SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q1 2016 Earnings Presentation
42 slides from SpareBank 1 Helgeland's earnings presentation, 2016
Slide 1: Presentation Q1 2016
Presentation Q1 2016 1 En drivkraft for vekst på Helgeland
Slide 2: Presentation Q1 2016 (HSB Group)
Presentation Q1 2016 (HSB Group) Main Features Lisbeth Flågeng Profit & loss Chief Executive Officer Lending Deposits Funding Solidity Sverre Klausen Chief Financial Officer Summary Helgeland Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main features
Main features Profit & loss Lending Deposits Funding Solidity Summary Helgeland Appendices 3 En drivkraft for vekst på Helgeland
Slide 4: Main features per 31.03.16
Main features per 31.03.16 Result Gross profit MNOK 154 (71) • Still good profitability in the banks basis operation, increased net interest in NOK and maintained in % • Pension liability recognized as income by conversion to defined contribution amounts to MNOK 75 Profitability • ROE (after tax) 12
Slide 5: Main features per 31.03.16
Main features per 31.03.16 Lending 12-month growth 9.1 (1.4) % • Retail market 10.3 (4.1) % • Corporate market 6.9 (-3.8) % Deposits 12-month growth 4.3 (6.5) % – good deposit ratio 63.3 (66.3) % • Retail market 6.6 (8.2) % • Corporate market 0.5 (3.8) % Cost focus • Target reached with planned down
Slide 6: Profit & loss
Main features Profit & loss Lending Deposits Funding Solidity Summary Helgeland Appendices Vevelstad 6 En drivkraft for vekst på Helgeland
Slide 7: Result
Result Profit development (MNOK) Profit dev. excl. one time effect Good result Q1 400 40% 400 40% Gross profit MNOK 154 35% 35% • ROE after tax 12.1 % 300 283 280 30% 300 283 280 30% 266 154 266 49 49 Profit before tax (excluding 25% 25% 73 92 73 92 one time effect by 200 172 88 20% 200 172 88 20% c
Slide 8: Key figures
Key figures Key figures in % of BTA Net interest - stabile positive development 3% • Interest subordinated bond of MNOK 3 recognized in equity. 2.27% improved net interest with 6 2% bps, from 1.78 to 1.84 %. 1.84% Net provisions • 0.30 % - stabile level, slightly 1% 0.96% down Q1/2016 0.30% Operatin
Slide 9: Profit & loss
Profit & loss Helgeland Sparebank (group) Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Net interest- and credit provision earnings 116 115 112 114 116 121 125 Net provision earnings 22 19 21 20 23 22 20 Other operatios income 2 3 2 1 6 2 2 Ordinary operations cost 63 77 67 63 66 66 65 Res
Slide 10: Net interest
Net interest Increased net interest Development net intr.(mnok.) and % of average BTA Still strong competition 150 regarding price 125 115 112 114 116 121 • Last reduction of the mortgage interest rate was 100 conducted 01.12.15, 1.84% 1.74% 1.76% 1.77% 1.77% 1.77% covered through market adaption of
Slide 11: Operating costs
Operating costs Driftskostnadsutvikling (mill. kr.) og i % av inntekt Driftskostnadsutvikling (mill. kr.) og i % av inntekt 100 300 263 270 77 233 239 74 75 67 66 63 65 200 50 57,0 % 48,2 % 47,9 % 49,3 % 41,6 % 43,6 % 100 25 65 0,96% 0,95% 1,01% 1,03% 0,96% 0 0 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/201
Slide 12: Lending
Main features Profit & loss Lending Deposits Funding Solidity summary Helgeland Appendices Helgelandsbrua 12 En drivkraft for vekst på Helgeland
Slide 13: Credit growth
Credit growth 12-month credit growth Commentary 20% Credit growth PM HEBO 20,0 BM Helge Norge • 12-month growth 9.1 (1.4) % 48,0 % 16,3 32 % land 15% % % 83,6 PM share % • Target minimum 60 % 10% 9.1 % • Per Q1 68.0 (67.3) % 5% 5.2 % Locally in Helgeland • Per Q1 83.6 (84.0) % 0% -5% 2012 2013 2014
Slide 14: Credit growth CM and RM
Credit growth CM and RM 12-month credit growth corporate market 12-month credit growth retail market 20% 20% 15% 15% 10% 10% 10.3 % 6.9 % 6.9 % 5% 5% 3.8 % 0% 0% -5% -5% 2012 2013 2014 2015 31.03.16 2012 2013 2014 2015 31.03.16 HSB Helgeland corp. HSB Helgeland pers. Commentary 12-mont growth 9.1 (1
Slide 15: Lending CM
Lending CM Lending distributed in sector Commentary Good diversification in the CM 13.2 % lending portfolio and very loyal Real estate 13.2 % corporate customers 6.0 % Share CM of total lending 32.0 Farming and forestry 5.6 % (32.7) % or MNOK 7 358 3.9 % (6 884) Construction and power 4.0 % 3.2 % Tr
Slide 16: Non-performing and other impaired commitments
Non-performing and other impaired commitments Good portfolio quality Net defaulted and com. exp. to loss Net non-performing and other 200 impaired commitments amounts to MNOK 114 (104) 150 Which equals 0.5 (0.5) % of gross loans 100 Increased group write-downs with MNOK 2.5 50 0.5 % 0.6 % 0.5 % 0.5
Slide 17: Deposits
Main features Profit & loss Lending Deposits Funding Solidity summary Helgeland Appendices Brønnøysund 17 En drivkraft for vekst på Helgeland
Slide 18: Deposit growth
Deposit growth 12-month deposit growth Commentary 20% 12-month growth 4.3 (6.5) % 15% Helge Norge PM share land 91,0 % 8,2 % • Per Q1 63.2 (61.8) % 10% Locally in Helgeland 5% 4.3 % •Per Q1 91.0 (91.6) % PM BM 4.3 % Deposit ratio 63,2 % 36,8 % 0% • Target minimum 60 % • Per Q1 63.3 (66.3) % -5% 2012
Slide 19: Deposit growth CM and RM
Deposit growth CM and RM 12-month deposit growth corporate market 12-month deposit growth retail market 35% 20% 30% 25% 15% 20% 10% 15% 10% 6.6 % 4.7 % 5% 5.0 % 5% 0.5 % 0% 0% -5% -10% -5% 2012 2013 2014 2015 Q1/2016 2012 2013 2014 2015 Q1/2016 HSB Helgeland Corp. HSB Helgeland pers. Commentary 12-m
Slide 20: Deposits CM
Deposits CM Innskuddsfordeling BM av sum innskudd Commentary 11.5 % Well diversified deposit Kommuner 9.4 % portfolio in the CM Fiske og havbruk 3.9 % 5.7 % Share CM 36.8 (38.2) % or Transport og tjenesteyting 6.0 % 5.6 % MNOK 5 356 (5 328) of total Bygg, anlegg og kraft 5.2 % deposits 5.5 % 3.2 % M
Slide 21: Deposit development
Deposit development Distribution deposits by size is relatively stable. A large share of PM deposits is under MNOK 2 (56.5 % of total deposits). 21 En drivkraft for vekst på Helgeland
Slide 22: Funding
Main features Profit & Loss Lending Deposits Funding Solidity summery Helgeland Appendices De syv søstre 22 22 En drivkraft for vekst på Helgeland
Slide 23: Funding
Funding Commentary Funding development (MNOK) 120% Deposits are the most important source for funding 100% 15.1 % 13.5 % 15.0 % 14.3 % 15.6 % 80% 30.5 % 26.8 % 25.9 % 24.4 % 23.4 % 60% 40% 54.8 % 56.9 % 59.2 % 58.9 % 49.7 % 20% 0% 2012 2013 2014 2015 31.03.2016 Deposits Swap agreement Senior CB FO 2
Slide 24: Funding: maturity of loans
Funding Commentary Maturity of loans (MNOK) Good and long term funding 2 500 Share long term funding 2 000 87.6 % (83.7) % 630 500 Combined duration of 2.5 1 500 1 000 1 000 (2.5) years. Duration in the mortgage company increased 1 000 330 to 3.0 years 1 400 1 500 500 869 1 000 1 000 400 0 2016 2017
Slide 25: Funding
Funding Credit spread widening both on Senior and Covered 25 En drivkraft for vekst på Helgeland
Slide 26: Funding
Funding Funding, proportion Senior and Covered Commentary Maximum limit for transferring to Helgeland Boligkreditt is stated to 30 % of gross loans. Per 31.03.16 20,0 % is 40% transferred. 60% Empowered mortgages might increase the transfer to 25 % Senior Covered 26 En drivkraft for vekst på Helgela
Slide 27: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Stresstest HEBO, reduced value of security and loss from high risk customers 2.500.000.000 124,0 % Helgeland boligkreditt AS 2.250.000.000 122,0 % LTV-group: Gross profit MNOK 9.4 (9.9). CET1 ratio of 20.1 (17.3)% (standard 1-40 2.000.000.000 120,0 % method with 35 % mortga
Slide 28: Liquidity buffers
Liquidity buffers Securities distributed in sectors Commentary CB 1 35% The liquidity buffers amounts to 43% 3.8 (3.9) bn. – equal 13.7 (15.2) 19% Finance, Norway 12% % of total assets. The buffer 18% capital consists of of cash, Government 19% deposits in Bank of 18% Norway/banks and interest Munic
Slide 29: Solidity
Main features Profit & loss Lending Deposits Funding Solidity Summary Helgeland Appendices 29 En drivkraft for vekst på Helgeland
Slide 30: Capital adequacy
Capital adequacy Development capital adequacy Commentary 20% Capital ratio • CET1 14.9 (14.6) % 18% • Core capital 16.3 (16.0) % 1.9 % • Total capital 18.2 (18.1) % 16% 1.4 % Profit is not included in the calculation. If we take in 70 % / 14% 60 % of the profit, CET1 becomes 15.52 % / 15.48 %. 12% O
Slide 31: Summary
Main features Profit & loss Lending Deposits Funding Solidity Summary Helgeland Appendices Ranelva 31 En drivkraft for vekst på Helgeland
Slide 32: Prospects and priorities
Prospects and priorities Result • Continued focus on core business and profitable growth • Strong competition in the retail market is met with an offensive sales organization an focus on good consulting in the customer dialogue • Particular growth due to DNB’s closure of offices – we experience to b
Slide 33: Prospects and priorities
Prospects and priorities • Construction sector: High activity – E6 development 2016 – 2018 – Power plant development – Several major apartment projects and public buildings • Export companies – Low exchange rate – Full activity with a strong focus on efficiency – Green focus in industrial companies
Slide 34: Property price development (per quarter)
Property price development (per quarter) Price development - sold apartments in NOK/sqm Price development - sold villas in NOK/sqm 70 000 60 000 60 000 50 000 50 000 40 000 40 000 30 000 30 000 20 000 20 000 10 000 10 000 0 0 Helgeland Oslo Trondheim Bodø Helgeland Oslo Trondheim Bodø Property price
Slide 35: Unemployment in %
Unemployment Unemployment in Helgeland Commentary 4 There is a certain difference in unemployment between the 3.5 regions in Helgeland, but Unemployment in % rather variable over time. 3 Overall unemployment in 2.5 Helgeland is 2.5 % by the end of Q1 2016. 2 At the same time, 1.5 unemployment nation
Slide 36: Thank you for your attention!
Thank you for your attention! EN DRIVKRAFT FOR VEKST 36 En drivkraft for vekst på Helgeland
Slide 37: Appendices
Main features Profit & loss Lending Deposits Funding Solidity Summary Helgeland Appendices Lovund 37 En drivkraft for vekst på Helgeland
Slide 38: HELG – the 20 largest owners
HELG – de 20 største eierne Per 31.03.16 Numbers % share Numbers % share Sparebankstiftelsen Helgeland 6 599 598 35.3 % Helgeland Kraft AS 340 494 1.8 % Pareto AS 1 570 836 8.4 % Verdipapirfondet Pareto 269 000 1.4 % UBS AG, London Branc A/C 1 198 900 6.4 % Sniptind Holding AS 201 801 1.1 % Merrill
Slide 39: HELG – EC development and liquidity
HELG – EC development and liquidity The price of HELG per 31.03.16. was NOK 60,00 per EC. This is an increase of NOK 1,00 since year end. 39 En drivkraft for vekst på Helgeland
Slide 40: Business development and ownership
Business development and ownership 100 % 7,9 % Gavestiftelse 40 % 7,5 % 48 % 10,0 % 40 En drivkraft for vekst på Helgeland
Slide 41: The bank's organization
The bank’s organization Board of Directors Assistant secretary Internal Auditor Brit Søfting Chief Executive Marit Jakobsen Officer Lisbeth Flågeng Director of Director of Chief Financial Chief Business Chief Human Chief Chief Risk Corporate Retail Market Officer Development Resources Accounting Man
Slide 42: 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