SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Q4 2021 Earnings Presentation
47 slides from SpareBank 1 Helgeland's earnings presentation, January 2022
Slide 1: Presentation Q4 2021 - A driving force for growth in Helgeland
Presentation Q4 2021 - A driving force for growth in Helgeland
Slide 2: Presentation per 31.12.21 (SBH Group)
Presentation per 31.12.21 (SBH Group) Main Features and market Hanne Nordgaard Events Q4 Chief Executive Officer Profit & loss Lending Deposits Funding Sverre Klausen Solidity Chief Financial Officer Prospects and priorities Appendices
Slide 3: Financial targets
SpareBank 1 Helgeland Financial targets is the profitable and leading local bank that builds future Helgeland Profitable ROE >11 % The bank has a ROE target on level with comparable banks, p.t. 11 %. In the transformation year 2022 it is not expected to fulfil the long term target for ROE. Solid CET
Slide 4: Main features per 31.12.21
Main features per 31.12.21 Gross profit ROE* MNOK 264 (390) 6.5 (13.4) % *Adjusted for hybrid capital and project costs Total assets Solidity NOK 39.4 (33,2) bn. CET1 18,0 (18.8) %
Slide 5: Unemployment
Unemployment Under the covid-19 pandemic, the unemployment increased significant Unemployment in %, Norge, Nordland and Helgeland from Q4 2019 to Q1 2020. 12,00% Nationally, 61 000 people, or 2.2 % of the work force was registered 11,00% unemployed in medio December. This 10,00% is the same level of
Slide 6: Housing price development
Housing price development Price development - sold apartments in Price development - sold villas in NOK/sqm 100.000 NOK/sqm 80.000 90.000 70.000 80.000 70.000 60.000 Oslo Oslo 60.000 50.000 Trondhei Trondheim 50.000 m 40.000 Bodø 40.000 Bodø 30.000 Helgeland 30.000 20.000 20.000 10.000 10.000 Q2 201
Slide 7: Sustainability in SpareBank 1 Helgeland
Sustainability in Sparebank 1 Helgeland • Internal sustainability target in relation to own CO2 footprint • Mapping of our creditors in relation to sustainable purchase • Increase the consciousness around sustainability with our employees. • System introduced to map sustainability and climate risk i
Slide 8: Sustainability
Sustainability New sustainability strategy Issued green Green Sparebank1 Helgeland obligations (1 billion) products in the markedet Green Map ESG risk Product framework My climate footprint is in the lending portfolio launched in the internet banking Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-22
Slide 9: Main features and market
Main features and market Events Q4 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 10: Summary of the entrance in SpareBank1/SamSpar and the acquisition from SNN
Summary of the entrance in SpareBank1/SamSpar and the acquisition from SNN 15. mars • SpareBank 1 Helgeland entered the SpareBank 1 alliance and changed name to SpareBank 1 Helgeland. • Change of digital platform for SpareBank 1 Helgelands customers and employees. • Bought 3 % of the shares in SamSp
Slide 11: This year's change in the balance sheet
This year's change in the balance sheet SpareBank 1 Helgeland (group) 31.12.21 31.12.20 Change liquid assets 930 695 235 Net lending to customers 32 194 27 398 4 796 Shares/ Investments in AC and SC 5 949 4 870 1 079 Other assets 360 244 116 Assets 39 433 33 207 6 226 Deposits from customers 23 552
Slide 12: Summary Q4
Summary Q4 SpareBank 1 Helgeland (group) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Net interest- and credit provision earnings 144 144 148 168 Net provision earnings 28 21 22 36 - Implementation of the aquisition in october has Other operatios income 1 0 4 -1 affected the quarter Ordinary operations cost 81 8
Slide 13: Profit & loss
Main features and market Events Q4 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 14: Profit
Profit Profit development Profit Q4 384 390 A weak profit in Q4 isolated is mainly related to following one time events: 110 135 264 185 15 • One time costs of MNOK 44 related to 96 65 78 Helgeland 1. 76 • It is written down lending ang 49 85 150 78 guarantees by MNOK 35 this quarter. 94 93 93 40 6,
Slide 15: Gross profit
Gross profit Gross profit is MNOK 126 weaker than in 2020 Change in gross profit (MNOK) • Increase in net interest in 2021 is related to the acquisition in the fourth quarter and interest rate 450 450 changes and price press through the year. 9,0 6,0 -206,0 400 400 • Increased commission income is m
Slide 16: Net interest
Net interest Development net intr.(mnok.) and % of average BTA • Net interest and commission income amounts to MNOK 168 in the fourth quarter. 168 • This is MNOK 21 higher than last quarter and is mainly related to added portfolio from 150 148 SNN 144 144 • In % if average total assets, net interest
Slide 17: Commission income (MNOK)
Commission income (MNOK) 108 100 8 97 90 8 6 7 86 8 8 Comission on loans transferred to 33 30 35 mortgage company 32 Guarantee commission 29 0,30% 0,30% Commission income insurance - 0,29% 0,28% 0,28% (general, life, saving and pension) Commission income payment services 59 60 59 49 50 In % of total
Slide 18: Operating costs
Operating costs Operating cost (mnok) and % of income 77 • Costs are over the banks target 44 (cost/income <40%) • This is as expected, and is related to 97 90 3 5 1 additional costs as a consequence of the 78 77 79 74,0% entrance in the SpareBank 1 alliance and the acquisition 56,2% 45,1% 49,0% 50,
Slide 19: Loss on commitments
Loss on commitments • MNOK 64 in loss in 2021, hereof MNOK 35 in Q4 • The write-down is partly a consequence of calculated loss and partly a product of statements of earlier depreciated commitments. • Large parts of the write-down in 4rh quarter is 0,89% related to an updated evaluation of the provi
Slide 20: Lending
Main features and market Events Q4 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 21: 12-month credit development (SpaBol included)
12-month credit development (SpaBol included) CM 26,3 % Lending corporate market RM 73,7 % Lending retail market 27.262 9.743 8.882 8.956 18.773 18.733 0.8 % 8.8 % -0.2 % 45.5 % 31.12.19 31.12.20 31.12.21 31.12.19 31.12.20 31.12.21 The growth in both CM and RM is related to the acquisition from Spar
Slide 22: Credit development (ex. transferred loans from the acquisition)
Credit development ( ex. transferred loans from the acquisition) 12-month credit development corporate market 12-month credit development retail market 16% 26% 21% 11% 16% 6% 11% 1% 6% 1% -4% -4% -9% 2018 2019 2020 2021 -9% 2018 2019 2020 2021 SBH Helgeland corp. Statistic Norway corp. SBH Helgeland
Slide 23: Lending CM
Lending CM Lending distributed in sector Good diversification in the CM 10,6 % lending portfolio and loyal corporate Real estate 10,1 % customers 5,0 % Farming and forestry 4,7 % Share CM of total lending 29.4 4,0 % (32.3)% or MNOK 9 519 Construction and power 2,8 % (8 956) 5,0 % Transport and servi
Slide 24: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss 600 • Net non-performing and other impaired commitments amounts to MNOK 238, a 500 decrease of MNOK 78 from year end and MNOK 95 in Q4 isolated. 400 300 • The decrease in Q4 is mainly related to stating of a large indi
Slide 25: Deposits
Main features and market Events Q4 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 26: Deposit development (ex. transferred deposits from the acquisition)
Deposit development (ex. transferred deposits from the acquisition) Utvikling innskudd i % BM (12 mnd) Utvikling innskudd i % PM (12 mnd) 35% 35% 30% 30% 25% 20% 25% 15% 20% 10% 15% 5% 0% 10% -5% 5% -10% 0% 2018 2019 2020 2021 2018 2019 2020 2021 SBH Helgeland BM SSB Norge BM SBH Helgeland PM SSB No
Slide 27: Deposit development
Deposit development 25 000 000 000,00 23 000 000 000,00 21 000 000 000,00 19 000 000 000,00 17 000 000 000,00 15 000 000 000,00 13 000 000 000,00 11 000 000 000,00 jan. 15 mai. 15 jan. 16 mai. 16 jan. 17 mai. 17 jan. 18 mai. 18 jan. 19 mai. 19 jan. 20 mai. 20 jan. 21 mai. 21 jan. 22 sep. 15 sep. 16
Slide 28: Deposits CM
Deposits CM Customer deposits Well diversified deposit portfolio Municipalities 13,8 % in the CM 11,8 % 10,7 % Transport and services 11,3 % Share CM 39.8 (42.3)% or MNOK Construction and power 3,5 % 9 365 (7 902) of total deposits 3,3 % 2,4 % Farming and forestry 2,6 % Deposits from municipalities
Slide 29: Funding
Main features and market Events Q4 Profit & Loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 30: Funding
Funding Funding development The bank issued its first green bonds 2,5 % during September. As of 31.12.21, 2,1 % 2,5 % 2,5 % 2,6 % 17,7 % this corresponded to 1 bn of total 19,3 % 22,0 % 22,2 % 21,1 % senior loans by approximately 2-2,5 13,4 % bp «greenium» at issuance. 18,7 % 12,2 % 11,3 % 17,1 % 64
Slide 31: Funding due
Funding due High quality and long term Innlån forfallstruktur (mill. kr.) funding Share long term funding 80.9% (87.6)% Combined duration of 2.7 1.500 1.500 (2.6) years. Duration in the 1.260 mortgage company 2.3 years 1.420 0 1.000 1.000 749 800 500 500 300 2022 2023 2024 2025 2026 2027 2028 2029 S
Slide 32: Liquidity buffer
Liquidity buffer Interest bearing securities: Sector distribution interest portfolio • Duration portfolio 1.2 (1.5) years • 99.2 % rated A- or better • 99.0 % CB or state-/ municipal CB 1 42% guaranteed bonds 31% Municipality papers are actively used Municipalities 38% as short term liquidity placem
Slide 33: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland boligkreditt AS is fully owned by SpareBank 1 Helgeland • Net profit MNOK 55.5 (68.1) • CET1 ratio of 19.0 (18.6)% • standard method with 35% mortgage weights • Gross loans amounts to MNOK 7 037 (7 232) and CB MNOK 6 064 (6 180) Good security in the lending portfo
Slide 34: Solidity
Main features and market Events Q4 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices Foto: Hans Petter Sørensen
Slide 35: Capital adequacy
Capital adequacy Development capital adequacy 24% 22% 2,6 % Capital ratio 20% 2,5 % 2,3 % • CET1 17.9 (18.8)% 1,7 % 2,0 % • Core capital 19.9 (20.5)% 18% 1,7 % 2,4 % 1,7 % • Total capital 22.2 (23.1)% 1,6 % 16% 1,6 % 14% Leverage ratio: 9.4 (10.5)%. 18,8 % 17,2 % 17,9 % 12% 15,8 % 15,3 % 10% 8% 2017
Slide 36: Proposed allocation of profit 2021
Proposed allocation of profit 2021 Allocation of profit 2021 300 Reduced distribution ratio 250 • 50.0 (12.0) %. 476 200 Dividend basis is MNOK 222 168 147 • The parent bank’s result is adjusted 150 for unrealized gains and interests perpetual bonds 100 86 65 56 53 The board proposes dividend for 20
Slide 37: Proposed allocation of profit 2021
Proposed allocation of profit 2021 Dividend NOK 3.19: 50.0 % MNOK 86 EC owners MNOK 172 Withheld: Dividend basis parent bank 77.3 % 50.0 % MNOK 86 MNOK 222 22.7 % Community dividend 50.0 % MNOK 25 Community capital: MNOK 50 50.0 % Withheld: MNOK 25
Slide 38: Dividend development
Dividend development Dividend development 50,0 % 50,0 % 41,9 % 41,0 % 37,4 % 31,8 % 25,6 % 25,0 % 12,0 % 1,80 2,50 2,75 3,75 4,00 1,60 2,70 3,10 3,19 2013 2014 2015 2016 2017 2018 2019 2020 2021 Dividend proposed (NOK Dividend ratio (%)
Slide 39: HELG – the 20 largest owners
HELG – the 20 largest owners Parent bank Per 31.12.21 Number %-share Number %-share Sparebankstiftelsen Helgeland 7 588 922 28.11 % Lamoholmen invest AS 274 854 1.0 % SpareBank 1 Nord-Norge 5 397 325 20.0 % Catilina Invest AS 252 646 0.9 % Pareto Invest AS 2 118 691 7.8 % Kommunal Landspensjonskasse
Slide 40: HELG – the 20 largest local owners
HELG – the 20 largest local owners Geografical owner structure (%) 5,4 15,4 14,8 14,7 13,1 12,5 14,3 14,2 14,0 15,0 14,7 41,8 42,9 42,4 43,9 44,4 42,7 42,7 43,1 42,3 42,6 60,4 42,8 42,3 42,9 43,0 43,1 43,0 43,1 42,9 42,7 42,7 34,2 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 20
Slide 41: HELG – EC development and liquidity
HELG – EC development and liquidity Development HELG vs OSEEX - last 12 months 70% 160.000 31.12.19 31.12.20 31.12.21 60% 140.000 EC fraction opening balance 76.4 % 76.4 % 76.3 % 50% 120.000 Number of EC's 20.9 20.9 27.0 40% 100.000 change (%) Volum HELG price 84.0 86.0 131 30% 80.000 Stock exchange
Slide 42: Prospects and priorities
Main features and market Events Q4 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 43: Prospects ahead
Prospects ahead ▪ Positive future ahead despite of corona ▪ Low unemployment, large public and private projects, rising housing prices and stable turnover numbers is factors that supports this. ▪ Entrance in the SpareBank1 alliance. ▪ The associated transactions will affect the operations and the co
Slide 44: Appendices
Main features and market Events Q4 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 45: Profit & loss
Profit & loss SpareBank 1 Helgeland (group) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Net interest- and credit provision earnings 156 159 159 140 149 150 144 144 148 168 Net provision earnings 25 30 24 24 23 26 28 21 22 36 Other operatios income 1 2 1 0 2 2 1 0
Slide 46: SpareBank 1 Helgeland
SpareBank 1 Helgeland • Vision: a driving force for growth in Helgeland. • Business concept: SpareBank 1 Helgeland is the profitable and leading local bank building future Helgeland. • Offices: The Bank has 4 offices in Mo i Rana, Mosjøen, Sandnessjøen and Brønnøysund. • SpareBank 1 Helgeland is the
Slide 47: Contact information
Contact information Board of directors Head office Bjørn Krane, chairman Postal address: Postboks 68, 8601 Mo i Rana Rolf Eigil Bygdnes, deputy chairman Visiting address: Jernbanegata 15, 8622 Mo i Rana Marianne Terese Steinmo Siw Moxness Phone number 75 11 90 00 Linda Brennbakk, permanent deputy me
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