Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Q3 2017 Earnings Presentation
83 slides from Sparebank 1 Nord-norge's earnings presentation, Oct 27, 2017
Slide 1: Quarterly presentation Q3 2017
Quartely presentation Q3 2017 Tromsø/Oslo, October 27 2017
Slide 2: Interim report Q3 2017 – Group
Interim report Q3 2017 – Group PRE-TAX PROFIT NOK 1 254 mill (NOK 1 199 mill) RETURN ON EQUITY 12.2 % (12.8 %). 2Q ISO: 12.1 % COSTS + 1.2 % compared with average total cost level for 2016 (exclusive of restructuring costs and financial activity tax) MODERATE LOAN LOSSES NOK 147 mill (NOK 149 mill).
Slide 3: Strategic measures have been effective
Strategic measures have been effective Core business cultivated Streamlined and renewed staffing Adjustment of physical presence New digitized services and processes New models for innovation Ambitious market and sales measures for profitable growth 3
Slide 4: Number 1 position in northern Norway
Number 1 position in northern Norway 50 BN Bank Which bank do you prefer? DNB 40 Danske Bank 35 Gjensidige 34 34 33 31 30 Handelsbanken 30 30 29 29 29 Nordea 26 26 25 23 Skandiabanken 20 SpareBank 1 Storebrand 15 13 13 13 Annen spb 12 11 11 10 10 9 9 9 Annen bank 7 7 6 Vet ikke 5 5 5 5 4 4 3 4 3 2 2
Slide 5: Corporate sector development
Corporate sector development How is the profibility within seafood, tourism and other important sectors? Area Status Views Area Status Views Macro Construction Seafood Retail Tourism Oil and gas 5
Slide 6: Regional house prices lower than the Norwegian average, but growth is higher
Regional house prices lower than the Norwegian average, but growth is higher 6 Source: Eiendom Norge, Finn.no and Eiendomsverdi AS, «Boligprisstatistikk»
Slide 7: High level of private and public infrastructure investments
High level of private and public infrastructure investments 2016 – 2025 NOK 635 billion 7
Slide 8: Taking a digital position through innovation..
Taking a digital position through innovation.. New processes New digital assistents New sales methods New channels New products New departments 8
Slide 9: …while at the same time strenghtening the position as #superlocal
…while at the same time strenghtening the position as #superlocal 9
Slide 10: Solidity is built – rate of return sustained
Solidity is built – rate of return sustained Return on Return on equity / Common equity Equity Tier I % incl share of result 15,4 % 13,9 % 15,0 % 12,5 % 12,3 % 10,3 % 13,1 % 12,2 % 12,0 % 12,2 % 9,0 % 9,1 % Leverage ratio: 7,7 % 2012 2013 2014 2015 2016 30.09.17 Common Equity Tier I % incl share of
Slide 11: Equity Certificates (EC) – geographic holder structure
Equity Certificates (EC) – geographic holder structure 10,3 13,8 13,8 20,3 28,6 32,0 33,0 34,6 64,1 65,6 65,5 61,1 53,2 49,1 48,1 46,8 25,5 19,0 20,6 20,7 18,6 18,2 18,9 18,6 2012 2013 2014 2015 2016 1Q17 2Q17 3Q17 Holders residing in Northern Norway Other Norwegian holders Foreign holders 11
Slide 12: Quarterly summary – Profit and loss account figures
Quarterly summary – Profit and loss account figures (Amounts in NOK million) 3Q17 2Q17 1Q17 4Q16 3Q16 Net interest income 450 437 422 434 423 Net fee-, commision and other operating income 255 248 224 234 228 Net income from financial investments 119 124 115 116 157 Total net income 824 809 761 784
Slide 13: Changes in P & L last quarter
Changes in P & L last quarter 22 -2 -5 - 17 - 15 (Amounts in NOK million) 440 423 2Q17 NII incl provision NCI excl Investment Costs Losses 3Q17 from SB1 BK provision from income SB1 BK
Slide 14: Net loan losses, customer loans and guarantees
Net loan losses, customer loans and guarantees Mill kr 0,22 % 321 0,23 % 213 200 0,19 % 147 0,19 % 2014 2015 2016 30.09.17 Net losses Net losses in % of gross lending incl Boligkreditt
Slide 15: Dividend: Target and historical figures
Dividend: Target and historical figures • Targeted equal treatment of ownership groups • Limitation on dividend rate of max. 50% is removed • Dividend payout ratio of 60% for 2016 was considered to be extraordinary high • Future yields will depend on solidity and prospects for profitable growth 4,00
Slide 16: Financial targets and outlook – adjusted ROE target
Financial targets and outlook – adjusted ROE target Future prospects: • Good growth in all product areas ROE: CET-1 ratio: • Increased net interest income. Top international level 14.5 % Assuming stable capital markets, reduced borrowing costs are expected to contribute positively over the next Cost
Slide 17: Contact information
Contact information: SpareBank 1 Nord-Norge P o Box 6800 N-9298 Tromsø CEO Jan-Frode Janson CFO Rolf Eigil Bygdnes Tel + 47 909 75 183 Tel +47 905 19 774 Homepage and internet bank: www.snn.no Equity capital certificates in general: www.egenkapitalbevis.no
Slide 18: Appendix
Appendix 1. About SpareBank 1 Nord-Norge 2. Financial figures – additional information 3. Credit area 4. Liquidity 5. Northern Norway: Macro and economic trends 6. SpareBank 1 Group and Alliance 18
Slide 19: SpareBank 1 Nord-Norge
SpareBank 1 Nord-Norge 354 900 retail customers Established in 1836 25 336 corporate customers Sparebanken Nord-Norge since 1989 14 844 Clubs and associations Listed on Oslo Stock Exchange since 1994 Lending volume NOK 101,8 bill Financial group offering a complete SpareBank 1 Alliance since 1996 pr
Slide 20: Facts about northern Norway
Facts about northern Norway 34.9% of Norway’s area 3 counties, 87 municipalities • Nordland: 242 866 residents • Troms: 163 453 residents • Finnmark: 75 605 residents Key industries: Seafood, tourism, agriculture, industry, energy, oil Employees public sector North Norway: 41 % Employees public sect
Slide 21: Company structure
21 Company structure Joint ventures } ( Subsidiaries } ‘SpareBank 1 Gruppen AS 19,5 % | Financial services ‘SpareBank 1 Boligkre 14,61.% | Housing SpareBank J Finans Nord-Norge AS 100% | Loan/consumer finance/leasing Eiendomsmegler 1 Nord-Norge AS 100 % | Real estate ‘SpareBank 1 Neeringskreditt AS
Slide 22: The 20 largest EC holders
The 20 largest EC holders Number of Share of total Equity Certificate holders Equity Certificates Equity Certificate capital PARETO AKSJE NORGE 3.126.881 3,11 % MP PENSJON PK 2.697.811 2,69 % THE NORTHERN TRUST COMP, NON-TREATY ACCOUNT 2.585.681 2,58 % FLPS - PRINC ALL SEC 2.428.400 2,42 % VERDIPAPI
Slide 23: The 20 largest EC holders residing in northern Norway
The 20 largest EC holders residing in northern Norway Number of Share of total Equity Certificate holders Equity Certificates Equity Certificate capital SPAREBANKSTIFTELSEN SPAREBANK 1 NORD-NORGE 1.411.606 1,41 % KARL DITLEFSEN 547.543 0,55 % NORGES RÅFISKLAG 418.375 0,42 % ODD ERIK HANSEN INVEST AS
Slide 24: Broad ownership of equity certificates by management and employees
Broad ownership of equity certificates by management and employees 116.876 78.917 72.292 77.724 35.198 More than 90 % Number of EC certificates as of 31 July 2017 of all employees in The Group own EC certificates 63.788 84.537 79.793 102.563 63.159 24
Slide 25: Financial figures – additional information
Financial figures – additional information 25
Slide 26: Key figures
Key figures Cost/income ratioCost/income (Group) ratio 54,23 % Return on equity 47,19 % Return on equity / Common Equity Tier I % incl share of result 44,36 % 42,90 % 41,48 % 15,4 % 13,9 % 15,0 % 12,5 % 12,3 % 13,1 % 2013 2014 2015 2016 30.09.17 10,3 % 12,0 % 12,2 % 12,2 % Loans in default and other
Slide 27: Capital adequacy ratio - Group
Capital adequacy ratio - Group CET 1 incl floor CET 1 excl floor 19,2 % 18,1 % 17,9 % 17,3 % 17,4 % 15,1 % 15,0 % 15,3 % 15,4 % 15,4 % 16,3 % 14,2 % 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Leverage ratio - LR incl result Minimum regulatory CET 1 level 7,5 % 7,7 % 31.12.17 7,2 % 6
Slide 28: Profit and loss account - Group
Profit and loss account - Group (Amounts i n NOK mi l l i on) 30.09.17 30.09.16 31.12.16 Net interest income 1 309 1 210 1 644 Net fee-, commision and other operating income 727 690 924 Net income from financial investments 358 393 509 Total net income 2 394 2 293 3 077 Total costs 993 945 1 320 Res
Slide 29: Net interest income - Group
Net interest income - Group 516 NOK mill 494 474 469 66 465 448 57 40 42 47 47 434 437 450 423 422 401 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Net interest income Commissions from Boligkreditt 29
Slide 30: Quarterly results – net interest income
Quarterly results – net interest income (Amounts i n NOK mi l l i on) 3Q17 2Q17 1Q17 4Q16 3Q16 Interest and similar income from loans to and claims on credit institutions 1 2 2 -2 4 Interest and similar income from loans to and claims on customers 612 602 600 616 593 Interest and similar income from
Slide 31: Changes in net interest income
Changes in net interest income 12 4 -8 6 0 17 -6 Mill NOK 494 469 NII 1Q17 Deposits margin Deposits margin Lending margin Lending margin Volume Days Other NII 2Q17 corporate retail corporate retail Including commisions from Boligkreditt. Measured against average funding cost
Slide 32: Lending margin, Parent bank
Lending margin, Parent bank The interest margin is defined as the difference between the customer lending interest rate and average 3 month NIBOR
Slide 33: Customer deposit, Parent bank
Customer deposit, Parent bank The interest margin is defined as the difference between average 3 month NIBOR and the customer deposit interest rate
Slide 34: Net fee-, commission- and other operating income
Net fee-, commission- and other operating income NOK mill 202 194 191 186 189 177 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Slide 35: Net fee- and other operating income
Net fee- and other operating income 3Q17 2Q17 1Q17 4Q16 3Q16 (Amounts i n NOK mi l l i on) Payment facilities 74 64 63 63 76 Insurance products 41 42 41 44 37 Guarantee commissions 4 4 4 4 5 Real estate broking 32 34 26 33 35 Portefolio commission 11 12 14 13 12 Other commissions 23 22 16 16 21 Comm
Slide 36: Income from financial investments
Income from financial investments Group (Amounts in NOK million) 3Q17 2Q17 1Q17 4Q16 3Q16 Dividends 0 4 0 1 0 Income from joint ventures 109 78 65 76 94 Gains/losses from shares in subsidiaries 0 15 0 0 0 Gains/losses and net value changes on shares 7 23 13 14 20 Net value changes on bonds, foreign
Slide 37: Group operating costs
Group operating costs NOK mill. Total costs 375 342 326 325 318 316 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Slide 38: Group operating costs
Group operating costs (Amounts i n NOK mi l l i on) 30.09.17 30.09.16 Change Wages and salaries 403 404 -1 Pension costs 39 29 10 Social costs 83 61 22 Total personnel costs 525 494 31 Administration costs 290 277 13 Total personnel- and general administration costs 815 771 44 Depreciation and write
Slide 39: Operating expenses
Operating expenses (Amounts in NOK million) 3Q17 2Q17 1Q17 4Q16 3Q16 Wages and salaries 143 127 133 136 139 Pension costs 13 14 12 24 12 Social costs 28 28 27 35 19 Total personnel costs 184 169 172 195 170 Development costs 33 31 32 25 31 Electronic data processing costs 21 19 19 18 19 Marketing co
Slide 40: Core banking operations
Core banking operations (excl. income from financial investments) Group (Amounts i n NOK mi l l i on) 3Q17 2Q17 1Q17 4Q16 3Q16 Net interest income 450 437 422 434 423 Net fee- and commission income 227 215 190 191 206 Other operating income 28 33 34 43 22 Total costs excl restructuring and financial
Slide 41: Group companies result before tax
Group companies result before tax (Amounts i n NOK 1000) 30.09.17 30.09.16 SpareBank 1 Finans Nord-Norge AS 54 659 70 757 SpareBank 1 Regnskapshuset Nord-Norge AS 15 312 11 361 EiendomsMegler 1 Nord-Norge AS 14 757 25 301 SpareBank 1 Nord-Norge Forvaltning ASA 1 656 1 732 Subsidiaries core operation
Slide 42: Good development within subsidaries
Good development within subsidaries Eiendomsmegler 1 Nord-Norge: Pre-tax profit NOK 14 757 mill (NOK 25 301 mill) Market leader in North Norway Strong synergies with the bank SpareBank 1 Finans Nord-Norge: Pre-tax profit NOK 54 659 mill (NOK 70 757 mill) Considerable future potential. Complementary
Slide 43: Key figures balance sheet
Key figures balance sheet (Amounts in NOK million) 30.09.17 30.09.16 Change Change % Total assets 93 542 89 210 4 332 4,9% Gross lending 73 902 68 905 4 997 7,3% Loans and advances to 101 844 93 423 8 421 9,0% customers incl SpareBank 1 Deposits from customers 57 163 53 637 3 526 6,6%
Slide 44: Lending volume
Lending volume Retail incl. SpareBank 1 Boligkreditt 27 % Retail incl. SpareBank 1 Boligkreditt 74 636 Business/ 67 750 73 % Public 62 905 7,7 % 10,2 % 30.09.15 30.09.16 30.09.17 Retail excl. Business/public market 37 % SpareBank 1 Boligkreditt 63 % 25 673 27 208 Business/ Public 24 986 2,8 % 6,0 %
Slide 45: Deposit volume
Deposit volume Business Retail banking market 32 206 30 320 16 235 28 461 6,5 % 6,2 % 13 632 6,2 % 14 479 12,1 % 30.09.15 30.09.16 30.09.17 30.09.15 30.09.16 30.09.17 Public Business 28,4 % 8 838 8 722 48,7 % -1,3 % Retail 5 944 56,3 % Public 15,3 % 30.09.15 30.09.16 30.09.17
Slide 46: Credit area
46 Credit area SpareBank NORD-NORGE
Slide 47: Lending portfolio - comments
Lending portfolio - comments • Good growth in retail lending, with focus on commitments qualifying for SpareBank 1 Boligkreditt (covered bond company) • Moderate growth in corporate market lending last 12 months • The portfolio and new commitments in corporate sector lending are diversified • Reduce
Slide 48: Distribution on segments shows good diversification
Distribution on segments shows good diversification Loan portfolio including Boligkreditt Real estate 12 Transportation 6 % % Fishing and aquaculture 5 % Manufacturing 3 % Other 25 % Power and water supply and construction 2 % Service industries 3 % Finanicial and insurance activities 2 % Retail ban
Slide 49: Portfolio - exposure as of 30.09.17, parent bank
Portfolio - exposure as of 30.09.17, parent bank 50.000 44.489 45.000 40.000 35.000 29.681 30.000 NOK mill 24.256 25.000 20.000 15.000 10.000 7.827 5.000 1.232 1.504 564 141 404 0 Næringskreditt Boligkreditt Low risk Medium risk High risk Default/impaired Retail market Corporate market SB1 Boligkred
Slide 50: Portfolio – changes last 12 months, parent bank
Portfolio – changes last 12 months, parent bank 3.500 3.147 3.173 3.000 2.631 2.500 2.000 1.500 NOK mill 1.000 500 245 18 18 0 Næringskreditt Boligkreditt Low risk Medium risk High risk Default/impaired -144 -120 -500 -717 -1.000 SB1 Boligkreditt Retail market Corporate market SB1 Næringskreditt 50
Slide 51: Portfolio - exposure distributed by size
Portfolio - exposure distributed by size Loans distributed by size of exposure and share of total exposure Share of loanexposure Sept 2017 Share of loanexposure Sept 2016 80,6 % 78,4 % 9,5 % 10,6 % 4,6 % 6,3 % 5,2 % 4,7 % Below 10 mnok 10 - 100 mnok 100 - 250 mnok Above 250 mnok Numbers include SB 1
Slide 52: Portfolio – LTV mortgage loans
Portfolio – LTV mortgage loans 100,0 % 92,5 % 92,0 % • 97.5 % of exposures are 90,0 % 80,0 % within 85 % of the 70,0 % collateral market value 60,0 % 50,0 % • Exposures above 85 % are 40,0 % 30,0 % 2.5 % 20,0 % 10,0 % 5,0 % 5,1 % 1,2 % 1,4 % 1,3 % 1,5 % 0,0 % Below 70 % 70 - 85% 85 - 100 % Above 100
Slide 53: Loan approvals – mortgage regulation
Loan approvals – mortgage regulation • Within the mortgage 15,0 % regulation limit of 10 % for 13,0 % Norway excl. Oslo and 8 % 11,0 % for Oslo 9,2 % 9,3 % 9,0 % 8,0 % 8,1 % 7,3 % 7,2 % 6,8 % 7,0 % • New regulations from 01.01.2017 has resulted in 5,0 % a tightening of the loan 3,0 % approval proces
Slide 54: Portfolio – Commercial Real Estate
Portfolio – Commercial Real Estate Housing Ass.; 4,1 % Above 250 0 - 5 MNOK; MNOK; 8,9 % Residential 14,1 % Others (small Development / commitments); Investment; 15,5 28,9 % % 100 - 250 MNOK; 15,0 % Shops / shopping centres;… 5 - 30 MNOK; 34,1 % Combination- Hotels; 4,0 % 30 - 100 buildings; 12,1 %
Slide 55: Portfolio – Oil related exposure
Portfolio – Oil related exposure Other; 1,4 % Supply base; • Oil related exposure amounts to NOK 1,306 Industry; 10,1 % 26,5 % mill • The exposure represents 1.3 % of total lending incl. Næring- and Boligkreditt • Average weighted probability of default 1.46 % • A total of NOK 51 mill are non-perfor
Slide 56: Portfolio – Offshore Supply Vessels (OSV)
Portfolio – Offshore Supply Vessels (OSV) AHTS; 5,5 % • OSV amounts to NOK 810 mill • Average weighted probability of default 1.06 % Standby/area • Total amount of 8 vessels* contingency; 42,3 % • Weighted age 6.4 years* • Average weighted contract length 5.4 PSV; 52,1 % years* • SNN is participant
Slide 57: Portfolio – Supply bases
Portfolio – Supply bases Other; 1,4 % Supply base; Industry; 10,1 % 26,5 % • Supply base exposure amounts to NOK 346 mill • Average weighted probability of default 2.01 % • Customers with long term contracts with solid and strong partners bring about good cash flows in the short and long term Offsho
Slide 58: Portfolio – Industry and Other
Portfolio – Industry and Other Other; 1,4 % Industry; 10,1 % Supply base; 26,5 % • The sector “Industry and Other” amounts to NOK 150 mill, divided into Industry NOK 133 mill and Other NOK 18 mill • Average weighted probability of default: Industry 2.66 % and Other 3.86 % • A total of NOK 51 mill no
Slide 59: Losses on loans and guarantees and non-performing commitments
Losses on loans and guarantees and non-performing commitments Mill kr Mill kr 0,67 % 0,22 % 321 0,23 % 0,53 % 0,52 % 0,53 % 222 0,46 % 211 223 415 255 215 213 200 0,19 % 301 311 261 263 147 0,19 % 3Q16 4Q16 1Q17 2Q17 3Q17 Other doubtful commitments 2014 2015 2016 30.09.17 Non-performing commitments
Slide 60: Loan losses: The Group's write-downs
Loan losses: The Group's write-downs Write-downs 3rd quarter 3rd quarter 3rd quarter 2016 2017 2016 2017 (iso) Individual write-downs Retail market -2 4 -1 4 Corporate market 22 34 2 32 SpareBank 1 Finans Nord-Norge 49 36 25 53 Other group units - - 0 0 Total individual write-downs 69 74 26 89 Colle
Slide 61: Liquidity
61 Liquidity SpareBank NORD-NORGE
Slide 62: Funding instruments 30.09.2017
Funding instruments 30.09.2017 T1 HYBRID, NOK 4% NOK BONDS 55 % OTHER LIABILITIES, NOK 0% SUBORDINATED LOAN CAPITAL, NOK 4% SEK BONDS 4% USD BONDS 2% CHF BONDS 9% EUR BONDS 22 % 62
Slide 63: Maturity profile 30.09.2017
Maturity profile 30.09.2017 Capital markets funding (excl. SPABOL) • Good diversification in terms of maturities 4.500 4.000 • NOK 21 979 mill in capital market funding exclusive of 3.500 SB1 Boligkreditt 3.000 • SpareBank 1 Boligkreditt is an Mill NOK 2.500 important funding source. 2.000 Mortgage
Slide 64: Liquidity portfolio 30.09.2017
Liquidity portfolio 30.09.2017 Industry/Utility CDO/ABS 3% 0% Gov. Public sector Financials 17 % 16 % 1% Covered bonds 63 % 64 Source:
Slide 65: Macro and Economic trends
65 Macro and Economic trends SpareBank NORD-NORGE
Slide 66: The northern Norwegian economy is still growing
The northern Norwegian economy is still growing Relatively small oil sector. Increased Higher growth in the north, estimates for oil and gas resources in compared to Norway as a whole the Barents sea. Seafood export continues to grow Substantively lower growth in (5.8 %). Increased prices, but lower
Slide 67: Stable, low unemployment
Stable, low unemployment 67 Source: NAV, «Hovedtall for arbeidsmarkedet»
Slide 68: Seafood – export growth
Seafood – export growth • Still growth in seafood export value from Northern Norway in 2017 – 3,8 % growth year/today vs. 2016. • Salmon contribute for around 70 % of total export of seafood, prices are higher for less volume. • God development for white fish, both prices and volume is growing. 68 S
Slide 69: Tourism – growth in overnight stays
Tourism – growth in overnight stays • Strong growth in number of overnight stays. • Firm growth in foreign overnight stays, and strong contribution from winter tourism. • Weak norwegian kroner is positive for the tourism industry 69 Source: Statistics Norway, «Overnattinger»
Slide 70: Oil and gas – new fields increase activity
Oil and gas – new fields increase activity • Four fields in production: Norne, Snøhvit, Skarv and Goliat Demand from oil companies ‒ First oilfield open in Barents Sea. Repurchases will further • Aasta Hansteen og Polarled increase the total demand ‒ Polarled – pipeline completed in 2015 ‒ Productio
Slide 71: The activity in construction is solid, but growth is lower
The activity in construction is solid, but growth is lower. Firm backlog 71 Source: Statistics Norway, «Omsetning i bygge- og anleggsvirksomhet og Ordreindeks for bygge- og anleggsvirksomhet»
Slide 72: Retail sales grows more in Northern Norway
Retail sales grows more in Northern Norway, although growth is declining Kilde: SSB, retail sales 72 although26.10.2017
Slide 73: Credit growth corporates
Credit growth corporates 73 26.10.2017
Slide 74: Credit growth households
Credit growth households 74 26.10.2017
Slide 75: Deposit growth corporates
Deposit growth corporates 75 26.10.2017
Slide 76: Deposit growth households
Deposit growth households 76 26.10.2017
Slide 77: SpareBank 1 Group and Alliance
SpareBank 1 Group and Alliance 77
Slide 78: The idea behind the SpareBank 1 Alliance
The idea behind the SpareBank 1 Alliance The banks in the alliance want to: Achieve Share Achieve Retain their own Still be able to exploit critical level development economies name and continue each bank’s proximity to of costs of scale as independent their local market competence legal entities 78
Slide 79: The SpareBank 1 Alliance
The SpareBank 1 Alliance SAM-SPAR SpareBank 1 Mobilbetaling AS SpareBank 1 Gruppen AS (SB1G) Banksamarbeidet DA (BS) (mCASH) SpareBank 1 Forsikring AS EiendomsMegler 1 SpareBank 1 Kredittkort AS (Life insurance) Norge AS (Credit card) SpareBank 1 Skadeforsikring AS SpareBank 1 SpareBank 1 Boligkredi
Slide 80: Strong results from jointly owned companies in SpareBank 1
Strong results from jointly owned companies in SpareBank 1 Product companies: Forsikring (Insurance), Odin, Conecto, Finans, Medlemskort SpareBank 1 Gruppen As of Q2 2017: Pre-tax profit MNOK 904 (MNOK 912) Significant underlying values and high innovation rate Other joint Kredittkort, Boligkreditt,
Slide 81: Pre-tax operating profit. SpareBank 1 Gruppen
Pre-tax operating profit. SpareBank 1 Gruppen As per 3rd quarter (MNOK) 1,753 • Return on equity as per 3rd quarter: 1,439 1,437 1,225 2017 19.4 % 2016 17.1 % 2014 2015 2016 2017 For the full year (MNOK) 2,406 • Return on equity for the full year: 2,019 1,659 1,617 2016 19.1 % 2015 17.2 % 2014 28.0
Slide 82: SpareBank 1 Alliance – lending composition
SpareBank 1 Alliance – lending composition As per Q2 2017 % 14 Lending and deposit growth, SB1 Alliance 12 10 8.2 8 6 4.7 4 2 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 Lending Growth Deposit growth • Total lending: approx. NOK 760 bn. • Mortgages: approx. NOK 535 bn. • Share of mortgages bought
Slide 83: SpareBank 1 Alliance – market position
SpareBank 1 Alliance – market position As per Q2 2017 % Market share SB1 Alliance, Norway 22 • 2nd largest banking group in the 20 19.5 market. 18 • Regional market share leader with 16 13.4 14 30-50% shares. 12 10 2010 2011 2012 2013 2014 2015 2016 2017 Retail Corporate MNOK 1000 1,187 Lending 1,20
SpareBank 1 Nord-Norge — Q3 2017 Earnings Presentation on 6ix