1 st quarter report Group

Transcription

1 1

2 1 st quarter report Group Profits beforetax: NOK 356 mill(473 mill) ROE: 12.5 % (18.6 %) Loan losses NOK 32 mill Very good solidity and liquidity Few signs of a weakening of the regional economy. Continued good macroeconomic outlook for Nord-Norge 2

3 3 Nord-Norge macro economy

4 Economic prognosis: Export growth Norway 4 %, North Norway 7 % 4 Growth unless otherwise stated NORTHERN NORWAY NORWAY Est SSB Private consumption 107 bn 2 % 2 % 3 % 2,1 % 2 % 2 % 3 % Public consumption 73 bn 2 % 3 % 3 % 1,6 % 2 % 3 % 3 % Fixedinvestments 42 bn 2 % 2 % 3 % 8,7 % 1 % 2 % 3 % Exportsinternational 49 bn 6 % 7 % 7 % -3,9 % 4 % 4 % 4 % Imports international 46 bn 2 % 3 % 4 % 2,5 % 2 % 3 % 3 % Exportsto rest of Norway 85 bn 2 % 2 % 3 % Imports from rest of Norway 128 bn 2 % 3 % 3 % GDP (mainland) 182 bn 3 % 3 % 4 % 2,0 % 2 % 2 % 3 % Employment 0,9 % 0,5 % 0,5 % 1,0 % 1,2 % 0,5 % 0,0 % 1,0 % Unemployment level 2,9 % 3,0 % 3,1 % 3,0 % 2,6 % 3,1 % 3,7 % 3,5 %

5 Regional economy few signs of weakening Continued improvement within seafood and tourism following a record yearin 2014 A growingoiland gas sectorin thenorth Goliat in production Aasta Hansteen and Polarled under development Housing investments at a high level «Regional network North» report (Central Bank of Norway), March 2015: «Prononced growth the following six months» Stable, lowunemployment 2,7 % as at March2015 5

6 North Norway macro-economic advantages A diversifiedexportorientedbusiness sector with positive growth impulses The regional oiland gas industryis still in an early phase, thus representing an upside rather than a downside potential Considerable infrastructure investments A stabilising public sector 6

7 Seafood from North Norway on the global food dish Export value from North Norway 2013 Estimated share of national export value 7

8 Oil and gas: new fields in production Goliat: First oilfieldin thebarents Sea Platform is being prepared for operation Operational organisation in place Polarbase more than50 supplier companies Aasta Hansteen/Polarled: Several gas fields, strengthened by new discovery in March 2015 (Snefrid north) Installation at meter oceandepth Substantial local supplies from companies like Momek and Aker Solutions Helgeland Production start-up in 2017 Goliat FSPO the world s northernmost offshore oil field soon ready for operation Picture: ENI Norge 8

9 9 NOK 300 bill. investments in infrastructure

10 Housing market in the north House prices Price level and Growth y/y, March % 15% % 6.6 % 7.9 % 10.7 % 4.9 % 12% 9% 6% % Tromsø Bodø Finnmark Norge Troms ex Tromsø Nordland ex Bodø 0% Average price, NOK per m2, all units Price increase y/y 10

11 Residential investment at high level Housing starts Number of units Q1 y/y Northern Norway Forecast demand Nordland Troms Finnmark 11

12 12 Strategy and brand

13 a fact that has inspired SpareBank 1 Nord-Norge For Nord-Norge! 13

14 Strategy: Priorities Profitable growthin all high-prioritysegments and geographical areas. Further branding Focus on core banking and being perceived as a unified banking group. Continuedfocusondigitalisationofbusiness processes. Stimulating seamless interaction between the distribution channles; branches, customer center and mobile/internet banking Ensure and utilise the physical presence, but also increase efficiency in the distribution network

15 Rapid change in customer behaviour adaption of day-to-day traditional banking to mobile solutions in less thantwoyears 1,1 million loginsonthemobile banking applicationin SpareBank1 Nord-Norge in Dec % more loginsonthemobile application compared with the internnet solution Monthly logins SpareBank 1 The mobile application now also includesproductswithininsuranceand savings Logins Mobile banking Logins Internet banking 15

16 Several mobile purchasing solutions Overview Accounts, creditcard, savings, loans, insurance Wage-/current account Payment services Transfers between accounts Maturity list Electronic invoicing Receipts SMS-alerts Dialog and messages Order services Advisory services Real estate value estimation Cards Replacement Individual regional restrictions Refilling Credit card Electronic invoicing Payment Equity and fixed in come funds Buy/sell Savings agreement Insurance Buy childrens insurance Buy travel insurance Insurance loss reporting 16 Severalnewpurcasingsolutionswillbe launchedin 2015 withinbanking, card, creditcard, insurance, savings, etc.

17 At yearend2014 thebank had66 branches. 19 Financial Centres and 47 smaller local branches represent the bank s physical distribution network The Financial Centres are offering the Group s total products and services, while the smaller branches are only servicing the retail market. The number of local branches was reduced by 8 in During 2015 thebank will furthermergea minimum of4 units with other branches. 17 Physical distribution network

18 Profitability and cost efficiency Tightenedcostambition: Maximum yearlycostincrease; 1 %,excluding restructuring costs and implemented business expansions (subsidiaries) Project for improved Group profitability has been initiated Top line growth How to improve profitability through Increased efficiency Capital efficiency 18

19 A profitable business model A unique brand Local presence Regional knowledge A national alliance Focus on core banking 19

20 20 Financial figures

21 Main financial targets Profitability: Banking operations at top internationallevel: Minimum 12% ROE Solidity: Undisputable solid Internal capital buffer of at least 1 percentage point above the statutory minimum requirement. Long term goal for CoreTier 1 levelis currently14.5 % 21

22 Capital adequacy ratio - Group 14% 13% 12,3 % 12,9 % 13,0 % 12,8 % 12,5 % 13,1 % 12% 11% 10,8 % 10,7 % 10,6 % 10,7 % 10,2 % 10,3 % 10,3 % 10,6 % 10,8 % 10% 9,7 % 9% 8% 7% 6% 5% Tier I Capital incl share of result Lower limit Common Equity Tier I 22

23 Profit and loss account - Group (Amounts in NOK million) Net interest income Net fee-, commision and other operating income Net income from financial investments Total net income Total costs Result before losses and write-downs Net losses and write-downs Result before tax Tax Result non-current assets held for sale 0 0 Minority interests Result for the period Return on equity capital 12,5 % 18,6 % 23

24 Quarterly summary Profit and loss account figures (Amounts in NOK million) 1Q15 4Q14 3Q14 2Q14 1Q14 Net interest income Net fee-, commision and other operating income Net income from financial investments Total net income Total costs Result before losses and write-downs Net losses and write-downs Result before tax Return on equity capital 12,5 % 1,5 % 13,4 % 15,9 % 18,6 % Cost/income 46,6 % 53,2 % 44,2 % 42,7 % 38,8 % 24

25 25 Net interest income- Group

26 Changes in net interest income last quarter Measured against average funding cost 26

27 Lending margin, Parent bank The interest margin is defined as the difference between the customer lending (deposit) interest rate and average 3 month NIBOR 27

28 Customer deposit, Parent bank 1,00 % 28 0,80 % 0,60 % 0,40 % 0,20 % 0,00 % -0,20% -0,40% -0,60% -0,80% -1,00% 0,82 % 0,61 % 0,31 % 0,11 % 0,05 % 0,20 % 0,00 % 0,16 % -0,04 % -0,01 % 0,01 % 0,00 % 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13-0,02 2Q13 % 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15-0,08 % -0,08 % -0,11 % -0,14 % -0,12 % -0,17 % -0,16 % -0,26 % -0,27 % -0,32 % -0,35 % -0,37 % -0,46 % -0,46 % -0,43 % -0,50 % -0,50 % -0,55 % -0,59 % -0,67 % -0,74 % -0,81 % -0,81 % -0,82 % -0,81 % -0,79 % -0,75 % -0,70 % -0,84 % Interest margin corporate Interest margin public Interest margin retail The interest margin is defined as the difference between average 3 month NIBOR and the customer deposit interest rate

29 Quarterly summary Profit and loss account figures (Amounts in NOK million) 1Q15 4Q14 3Q14 2Q14 1Q14 Net interest income Net fee-, commision and other operating income Net income from financial investments Total net income Total costs Result before losses and write-downs Net losses and write-downs Result before tax Return on equity capital 12,5 % 1,5 % 13,4 % 15,9 % 18,6 % Cost/income 46,6 % 53,2 % 44,2 % 42,7 % 38,8 % 29

30 Total commission and other income ,5 % 36,3 % 32,3 % 32,9 % 40% 35% 27,8 % % ,1 % 25% % 15% % 5% % Total other operating income Net commision income Net fee-, commission and other income as % of total net return

31 Income from financial investments Group (Amounts in NOK million) 1Q15 4Q14 3Q14 2Q14 1Q14 Dividends Income from joint ventures Gains/losses and net value changes on shares Net value changes on bonds, foreign exchange and fin.derivatives Gains/losses and net value changes on loans Income from financial investments

32 Group operating costs (Amounts in NOK million) Change Wages and salaries Pension costs Social costs Total personnel costs Administration costs Total personnel- and general administration costs Depreciation and write-downs of fixed assets Total operating costs Total costs

33 Group operating costs 33 33

34 Losses on loans and guarantees - customers NOK mill 250 1,40 % ,20 % 1,00 % 150 0,80 % ,60 % ,14 % 0,15 % 0,26 % 0,21 % 0,19 % 32 0,15 % 0,40 % 0,20 % 0,00 % Net losses Net losses in % of gross lending incl. SpareBank 1 Boligkreditt and Næringskreditt 34

35 Core banking operations- (excl. income from financial investments) (Amounts in NOK million) 1Q15 4Q14* 3Q14 2Q14 1Q14 Net interest income Net fee- and commission income Other operating income Total costs Underlying banking operations Net losses and write-downs Underlying banking operations after losses *Of which cost/losses Russian Banks

36 Group companies result before tax (Amounts in NOK 1000) SpareBank 1 Finans Nord-Norge AS SpareBank 1 Nord-Norge Portefølje AS SpareBank 1 Regnskapshuset Nord-Norge AS EiendomsMegler 1 Nord-Norge AS SpareBank 1 Nord-Norge Forvaltning ASA North-West 1 Allianc e Bank EiendomsMegler 1 Lofoten AS (owned by EM1 60%) Nord-Norge Eiendom IV AS Alsgården AS Fr. Langes gate 20 AS Total

37 Key figures balance sheet Change Change % Total assets ,8% Gross lending ,9% Loans and advances to customers incl SpareBank 1 Boligkreditt and Næringskreditt ,4% Deposits from customers ,9% 37

38 Lending volume NOK milll % 71 % Retail incl. SpareBank 1 Boligkreditt % % 0 mar. 12 jun. 12 sep. 12 des. 12 mar. 13 jun. 13 sep. 13 des. 13 mar. 14 jun. 14 sep. 14 des. 14 mar SpareBank 1 Boligkreditt and Næringskreditt Retail banking market Corporate and public Growth past 12 months: Loans and advances to customers incl SpareBank 1 Boligkreditt and 4,4 % Retail incl. SpareBank 1 Boligkreditt 5,5 % Corporate and public 1,9 % Retail excl. SpareBank 1 Boligkreditt

39 Deposit volume % 90% ,9 % 82,9 % 76,5 % 75,6 % 80,9 % 84,3 % 77,62 % 78,45 % 75,71 % 79,86 % 75,19 % 74,71 % 75,68 % 80% 70% % % % 0 mar. 12 jun. 12 sep. 12 des. 12 mar. 13 jun. 13 sep. 13 des. 13 mar. 14 jun. 14 sep. 14 des. 14 mar. 15 Retail banking market Corporate Public Deposits as a percentage of gross lending 30% 39 Deposits growht past 12 months 5,9 % Retail banking market 8,2 % Public* -4,3 % Corporate 5,9 % *Deposit growth excl. of Treasury bills under the Government swap scheme

40 40 Credit area

41 The Group's non-performing, impaired and other problem commitments MNOK Non-performing commitments Other problem commitments Individual write-down for impaired value (left axis) Gross non-performing and impaired commitments in % of gross lending incl. agency loans (right axis) 1.34% 1.36% 1.18% 1.30% 1.06% 1.00% 0.88% 0.80% 0.64% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 41

42 Distribution on segments shows good diversification Loan portfolio including Boligkreditt SPB1 Boligkreditt 28,3 % Construction building 2,4 % Other service industry 2,2 % Agriculture, fisheries, fish farming 5 % Andre 19,5 % Wage-earners 42,3 % Transport and wholsesale 5,3 % Property management 9,9 % Maritime sector 0,9 % Other 3,9 % A high share of retail- and primary industry lending represent a risk mitigating factor. The Group has a well diversified corporate market lending portofolio. No specific concerns related to the bank's loans to commercial property due to low interest 42 rates and good occupancy rates in the bank's market area.

43 43 Liquidity/funding

44 44 Funding instruments

45 Maturity profile Capital markets funding(excl. SPABOL) Good diversification in terms of maturities NOK mill in capitalmarket fundingexclusiveofsb1 Boligkreditt SpareBank 1 Boligkreditt is an importantfundingsource. Mortgage loansofnok mill transferred as at Amount of gross maturities of capitalmarket fundingnext12 monthsis NOK mill 45

46 46 Summary

47 1 st quarter report Group Profits beforetax: NOK 356 mill(473 mill) ROE: 12.5 % (18.6 %) Loan losses NOK 32 mill Very good solidity and liquidity Few signs of a weakening of the regional economy. Continued good macroeconomic outlook for Nord-Norge 47

48 Why invest in SpareBank 1 Nord-Norge? 1) Continued strong macro economics in North Norway 2) Very strong position in the region 3) Profitable growth within core banking activities 4) Good solidity and capacity for profitable growth 48

49 Contact information: SpareBank 1 Nord-Norge P o Box 6800 N Tromsø CEO Jan-Frode Janson CFO Rolf Eigil Bygdnes Tel Tel SNN homepageand internetbank: Equity capital certificates in general: Financial calendar 2015: 12 August 29 October

50 50 Enclosures

51 SpareBank1 Nord-Norge Vision: For Nord-Norge! Head office: Tromsø Organisation: 5 regioner Regional offices: Hammerfest Tromsø Harstad Bodø Mo i Rana Branches: 66 51

52 Organisation of the financial services Group SpareBank 1 Nord-Norge Financial Services Group EiendomsMegler 1 Lofoten AS Equity stake 60 % Nord-Norge Eiendom IV AS Equity stake 100 % Alsgården AS Equity stake 100 % 52 SpareBank 1 Finans Nord-Norge AS Equity stake 100 % EiendomsMegler 1 Nord-Norge AS Equity stake 100 % North-West 1 Alliance Bank Equity stake 75 % SpareBank 1 Nord-Norge Forvaltning ASA Equity stake 100 % SpareBank 1 Regnskapshuset Nord-Norge AS Equity stake 100 % SpareBank 1 Nord-Norge Portefølje AS Equity stake 100 % Fredrik Langs gate 20 AS Equity stake 100 % SpareBank 1 Gruppen AS Equity stake 19,5 % SpareBank 1 Boligkreditt AS Equity stake 14,71 % SpareBank 1 Næringskreditt AS Equity stake 20,83 % BN Bank ASA Equity stake 23,5 % SpareBank 1 Kredittkort AS Equity stake 17,80 % SpareBank 1 Markets AS Equity stake 27,02 % Alliansesamarbeidet SpareBank 1 DA Equity stake 17,74 % SpareBank 1 Verdipapirservice AS Equity stake 100 % SpareBank 1 Kundesenter AS Equity stake 100 %

53 53 Main financial figures

54 Key figures 14% 16% 13% 13,1 % 14% 12% 11% 10% 12% 10% 12,5 % 9% 8% 8% 7% Q15 Common Equity Tier I % incl share of result 6% 4% Q15 Return on equity capital 2,0 % 60% 55% 50% 45% 40% 35% 30% 46,6 % 1,8 % 1,6 % 1,4 % 1,2 % 1,0 % 0,8 % 0,6 % 0,4 % 0,2 % 0,6 % 25% 20% Q15 Cost/income group 0,0 % Q15 Total non-perf and impaired commitm. as % of gross loans

55 Quarterly results net interest income (Amounts in NOK million) 1Q15 4Q14 3Q14 2Q14 1Q14 Interest and similar income from loans to and claims on credit institutions Interest and similar income from loans to and claims on customers Interest and similar income from certificates, bonds and other interest-bearing securities Total interest income Interest and similiar income Interest and similar costs on relating liabilities to deposits to credit from institutions and liabilities to customers Interest and similar costs related to the issuance of securities Interest and similar costs on subordinated loan capital Payments made to The Norwegian Banks' Guarantee Fund Total interest costs Net interest income

56 Total commission and other income (Amounts in NOK million) 1Q15 4Q14 3Q14 2Q14 1Q14 Guarantee commissions Interbank commissions Credit arrangement fee Arrangement fee from SpareBank 1 Boligkreditt Arrangement fee from SpareBank 1 NN Finans Securities trading, administration and trust department services Payment transmission services Brokerage commission Insurance services Other commission income Total commissions inc ome Operating- and sales income real estate Other operating income Total other operating income Commission expenses Net fee-, commision and other operating income

57 Operating expenses (in NOK million) 1Q15 4Q14 3Q14 2Q14 1Q14 Wages and salaries Pension costs Social costs Sum personalkostnader Development costs Electronic data processing costs Marketing costs Travel - and training costs Communications Postage Consultancy services Cost involving the handling of cash Office-related costs Collection costs Ordinary depreciation Operating costs - premises/buildings Other operating costs incl rent Other costs Total operating expenses

58 Credit growth corporates Credit growth corporates. 12 mth growth % M M M M03 SNN, Corporate clients Norway, Corporates 58

59 Credit growth households Credit growth households. 12 mth growth % M M M M03 SNN, Retail clients Norway, Households 59

60 Deposit growth corporates Deposit growth corporates. 12 mth. growth % M M M M03 SNN, Corporate clients Norway, Corporates 60

61 Deposit growth households Deposit growth households. 12 mth. growth % M M M M03 SNN, Retail clients Norway, Households 61

62 62 Credit area

63 Lending portfolio- comments Retail lending -focusing on commitments qualifying for SpareBank1 Boligkreditt(covered bond company). Moderate growth in corporate market lending in The portfolio and growth in corporate sector lending is diversified. Reduced individual losses in 2014 compared with losses as of

64 Loan losses: The Group's write-downs as at Q Write-downs th quarter 2014 (iso) 4th quarter 2013 (iso) Individual write-downs Retail market Corporate market SpareBank 1 Finans Nord-Norge Other group units Total individual write-downs Collective write downs and other value change items Effects from consolidations Total write-down on loans and guarantees

65 Portfolio - exposure as of , parent bank NOK mill Næringskreditt Boligkreditt Low risk Medium risk High risk Default/impaired Retail market Corporate market SB1 Boligkreditt SB1 Næringskreditt 65

66 Portfolio - exposure as of Loans distributed by size of exposure and share of total exposure Share of loanexposure Mar 2015 Share of loanexposure Mar % 76% 10% 10% 7% 8% 7% 6% Below 10 mnok mnok mnok Above 250 mnok Numbers includes SB 1 Bolig- and Næringskreditt 66

67 67 Equity certificate holders

68 Equity Certificates (EC) - holder structure 68

69 The 20 largest EC holders 69 Number of Share of total Equity Certificate holders Equity Certificates capital Pareto Aksje Norge ,38 % Verdipapirfondet Dnb Norge (IV) ,94 % Mp Pensjon Pk ,68 % Citibank, N.A. S/A National Financial Services ,00 % Pareto Aktiv ,96 % Wimoh Invest AS ,61 % State Street Bank And Trust Co ,55 % Goldman Sachs Int ,44 % Sparebankstiftelsen Sparebank 1 Nord-Norge ,41 % Protector Forsikring ASA ,35 % FLPS - Princ All Sec Stock Sub ,34 % Forsvarets Personellservice ,29 % Pareto AS ,27 % Dnb Livsforsikring ASA ,13 % Bergen Kommunale Pensjonskasse ,95 % Pareto Verdi ,93 % Verdipapirfondet Eika Utbytte ,92 % Sanlam Universal Funds PlC ,90 % Merrill Lynch Prof. Clearing Corp ,89 % Larre Eiendom 2 AS ,87 % The 20 largest EC holders ,81 %

70 The 20 largest EC holders residing in Northern Norway 70 Number of Share of total Equity Certificate holders Equity Certificates Equity Certificate capital Sparebankstiftelsen Sparebank 1 Nord-Norge ,41 % Consept Eiendom AS ,60 % Karl Ditlefsen ,55 % Norges Råfisklag ,44 % Hansen Dahl Fiskeri AS ,37 % Tor Ovesen ,21 % Ole Alfred Rolf Ovesen ,20 % Gadd Holding AS ,17 % Tromsø Skotøimagasin A/S ,17 % Entreprenørc ompaniet Nord AS ,17 % Agnar Holding AS ,15 % Sparebankstiftelsen Helgeland ,15 % Rigamonti A/S ,15 % Tromstrygd ,14 % Brødrene Karlsen Holding AS ,12 % Hemming Leonharth Andersen ,11 % Geir Andre Steiland ,11 % J.M.Hansen Invest AS ,10 % Coop Nord Ba ,10 % Odd Erik Hansen Eiendom AS ,10 % The 20 largest EC holders residing in Northern Norway ¹) ,51 %

71 71 SpareBank 1 Group and Alliance

72 SpareBank 1 - Alliance Strong alliance of Norwegian retail banks Founded Economies of Scale - key banks in the Alliance trace their history back to the 1820 s Local presence Norway s most extensive branch network with 350 branches Tromsø 2nd largest mortgage lender in the Norwegian Retail Market Market leader in its local markets - The neighbourhood bank with market shares from 30-50% Trondheim Approx two thirds are retail lending - Rest is SME lending Bergen Stavanger Kristiansand Oslo SMN Sr. Unsec. Ratings Fitch Moody s SpareBank 1 SMN A- / F2 A2 / P-1 SpareBank 1 SR-Bank A- / F2 A2 / P-1 SpareBank 1 Nord-Norge A / F1 A2 / P-1 Sparebank 1 Hedmark n/a A2 / P

73 SpareBank 1 Alliance Structure SpareBank 1 SR-Bank SpareBank 1 SMN SpareBank 1 Nord-Norge Sparebank 1 Hedmark 11 Smaller SpareBank 1 Banks All banking and ancillary products customers The banks issue senior unsecured, subordinated and capital instruments individually Equity and credit investors Services, dividends, commissions, covered bond funding Mortgages, capital, commitments, human resources etc. Joint Product Platforms Operational Integration Central Functions Property/Casualty Insurance Life Insurance Risk Management Underwriting procedures SpareBank 1 Boligkreditt SpareBank 1 Næringskreditt Covered bond investors Mutual Funds (scorecards, models and credit policies) Marketing and Branding Cards and Payments IT System Business Development Leasing Finance Market Analysis Factoring and Collection Procurement Markets Centres of Excellence 73 73

74 SpareBank 1 -Alliance Second largest lender in Norway Source: Banks annual reports and own estimates, NBIM, Statistics Norway