeland 6,8 % •Per Q3 90.7 (91.2)% 5% 6,7 % Deposit ratio 0% • Target minimum 60% • Per Q3 64.6 (64.2)% -5% 2013 2014 2015 2016 Q3 2017 HSB total Helgeland Statistic
Slide 28: Deposit growth CM
Deposit growth CM 12-month deposit growth corporate market 35% 12-month growth CM 10.3 (16.9)% 30% 25% 20% 15% 12,6 % 10% 10,3 % 5% 0% -5% -10% 2013 2014 2015 2016 Q3 2017 HSB Helgeland Corp. Statistic Norway Corp. 28 En drivkraft for vekst på Helgeland
Slide 29: Deposit growth RM
Deposit growth RM 12-month deposit growth retail market 12-month growth RM 4.3 (7.2)% 20% 15% 10% 5% 4,3 % 3,5 % 0% -5% 2013 2014 2015 2016 Q3 2017 HSB Helgeland pers. Statistic Norway pers. 29 En drivkraft for vekst på Helgeland
Slide 30: Deposits CM
Deposits CM Customer deposits Well diversified deposit portfolio in the CM 10,9 % Municipalities 11,4 % 6,1 % Share CM 43.2 (41.8)% or Farming and forestry 4,8 % MNOK 7 219 (6 544) of total Transport and services 8,7 % deposits 10,1 % 5,0 % Construction and power 6,5 % Deposits from municipalities 4
Slide 31: Deposit development
Deposit development A large share of PM deposits is under MNOK 2 (54 % of total deposits). The level is marginally higher than last quarter end, and on level with sept 16. Reduction in large deposits in Q3. 60.5 % of the deposit is covered by the guarantee scheme 31 En drivkraft for vekst på Helgela
Slide 32: Funding
Main features Helgeland Profit & Loss Lending Deposits Funding Solidity Prospects and priorities Appendices 32 En drivkraft for vekst på Helgeland
Slide 33: Funding
Funding Funding development (MNOK) Deposits are the most 120% important source for funding. 100% 2,2 % 2,2 % 2,1 % 2,8 % 2,2 % 13,5 % 15,0 % 14,3 % 17,5 % 18,8 % 80% 26,8 % 25,9 % 24,4 % 19,2 % 18,7 % 60% 40% 54,8 % 56,9 % 59,2 % 60,5 % 60,3 % 20% 0% 2013 2014 2015 2016 30.09.2017 Deposits Swap agre
Slide 34: Funding
Funding Maturity of loans (MNOK) Good and long term funding 2.500 Share long term funding 83.2% (81.2)% 2.000 Combined duration of 2.9 403 (2.7) years. Duration in the 1.500 1.000 1.000 1.000 mortgage company 3.2 years 1.300 1.000 1.346 500 1.000 1.000 1.000 750 500 0 100 2018 2019 2020 2021 2022 20
Slide 35: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland boligkreditt AS, fully owned by Helgeland Sparebank • Net profit MNOK 35.4 (27.5). • CET1 ratio of 15.9 (17.5)% • standard method with 35% mortgage weights • Gross loans amounts to MNOK 6 073 (5 445) and CB MNOK 5 304 (4 633) Good security in the lending portfolio
Slide 36: Solidity
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 36 En drivkraft for vekst på Helgeland
Slide 37: Liquidity buffer
Liquidity buffer Sektorfordeling renteportefølje 41% OMF 1 (ratet) Interest bearing securities: 37% 8% • Duration portfolio 2.0 (2.0) years Finans, Norge 3% • 97 % rated A- or better 14% • 93 % CB or state-/ municipal Stat 15% guaranteed bonds 28% Kommune 40% Municipality papers are actively 3% used
Slide 38: Capital adequacy
Capital adequacy Development capital adequacy Capital ratio (excl. profit 2017) • CET1 15.4 (13.8)% 22% • Core capital 17.2 (15.2)% • Total capital 18.8 (17.0)% 20% 1,8 % The Group’s capital tsrgets included 18% 1.8% Pilar 2 addition of 2.2% amounts to 1,6 % 16% 1.6% 14.2% per 31.12.17 14% New targe
Slide 39: HELG – the 20 largest owners
HELG – the 20 largest owners Parent bank Per 30. 09. 17 Numbers % share Numbers % share Sparebankstiftelsen Helgeland 7 255 020 34.8 % Vigner Olaisen AS 294 653 1.4 % Pareto AS 1 949 392 9.3 % Catilina invest AS 256 046 1.2 % Merrill Lynch Prof. 1 253 462 6.0 % Landkreditt utbytte 250 000 1.2 % VPF
Slide 40: HELG – the 20 largest local owners
HELG – the 20 largest local owners Per 30.09.17 Numbers % Number % Sparebankstiftelsen Helgeland 7 255 020 34.8 % Torghatten ASA 16 824 0.08 % Helgeland Kraft AS 377 691 1.8 % Harald Svendsen 13 710 0.07 % Vigner Olaisen AS 294 653 1.4 % Dan Erik Kjellnø 13 000 0.06 % Steffen Nervik 110 506 0.5 % Sn
Slide 41: HELG – EC development and liquidity
HELG – EC development and liquidity Q3 2017 Q3 2016 2016 2015 EC fraction 76.5 % 75.1 % 75.1 % 75.1 % Number of EC's 20.9 18.7 20.9 18.7 Stock exchange price 88.5 67.8 81 59 Stock value 1 849.7 1267.9 1692.9 1103.3 Accounted equity per EC 105.8 101.7 101 93.7 Profit per EC 7.6 11,1 13.5 8.4 Dividend
Slide 42: Prospects and priorities
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 42 En drivkraft for vekst på Helgeland
Slide 43: Prospects and priorities
Prospects and priorities Prospects – Increased profitable growth in the Retail market • Cooperation REDE real-estate • Capitalization of CRM investment • Optimization of resource efforts • Larger activity in the housing market – Maintain market position and profitability in the corporate market and
Slide 44: Appendices
Main features Helgeland Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices 44 En drivkraft for vekst på Helgeland
Slide 45: Profit & loss
Profit & loss Helgeland Sparebank (group) Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1 2017 Q2 2017 Q3 2017 Net interest- and credit provision earnings 125 128 133 134 135 141 142 Net provision earnings 20 22 22 21 20 22 21 Other operatios income 2 1 1 2 1 1 0 Ordinary operations cost 65 69 65 72 69 68 71 Res
Slide 46: Key figures
Key figures Keyfigures in % of average BTA Stable net interest • 1.85% per 30.09.17 2,5 % Net provisions • Reduced from 0.30% 30.09.16 1,85% to 0.28% 1,5 % Operating costs • Reduced from 0.95% per 0,92% 30.09.16 to 0.92 0,5 % Moderate write-downs 0,28% 0,16% 0,16% -0,5 % 2013 2014 2015 2016 30.09.20
Slide 47: Balance
Balance Helgeland Sparebank (group) 30.09.17 30.09.16 Change liquid assets 630 655 -25 Net lending to customers 25 749 24 266 1 483 Certificates and shares 4 209 3 600 609 Other assets 342 345 -3 Assets 30 930 28 866 2 064 Deposits from customers 16 721 15 651 1 070 Money market financing 10 270 9 7
Slide 48: Helgeland Sparebank – Subsidiary and associated companies
Helgeland Sparebank – Subsidiary and associated companies 100 % Helgeland Boligkreditt has concession as a credit company with permission to issue covered bonds. The company will ensure stable and long-term financing for the Group under competative conditions. Helgeland Invest AS is an investment co
Slide 49: Helgeland Sparebank
Helgeland Sparebank ➢ Vision: a driving force for growth in Helgeland. ➢ Business concept: to be a profitable and the leading bank in Helgeland. The bank provides financial products and services to consumers, small and medium-sized businesses, municipalities and other institutions related to Helgela
Slide 50: Contact information
Contact information Head office Board of directors Postal address Postboks 68, 8601 Mo i Rana Ove Brattbakk, leder Visiting address Jernbanegata 15, 8622 Mo i Rana Stein Andre Herigstad-Olsen, nestleder Phone number 75 11 90 00 Eva Monica Hestvik Web www.hsb.no Bjørn Audun Risøy Organization number