3 rd quarter October Presentation of results SpareBank 1 Gruppen. Kirsten Idebøen, CEO

Transcription

1 3 rd quarter Presentation of results SpareBank 1 Gruppen Kirsten Idebøen, CEO 28 October

2 Highlights Good earnings performance for SpareBank 1 Gruppen in the 3 rd quarter SpareBank 1 Skadeforsikring reports the lowest quarterly claims ratio in four years in the 3 rd quarter Argo Securities establishes SpareBank 1 Markets in collaboration with the alliance banks. The aim is to strengthen SpareBank 1's position within the markets-area Strategic focus within receivables management Acquisition of the debt collection company Conecto AS was completed in the 3 rd quarter New structure for SpareBank 1 Gruppen Finans with focus on growth, control and greater efficiency The Delta profitability project is ahead of schedule and has contributed to a net result improvement of MNOK 77 year to date 2

3 MNOK Good year-to-date earnings performance for SpareBank 1 Gruppen Group pre-tax profit, quarterly Pre-tax profit - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3 Pre-tax profit as of Q3 was MNOK 643 (818). Pre-tax profit for Q3 was MNOK 347 (358)* Profit after tax as of Q3 was MNOK 508 (567). Profit after tax for Q3 was MNOK 259 (330) Annualised return on equity was 15.8 % (19.1 %) year to date and 24.4 % (35.0 %) for Q3 alone Total assets as of 30 September was NOK 39.8 billion, up NOK 3.3 billion from 31 December 2009 Core ratio and capital ratio were 11.5 % and 16.7 % as of 30 September **, compared with 15.0 % and 20.9 % at year-end 2009 * Comparison figures for 2009 have been restated and do not include Bank 1 Oslo Group. Including Bank 1 Oslo Group, the pre-tax profit as of the 3 rd quarter 2009 would have been MNOK 974 ** Year-to-date profit has not been included in the calculation of the capital adequacy ratio MNOK 43 were recognised as income in Q3 in connection with employer's National Insurance contributions, associated with a ten year-old tax case, that SpareBank 1 Gruppen AS previously had covered on behalf of First Securities 3

4 Delta profitability project still ahead of schedule in realising profitability effects, and has contributed to a net result effect of MNOK 77 year to date REALISED EFFECTS AS OF 30 SEPTEMBER * (excluding Bank 1 Oslo) Realisation of profitability effects over time (MNOK, cumulative annual effect) PROFIT EFFECT FROM THE DELTA PROFITABILITY PROJECT AS OF 30 SEPTEMBER (MNOK) 132 Planned Realised effects Others 34 SB1 Skade SB1 Liv Permanent profit improvement as of One-off implementation costs as of ** Net profit effect as of H H H 3Q 2H *A completed measure qualifies for full annual effect. This method ensures focus on implementation. **Costs of MNOK 55 related mainly to IT development and the use of consultants. Costs of MNOK 20 were recognised in Q3. 4

5 SpareBank 1 Livsforsikring Good risk result and solid buffer capital 5

6 MNOK MNOK SpareBank 1 Livsforsikring Good risk result and solid buffer capital Pre-tax profit as of Q3 was MNOK 278 (311). Pre-tax profit for Q3 was MNOK 86 (81) Risk result was MNOK 260 (277) year to date. Risk result was MNOK 72 (87) for Q3 Pre-tax profit, quarterly Investment result was MNOK 269 (432) as of Q3. Investment result was MNOK 71 (132) for Q Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2 Pre-tax profit/loss - Q3 Provisions for increased life expectancy amounted to MNOK 36 year to date and MNOK 12 for Q3 Total assets amounted to NOK 25.6 billion as of 30 September, up NOK 1.3 billion from year-end 2009 Risk result trend YTD Year-end 6

7 Percent SpareBank 1 Livsforsikring Solid buffer capital Core and capital adequacy ratio estimated at 20.1 % and 18.3 % as of , compared with 19.0 % and 16.1 % as of Development in buffer capital The buffer capital, including the year-to-date profit, amounted to NOK 2.5 billion as of Q3, which corresponds to 16.1 % (13.7 %) of the insurance provisions Estimated solvency margin by the end of September was 306 % (242 %) Additional provisions amounted to MNOK 274, compared with MNOK 289 at the end of % 16% 14% 12% 10% 8% 6% 4% 2% 0% 6.0 % Q % Q % Q Core capital in excess of minimum Additional provisions 11.7 % Q % Q % 16.1 % Q2 Q3 Interim profit Securities adjustment reserve The securities adjustment reserve was MNOK 410, compared with MNOK 327 at year-end

8 Prosent SpareBank 1 Livsforsikring Value adjusted return for customer portfolios with guarantee year to date (excluding change in value construction) Q2 Q3 * Q2 Q3 Q2 Q3 Q2 Q SpareBank 1 Storebrand Vital Nordea * Booked return as of 3 rd quarter was 4.0% 8 Source: company presentations

9 SpareBank 1 Skadeforsikring Group Positive insurance result development year to date 9

10 MNOK SpareBank 1 Skadeforsikring Group Positive insurance result development year to date Pre-tax profit was MNOK 334 (506) as of Q3. Pre-tax profit for Q3 was MNOK 254 (251), inclusive of a pre-tax loss from Unison Forsikring of MNOK -9 from the date of the acquisition, of which MNOK 7 was non-recurring costs related to the acquisition Insurance result was MNOK 144 (118) as of Q3. Insurance result in Q3 was MNOK 121 (96) Net combined ratio was 96.8 % (95.1 %) as of 30 September and 89.8 % (90.9 %) in Q3 Net cost ratio was 20.0 % (21,7 %) as of Q3 and 22.7 % (21.8 %) in Q3 Net claims ratio was 76.7 % (73.4 %) as of Q3. The net claims ratio in Q3 was 67.1 % (69.2 %) Pre-tax profit, quarterly Net financial income was MNOK 232 (405) year to date. Financial return year to date was 2.7 % (5.2 %) Pre-tax profit - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3 Positive portfolio growth in both private and corporate markets as of 30 September. Total portfolio growth of MNOK 255 (196) from year-end 2009, which represents 6.3 % (5.1 %) 10

11 79.5 % 71.7 % 69.2 % 74.8 % 88.3 % 75.9 % 67.1 % 79.5 % 75.6 % 73.4 % 73.8 % 88.3 % 82.0 % 76.7 % 21.1 % 22.2 % 21.8 % 24.8 % 17.1 % 22.7 % 20.2 % 21.1 % 21.7 % 21.7 % 22.5 % 20.2 % 18.6 % 20.0 % SpareBank 1 Skadeforsikring Group Low claims ratio in Q3 Net combined ratio - cumulative Net combined ratio - quarterly % 100 % 80 % % 97.2 % 95.1 % 96.2% % 96.8 % % % % 93.9 % 90.9 % 99.6 % % 92.9 % 89.8 % 60 % 80.0 % 60.0 % 40 % 40.0 % 20 % 20.0 % 0 % 0.0 % Per Q Per Q Per Q Per Q Per Q1 Per Q2 Per Q3 Q Q Q Q Q1 Q2 Q3 Net claims ratio Net cost ratio Net claims ratio Net cost ratio 11

12 ODIN Forvaltning Increased assets under management 12

13 MNOK ODIN Forvaltning Increased assets under management Pre-tax profit, quarterly Pre-tax profit was MNOK 48 (18) year to date. Pretax profit in Q3 was MNOK 17 (16) Total assets have increased by NOK 1.0 billion from year-end 2009 and amounted to NOK 29.0 billion as of 30 September In September ODIN entered into an agreement to acquire SpareBank 1 SR-Fondsforvaltning AS. Consequently, ODIN will add combination funds to the range of funds offered from early In October ODIN launched a mass-market version of ODIN Eiendom (Real Estate), a Nordic industry fund that invests in shares in companies that are engaged in the property market and property related businesses. The fund has provided a 17 % annual return since it was established for over ten years ago Pre-tax profit/loss - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3 13

14 Argo Securities Stronger position through the "SpareBank 1 Markets" collaboration 14

15 Argo Securities Stronger position through the "SpareBank 1 Markets" collaboration Pre-tax loss, quarterly Pre-tax loss - Q1 Pre-tax loss - Q2 Pre-tax loss - Q3 Ranking in Oslo Børs's brokerage statistics Pre-tax loss was MNOK -34 (-39) as of Q3. Pre-tax loss in Q3 was MNOK -29 (-15) Provisions for employee bonuses were allocated in Q3 Positive development in revenue year to date compared with the same period last year Commission income on stocks and derivatives amounted to MNOK 27 (17) Debt capital markets was MNOK 12 (5) Fee income Corporate Finance totalled MNOK 17 (1) SpareBank 1 Nord-Norge Markets, SpareBank 1 SMN Markets, SpareBank 1 SR-Bank Markets and Argo Securities will establish "SpareBank 1 Markets" Finansavisen, 26 October : Bank-owned brokerage firms that can guarantee for new issues have been preferred as facilitators in the turbulent market over the last two years 32 Q Q Q1 Q2 Q3 SpareBank 1 Markets is a formalised collaboration to strengthen the markets area, including, for example, a pooled ledger balance of NOK 2.4 billion, which will be used to guarantee equity and debt capital transactions 15

16 SpareBank 1 Gruppen Finans Strategic focus within receivables management 16

17 Fordringsforvaltning Management Factoring Portefølje Conecto SB1G Finans Group MNOK SpareBank 1 Gruppen Finans Strategic focus within receivables management Pre-tax profit/loss as of Q3 YTD 2009 YTD SpareBank 1 Gruppen Finans reported a pre-tax profit of MNOK 2 (20) year to date The Factoring business area reported a pre-tax loss of MNOK -0.5 (5), marked by a loss provision of MNOK 10.5, related to a bankruptcy commitment, MNOK 5.5 of which was allocated in Q3 Client revenues as of Q3 of NOK 7 billion increased by 23.1 % compared with the same period in 2009 SpareBank 1 Factoring shows the strongest growth in the market and has a market share of 11 % (4 th place) The pre-tax profit for Actor Fordringsforvaltning of MNOK 11 (20) was affected by mandatory reduction in debt recovery fees and increased personnel expenses * *Conecto was acquired with accounting effect from 10 September. The profit up to the acquisition date was recorded directly against equity 17

18 SpareBank 1 Gruppen Finans Simplified legal structure implemented in Q3 Old structure New structure SpareBank 1 Gruppen SpareBank 1 Gruppen SpareBank 1 Gruppen Finans Holding (100%) SpareBank 1 Gruppen Finans (100%) SpareBank 1 Factoring (100%) Actor Fordringsforvaltning (100%) Actor Portefølje (100%) Conecto (100%) Actor Fordringsforvaltning (100%) Actor Verdigjenvinning (100%) 18

19 SpareBank 1 Gruppen Finans Acquisition of debt collection company Conecto AS in Q3 strengthens SpareBank 1 Gruppen's countercyclical business Combined, SpareBank 1-owned Actor Fordringsforvaltning and Conecto represent the third largest debt collection company in Norway Actor Fordringsforvaltning and Conecto will be merged as of 1 January The merger will contribute to: Income-related diversification Increased access to expertise and systems Improved quality, competitiveness and business models Ranking Revenue Company (MNOK) 1 Lindorff Kredinor Conecto/Actor Fordringsforvaltning 157* 4 Aktiv Kapital Gothia AS Intrum Justitia 78 7 Sergel 70 8 Creno 60 Number of Company Revenue (MNOK) employees Conecto Actor Fordringsforvaltning** * Shows the combined revenues for Conecto and Actor Fordringsforvaltning ** Revenues for Actor Fordringsforvaltning as of 31 December 2009 include Actor Verdigjenvinning 19

20 Competitive return on equity among selected Nordic financial institutions 3 rd quarter * Year 2009** SpareBank 1 Gruppen 15.8 % 17.5 % Handelsbanken 12.9 % 12.6 % DnB NOR 12.2 % 10.6 % Nordea 11.0 % 11.3 % Gjensidige 10.8 % 11.3 % Storebrand 3.9 % 5.6 % Danske Bank 3.4 % 1.0 % *For comparison purposes only, the annualised return on equity is calculated on the basis of the profit for the period (profit attributable to shareholders) **The annualised return on equity for 2009 is based on the companies annual reports for Source: Companies' interim reports for and annual reports for 2009

21 21 21 The nation's savings bank

22 22 Appendix

23 SpareBank 1 Alliance SpareBank 1 SR-Bank (19.5 %) SpareBank 1 SMN (19.5%) SpareBank 1 Nord-Norge (19.5%) Sparebanken Hedmark (12%) Samarbeidende Sparebanker (19.5%) LO (Trade Union) (10%) SpareBank 1 Gruppen AS Argo Securities (76.75%) SpareBank 1 Livsforsikring (100%) ODIN Forvaltning (100%) Alliance Cooperation SpareBank 1 Medlemskort (100%) Conecto (100%) (Bank-owned companies) SpareBank 1 Gruppen Finans (100%) Actor Fordringsforvaltning (100%) SpareBank 1 Boligkreditt EiendomsMegler 1 BNbank SpareBank 1 Oslo og Akershus SpareBank 1 Skadeforsikring (100%) UNISON (100%) Broad cooperation - Technology - Brand/communication - Expertise - Joint processes and best practice - Purchasing Regional competence centres - Payment services: Trondheim - Credit: Stavanger - Training: Tromsø 23

24 SB1 Livsfors. SB1 Livsfors. SB1 Skadefors. SB1 Skadefors. ODIN Øvrige/ Other justeringer MNOK Earnings performance by company year to date Pre-tax profit in subsidiaries Solid buffers in SpareBank 1 Livsforsikring Positive insurance result development for SpareBank 1 Skadeforsikring. Unison Forsikring became a wholly owned subsidiary of SpareBank 1 Skadeforsikring in Q3 Increased assets under management in ODIN Forvaltning Resultat før skatt per 3. kv 2009 Resultat før skatt per 3. kv Pre-tax profit - YTD 2009 Pre-tax profit - YTD 24

25 SpareBank 1 Gruppen Profit year to date Year to date Year Figures in MNOK Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring Additional provisions recognised as income in consolidated accounts SpareBank 1 Skadeforsikring ODIN Forvaltning Argo Securities SpareBank 1 Medlemskort SpareBank 1 Gruppen Finans Group Correction Group * Net result before tax from subsidiaries ,046.0 Total operating costs (parent company) ** Net investment charges (parent company) Gains from sale of companies Share of associated company Net result before amortisation Amortisation Pre- tax result Taxes Net result for the period Majority interest Minority interest Year to date Year Key figures Annualised return on equity 15.8% 19.1% 17.5% * Consists primarily of actuarial gains and losses on pensions, revaluation of property and adjustment of insurance liabilities ** MNOK 43 were recognised as income in Q3 in connection with employer's National Insurance contributions, associated with a ten year-old tax case, that SpareBank 1 Gruppen AS had previously covered on behalf of First Securities 25

26 SpareBank 1 Gruppen Quarterly profits Q3 Q2 Q1 Q4 Q3 Q2 Q1 Figures in MNOK Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring Additional provisions recognised as income in consolidated accounts SpareBank 1 Skadeforsikring Group ODIN Forvaltning Argo Securities SpareBank 1 Medlemskort SpareBank 1 Gruppen Finans Group Correction Group Net result before tax from subsidiaries Total operating costs (parent company) Net investment charges (parent company) Gains from sale of companies Share of associated company Net result before amortisation Amortisation Pre- tax result Taxes Net result for the period Majority interest Minority interest

27 SpareBank 1 Livsforsikring Profit year to date Q3 Q2 Q1 Q3 Year to date Year Figures in MNOK Insurance risk income ,220.6 Insurance risk claims Risk result Tecnical allocations Risk result after tecnical allocations Fees Expenses, exclusive comissions Comissions Administration result Net investment income ,002.4 Guaranteed interest to policyholders Investment result Reserves Investment result after reserves Compensation guaranteed interest Result before additional provisions Undistributed profits to customers Return on company's assets Net profit to owner before tax Taxes Net profit/loss for the period Key figures Year to date Year Capital adequacy ratio 20.1 % 18.3 % 19.0 % Buffer capital in % of insurance provisions 16.1 % 13.7 % 11.7 % The company's accounts did not show the tax cost in 2009 since the tax benefit was not included in accordance with the IAS 12 accounting standard. The group contribution in Q2 resulted in a net deferred tax liability of MNOK The company's total tax cost amounted to MNOK 42.7 year to date 27

28 SpareBank 1 Livsforsikring Profit by portfolio year to date Figures in MNOK Group portfolio Previously established individual products Investment choice portfolio Company portfolio Total Risk result Administration result Net investment result Reserves - long life Compensation interest guarantee Transferred to policyholders Return on company's assets Sum

29 SpareBank 1 Livsforsikring Premium income trends Q3 Q2 Q1 Q3 Year to date Year Figures in MNOK Individual annuity and pension insurance Individual endowment insurance Group pension insurance Individual life insurance Group life insurance Unit Linked - Annuity Unit Linked - Endowment Defined contribution pension Total gross due premium income , , ,126.4 Premium reserves transferred from other companies Reinsurance ceded Premium income for own account , , , ,

30 SpareBank 1 Livsforsikring Asset allocation by portfolio As of *) Group portfolio Company portfolio Investment choice portfolio 37.4 (34.2) % ** 14.0 (14.5) % 5.1 (5.2) % 46.9 (48.7) % 0.1 (0.1) % 20.2 (19.4) % 34.7 (31.5) % 22.0 (24.3) % 21.4 (21.7) % 11.2 (14.7) % 21.6 (17.0) % 6.0 (7.1) % 59.3 (61.4) % Stocks Real estate Bonds Other Bonds held to maturity Stocks Real estate Bonds Other Bonds held to maturity Stocks Other Bonds NOK 15.8 (15.5) billion NOK 2.8 (2.5) billion NOK 6.3 (5.6) billion * Figures in brackets are as of ** The reduction came as a result of reducing shareholding in Group Pension Insurance to 10 % in 1 st half-year 30

31 SpareBank 1 Livsforsikring Return on ordinary customer portfolio with guarantee as of Percent Norwegian shares 1.7 Foreign shares 3.3 Money market 1.8 Norwegian bonds 4.6 Foreign bonds 8.2 Held to maturity 4.1 Real estate

32 Percent SpareBank 1 Livsforsikring Booked return on customer portfolios with guarantee year to date Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q SpareBank 1 Storebrand Vital Nordea 32 Source: company presentations

33 SpareBank 1 Livsforsikring Balance sheet as of 30 September Year to date Year Figures in MNOK Intangible assets Investments 2,837 2,013 2,498 Reinsurance's part of insurance obligations Accounts receivable Other assets Prepayed liabilities and accrued income Investments group portfolio 15,978 15,386 15,629 Investments options portfolio 6,256 5,221 5,576 Total assets 25,616 23,783 24,294 Paid in capital 1,602 1,243 1,243 Other equity Subordinated loan capital Insurance obligations - contractual 15,843 15,449 15,513 Insurance obligations - investment options 6,348 5,300 5,658 Provisions for obligations Premium deposits from reinsurance companies Other obligations Accrued liabilities, prepaied income Total liabilities and equity 25,616 23,783 24,294 33

34 SpareBank 1 Skadeforsikring Group Profit year to date Q3 Q2 Q1 Q3 Year to date Year Figures in MNOK Gross written premium 1, , , , , ,271.2 Net earned premium 1, , , , ,814.3 Net incurred claims , , ,813.1 Net insurance operating costs Other insurance income/costs Changes in other technical reserves Operating result before finance Net financial income Other costs Result before changes in security reserve Changes in security reserve Pre-tax profit Taxes Net profit/loss for the period Key figures Q3 Q2 Q1 Q3 Year to date Year Figures in percentage Claims ratio, net 67.1 % 75.9 % 88.3 % 69.2 % 76.7 % 73.4 % 73.8 % Cost ratio, net 22.7 % 17.1 % 20.2 % 21.8 % 20.0 % 21.7 % 22.5 % Combined ratio, net 89.8 % 92.9 % % 90.9 % 96.8 % 95.1 % 96.2 % Capital adequacy ratio 27.2 % 27.0 % 34.2 % 34

35 SpareBank 1 Skadeforsikring Group Allocation of financial assets As of *) Bonds held as current assets Bonds held to maturity Real state Stocks Bank Hedgefond 65.3 (64.3) % 11.5 (11.0) % 14.6 (14.4) % 0.1 (0.3) % 0.1 (2.9) % 8.4 (7.1) % NOK 8.1 (8.2) billion * Figures in brackets are as of

36 ODIN Forvaltning Profit year to date Q3 Q2 Q1 Q3 Year to date Year Figures in MNOK Management fees Subscription and redemption fees Total operating income Salaries Depreciations Other operating costs Total operating costs Operating profit Net financial income Pre-tax profit Taxes Net profit/loss for the period

37 EFFECT REALISATION FROM PROFITABILITY PROJECT SUB-PROJECT SpareBank 1 Skadeforsikring REPORT DATE 15/10/ Realised effects by quarter (MNOK) Realised staff reduction by quarter (annual full-time equivalents) Planned Realised so far Planned Realised so far Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q

38 EFFECT REALISATION FROM PROFITABILITY PROJECT SUB-PROJECT SpareBank 1 Livsforsikring REPORT DATE 15/10/ Realised effects by quarter (MNOK) Realised staff reduction by quarter (annual full-time equivalents) Planned Realised so far Planned Realised so far Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q

39 The Delta profitability project was behind schedule in respect of staff reductions. This is a result of giving priority to measures that have the best profitability effect, irrespective of whether or not they have an impact on staff numbers REALISED EFFECTS AS OF 30 SEPTEMBER (excluding Bank 1 Oslo) Realisation of staffing consequences over time (annual full-time equivalents, cumulative) Planned Realised so far H H H 3Q 2H A large part of the reduction in annual full time equivalents comes from natural reduction in the use of temporary staff 39

40 EFFECT REALISATION FROM PROFITABILITY PROJECT SUB-PROJECT Bank 1 Oslo REPORT DATE 15/10/ Realised effects by quarter (MNOK) Realised staff reduction by quarter (annual full-time equivalents) Planned Realised so far Planned Realised so far Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 As of 1 January, the reports for SB1 Gruppen do not include Bank 1 Oslo, but the bank is still part of the Delta Project 40