1st Quarter April Presentation of results from SpareBank 1 Gruppen. Kirsten Idebøen, CEO

Transcription

1 1st Quarter 2012 Presentation of results from SpareBank 1 Gruppen Kirsten Idebøen, CEO 26 April 2012

2 Good development in results for the group - Best result in the past five years Pre-tax profit for the group for (MNOK) Pre-tax profit: MNOK 173 (162) Profit after tax: MNOK 200 (152) Annualised return on equity: 15.9 (12.9) % Total assets in the group were NOK 44.5 billion, as compared to NOK 42.0 billion at year-end Good solvency: Capital adequacy ratio: 14.8 % against 16.2 % as at 31/12/2011 Core capital adequacy ratio: 13.1 % against 14.6 % as at 31/12/2011 Well-equipped to meet new capital requirements in Solvency II 2

3 Result development per business area Pre-tax profit per subsidiary (MNOK) Improved administration result in life insurance. The company has continued to build up buffers throughout the quarter Lower occurrences of large claims and good development in financial income contribute positively to strong results in P&C insurance Strategic and operative measures in terms of management provides good management results and increased total assets in ODIN Forvaltning. SB B1 Liv kade SB1 S IN OD -1 nans SB1G Fi SB1 Mar rkets SB1G Finans: Factoring is still growing fastest in the market, and there is a lower average referral volume in Conecto. SpareBank 1 Markets now has the whole team in place and a rated balance. This means that all framework conditions are in place for full market operations. 3

4 SpareBank 1 Livsforsikring Improved administration result Good buffer capital 4

5 SpareBank 1 Livsforsikring Improved administration result. Good buffer capital Pre-tax profit for : MNOK 94 (129) Pre-tax profit (MNOK), quarterly Administration result: MNOK -7 (-19) Stable cost base and increased income from fees Q2 Q3 Q4 Investment result: MNOK 73 (206) MNOK 31 allocated to strengthen provisions for longer life expectancy Investment result in last year characterised by realized gains on foreign exchange of MNOK 130 The company has during 2012 built up the securities adjustment reserve to MNOK 466 from MNOK 185 as of 31/12/2011. In comparison, the securities adjustment reserve was MNOK 448 in 2011, which was down from MNOK 617 as of 31/12/2010. Risk result: MNOK 29 (69) Increased number of payments owing to death in risk insurance, plus higher costs in connection with reported disability claims Tax income in was MNOK 32 (1) Tax income is calculated in accordance with current tax regulations. The Ministry of Finance has proposed an amendment to the tax exemption method for life insurance companies. The authorities' proposal will not be taken into consideration in the accounts until the proposal is adopted. 5

6 SpareBank 1 Livsforsikring The company has continued to build up buffers throughout the quarter Buffer capital trend, per quarter (%) Securities adjustment reserve (MNOK) 14.6 % 15.2 % 14.0 % 141% % 11.0 % Q Q Q Q Core capital in excess of minimum Additional provisions Interim profit Securities adjustment reserve Total assets: NOK 28 (27) billion The increase is primarily due to share price performance of financial assets Capital adequacy ratio: 17.5 (19.2) % The entire subordinated loan comprises core capital Estimated solvency margin of %, compared to % at year-end 2011 From the securities adjustment reserve: MNOK 221 belongs to the ordinary group portfolio MNOK 87 belongs to paid-up policy portfolio MNOK 158 belongs to the portfolio for previously established individual savings products 6

7 Asset allocation per portfolio as of 31/03/2012 (31/12/11) SB1 Livsforsikring SB1 Skadeforsikring Group Investment choice portfolio 44.5 (45.9) % Group portfolio Company portfolio 13.4 (13.8) % 0.0 (-4.5) % 37.2 (37.4) % 1.0 (-0.2) % 0.0 (0.0) % 20.6 (18.8) % 0.0 (0.0) % 10.1 (10.4) % 8.4 (7.9) % 12.2 (12.7) % 0.0 (-0.1) % 55.5 (54.2) % 28.2 (28.0) % 20.2 (21.0) % 54.9 (60.9) % 24.4 (24.8) % 69.3 (69.0) % Stocks Other Bonds NOK 7.5 (6.9) billion Stocks Other Stocks Other Stocks Other Real estate Real estate Real Estate Bonds at amortised cost Bonds - amortized cost Bonds - amortized cost Bonds - market value Bonds - market value Bonds at Market value NOK 16.3 (15.7) billion NOK 2.9 (2.9) billion NOK 10.0 (9.6) billion 7

8 SpareBank 1 Skadeforsikring Group Significantly ifi improved claims ratio and good financial return 8

9 SpareBank 1 Skadeforsikring Group Significantly improved claims ratio and good financial return Pre-tax profit, quarterly (MNOK) Pre-tax profit for : MNOK 166 (50) Q2 Q3 Q4 Insurance result*: MNOK -19 (-30) Lower proportion of large claims and milder winter Net financial income: MNOK 194 (95) Financial return: 2.0 (1.1) % Portfolio growth in of 2.4 %, to NOK 5.3 billion On 16 April 2012 it was decided to sell Unison Forsikring following a clarification of SpareBank 1's distribution strategy. Turid Grotmoll is acting CEO of the P&C insurance company. In March 2012 Tore Tenold accepted a job offer from a competing company. * Insurance result in 2011 and 2012 includes Unison Forsikring 9

10 SpareBank 1 Skadeforsikring Group Lower proportion of large claims in 2012 Combined ratio for own account quarterly (%) Combined ratio for own account (%) Q2 Q3 Q4 Q2 Q3 Q Net claims ratio Net cost ratio -Significantly improved claims ratio in the BM portfolio as a result of a lower proportion of large claims so far this year -Positive profitability developments on the main products in the PM portfolio Net claims ratio Net cost ratio 10

11 SpareBank 1 Skadeforsikring Group Positive portfolio growth in ,358 Growth in portfolio per year (MNOK) 5,328 Total portfolio growth of MNOK 130 to NOK 5.3 billion Combined portfolio growth in Unison Forsikring and the LO segment of MNOK Market share of 11.3 % as at 31/12/2011. Market statistics for 2012 are not available at the time of reporting Net earned premium of NOK 1.2 (1.1) billion, corresponding to a growth of 10.8 %

12 ODIN Forvaltning Good management results 12

13 ODIN Forvaltning Good management results 14 Pre-tax profit (MNOK), quarterly Q2 Q3 Q4 Pre-tax profit for : MNOK -0.5 (12) Management fees totalled MNOK 67 (87) Total assets under management of NOK 26.2 billion in Increased by NOK 2.7 billion from year-end % market share for equity funds at 2012, unchanged from Q % market share for combination funds at 2012, unchanged from Q All of ODIN Forvaltning's equity funds and combination funds performed better than the benchmark portfolios in

14 ODIN Forvaltning All equity funds performed better than the benchmark portfolio Fund return as at 31/03/2012 (%) 22.6 Fond Indeks ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN Norden Finland Norge Sverige Maritim Offshore Eiendom I Europa Europa Global Global SMB Emerging SMB Markets Managed increase in value as at 31/03/2012 (%) ODIN Alfred Berg Pareto Holberg Nordea KLP Markedssnitt DNB Storebrand Carnegie SKAGEN 14

15 SpareBank 1 Markets Profitable operations from Q

16 SpareBank 1 Markets Profitable operations from Q Results Pre-tax profit for : MNOK -45 (-3) Profit after tax for : MNOK -33 (-2) Total revenue: MNOK 33 (35) Operational matters SpareBank 1 Market has now acquired expertise and market clout through new recruitment. The necessary infrastructure has also been established, hereunder the collaboration agreement with SpareBank 1 SMN, which provides access to rated balance. The income effects of these investments are expected to appear gradually in the time ahead. SpareBank 1 can, through SpareBank 1 Markets, provide the entire capital structure, from bank loans to bonds and equity The result is in accordance to planned progress and previous indication of profitable operations from Q remains unchanged. 16

17 SpareBank 1 Gruppen Finans Group Continued focus on growth and cost-efficiency i 17

18 SpareBank 1 Gruppen Finans Group Continued focus on growth and cost-efficiency Pre-tax profit (MNOK) Good growth in factoring operations, but pressure on margins The country's third largest factoring operation with a market share of 14.2 (13.8) % in 2012 Factoring saw growth of 22.7 % in the last 12 months. Growth in the total market was 9.8 %. Low lending losses in factoring portfolio Conecto (debt recovery) Pre-tax profit for SpareBank 1 Gruppen Finans Group also includes management and amortisation. 3 5 SB1G Finans Group Portfolio's (long-term monitoring) total portfolio volume for 2012 was MNOK 1,185, 185 compared with MNOK 1,152 at year-end 2011 Steady recovery on the portfolios Good growth in net interest/credit commission revenues The debt market is relatively stable, but with slight growth Conecto has had a slightly sinking referral volume in the last year An improved recovery rate and changed portfolio mix has largely compensated for mandatory reduction in debt recovery fees 18

19 SpareBank 1 Gruppen top in terms of return on equity after tax among selected Nordic financial institutions Average SpareBank 1 Group 15.9 % 11.1 % 18.7 % 18.1 % 16.0 % Handelsbanken 13.8 % 13.5 % 12.9 % 12.6 % 13.0 % Nordea 11.7 % 10.6 % 11.5 % 11.3 % 11.1 % Gjensidige* N/A 12.2 % 13.1 % 11.1 % 12.1 % DNB N/A 11.4 % 13.6 % 10.6 % 11.9 % Storebrand N/A 6.0 % 10.8 % 8.2 % 8.3 % Danske Bank N/A 1.4 % 3.6 % 1.7 % 2.2 % * Calculated as net profit distributed over average equity 19 Source: Companies' interim reports for 2012

20 The nation's savings bank 20 20

21 Appendix 21

22 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 SpareBank 1 Markets (97.47%) SpareBank 1 Livsforsikring (100 %) ODIN Forvaltning (100 %) Alliance Cooperation SpareBank 1 Medlemskort (100 %) SpareBank 1 Gruppen Finans (100 %) SpareBank 1 Skadeforsikring (100 %) Broad cooperation Conecto (100 %) Unison Forsikring (100 %) - Technology -Brand/communication -Expertise - Common processes and use of best practice - Purchasing (Bank-owned companies) SpareBank 1 Boligkreditt EiendomsMegler 1 BNbank SpareBank 1 Oslo og Akershus Regional competence centres - Payment services: Trondheim - Credit: Stavanger - Training: Tromsø 22

23 SpareBank 1 Gruppen Key figures Q4 Q3 Q2 Year Group Net result for the period (MNOK) Return on equity (%) 15.9 % 23.2 % -0.3 % 8.1 % 12.9 % 11.1 % Capital adequacy ratio, cumulative (%) 14.8 % 16.2 % 16.3 % 16.2 % 16.1 % 16.2 % Core capital adequacy ratio, cumulative (%) 13.1 % 14.6 % 14.0 % 13.9 % 12.6 % 14.6 % SB1 Livsforsikring Risk result (MNOK) Administration result (MNOK) Investment result (MNOK) Net result for the period (MNOK) Buffer capital in % of insurance provisions*, cumulative (%) 12.8 % 11.0 % 14.1 % 14.0 % 15.2 % 11.0 % Capital adequacy ratio, cumulative (%) 17.5 % 18.5 % 18.5 % 17.1 % 19.2 % 18.5 % Securities adjustment reserve, cumulative (MNOK) SB1 Skadeforsikring Group Operating result before finance (MNOK) Net financial income (MNOK) Net result for the period (MNOK) Claims ratio, net (%) 80.4 % 74.7 % 84.7 % 79.4 % 83.6 % 80.6 % Cost ratio, net (%) 21.3 % 26.0 % 21.1 % 22.4 % 21.9 % 22.9 % Combined ratio, net (%) % % % % % % Portfolio (MNOK) ODIN Forvaltning Management fees (MNOK) Net result for the period (MNOK) Total assets under management, cumulative (MNOK) Market share equity fund, cumulative (%) 8.9 % 8.9 % 8.8 % 9.9 % 10.6 % 8.9 % Market share combination fund, cumulative (%) 3.8 % 3.8 % 3.8 % 3.5 % 3.2 % 3.8 % SB1 Markets Total operating income (MNOK) Net result for the period (MNOK) SB1G Finans Group Net result for the period SB1G Finans Group (MNOK) Net result for the period SB1G Finans - parent company (MNOK) Net result for the period Conecto (MNOK) *) Buffer capital as at Q4 is shown after profits have been distributed 23

24 SpareBank 1 Gruppen Results for 2012 Year Figures in MNOK Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring SpareBank 1 Skadeforsikring Group ODIN Forvaltning SpareBank 1 Markets 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) Share of associated company Pre-tax result Taxes Net result for the period Majority interest Minority interest Year Key figures Annualised return on equity 15.9 % 12.9 % 11.1 % 24

25 SpareBank 1 Gruppen Quarterly results Q4 Q3 Q2 Q4 Q3 Q2 Figures in MNOK Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring SpareBank 1 Skadeforsikring Group ODIN Forvaltning SpareBank 1 Markets 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) Share of associated company Pre-tax result Taxes Net result for the period Majority interest Minority interest

26 SpareBank 1 Livsforsikring Results for 2012 Year Figures in MNOK Insurance risk income Insurance risk claims Risk result Tecnical allocations Risk result after tecnical allocations Fees Expenses, exclusive comissions i Comissions Administration result Net investment income 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 Capital adequacy ratio 17.5 % 19.2 % 18.5 % Buffer capital in % of insurance provisions 12.8 % 15.2 % 11.0 % 26

27 SpareBank 1 Livsforsikring Results per portfolio for 2012 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

28 SpareBank 1 Livsforsikring Premium income trend Year Figures in MNOK Individual annuity and pension insurance Individual id 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 Premium reserves transferred from other companies Reinsurance ceded Premium income for own account

29 SpareBank 1 Livsforsikring Return on customer portfolio with guarantee as at 2012 Value-adjusted return excluding change in value construction: ti Booked return: Q Q Q Q Q Q Q Q Percent Percent N/A N/A N/A N/A SpareBank 1 Storebrand DNB Livsforsikring Nordea SpareBank 1 Storebrand DNB Livsforsikring Nordea 29 Source: company presentations

30 SpareBank 1 Livsforsikring Return on ordinary customer portfolio with guarantee as at 31/03/2012 Percent Norwegian shares 14.8 Foreign shares 13.3 Money market 1.1 Norwegian bonds 1.9 Foreign bonds Hold to maturity 1.2 Real estate

31 SpareBank 1 Livsforsikring Balance sheet as of 31/03/2012 Year Figures in MNOK Intangible assets Investments Reinsurance's part of insurance obligations Accounts receivable Other assets Prepayed liabilities and accrued income Investments group portfolio Investments options portfolio Total assets Paid in capital Other equity Subordinated loan capital Insurance obligations - contractual Insurance obligations - investment options Provisions for obligations Premium deposits from reinsurance companies Other obligations Accrued liabilities, prepaied income Total liabilities and equity

32 SpareBank 1 Skadeforsikring Group Results for 2012 Year Figures in MNOK Gross written premium Net earned premium Net incurred claims Net insurance operating costs Other insurance income/costs Changes in other technical reserves Operating result before finance Net financial income Result before changes in security reserve Changes in security reserve Pre-tax profit Taxes Net profit/loss for the period Key figures Year Figures in percentage Claims ratio, net 80.4 % 83.6 % 80.6 % Cost ratio, net 21.3 % 21.9 % 22.9 % Combined ratio, net % % % Capital adequacy ratio 30.9 % 30.3 % 32.8 % 32

33 ODIN Forvaltning Results for 2012 Year Figures in MNOK Management 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