Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q3 2021 Earnings Presentation
51 slides from Sparebank 1 Nord-norge's earnings presentation, Oct 28, 2021
Slide 1: 3Q 2021
3Q 2021 Tromsø, 28 October 2021 Liv B. Ulriksen, CEO Bengt Olsen, CFO
Slide 2: Highlights
C1) Highlights SpareBank ¢ NORD-NORGE
Slide 3: Highlights YTD
Highlights YTD 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 35 % Main bank SME 36 % Real estate agency 36 % Accounting 20 % Secured financing 21,3 % 3
Slide 4: Delivery on all financial targets
Delivery on all financial targets 4
Slide 5: Subsidiaries – results before tax
Subsidiaries – results before tax 5
Slide 6: From green assets to green funding
From green assets to green funding 6
Slide 7: SpareBank 1 Nord-Norge
SpareBank (1) NORD-NORGE
Slide 8: Outlook
2 } Outlook SpareBank ¢ NORD-NORGE
Slide 9: Highlights from Konjunkturbarometeret 2021
Highlights from Konjunkturbarometeret 2021 • New record for Seafood export! • Energy surplus creates new industries! • Basicly no unemployment! 9
Slide 10: Unemployment
Unemployment Norway Northern Norway 10
Slide 11: Bankruptcies in Northern Norway
Bankruptcies in Northern Norway Number of bankruptcies in Northern Norway 2019 are still at low levels 2020 These industries have seen the greatest 2021 number of bankruptcies: • Construction • Accommodation • Catering • Retail sales Number of bankruptcies are expected to increase going forward Tota
Slide 12: Status and outlook in Northern Norway
Status and outlook in Northern Norway 12
Slide 13: Ambitions for growth and increased market share
Ambitions for growth and increased market share Expected growth for SpareBank 1 Nord-Norge in 2021 Retail market: 3-6 % Corporate market: 5-7 % Corporate growth within companies and industries with an expected low negative impact of Coronavirus. 13
Slide 14: Financial status
3] Financial status SpareBank ¢ NORD-NORGE
Slide 15: Group financial highlights and key figures
Group financial highlights and key figures 15
Slide 16: Quarterly development
Quarterly development cET1 Return on equity capital Cost/income Group 18,0% 186% 17,2% 17.5% 17,4% 15,8 % 14,9% 145% 15,4% 12,9.% 13,0% 2017 2018 =2019 2020 1Q21 2Q21 3Q21 2017 2018 =2019 2020 1Q21 2Q21 3Q21 16 43,1% 41,6 % 41,2 % 39,8% 40,0% 39,1% 36,9 % 2017 2018 +2019 2020 1Q21 2Q21 3Q21 SpareBan
Slide 17: Result before tax - last quarter
Result before tax - last quarter 17
Slide 18: Net interest income - Group
Net interest income - Group 18
Slide 19: Low losses
Low losses Net losses in % of Net losses gross lending incl. interm. loans Retail Corporate 19
Slide 20: Lending growth
Lending growth Retail Corporate 20
Slide 21: Retail Market
Retail Market Retail (excl. Commission com.loans loans 21
Slide 22: Corporate Banking
Corporate Banking Lending growth Development in lending margin (iso) 2,90% 2,56% 2,57% 2,48% 2,46% 2,38% 4+2,8% ae 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Lending growth (12 mth) 38 109 38 410 39 495 39 832 40 067 ee 30.06.20 30.09.20 31.12.20 31.03.21 30.06.21 30.09.21 10,9 % 9,5% 5,1% 30.06.20 22 30.09.20 3
Slide 23: Deposit growth
Deposit growth Retail Market Corporate Banking Public Market 30.09.19 30.09.20 30.09.21 30.09.19 30.09.20 30.09.21 30.09.19 30.09.20 30.09.21 Deposits gross 23 SpareBank (1) NORD-NORGE
Slide 24: Development in deposit margins
Development in deposit margins Retail Corporate 24
Slide 25: Dividend 2020
Dividend 2020 Total dividend for 2020 NOK 3,90/EC Decided 1Q21 and paid 2Q21 NOK 1,27/EC (In line with FSA’s recommendation on restraint) Dividend with delayed pay Out in Q421 NOK 2,63/EC Ex. date November 4th with pay out on November 11th A pay out ratio of 49,4 % mean that the northern Norwegian s
Slide 26: Long term financial targets
Long term financial targets < 40 % C/I ratio > 12 % > 50 % ROE Dividend payout ratio 15 % CET-1 26
Slide 27: Financial outlook
27 Financial outlook ROE >12 % CET-1 Ratio: 15 % C/l< 40% Pay out ratio >50% A lower average Nibor in the first part of Q3 had a positive effect on lending margin, but weakened an already weak deposit margin. This was reversed in the latter part of Q3 and we expect an increased deposit margin and a
Slide 28: Why invest in SpareBank 1 Nord-Norge
Why invest in SpareBank 1 Nord-Norge 28
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 29
Slide 30: Appendix
A) Appendix SpareBank ¢ NORD-NORGE
Slide 31: A solid bank for Northern Norway
A solid bank for Northern Norway 31
Slide 32: Development in lending margins
Development in lending margins Corporate Retail 32
Slide 33: Company structure
Company structure SpareBank 1 Boligkreditt AS SpareBank 1 SpareBank 1 Finans Nord- Eiendomsmegler 1 Nord- SpareBank 1 Gruppen AS 19,5 % | Financial services 18,14 % | Covered Bond company Næringskreditt AS Norge AS Norge AS 4,07 % | Funding/property Loan/consumer finance/leasing Real estate brokerag
Slide 34: Geographical distribution of ownership
Geographical distribution of ownership Foreign holders Other Norwegian holders Holders residing in Northern Norway 34
Slide 35: The 20 largest EC holders
The 20 largest EC holders EC Holders Number of Ecs y Share of EC Capital PARETO INVEST AS 36% PARETO AKSJE NORGE VERDIPAPIRFOND 33% \VPF EIKA EGENKAPITALBEVIS 2,9% GEVERAN TRADING CO LTD 28% The Northern Trust Comp, London Br 26% MP PENSJON PK 24% State Street Bank and Trust Comp 21% Brown Brothers
Slide 36: Cost development - Group
Cost development - Group Cost/income Group Group operating costs 36
Slide 37: Operating expenses - Group
Operating expenses - Group 37
Slide 38: Net fee- and other operating income - Group
Net fee- and other operating income - Group 38
Slide 39: Risk exposure - Group
Risk exposure - Group Non-performing /impaired High risk 100,0% Medium risk Low risk 39
Slide 40: Changes in exposure last 12 months - Group
Changes in exposure last 12 months - Group 3 622 4 357 Non-performing /impaired High risk Medium risk Low risk 40
Slide 41: Exposure distributed by size
Exposure distributed by size* 30.09.2020 30.09.2021 41 *Incl. parent bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt
Slide 42: LTV mortgage loans
LTV mortgage loans LTV is distributed by balance and 30.09.2020 is based on the market value of the collateral: • 98.7 % of the gross exposure is within 85 % of the collateral 30.09.2021 market value • Only 0.7 % 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 43
Slide 44: Still low oil related exposure
Still low oil related exposure Oil related exposure amounts to NOK 862 mill • The exposure represents 0.60 % of total exposure including covered bond companies • Average weighted probability of default 1.90 % • A total of NOK 43 mill are non-performing or impaired commitments • The activity within o
Slide 45: Oil related portfolio
Oil related portfolio • Exposure amounts to NOK 564 mill • Exposure amounts to NOK 254 mill • Exposure amounts to NOK 44 mill. including • Average weighted probability of default 2.51 % • Average weighted probability of default is 0.33% Industry NOK 43 mill and Other NOK 1 mill • Total amount of 7 v
Slide 46: Loan losses - Group
Loan losses - Group The Group’s annualized losses is -0.12 % (annualized) of gross lending including loans transferred to covered bond companies Commitments in step 3: 0.40 % of total exposure. Expected loss share: 41.67 % Commitments in step 2: 8.61 % of total exposure. Expected loss share: 3.84 %
Slide 47: Funding
Funding NOK 22 804 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 38 290 mill had been transferred as of 30.09.21 Amount of gross maturities of capi
Slide 48: Ambitious goals for climate risk and sustainability
Ambitious goals for climate risk and sustainability Sustainability and climate risk are included in our business- and risk strategy A framework for the link between green lending and green capital market funding has been developed. The framework is based on important business sectors in the north, i
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 • The alliance are in the forefront of incorporating SpareBank 1 Nord-Norge technological innovation into its distribution channels.
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 Kreditt Næ
Slide 51: Noen som har et fint bilde til avslutning?
Noen som har et fint bilde til avslutning? 51
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