Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q1 2023 Earnings Presentation
51 slides from Sparebank 1 Nord-norge's earnings presentation, May 2023
Slide 1: 1Q 2023
1Q 2023 May 2023 Liv B. Ulriksen, CEO Bengt Olsen, CFO
Slide 2: Highlights
@e Highlights NORD-NORGE SpareBank 1)
Slide 3: Highlights YTD
Highlights YTD Pre-tax profit ROE 903 MNOK (564) 19,1 % (11,6 %) CET1 ratio C/I ratio Losses 17,3 % (18,8 %) 33,2 % (42,7 %) -57 MNOK (-32) NORD-NORGE SpareBank (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 % Real estate agency 40 % Accounting services 17 % Secured financing 21 % 4
Slide 5: Subsidiaries – results before tax
Subsidiaries – results before tax 5
Slide 6: Satisfying financial results
Satisfying financial results 6
Slide 7: Outlook
(2 } Outlook SpareBank NORD-NORGE oO
Slide 8: We shall be a driving force for a sustainable development in the north
We shall be a driving force for a sustainable development in the north 70 % of our portfolio Net zero emissions in Contribute to a positive within fisheries/ our portfolio by 2040 migration flow by 2030 fishfarming shall qualify for a green portfolio by 2030 8
Slide 9: Increased rates – when will the economy slow?
Increased rates – when will the economy slow? Norwa y Northern Norwa y 2023 2022 2021 2020 >90 da ys 30-90 da ys 10
Slide 10: Housing market in balance
Housing market in balance Price changes last 12 months Price m2 1,2 % 0,5 % -1,0 % -0,3 % -0,6 % 1,8 % 1,5 % 1,5 % Nordland Troms og Northern Finnmark Norway 11
Slide 11: Two important industries in the north
Two important industries in the north Billion, NOK Northern N-N, share of Northern N-N, share of Norway total guest nights Norway total seafood in Norway exports 1212
Slide 12: Status and outlook in Northern Norway
Status and outlook in Northern Norway 17
Slide 13: Ambitions for growth and increased market share
Ambitions for growth and increased market share Expected growth for SpareBank 1 Nord-Norge in 2023 Retail market: 2-5 % Corporate market: 4-7 % The bank is strongly capitalized, and the region is well positioned for further economic growth. 18
Slide 14: Financial status
(3 } Financial status SpareBank 1) NORD-NORGE
Slide 15: Group financial highlights and key figures
Group financial highlights and key figures 20
Slide 16: Quarterly development
Quarterly development CET1 ratio Return on equity capital Cost/income Group 187% 188% 193% 188% 10% 191% 173% 17,3% 17,2% 46,9 % 441% a 7% 39,9% 346% 33.9% 4Q21 1022 2022 3022 4022 1023 4Q21 1022 2022 3022 4Q22 1023 4Q21 1022 2022 3022 4022 1023 21 SpareBank (1) NORD-NORGE
Slide 17: Strong capital base
Strong capital base CET1 Pillar 1 P2R Buffer req P2G min.requirement 22
Slide 18: Result before tax - last quarter
Result before tax - last quarter (Amounts in NOK million) 23
Slide 19: Net interest income - Group
Net interest income - Group (Amounts in NOK million) 24
Slide 20: Low losses
Low losses Net losses in % of Net losses gross lending incl. interm. loans Corporate Retail 26
Slide 21: Lending growth
Lending growth Retail Corporate 27 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 22: Retail Market
Retail Market Retail (excl. Commission com.loans loans 28 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 23: Corporate Banking
Corporate Banking 29 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 24: Deposit growth
Deposit growth 30 *) All historical figures have been corrected for the portfolio sold to SpareBank 1 Helgeland
Slide 25: Development in deposit margins
Development in deposit margins Retail Corporate 31
Slide 26: Long term financial targets
Long term financial targets < 40 % C/I ratio > 13 % > 50 % ROE Dividend payout ratio 16,5 % CET1 ratio 32
Slide 27: Financial outlook
33 Financial outlook ROE >13 % CET1 Ratio: 16.5 % C/l< 40% Pay out ratio > 50% Lending margins and provisions from SpareBank 1 Boligkreditt have increased in Q1 based on the flattening of the yield curve. The positiv development in deposit margins have continued, but not at the same pace as in the e
Slide 28: Why invest in SpareBank 1 Nord-Norge
Why invest in SpareBank 1 Nord-Norge 34
Slide 29: 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 35
Slide 30: Appendix
CA} Appendix NORD-NORGE SpareBank 1)
Slide 31: A solid bank for Northern Norway
A solid bank for Northern Norway 37
Slide 32: Development in lending margins
Development in lending margins Corporate Retail 38
Slide 33: 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 15,58 % | Mortgage company Næringskreditt AS Norge AS Norge AS 2,71 % | Mortgage company 85 % | Loan/consumer finance/leasing 85 % | Real esta
Slide 34: Geographical distribution of ownership
Geographical distribution of ownership Foreign holders Other Norwegian holders Holders residing in Northern Norway 40
Slide 35: The 20 largest EC holders
41 The 20 largest EC holders EC Holders Number of Ecs o Share of EC Capital PARETO INVEST NORGE AS PARETO AKSJE NORGE VERDIPAPIRFOND. GEVERAN TRADING CO LTD \VPF EIKA EGENKAPITALBEVIS. KOMMUNAL LANDSPENSJONSKASSE GJENS! MP PENSJON PK The Northern Trust Comp, London Br Brown Brothers Harriman & Co. F
Slide 36: Cost development - Group
Cost development - Group Cost/income Group (Amounts in NOK million) Group operating costs 42
Slide 37: Operating expenses - Group
Operating expenses - Group (Amounts in NOK million) 43
Slide 38: Net fee- and other operating income - Group
Net fee- and other operating income - Group 44
Slide 39: Risk exposure - Group
Risk exposure - Group Non-performing /impaired High risk 100,0% Medium risk Low risk 45
Slide 40: Changes in exposure last months - Group
Changes in exposure last 12 months - Group 8 275 Non-performing /impaired High risk (Amounts in NOK million) Medium risk Low risk 46
Slide 41: Exposure distributed by size
Exposure distributed by size* 31.03.2022 31.03.2023 47 *Incl. parent bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt
Slide 42: LTV mortgage loans
LTV mortgage loans LTV is distributed by balance and 31.12.2021 is based on the market value of the collateral: • 98.7 % of the gross exposure is within 85 % of the collateral 31.12.2022 market value • Only 0.5 % of the gross exposure is higher than 100 % of the collateral market value • The figures
Slide 43: Diversified portfolio in commercial real estate
Diversified portfolio in commercial real estate 49
Slide 44: Low oil related exposure
Low oil related exposure Oil related exposure amounts to NOK 861 mill • The exposure represents 0.58 % of total exposure including covered bond companies • Average weighted probability of default 0.89 % • A total of NOK 24 mill are non-performing or impaired commitments • The activity within oil and
Slide 45: Loan losses - Group
Loan losses - Group The Group’s annualized losses is -0.17 % (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 0.70 % of total exposure. Expected loss share: 28.91 % Commitments in step 2: 7.15 % of total exposure. Expected loss share: 3.34 %
Slide 46: The lending portfolio
The lending portfolio* 53 *) Incl. SpareBank 1 Boligkreditt
Slide 47: Funding
Funding NOK 23 176 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 40 581 mill had been transferred as of 31.03.23 Amount of gross maturities of capi
Slide 48: 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 49: 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 50: 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 51: Noen som har et fint bilde til avslutning?
Noen som har et fint bilde til avslutning? 58
SpareBank 1 Nord-Norge — Q1 2023 Earnings Presentation on 6ix