SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Q2 2022 Earnings Presentation
41 slides from SpareBank 1 Helgeland's earnings presentation, 2022
Slide 1: Presentation Q2 2022
Presentation Q2 2022 - A driving force for growth in Helgeland
Slide 2: Presentation per 30.06.22 (SBH Group)
Presentation per 30.06.22 (SBH Group) Hanne Nordgaard Main Features and market Chief Executive Officer Events Q2 Profit & loss Lending Deposits Sverre Klausen Funding Chief Financial Officer Solidity Prospects and priorities Appendices Anne Ekroll Chief Financial Officer from 01.11.22
Slide 3: Financial targets
SpareBank 1 Helgeland is the profitable and leading local bank that Financial targets 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 30.06.22
Main features per 30.06.22 Gross profit ROE* MNOK 251 (171) 8.5 (7.6) % *Adjusted for hybrid capital Total assets Solidity NOK 39.2 (34,8) bn. CET1 19,1 (20.9) %
Slide 5: Unemployment
Unemployment Unemployment in %, Norge, Nordland and Helgeland 12% Under the covid-19 pandemic, the 11% unemployment increased significant 10% from Q4 2019 to Q1 2020. 9% The unemployment in Helgeland and 8% Nordland is lower than Norway 7% overall. 6% • Norway 1.6 % 5% • Nordland 1.2 % 4% • Helgelan
Slide 6: Housing price development
Housing price development Price development - sold apartments in NOK/sqm Price development - sold villas in NOK/sqm 100.000 90.000 90.000 80.000 80.000 70.000 70.000 Oslo 60.000 Oslo 60.000 Trondheim 50.000 Trondheim 50.000 Bodø Bodø 40.000 40.000 Helgeland Helgeland 30.000 30.000 20.000 20.000 10.0
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. • Status sustainability- and climate risk are mapped on ou
Slide 8: Sustainability
Sustainability My climate footprint is launched in the internet bank New sustainability strategy Issued green Sparebank1 Helgeland obligations (1 billion) Sustainability manager takes office Green Map ESG risk Product framework Green in the lending portfolio products in the markedet Q2-21 Q3-21 Q4-2
Slide 9: Main features and market
Main features and market Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 10: Summary Q2
Summary Q2 Weak result affected by market turmoil - Stable basis operation • Net interest income of MNOK 184, up from 174 last quarter. The interest rate increase with effect from February and may draws the net interest up, while higher funding costs draws the net interest down. • Net commission inc
Slide 11: Profit & loss
Main features and market Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 12: Profit
Profit Profit development Profit Q2 384 Gross profit of MNOK 251 (171) in the 110 135 264 251 second quarter. 15 65 96 78 104 • ROE of MNOK 10.5 % (ROE is adjusted for hybrid capital) 85 78 150 8,5% 147 93 93 40 2019 2020 2021 30.06.22 Q1 Q2 Q3 Q4 ROE %
Slide 13: Gross profit
Gross profit Gross profit is MNOK 80 higher than in the same period last year. • Increase in net interest is related to the Change in gross profit (MNOK) acquisition in the fourth quarter 2021. The interest rate increase with effect from February 300 37 -14 300 an may draws the net interest up. -30
Slide 14: Net interest
Net interest • Net interest and commission income amounts to MNOK 184 in the second quarter against 8 MNOK 174 in the first quarter. 8 8 184 174 168 • The interest rate increase with 148 1,87% 144 1,79% effect from February and May 1,71% 1,70% 1,70% draws the net interest up, while higher funding co
Slide 15: Commission income (MNOK)
Commission income (MNOK) 46 8 38 36 1 8 Comission on loans transferred to 8 1 mortgage company 2 22 Guarantee commission 22 0,47% 21 1 8 1 18 Commission income insurance - 7 0,37% 36 0,38% (general, life, saving and pension) 7 Commission income payment services 18 0,25% 14 0,25% 15 In % of total ass
Slide 16: Operating costs
Operating costs Operating cost (mnok) and % of income 44 • Costs are over the banks target in the second quarter (cost/income <40%) 97 94 5 1 91 • So far this year, cost/income is 42,2 %. 77 79 74,0% 49,0% 50,8 % 46,4% 46,0 % 45,1% 38,8% 44,5 % 46,4 % 38,8 % Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 0222 O
Slide 17: Loss on commitments
Loss on commitments • MNOK 3 in loss so far this year, whereof MNOK 2 in the second quarter of 2022. 0,24% 0,18% 0,20% 65 51 64 0,00% 3 2019 2020 2021 30.06.2022 Net loss MNOK Net loss in % of gross lending
Slide 18: Lending
Main features and market Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 19: 12-month credit development (SpaBol included)
12-month credit development (SpaBol included) CM 26,0 % RM 74,0 % Development gross lending (MNOK) 44000 Development gross lending CM/RM (MNOK)) 39000 44000 34000 39000 34000 29000 9.743 0,1 % 9.752 -1,8 % 9.573 29000 24000 6,2 % 24000 8.495 -1,7 % 8.350 9,9 % 9.176 19000 37.005 36.910 36.867 19000
Slide 20: Lending CM
Lending CM Lending distributed in sector 10,4 % Good diversification in the CM Real estate 9,6 % lending portfolio and loyal corporate 4,8 % customers Farming and forestry 3,9 % Share CM of total lending 29.6 3,4 % Construction and power (30.6)% or MNOK 9 365 2,2 % (8 350) 4,9 % Transport and servic
Slide 21: 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 500 commitments amounts to MNOK 241, an 400 increase of MNOK 9 from year end. 300 200 1,1 % 1,1 % 0,7 % 0,8 % 100 0 2019 2020 2021 30.06.2022 Net commitments exposed to loss
Slide 22: Deposits
Main features and market Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 23: Deposit development
Deposit development 31.000 Deposit development (MNOK) 31.000 Deposit decelopment CM/RM (MNOK) 26.000 26.000 21.000 21.000 9.811 9.876 9.365 16.000 16.000 8.811 8.688 9.064 4,8 % 0,7 % -1,4 % 4,3 % 3,3 % 23.552 24.144 24.731 11.000 20.223 20.612 20.816 11.000 14.187 14.333 14.855 6.000 6.000 11.412 1
Slide 24: Deposit development
Deposit development Increase in deposits of MNOK 517 or 2,1 % last quarter. Allocation of deposits sorted on size is relative stable. 52,3 % of RM deposits under MNOK 2. 62,3 % of the deposits are included in the guarantee arrangement.
Slide 25: Deposits CM
Deposits CM Customer deposits Well diversified deposit portfolio Municipalities 13,9 % 12,9 % in the CM 11,2 % Transport and services 11,7 % Share CM 39.9 (42.2)% or MNOK Construction and power 3,3 % 3,1 % 9 876 (8 688) of total deposits 2,0 % Farming and forestry 2,8 % Deposits from municipalities
Slide 26: Funding
Main features and market Events Q2 Profit & Loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 27: Funding
Funding Funding development • Customer deposit share 2,5 % has increased in 2022 2,5 % 2,5 % 2,6 % 2,4 % 14,6 % 22,0 % 22,2 % 21,1 % 17,1 % 12,4 % 13,0 % 12,2 % 11,3 % 17,1 % 73,9 % 63,1 % 64,9 % 67,4 % 58,4 % 2018 2019 2020 2021 30.06.2022 Deposits Senior CB FO
Slide 28: Funding due
Funding due Maturity structure loans (MNOK) High quality and long-term funding Share long term funding 78.6% (80.8)% Combined duration of 2.3 (2.3) 1.317 1.500 years. Duration in the mortgage company 2.2 years 1.500 260 1.000 853 800 500 500 500 300 2022 2023 2024 2025 2026 2027 2028 2029 Senior Cov
Slide 29: Liquidity buffer
Liquidity buffer Sector distribution interest portfolio Interest bearing securities: • Duration portfolio 1.9 (1.5) years • 99.4 % rated A- or better 39% • 98.4 % CB or state-/ municipal CB 1 30% guaranteed bonds 43% Municipality papers are actively used Municipalities 43% as short-term liquidity pl
Slide 30: Transfer of loans to mortgage companies
Transfer of loans to mortgage companies Maximum limit for transferring is 35 % of the Group’s gross lending, and 50 % of gross lending RM. Per 30.06.22 transfer degree is 30.4 and 40.8 % with a total of MNOK 11 213 transferred to the mortgage companies. Helgeland boligkreditt AS is fully owned by Sp
Slide 31: Solidity
Main features and market Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices Foto: Hans Petter Sørensen
Slide 32: Capital adequacy
Capital adequacy Development capital adequacy 24% Capital ratio 2,5 % 22% 2,6 % • CET1 19.1 (20.9)% 2,3 % 2,1 % • Core capital 21.3 (22.6)% 20% 2,5 % 1,7 % • Total capital 23.7 (25.3)% 2,0 % 18% 2,4 % 1,7 % • Leverage ratio: 9.1 (10.6)%. 16% 1,6 % • Pilar II requirements from 30.04.22 stays 14% 18,8
Slide 33: HELG – the 20 largest owners and geographical owner structure
HELG – the 20 largest owners and geographical owner structure 20 largest owners Sparebankstiftelsen Helgeland 28,1 % SpareBank 1 Nord-Norge Pareto Invest AS 7,8 % 20,0 % Geographical owner structure (%) VPF Eika Egenkapital 4,5 % Verdipapirfondet Nordea Norge Verd 3,7 % Spesialfondet Borea Utbytte 2
Slide 34: HELG – EC development and liquidity
HELG – EC development and liquidity 31.12.19 31.12.20 31.12.21 30.06.22 EC fraction opening balance 76.4 % 76.4 % 77.3 % 79.9 % Number of EC's 20.9 20.9 27.0 27.0 price 84.0 86.0 131 119 Stock exchange value 1 756 1 797 3 537 3 213 Accounted equity per EC 119 129 124 127 Profit per EC 10.6 12 5.5 5.
Slide 35: Prospects and priorities
Main features and market Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 36: Prospects ahead
Prospects ahead Entrance in the SpareBank1 alliance. The associated transactions will affect the operations and the costs in 2021 and into 2022, and the groups long term profitability targets can not be expected fulfilled in this period. Profitability is expected strengthened in a long term pe
Slide 37: Prospects ahead
Prospects ahead Operation cost for the basic operation is expected to maintain stable but slightly over upper target of 40 % in 2022. This is mainly related to increased costs in a transition phase after entrance in the SpareBank 1 alliance and the acquisition. Normalized losses (0,18 %) is expe
Slide 38: Appendices
Main features and market Events Q2 Profit & loss Lending Deposits Funding Solidity Prospects and priorities Appendices
Slide 39: Profit & loss
Profit & loss SpareBank 1 Helgeland (group) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Net interest- and credit provision earnings 159 140 149 150 144 144 148 168 174 184 Net provision earnings 24 24 23 26 28 21 22 36 46 38 Other operatios income 1 0 2 2 1 0 4 -1
Slide 40: 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 offices in Mo i Rana, Mosjøen, Sandnessjøen and Brønnøysund. • Total assets incl. transferred
Slide 41: 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 Kennteth Normann Web www.sbh.no Solr
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