Presentation of results. Kirsten Idebøen, CEO

Transcription

1 Q2 1st half-year and 2nd quarter 2012 Presentation of results from SpareBank 1 Gruppen Kirsten Idebøen, CEO 9 August 2012

2 Year-to-date profit in line with last year Pre-tax profit Group quarterly (MNOK) Pre-tax profit for 1 st half-year: MNOK 296 (308) 162 Q1 Q Net profit for 1 st half-year: MNOK 263 (249) Annualised return on equity: 10.5 (10.5) % Group s total t assets were NOK 45.2 billion, compared to NOK 42.0 billion at year-end Good solvency: Capital adequacy ratio: 15.9 % against 16.2 % as at Core capital adequacy ratio: 14.5 % against 14.6 % as at Well capitalised to satisfy the new, stricter capital requirements upon introduction of the Solvency II regulations 2

3 Financial performance per business area Pre-tax profit per subsidiary (MNOK) H2011 1H2012 SpareBank 1 Livsforsikring has built up further reserves during 1 st half-year. Administration result continued to improve. Good financial result and improved insurance result contributed to a significantly improved profit for Sparebank 1 Skadeforsikring. A decrease in total assets under management in ODIN Forvaltning gave reduced management fees. SB1 Liv SB1 Ska ade ODIN -2 SB1G Fina ans SB1 Marke ets SB1G Finans: strong pressure on margins in factoring and weaker performance in debt collection market, but good growth in portfolio business. Higher turnover in SpareBank 1 Markets, despite reduced activity in the financial markets. Strengthened market share in bond market during the course of Q2. 3

4 SpareBank 1 Livsforsikring Improved administration result and increased buffer capital 4

5 92 SpareBank 1 Livsforsikring Improved administration result and increased buffer capital Q1 Q2 Q3 Q4 100 Pre-tax profit (MNOK), quarterly Pre-tax profit: MNOK 236 (238) for 1 st half-year and MNOK 142 (109) in Q2 Administration result: MNOK -26 (-43) for 1 st half-year and MNOK -19 (-24) in Q2 Stable operating costs and increased income from fees Risk result: MNOK 122 (140) for 1 st half-year and MNOK 93 (70) in Q2 Strong risk result in Q2 after Q1 saw some large compensation payments Increased reserves in connection with disability compensation reduced year-to-date risk result Investment result: MNOK 120 (314) for 1 st half-year and MNOK 47 (108) in Q2 MNOK 42 allocated to strengthen provisions for longer life expectancy Net foreign exchange loss of MNOK 11 has been realised in the year-to-date. In comparison last year saw a total gain on forward exchange of MNOK 156 At the end of 1 st half-year 2012, the securities adjustment reserve totalled MNOK 390, against MNOK 185 at year-end

6 SpareBank 1 Livsforsikring The company built up further buffers during 1 st half-year Buffer capital trend, per quarter (%) Securities adjustment reserve (MNOK) 14.6 % 15.2 % 14.0 % 14.1 % 11.0 % 12.8 % 14.8 % Q Q Q Core capital in excess of minimum Additional provisions Q Q Q Q Interim profit Securities adjustment reserve H2012 Total assets: NOK 28 (27) billion Capital adequacy ratio: % against 18.5 % as at The entire subordinated loan comprises core capital Estimated solvency margin of %, compared to % at year-end end 2011 From the securities adjustment reserve: MNOK 182 belongs to the ordinary group portfolio MNOK 76 belongs to paid-up policy portfolio MNOK 131 belongs to the portfolio for previously established individual savings products 6

7 Asset allocation per portfolio as at 30/06/2012 (31/12/11) SB1 Livsforsikring SB1 Skadeforsikring Group Investment choice portfolio 45.7 (45.9) % Group portfolio Company portfolio 12.9 (13.8) % 1.0 (-4.5) % 38.9 (37.4) % 0.5 (-0.2) % 0.0 (0.0) % 20.9 (18.8) % 0.0 (0.0) % 10.3 (10.4) % 8.2 (7.9) % 12.2 (12.7) % 54.3 (54.2) % 0.0 (-0.1) % Stocks Other Bonds NOK 7.5 (6.9) billion 19.8 (21.0) % 61.1 (60.9) % 27.9 (28.0) % 16.9 (24.8) % 69.3 (69.0) % 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 16.4 (15.7) billion NOK 2.8 (2.9) billion NOK 10.0 (9.6) billion 7

8 SpareBank 1 Livsforsikring New occupational pension products are expected as of 01/01/2014 / Basic model Maximum premiums: 7% of salary up to 7.1G* and 25.1% of salary from 7.1G-12G The company must guarantee an annual adjustment of the saved capital equal to wage inflation against it receiving the returns on pension capital Similar to the current defined contribution pension in SpareBank 1 Livsforsikring with the exception of mortality inheritance Standard model Maximum premiums: 8% of salary up to 7.1G* and 26.1% of salary from 7.1G-12G No guaranteed return, meaning employees bear some return risk. Returns are paid to employees. Slightly more advanced on the return side than the basic model SpareBank 1 Livsforsikring views the new occupational pension models positively Lower Solvency II requirements than under current regulations 0% annual guarantee and reduced risk due to longer life expectancy (life expectancy adjustment) The transition from current defined benefit pensions to the hybrid product will require advisory services because there are many options when it comes to the choice of model, size of premiums and guarantees. The SpareBank 1-alliance will have a greater opportunity to strengthen its role within the pensions area 8 *G= National insurance basic amount

9 SpareBank 1 Skadeforsikring Group Good financial i result and improved insurance result 9

10 SpareBank 1 Skadeforsikring Group Good financial result and improved insurance result 36 Pre-tax profit, quarterly (MNOK) 308 Q1 Q2 254 Q3 Q Pre-tax profit: MNOK 236 (107) for 1 st half-year and MNOK 70 (56) in Q2 Insurance result*: MNOK 12 (-22) for 1 st half-year and MNOK 31 (8) in Q2 Lower claims ratio for both PM and BM in the parent company Net financial income: MNOK 245 (162) for 1 st half- year and MNOK 51 (67) in Q2 Financial return: 2.5 (1.8) % Portfolio growth in 1 st half-year 2012 of 4.0 %, to NOK 5.4 billion. * Insurance result in 1 st half-year 2011 and 2012 includes Unison Forsikring i 10

11 SpareBank 1 Skadeforsikring Group Good underlying profitability in main products and lower proportion of large claims Combined ratio for own account quarterly (%) Combined ratio for own account (%) * * Q Q Q Net claims ratio Q Q Q Net cost ratio Q Q Q Lower total claims ratio in both PM and BM in the parent company - Lower proportion of large claims in BM portfolio in year-to-date Net claims ratio Net cost ratio 1H2012 * Combined ratio for own account for respectively 2011 and 1 st half-year 2012 including personal insurance Gross combined ratio for 1 st half-year was 99.8% (claims ratio of 78.5% and cost ratio of 21.3%). Including personal insurance, the combined ratio in 1 st half-year is reduced to 93.2%, of which the claims ratio accounts for 72.0% and the cost ratio 21.2% 11

12 SpareBank 1 Skadeforsikring Group Good portfolio growth in 1 st half-year 2012 Portfolio growth per year (MNOK) Total portfolio growth of MNOK 209 (277) to NOK 5.4 (5.0) billion as at 30/06/2012, equivalent to a growth of 4.0 % Unison Forsikring saw growth in 1 st half-year of MNOK 69 (97) Portfolio growth in the Group in Q2 alone amounted to MNOK 79 (161) Net earned premium of NOK 2.5 (2.2) 2) billion, corresponding to a growth of 11.3 % 12

13 SpareBank 1 Markets Visible effects from result-oriented work 13

14 SpareBank 1 Markets Visible effects from result-oriented work Results Total turnover 1 st half-year: MNOK 73 (58), up 25 % Q2: MNOK 40 (24), up 70 % SB1 Markets - Market share bond issues 12 % Pre-tax profit 5 % 1 st 3 % 3 % half-year: MNOK -90 (-26) 2 % Q2: MNOK -45 (-22) 1 % Q Q Q Q Q Q MARKET SHARE BOND ISSUE Q DNB 23% Swedbank / First Securities 20% Nordea 14% Operational matters SEB Merchant Banking 13% Goal of profitable operations from Q4 stand firm provided normalised markets. SpareBank 1 Markets 12% Danske Bank 5% AGB Sundal Collier 5% Handelsbanken 4% Cooperation with SpareBank 1 SMN on rated balance sheet is operative and has had immediate effects on the company's market share and in the bond market. SpareBank 1 can, through SpareBank 1 Markets, provide the entire capital structure, from bank loans to bonds and equity 14 Source: Norsk Tillitsmann

15 ODIN Forvaltning Nine out of twelve equity funds performed better than their benchmark in 1 st half-year 15

16 ODIN Forvaltning Nine out of twelve equity funds performed better than their benchmark in 1 st half-year Pre-tax profit (MNOK), quarterly Pre-tax profit for 1 st half-year: MNOK -2 (24) Management fees totalled MNOK 131 (172) Q1 Q2 Q3 Q4 Pre-tax profit for Q2: MNOK -1.5 (12) Total assets under management of NOK 23.5 billion as at 30/06/2012 / Reduced by NOK 6.6 billion from 30/06/2011 Increased by NOK 0.1 billion from 31/12/ % market share for equity funds in 1 st half-year 2012, down 0.5 percentage points from year-end % market share for combination funds for 1 st half-year 2012, up 0.3 percentage points from 31/12/

17 ODIN Forvaltning Nine out of twelve equity funds performed better than their benchmark in 1 st half-year. New CEO Return on equity fund as at 30/06/2012 / (%) 11.6 Fund Benchmark ODIN Norden ODIN Finland ODIN Norge ODIN Sverige ODIN Maritim -7.5 ODIN Offshore ODIN Eiendom I ODIN Europa ODIN Europa SMB ODIN Global ODIN Global SMB ODIN Emerging Markets Rune Selmar has been appointed the new CEO of ODIN Forvaltning ODIN has signed up to the UN's Principles for Responsible Investment (PRI) The UN's Principles for Responsible Investment set out six rules for a sustainable, socially responsible and owner-managed investment t philosophy h The goal of signing up to the principles is to promote sustainable value creation through active corporate governance and by increasing value for the company and society's investments 17

18 SpareBank 1 Gruppen Finans Group Continued focus on growth and cost-efficiency 18

19 SpareBank 1 Gruppen Finans Group Continued focus on growth and cost-efficiency Pre-tax profit (MNOK) 14.2 SpareBank 1 Gruppen Finans Group reported a pre-tax profit for 1 st half-year of MNOK 14.2 (9.8) 1H2011 1H Higher costs in the factoring business area reduced the year-to-date result somewhat, MNOK 4.4 (4.9) Good growth in turnover in Q2 helped to improve pre-tax profit in the quarter of MNOK 2.7 (2.1) Factoring's market share continued to grow; market share as at Q of 14.6 % against 14.1 % as at 31/12/ Good growth in portfolio (long-term monitoring) due to new portfolio acquisitions in 1 st half-year Pre-tax profit: MNOK 3.8 (1.6) in 1 st half-year and MNOK 1.2 (0.4) in Q2 factoring portfolio Conecto (debt collection) SB1G Finans Group Weak growth in the debt collection market Pre-tax profit: MNOK 11.6 (12.2) in 1 st half-year and MNOK 7.0 (5.1) in Q2 Low debt collection income in year-to-date, but improved result in Q2 alone due to the sale of a larger portfolio Pre-tax profit for SpareBank 1 Gruppen Finans Group also includes management and amortisation. 19

20 Outlook SPAREBANK 1 GRUPPEN SpareBank 1 Skadeforsikring has started a number of measures aimed at improving profitability. The effect of the measures has been satisfactory so far and is expected to increase throughout 2 nd half-year. SpareBank 1 Livsforsikring is well positioned with respect to the opportunities that will open up in the pension market in the future due to the new occupational pension policy that will take effect from 01/01/2014. The Group will continue its work on cooperation right across the companies to extract efficiency gains within costs, income and know-how. At the start of 2 nd half-year, considerable uncertainty exists concerning the macroeconomic trends in Europe and how this will affect the financial markets. SpareBank 1 Gruppen is exposed to the securities market through its various subsidiaries, and the development of equity prices and interest rates will have a major effect on the Group's earnings. SpareBank 1 Gruppen is well equipped to face new capital requirements in relation to the introduction of the Solvency II. 20

21 The nation's savings bank 21 21

22 Appendix 22

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 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 23

24 Return on equity after tax among selected Nordic financial institutions Average 1H Gjensidige* 17.7% 11.9% 13.1% 11.1% 12.0% Handelsbanken 14.0% 13.5% 12.9% 12.6% 13.0% Nordea 12.1% 10.6% 11.5% 11.3% 11.1% DNB 10.7% 11.4% 13.6% 10.6% 11.9% SpareBank 1 Gruppen 10.5% 11.1% 18.7% 18.1% 16.0% Storebrand 9.1% 6.0% 10.8% 8.2% 8.3% Danske Bank 3.6% 1.4% 3.6% 1.7% 2.2% * Calculated as net profit distributed over average equity. 24 Source: The companies' interim reports for 1 st half-year 2012

25 SpareBank 1 Gruppen Key figures Q2 Q1 Q4 Q3 Q2 Q1 Year Group Net result for the period (MNOK) Return on equity (%) 10.5 % 15.9 % 23.2 % -0.3 % 8.1 % 12.9 % 11.1 % Capital adequacy ratio, cumulative (%) 15.9 % 14.8 % 16.2 % 16.3 % 16.2 % 16.1 % 16.2 % Core capital adequacy ratio, cumulative (%) 14.5 % 13.1 % 14.6 % 14.0 % 13.9 % 12.6 % 14.6 % SB1 Livsforsikring Risk result (MNOK) Administration result (MNOK) Investment t result (MNOK) Net result for the period (MNOK) Buffer capital in % of insurance provisions*, cumulative (%) 14.8 % 12.8 % 11.0 % 14.1 % 14.0 % 15.2 % 11.0 % Capital adequacy ratio, cumulative (%) 20.0 % 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 (%) 74.1 % 80.4 % 74.7 % 84.7 % 79.4 % 83.6 % 80.6 % Cost ratio, net (%) 22.3 % 21.3 % 26.0 % 21.1 % 22.4 % 21.9 % 22.9 % Combined ratio, net (%) 96.5 % % % % % % % Portfolio (MNOK) 5,407 5,328 5,198 5,092 4,986 4,825 5,198 ODIN Forvaltning Management age e fees (MNOK) Net result for the period (MNOK) Total assets under management, cumulative (MNOK) 23,541 26,173 23,433 22,539 30,101 33,348 23,433 Market share equity fund, cumulative (%) 8.4 % 8.9 % 8.9 % 8.8 % 9.9 % 10.6 % 8.9 % Market share combination fund, cumulative (%) 4.1 % 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 allocated 25

26 SpareBank 1 Gruppen Result for 1 st half-year 2012 Q2 Q1 Q2 Half year 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 Half year Year Key figures Annualised return on equity 10.5 % 10.5 % 11.1 % *Of the total operating costs in the year-to-date 2012, MNOK 19 was due to the project aimed at establishing the Group's own card company, which is currently being run as project in the parent company. Once the company is established, SpareBank 1 Gruppen AS will be refunded the project costs it has incurred. 26

27 SpareBank 1 Gruppen Quarterly results Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 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

28 SpareBank 1 Livsforsikring Result for 1 st half-year 2012 Q2 Q1 Q2 Half year Year Figures in MNOK Insurance risk income ,338.7 Insurance risk claims ,061.7 Risk result Tecnical allocations Risk result after tecnical allocations Fees Expenses, exclusive comissions 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 Half year Year Capital adequacy ratio 20.0 % 17.1 % 18.5 % Buffer capital in % of insurance provisions 14.8 % 14.0 % 11.0 % 28 Buffer capital for the year 2011 is shown after profits have been allocated

29 SpareBank 1 Livsforsikring Profit per portfolio for 1 st half-year 2012 Previously Figures in MNOK Group portfolio 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

30 SpareBank 1 Livsforsikring Premium income trend for 1 st half-year 2012 Q2 Q1 Q2 Half year 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 , , , ,325.5 Premium reserves transferred from other companies Reinsurance ceded Premium income for own account , , , ,

31 SpareBank 1 Livsforsikring Return on customer portfolio with guarantee as at 30/06/2012 Value-adjusted return excluding change in value construction: ti Booked return: Q Q Q Q Q Q Q Q Q Q Q1 Q2 Q1 Q2 Q1 Q Percen nt Perce ent SpareBank 1 Storebrand DNB Livsforsikring Nordea SpareBank 1 Storebrand DNB Livsforsikring Nordea 31 Source: company presentations

32 SpareBank 1 Livsforsikring Return on ordinary customer portfolio with guarantee as at 30/06/2012 Percent Norwegian shares Foreign shares 7.5 Money market 1.8 Norwegian bonds 3.6 Foreig bonds 4.5 Held to maturity Real estate

33 SpareBank 1 Livsforsikring Balance sheet as of 30/06/2012 Half year Year Figures in MNOK Intangible assets Investments 2,851 2,569 2,881 Reinsurance's part of insurance obligations Accounts receivable Other assets Prepayed liabilities and accrued income Investments group portfolio 16,581 15,782 15,909 Investments options portfolio 7,451 6,782 6,896 Total assets 27,589 25,811 26,607 Paid in capital 2,073 1,602 1,825 Other equity Subordinated loan capital Insurance obligations - contractual 16,401 15,719 15,812 Insurance obligations - investment options 7,557 6,894 6,993 Provisions for obligations Premium deposits from reinsurance companies Other obligations ,043 Accrued liabilities, prepaied income Total liabilities and equity 27,589 25,811 26,607 33

34 SpareBank 1 Skadeforsikring Group Result for 1 st half-year 2012 Q2 Q1 Q2 Half year Year Figures in MNOK Gross written premium 1, , , , , ,358.2 Net earned premium 1, , , , , ,695.9 Net incurred claims , , ,784.0 Net insurance operating costs ,074.2 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 Q2 Q1 Q2 Half year Year Figures in percentage Claims ratio, net 74.1 % 80.4 % 79.4 % 77.2 % 81.5 % 80.6 % Cost ratio, net 22.3 % 21.3 % 22.4 % 21.8 % 22.2 % 22.9 % Combined ratio, net 96.5 % % % 99.0 % % 1035% Capital adequacy ratio 34.1 % 29.0 % 32.8 % 34

35 ODIN Forvaltning Result for 1 st half-year 2012 Q2 Q1 Q2 Half year 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