Quarterly report Q3 2024
SpareBank 1 Helgeland 30-10-2024
Quarterly report Q3 2024 | Table of Contents
Table of Contents
Main features group
Accounts SpareBank 1 Helgeland 3rd quarter 2024
5 General information
- Main features 3rd quarter
- Main features so far this year
- Profit
- Net interest
- Net commission earnings
- Net value change and profit/loss from financial investments
- Operating costs
- Write-downs on lending
- The equity certificate - HELG
- Balance development per 30.09.24
- Commitments
- Deposits from customers
- Funding
- Cash flow
- Rating
- Subsidiaries and joint ventures
- Risk and capital management
- Credit risk
- Market risk
- Operational risk
- Liquidity risk
- Solidity
- Sustainability
16 Prospects ahead
PLA (MNOK)
Balance sheet (MNOK)
Change in equity (MNOK)
Cash flow statement
Notes
- Note 1 Accounting principals
- Note 2 Segment
- Note 3 Specification of net change in value of financial instruments
- Note 4 Specification of total operating costs
- Note 5 Write-downs on loans
- Note 6 Profit per equity certificate and dividend basis
- Note 7 Geographical exposure of the lending portfolio
- Note 8 Commitments allocated on sector/ industry.
- Note 9 Net non-performing and impaired commitments
- Note 10 Change in gross lending and loss provisions in the balance sheet.
- Note 11 Conditional commitments
- Note 12 Subsidiaried and associated companies
- Note 13 Operating funds
- Note 14 Disclosures and related parties
- Note 15 Fair value on financial instruments
- Note 16 Financial derivates
- Note 17 Securities issued
- Note 18 Geographical exposure deposits from and liabilities to customers
- Note 19 Deposits from customers allocated by sector/industry
- Note 20 Equity certificate capital HELG - the 20 largest owners
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Quarterly report Q3 2024 | Table of Contents
- Note 21 Capital adequacy
- Note 22 Financial estimates and estimative assessments
- Note 23 SpareBank 1 Boligkreditt
- Note 24 Events after the balance sheet day
Profit and loss and balance sheet development
Information concerning SpareBank 1 Helgeland
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Quarterly report Q3 2024 | Main features group
Main features group
Main features in MNOK and in % average total assets | Q3/24 | Q2/24 | 30.09.2024 | 30.09.2023 | 31.12.2023 | |||||
Net interest- and credit commission income | 255 | 2.71 % | 249 | 2.65 % | 758 | 2.71 % | 720 | 2.53 % | 985 | 2.61 % |
Net commission income and other operating income | 49 | 0.52 % | 45 | 0.47 % | 134 | 0.48 % | 123 | 0.43 % | 164 | 0.43 % |
Net profit from other financial investments | 19 | 0.20 % | 7 | 0.07 % | 70 | 0.25 % | 28 | 0.10 % | 15 | 0.04 % |
Staff cost (note 4) | 51 | 0.54 % | 45 | 0.48 % | 146 | 0.52 % | 133 | 0.47 % | 186 | 0.49 % |
Other operating expenses (note 4) | 55 | 0.58 % | 64 | 0.68 % | 176 | 0.63 % | 168 | 0.59 % | 228 | 0.60 % |
Losses on loans, guarantees etc. (note 10) | 17 | 0.18 % | 6 | 0.07 % | 76 | 0.27 % | 57 | 0.20 % | 100 | 0.27 % |
Result before tax | 200 | 2.13 % | 185 | 1.96 % | 565 | 2.01 % | 514 | 1.80 % | 650 | 1.72 % |
Tax payable on ordinary result | 45 | 0.48 % | 46 | 0.49 % | 126 | 0.45 % | 124 | 0.44 % | 160 | 0.42 % |
Net profit | 155 | 1.65 % | 139 | 1.48 % | 439 | 1.56 % | 390 | 1.37 % | 490 | 1.30 % |
Profitability | 30.09.2024 | 30.09.2023 | 31.12.2023 | |
ROE (excl. hybrid capital) | 12.1 % | 11.2 % | 10.4 % | |
Net interest | 2.71 % | 2.53 % | 2.61 % | |
Net interest including transfered loans | 2.27 % | 2.17 % | 2.21 % | |
Costs as a percentage of income | 33.5 % | 34.5 % | 36.0 % | |
Balance and liquidity | ||||
Total assets | 37 294 | 37 217 | 36 860 | |
Average total assets | 37 363 | 37 934 | 37 719 | |
Total asset including transfered loans | 45 833 | 45 393 | 45 419 | |
Average total assets including transfered loans | 45 900 | 45 311 | 45 333 | |
Total loans | 30 784 | 29 277 | 29 423 | |
Total loans including transfered loans | 39 323 | 37 453 | 37 982 | |
Lending growth including transfered loans | 5.0 % | 1.7 % | 1.7 % | |
Customer deposits | 24 968 | 25 046 | 24 683 | |
Customer deposits growth in percent | 0,0 % | 3.7 % | -1.8 % | |
Customer deposits in percent of total loans | 63.5 % | 66.9 % | 65.0 % | |
Solidity (including cooperative group) | ||||
Core tier one Capital ratio | 17.2 % | 18.8 % | 18.2 % | |
Core Capital ratio | 19.2 % | 21.0 % | 20.2 % | |
Total capital ratio | 21.4 % | 23.3 % | 22.1 % | |
Core tier one Capital | 3 980 | 3 919 | 4 024 | |
Core Capital | 4 424 | 4 357 | 4 468 | |
Total net equity and related capital | 4 952 | 4 850 | 4 888 | |
Capital requirement | 23 091 | 20 789 | 22 090 | |
Leverage Ratio | 8.8 % | 9.3 % | 9.2 % | |
Offices and employees | ||||
Number of employees | 170 | 164 | 165 | |
Number of offices | 4 | 4 | 4 | |
*Definition of key figures and APM's is found as an attachment on sbh.no | ||||
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Quarterly report Q3 2024 | Accounts SpareBank 1 Helgeland 3rd quarter 2024
Accounts SpareBank 1 Helgeland 3rd quarter 2024
General information
SpareBank 1 Helgeland is an independent savings bank determined to be the leading bank and a driving force for growth in Helgeland. SpareBank 1 Helgeland is the only bank with a head office in the region. The bank's strong market position combined with professional expertise, competitive prices and solid capital makes the bank well prepared in a challenging time with turmoil in the markets with relatively high interests and inflation.
The accounts are produced in line with IFRS, including IAS 34 on interim reporting. Further information on the accounting principles is given in the annotations to the annual accounts for 2023 and annotation 1 in the quarterly report. The numbers used are consolidated figures unless it is otherwise stated. Figures in brackets are the previous year's comparative figures. The financial report has not been audited.
Main features 3rd quarter
- Quarterly gross profit of MNOK 200 against MNOK 185 last quarter.
- Lending growth of MNOK 209, transferred loans included, against MNOK 864 in the second quarter of 2024.
- Net interest of MNOK 255 this quarter, an increase of MNOK 6 from last quarter.
- Profit from financial assets and commitments amounts to MNOK 19, an increase of MNOK 12 from last quarter.
- Net commission income and other operational income of MNOK 49, an increase of MNOK 4 from last quarter.
- Write-downsin lending in the quarter of MNOK 17, an increase of MNOK 11 from last quarter.
- Costs in % of income was 32.7 % against 36.4 % last quarter.
- Annualized net ROE adjusted for hybrid capital of 12.9% against 11.7 % last quarter.
Main features this quarter (MNOK) | Q3/24 | Q2/24 | Change |
Net profit | 200 | 185 | 16 |
Net interest and comission income | 255 | 249 | 6 |
Operating cost | 106 | 109 | -4 |
Yield per equity capital certificate | 4.4 | 3.9 | 0.5 |
Provision of loss | 17 | 6 | 10 |
Profit from financial investments | 19 | 7 | 12 |
Growth gross lending (this quarter) | 209 | 864 | -655 |
Growth deposits (this quarter) | -1289 | 1343 | -2632 |
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Quarterly report Q3 2024 | Accounts SpareBank 1 Helgeland 3rd quarter 2024
Main features so far this year
- Gross profit of MNOK 565 (514).
- Net interest income of MNOK 758 (720).
- Profit from financial assets and commitments MNOK 70 (28).
- Net commission income of MNOK 134 (123).
- Write-downson lending of MNOK 76 (57) or 0.26 (0,20) % of gross lending transferred loans included.
- Cost in % if income was 33.5 (34,5) %
- Annualized net ROE adjusted for hybrid capital of 12.1 (11.2) %
- Lending growth of 5.0 (1.7) % last 12 months.
Main features this year (MNOK) | 30.09.2024 | 30.09.2023 | Change |
Net profit | 565 | 514 | 51 |
Net interest and comission income | 758 | 720 | 38 |
Operating cost | 322 | 301 | 21 |
Profit from financial investments | 70 | 28 | 42 |
Provision of loss | 76 | 57 | 19 |
Return on equity % | 12.1 % | 11.2 % | 0.9 % |
Yield per equity capital certificate | 12.5 | 11.1 | 1.4 |
Core tier 1 ratio % | 17.2 % | 18.8 % | -1.6 % |
Provision of loss % of gross leding | 0.26 % | 0.2 % | 0.1 % |
Growth gross lending % this year | 5.0 % | 1.7 % | 3.2 % |
Growth gross lending % this year | 0,0 % | 3.7 % | -3.7 % |
Profit
As for the second quarter, gross profit was MNOK 200 against MNOK 185 in the second quarter of 2024, an increase of MNOK 15. The increase this quarter is mainly a consequence of increased income from indirect ownership in the SpareBank 1 Group as a consequence of the Eika Groups enter in Fremtind Forsikring. Improvement in the net interest and lower operating costs in the quarter also contributes to draw up the profit from second quarter.
So far this year, gross profit was MNOK 565 (514), an increase of MNOK 51 against corresponding period last year. An increase in net interests and profit from financial investments contributes positively with an increase of MNOK 38 and 42 since last year. Increased operating costs and a high level of write-downs draws the profit level down compared to last year with correspondingly MNOK 21 and 19.
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Quarterly report Q3 2024 | Accounts SpareBank 1 Helgeland 3rd quarter 2024
Net interest
Net interest and credit commission income amounted in the 3rd quarter 2024 MNOK 255, which is an increase of MNOK 6 from last quarter. In % of average total assets net interest and credit commission income is 2.71 %, against 2,65 last quarter. Inclusive commission income for transferred loans to mortgage loan companies, the net interest and credit commission income amounts to MNOK 263 against 258 last quarter. In % of total assets included transferred loans, this amounts to
2.28 % by the end of the quarter against 2.24 % last quarter. The increase in net interest in the quarter is related to slightly better margin in the deposits and increased lending volume. The bank still experience pressure on the margins, especially related to the interest rate margins in the credit portfolio.
So far this year, net interest and credit commission income is MNOK 758 (720), an increase of MNOK 38 from last year. In % of average total assets, this amounts to 271 (2.53) %. Inclusive commission income from transferred loans to mortgage companies, net interest and credit commission income amounts to MNOK 783 (736) pr 30.09.24. This equals a net interest in % of total assets included transferred loans of 2.27 (2.17) % at the end of the quarter.
So far this year the group has expensed MNOK 11 in contribution to the deposit guarantee- and the emergency fund.
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Quarterly report Q3 2024 | Accounts SpareBank 1 Helgeland 3rd quarter 2024
Net commission earnings
For the quarter, the net commission earnings were MNOK 49 against MNOK 45 in the second quarter of 2024. In percentage of average total assets this amounts to 0.52 %.
Deducted commission income on loans transferred to SpareBank 1 Boligkreditt net commission earnings in % of average total assets amounts to 0.43 % against 0.38 % in the second quarter of 2024. The increase from last year is mainly related to season variations.
So far this year, net commission earnings amount to MNOK 134 (123) or 0.48 (0.43) % of average total assets. Hereof MNOK 25 (16) in commission income from SpareBank 1 Boligkreditt.
Net value change and profit/loss from financial investments
Income from financial investments was positive with MNOK 19 in the third quarter, an increase of MNOK 12 compared to the second quarter of 2024. The increase is mainly related to income recognition of the one-time effects from the merge between Eika Forsikring and Fremtind Forsikring.
Compared to last year, income from financial investments amounts to an improvement of MNOK 42 as of 30.09.2024.
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Quarterly report Q3 2024 | Accounts SpareBank 1 Helgeland 3rd quarter 2024
In the parent bank, dividend from Helgeland Boligkreditt AS have been recognized as income with MNOK 21 in the first quarter of 2024.
Operating costs
This quarter, the operating costs were MNOK 106 against MNOK 109 in the second quarter of 2024. In % of income, the costs amount to 32.7 % against 36.4 % in the second quarter of 2024. The costs are within the bank's target for cost level of 40 % of total income but is affected by high interest income and income from financial investments. The cost development in the quarter is related to higher personal costs as a consequence of accruals and refusions last quarter, while other operating costs are decreasing as a consequence of a smaller extent of purchased services and products.
So far this year, the operating costs amounts to MNOK 322 (301), This is an increase of MNOK 21 compared to the corresponding period last year. The cost percentage is 33,5 % against 34.5 % last year.
The bank's sick leave is 6.8 % against 4.0 % in the corresponding period last year.
Write-downs on lending
MNOK 17 has been expensed in write-downs on loans and guarantees this quarter against MNOK 6 in the second quarter 2024. The write-downs in the quarter are a consequence of individual and model write-downs. The write-downs for 3rd quarter is considered moderate and amounts to 0.17 % of gross lending including transferred loans, and is below earlier communicated expectations. High-
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Quarterly report Q3 2024 | Accounts SpareBank 1 Helgeland 3rd quarter 2024
cost time, corrosion on operating capital and low activity can affect the write-down provisions further through the year, and it is uncertainty related to the write-down estimates.
Net non-performing and impaired commitments amounts to MNOK 440 by the end of the quarter against MNOK 515 at the end of second quarter 2024. This equals to a decrease of MNOK 75 from last quarter. There are individual write-down evaluations on large parts of the volume that is marked within non-performing and impaired commitments as of 30.09.24, and it is not expected significant changes in the loss deductions on these commitments.
So far this year, write-downs on loans and guarantees amounts to MNOK 76 (57). In % of gross lending, this amounts to 0.26 (0.20) %.
The equity certificate - HELG
By the end of the quarter, the number of EC owners amounts to 2 994. The 20 largest owners are noted with 81.1 % of the EC capital. Of this, Sparebankstiftelsen owns 28.11 % and SpareBank 1 Nord- Norge 19.99 %.
Number of issued ECC's is 27 000 130. As of 30.09.24, the bank owned 94 596 own ECC's.
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