Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q2 2022 Earnings Presentation
49 slides from Sparebank 1 Nord-norge's earnings presentation, Aug 11, 2022
Slide 1: 2Q 2022
2Q 2022 Oslo, 11 August 2022 Liv B. Ulriksen, CEO Bengt Olsen, CFO
Slide 2: Highlights
C1) Highlights SpareBank NORD-NORGE oO
Slide 3: Highlights YTD
Highlights YTD Pre-tax profit ROE 995 MNOK (1 293) 10,2 % (14,2 %) CET1 ratio C/I ratio Losses 19,3 % (18,0 %) 44,7 % (39,1 %) -15 MNOK (-76) SpareBank NORD-NORGE 1)
Slide 4: The obvious choice for people and businesses!
The obvious choice for people and businesses! «Better than anyone else, we shall understand and do what’s important for people and businesses in Northern Norway» Main bank retail 38 % Main bank SME 41,2 % Real estate agency 34,5 % Accounting services 20 % Secured financing 24,1 % 4
Slide 5: Subsidiaries – results before tax
Subsidiaries – results before tax 6
Slide 6: Development in margins
Development in margins Corporate Retail market 7
Slide 7: Strong capitalization – gives room for additional dividend
Strong capitalization – gives room for additional dividend 8
Slide 8: Outlook
2 } Outlook SpareBank NORD-NORGE oO
Slide 9: Investments in Northern-Norway
Investments in Northern-Norway: 1 036 billions Foto: Michael Ulriksen 10
Slide 10: Tourism: the tourists are returning!
Reiselivet: Tourism: turistene The tourists areerreturning! tilbake! 11
Slide 11: Ambitions for growth and increased market share
Ambitions for growth and increased market share Expected growth for SpareBank 1 Nord-Norge in 2022 Retail market: 4-6 % Corporate market: 6-9 % The bank is strongly capitalized, and the region is well positioned for further economic growth. 14
Slide 12: Financial status
3) Financial status SpareBank 1) NORD-NORGE
Slide 13: Group financial highlights and key figures
Group financial highlights and key figures 16
Slide 14: Quarterly development
Quarterly development CET1 ratio Return on equity capital Cost/income Group 19,3% 188% 97 130% 186% 187% 18,0% 17,3% 46,9% 41,6% 441% 49.7% 36,9 % 39,1% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q21 2Q21 3Q21 4Q21 + 1Q22 2022 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 SpareBank (1) NORD-NORGE
Slide 15: Result before tax - last quarter
Result before tax - last quarter (Amounts in NOK million) 18
Slide 16: Net interest income - Group
Net interest income - Group (Amounts in NOK million) 19
Slide 17: Low losses and net reversals
Low losses and net reversals Net losses in % of Net losses gross lending incl. interm. loans Retail Corporate 20
Slide 18: Lending growth
Lending growth Retail Corporate 21 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 19: Retail Market
Retail Market Retail (excl. Commission com.loans loans 22 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 20: Corporate Banking
Corporate Banking 23 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 21: Deposit growth
Deposit growth 24 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 22: Development in deposit margins
Development in deposit margins Retail Corporate 25
Slide 23: Proposed additional dividend for 2021
Proposed additional dividend for 2021 Total dividend for 2021 NOK 10,40/EC (7,00 + 3,40) An additional dividend of NOK 3,40 means that the northern Norwegian society will receive an extra NOK 395 million. In total the society will receive a total of NOK 1,2 billion for the fiscal year 2021. Pay out
Slide 24: Long term financial targets
Long term financial targets < 40 % C/I ratio > 12 % > 50 % ROE Dividend payout ratio 15 % CET1 ratio 27
Slide 25: Financial outlook
28 Financial outlook ROE >12 % CET1 Ratio: 15.5 % C/l< 40% Pay out ratio >50% Lending margins and provisions from SpareBank 1 Boligkreditt is negativly effected by the increase of Nibor, which is outpreforming both the central bank rate and mortgage rates. This is as expected with a steepening of th
Slide 26: Why invest in SpareBank 1 Nord-Norge
Why invest in SpareBank 1 Nord-Norge 29
Slide 27: Contacts
Contacts Management Liv B. Ulriksen CEO +47 957 31 130 liv.bortne.ulriksen@snn.no Bengt Olsen CFO +47 975 89 560 bengt.olsen@snn.no Investor Relations Terje Karlstad Investor Relations +47 411 22 220 terje.karlstad@snn.no 30
Slide 28: Appendix
A) Appendix SpareBank 1) NORD-NORGE
Slide 29: A solid bank for Northern Norway
A solid bank for Northern Norway 32
Slide 30: Development in lending margins
Development in lending margins Corporate Retail 33
Slide 31: Company structure
Company structure SpareBank 1 Boligkreditt AS SpareBank 1 SpareBank 1 Finans Nord- Eiendomsmegler 1 Nord- SpareBank 1 Gruppen AS 19,50 % | Financial services 15,92 % | Mortgage company Næringskreditt AS Norge AS Norge AS 3,09 % | Mortgage company 85 % | Loan/consumer finance/leasing 85 % | Real esta
Slide 32: Geographical distribution of ownership
Geographical distribution of ownership Foreign holders Other Norwegian holders Holders residing in Northern Norway 35
Slide 33: The 20 largest EC holders
36 The 20 largest EC holders EC Holders Number of ECs o Share of EC Capital PARETO INVEST AS VPF EIKA EGENKAPITALBEVIS PARETO AKSJE NORGE VERDIPAPIRFOND GEVERAN TRADING CO LTD MP PENSJON PK The Bank of New York Mellon SA/NV Brown Brothers Harriman & Co. The Northern Trust Comp, London Br FORSVARETS
Slide 34: Cost development - Group
Cost development - Group Cost/income Group (Amounts in NOK million) Group operating costs 37
Slide 35: Operating expenses - Group
Operating expenses - Group (Amounts in NOK million) 38
Slide 36: Net fee- and other operating income - Group
Net fee- and other operating income - Group 39
Slide 37: Risk exposure - Group
Risk exposure - Group Non-performing /impaired High risk 100,0% Medium risk Low risk 40
Slide 38: Changes in exposure last months - Group
Changes in exposure last 12 months - Group 6 427 Non-performing /impaired High risk (Amounts in NOK million) Medium risk Low risk 41
Slide 39: Exposure distributed by size
Exposure distributed by size* 30.06.2021 30.06.2022 42 *Incl. parent bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt
Slide 40: LTV mortgage loans
LTV mortgage loans LTV is distributed by balance and 30.06.2021 is based on the market value of the collateral: • 98.7 % of the gross exposure is within 85 % of the collateral 30.06.2022 market value • Only 0.6 % of the gross exposure is higher than 100 % of the collateral market value • The figures
Slide 41: Diversified portfolio in commercial real estate
Diversified portfolio in commercial real estate 44
Slide 42: Still low oil related exposure
Still low oil related exposure Oil related exposure amounts to NOK 799 mill • The exposure represents 0.58 % of total exposure including covered bond companies • Average weighted probability of default 0.97 % • A total of NOK 26 mill are non-performing or impaired commitments • The activity within o
Slide 43: Loan losses - Group
Loan losses - Group The Group’s annualized losses is -0.02 % (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 0.75 % of total exposure. Expected loss share: 34.41 % Commitments in step 2: 7.10 % of total exposure. Expected loss share: 4.05 %
Slide 44: The lending portfolio
The lending portfolio* 48 *) Incl. SpareBank 1 Boligkreditt
Slide 45: Funding
Funding NOK 20 963 mill in capital market funding exclusive of SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt is important funding sources. In total NOK 38 183 mill had been transferred as of 30.06.22 Amount of gross maturities of capi
Slide 46: Achieving goals for sustainability
Achieving goals for sustainability • ESG-classified portfolio aligned with EUs taxonomy* • Major contribution to the SDGs (175 mill in 2021) • Green product framework and Green Finance Framework established special for the Arctic region • 41% women in leadership positions • 24% reduction in greenhou
Slide 47: SpareBank 1 Alliance
SpareBank 1 Alliance • The SpareBank 1-alliance consists of 14 banks • Operate exclusively in Norway • Norway’s most extensive branch network with approx. 350 branches SpareBank 1 Nord-Norge (Tromsø) • The alliance is in the forefront of incorporating technological innovation into its distribution c
Slide 48: SpareBank 1 Alliance companies
SpareBank 1 Alliance SpareBank 1 SMN SpareBank 1 SR-Bank SpareBank 1 Samspar SpareBank 1 LO Nord-Norge Østlandet SpareBank 1 BN Bank SpareBank 1 SpareBank 1 Gruppen SpareBank 1 Alliance companies Markets Boligkreditt SpareBank 1 SpareBank 1 SpareBank 1 SpareBank 1 Fremtind Modhi Mobilitet Holding Kr
Slide 49: Noen som har et fint bilde til avslutning?
Noen som har et fint bilde til avslutning? 54
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