Interim report Q1 2016

Transcription

1 Interim report Q1 2016

2 CONTENTS Introduction Financial development Income Expenses Loan impairment charge and loans in default Deposits, loans and balance sheet Summary and future prospects Tables 2

3 SPAREBANKEN SOGN OG FJORDANE The largest bank in the county of Sogn og Fjordane Total assets of NOK 47,2 billion Merchant bank oriented towards the retail- and corporate banking market 22 sales offices in the county of Sogn og Fjordane + one sales office in Bergen Co-owner and distributor of products from Frende Forsikring and SB1 Finans Eigedomsmekling Sogn og Fjordane AS is a wholly-owned subsidiary 267 full-time employees Active contributor to the local communities in the county

4 MARKED LEADER SSF is the largest bank in the county with 22 offices and 23 bank in grocery stores The biggest competitor is Sparebanken Vest with 7 branches Three large national banks and four small saving banks are located in the county

5 HIGHLIGHTS Pre-tax profit of NOK 72 million (95 million) Comprehensive income of NOK 63 million (75 million) Net interest income of NOK 172 million (188 million) Net gain on financial instruments of NOK -16 million (-19 million) Operating expenses of NOK 101 million (96 million) Impairment charge of NOK 9 million (7 million) Annualized return equity of 7,1% (9,1%) The whole fee payable to the Norwegian Banks` Guarantee Fund was expenced in Q resulting NOK 15 million in reduced net interest income. Adjusted numbers are marked in the following slides. Figures in brackets refer to corresponding period last year

6 FINANCIAL DEVELOPMENT 140 Comprehensive income (quarter) The figures illustrate the comprehensive result after taxation for the Group in NOK million

7 FINANCIAL DEVELOPMENT Profit before taxation

8 CORE BUSINESS (quarterly) The figure illustrates the result from the core business. Gain/losses from financial instruments and loan impairment charge are excluded.

9 RETURN ON EQUITY 16,0 % 14,0 % 12,0 % 10,0 % 8,0 % 9,9 % 13,9 % 11,8 % 10,6 % 10,8 % 7,1 % 8,3 % 6,0 % 4,0 % 2,0 % 2,8 % 0,0 % The figure illustrates the return on equity after taxation (comprehensive income)

10 ,79 1,70 1,73 1,76 1,76 1,67 1,68 1,48 1,69 1,61 NET INTEREST INCOME % of avg. total assets Mill. NOK 2,00 1,90 1,80 1,70 1,60 1,50 1,40 1,30 1,20 1,10 1, The figure illustrates the net interest income in NOK million and as a percent of average total assets.

11 MARGINS OF LENDING AND DEPOSIT 4,00 Lending margins against 3 months NIBOR 0,50 Deposit margins against 3 months NIBOR 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 3,42 3,51 3,53 3,43 3,34 3,32 3,32 3,22 3,14 3,19 3,23 3,02 3,11 2,94 2,99 3,04 2,86 2,31 2,42 2,44 2,41 2,25 2,15 2,20 2,21 2,23 2,09 1,92 1,99 1,94 1,97 1,87 1,75 1,76 0,00-0,50-1,00 0,02-0,08-0,25-0,05 0,00 0,16 0,23-0,42-0,35-0,33-0,31-0,15-0,21-0,48-0,48-0,27-0,29-0,36-0,38-0,60-0,55-0,54-0,56-0,54-0,62-0,60-0,64-0,69-0,66-0,78-0,78-0,81-0,82 0,00 Q1-16 Q4-15 Q3-15 Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13 Q3-13 Q2-13 Q1-13 Q4-12 Q3-12 Q2-12 Q1-12 Q1-16 Q4-15 Q3-15 Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13 Q3-13 Q2-13 Q1-13 Q4-12 Q3-12 Q2-12 Q1-12 CM/PS/FS RM CM/PS/FS RM The figures illustrate the average interest towards the customers less the average of 3 months NIBOR (quarterly).

12 OTHER OPERATING INCOME (quarterly) ,29 % 31 0,30 % 33 0,31 % 29 0,27 % ,28 % 0,27 % 0,27 % 0,27 % 27 0,23 % 0,45 % 0,40 % 0,35 % 0,30 % 0,25 % 0,20 % 10 0,15 % 0,10 % 5 0,05 % 0 0,00 % The figures illustrate other operating income (excl. income from financial instruments) in NOK million and as a percentage of average total assets

13 TOTAL INCOME (quarterly) Net interest Other operating income Financial instruments

14 OPERATING EXPENSES AS A % OF INCOME 80,0 % 70,0 % 60,0 % 50,0 % 56,3 % 47,8 % 44,2 % 48,3 % 55,6 % 51,4 % 40,0 % 38,6 % 30,0 % 20,0 % 10,0 % 0,0 %

15 OPERATING EXPENSES AS A % OF INCOME (excl. income from financial instr.) 60,0 % 50,0 % 54,6 % 50,5 % 50,1 % 44,2 % 44,0 % 51,1 % 47,6 % 40,0 % 30,0 % 20,0 % 10,0 % 0,0 %

16 OPERATING EXPENSES (quarterly) 120 1,40 % ,91 % ,81 % 0,79 % 106 1,00 % 96 0,89 % 93 0,85 % 87 0,78 % 105 0,93 % 101 0,87 % 1,20 % 1,00 % 0,80 % 0,60 % 40 0,40 % 20 0,20 % 0 0,00 % The figure illustrates the operating expenses as a percentage of average total assets

17 LOAN IMPAIRMENT CHARGE The figures illustrate the development of impairment charge of loans and guarantees in NOK million

18 LOAN IMPAIRMENT CHARGE 0,07 % 0,06 % 0,06 % 0,05 % 0,04 % 0,03 % 0,02 % 0,03 % 0,02 % 0,02 % 0,02 % 0,02 % 0,01 % 0,00 % The figures illustrates the development in impairment charge of loans and guaranties as a percentage of gross loans.

19 LOANS IN DEFAULT 3,50 % 3,00 % 3,14% 3,05% 3,11% 2,90% 3,19% 2,78% 2,96% 2,94% 3,10% 3,08% 2,50 % 2,00 % 2,31% 2,14% 1,50 % 1,00 % 0,50 % 1,14 %1,14 %1,11 % 1,12 % 1,02 % 1,03 %1,04 %1,03 %1,02 % 1,01 % 0,81% 0,79 % 0,73 % 0,23 % 0,28 % 0,25 % 0,19 % 0,23 % 0,28 % 0,37 % 0,24 %0,24 % 0,17 % 0,19 %0,19 %0,18 %0,16 % 0,00 % RM CM/P S/FS TOTAL The figure illustrates the quarterly development of loans in default (more than 90 days) as a percentage of gross loans to the respective sectors (RM and CM/PS/FS)

20 TOTAL ASSETS 50,0 45,0 40,0 35,0 35,2 37,1 39,6 42,6 45,9 47,2 30,0 25,0 20,0 15,0 10,0 5,0 0, Q1.16 The figure illustrate the development of total assets in NOK billion

21 LOANS - DEPOSITS 45,0 64,00 % 40,0 62,00 % 35,0 30,0 25,0 58,23 % 58,29 % 59,19 % 59,87 % 57,24 % 57,25 % 60,00 % 58,00 % 20,0 15,0 10,0 5,0 30,5 32,7 34,8 17,8 19,0 20,6 37,5 40,2 40,8 22,4 23,0 23,4 56,00 % 54,00 % 52,00 % 0, Q1.16 Gross loans Deposits Deposit as a % of gross lending 50,00 % The figure illustrates the 12 months development of gross loans and deposits in NOK billion

22 1,6 % 1,7 % 2,4 % 5,8 % 6,2 % 6,9 % 7,0 % 6,6 % 7,1 % 7,6 % 8,3 % 8,9 % LOANS - DEPOSITS (growth) 10,0 % 9,0 % 8,0 % 7,0 % 6,0 % 5,0 % 4,0 % 3,0 % 2,0 % 1,0 % 0,0 % Q1.16 Gross loans Deposits The figure illustrates the yearly growth. The percentage for the quarter is the growth for the past12 months.

23 10,4 10,8 11,2 24,9 27,3 29,6 35,3 38,1 40,8 LOANS TO CUSTOMERS 45,0 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 Gross loans RM CM/PS/FS At Q At Q At Q The figure illustrates the mixture and development of gross loans to the respective sectors (RM and CM/PS/FS)

24 LOANS BY SECTOR 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % 31,5 % 29,7 % 28,4 % 27,4 % 27,5 % 68,5 % 70,3 % 71,6 % 72,6 % 72,5 % Q1.16 RM CM/PS/FS

25 8,6 9,1 8,7 12,4 13,5 14,7 21,0 22,6 23,4 DEPOSITS FROM CUSTOMERS 25,0 20,0 15,0 10,0 5,0 0,0 Total deposits RM CM/PS/FS At Q At Q At Q The figure illustrates the mixture and development of deposits from the respective sectors (RM and CM/PS/FS)

26 GROSS LOANS - FUNDING 100 % 90 % 80 % 33,5 % 26,1 % 22,1 % 19,0 % 19,8 % 19,2 % 70 % 60 % 8,2 % 15,6 % 18,7 % 21,1 % 23,0 % 23,5 % 50 % 40 % 30 % 58,2 % 58,3 % 59,2 % 59,9 % 57,2 % 57,3 % 20 % 10 % 0 % Q1.16 Deposits Covered bonds Others The figure illustrate how gross loans are funded

27 CAPITAL ADEQUACY RATIO 18,0 % 16,0 % 14,0 % 12,0 % 10,0 % 13,8 % 11,2 % 15,5 % 14,6 % 14,4 % 1,0 % 0,6 % 2,2 % 1,4 % 0,0 % 13,2 % 12,2 % 12,4 % 15,7 % 15,4 % 2,0 % 2,0 % 0,0 % 0,0 % 13,7 % 13,5 % 8,0 % 6,0 % 4,0 % 2,0 % 0,0 % At Q1 16 Core tier 1 capital Hybrid capital Subordinated dept

28 MATURITY STRUCTURE OF FUNDING The figure illustrates the maturity structure for the different sources of funding (NOK million)

29 LIQUIDITY BUFFER The figure illustrates the liquidity buffer given no new funding and growth in customer deposits and loans according to plan

30 SUMMARY AND FUTURE PROSPECTS Comprehensive income at Q1 2016, adjusted for the change in the accounting treatment of the fee to the Norwegian Banks` Guarantee Fund, was at the same level as Ql 2015 Moderate loan impairment charge Core business according to expectations Deposits and loans to customers rose solidly, primarily from RM Somewhat lower deposits/ gross lending ratio Operating expenses rose more than in past years due to planned heavy investment in new IT systems. Operating expense ratio of 51,1%- adjusted for the Fee: 47,6% Return on equity 7,1% annualised- adjusted for the Fee: 8,3% Capital adequacy ratio 15,4% Satisfactory capital adequacy ratio, solid growth, stable customer margins, low costs and a strong market position Good position to continue growing and developing

31 KEY FIGURES PROFIT AND LOSS INCOME STATEMENT 31/03/ /03/ /12/2015 Net interest income *) Dividends and gains/losses on financial instruments Other operating income Operating expenses Profit/loss before loan impairment charge (incl. securities) Profit/loss before loan impairment charge (excl. securities) Loan impairment charge Profit/loss before taxation Taxation Profit/loss after taxation Other comprehensive income Comprehensive income *) Of which fee payable to Norwegian Banks Guarantee Fund (see Note 1)

32 KEY FIGURES BALANCE 31/03/ /03/ /12/2015 Assets Gross loans and advances to customers 40,808 38,108 40,154 Impairment provisions Security investments (shares, commercial paper and bonds) 5,561 4,443 5,467 Debt and equity Deposits from and debt to customers 23,365 22,632 22,984 Debt securities and debt to credit institutions 19,149 16,249 18,179 Equity 3,574 3,331 3,571 Total assets 47,200 43,524 45,936 Average total assets 46,600 43,133 44,416

33 KEY FIGURES 31/03/ /03/ /12/2015 Profitability Net interest income as a % of average total assets (1) 1.48% 1.76% 1.70% Dividends and gains/losses on financial instruments -0.14% -0.18% -0.14% Other operating income (excl. inc. from fin. instr.) as a % of average total assets 0.23% 0.28% 0.27% Operating expenses as a % of average total assets 0.87% 0.89% 0.86% Profit/loss before impairment charge as a % of average total assets 0.69% 0.95% 0.97% Profit/loss before tax as a % of average total assets 0.62% 0.88% 0.75% Comprehensive income as a % of average total assets 0.54% 0.69% 0.79% Oper. exp. as a % of oper. income excl. inc. from fin. instr % 44.01% 43.66% Oper. exp. as a % of oper. income incl. inc. from fin. instr % 48.33% 47.00% Impairment charge as a % of gross loans 0.02% 0.02% 0.25% Return on equity before tax 8.07% 11.64% 10.13% Return on equity (comprehensive income) 7.09% 9.13% 10.77% Financial strength Capital adequacy ratio 15.42% 15.65% 15.71% Core capital adequacy ratio 13.47% 13.53% 13.73% Core Tier 1 capital adequacy ratio 13.47% 13.53% 13.73% Equity ratio 7.57% 7.65% 7.77% Balance sheet history Growth in total assets (year-on-year) 8.45% 7.58% 7.81% Growth in gross customer lending (year-on-year) 7.09% 8.07% 7.12% Growth in customer deposits (year-on-year) 3.24% 7.72% 2.41% Deposits as a % of consolidated gross lending 57.25% 59.39% 57.24% Deposits as a % of parent company s gross lending 81.17% 80.27% 81.75% Employees Full-time equivalent administrative staff Full-time equivalent cleaning, canteen staff, etc The whole fee payable to the Norwegian Banks Guarantee Fund was expensed in Q1 2016, whereas previously it was expensed over the course of the whole year. This reduced the net interest margin in Q by NOK 15 million, or 0.13 percentage points, in comparison with the past accounting practice.

34 CORE BUSINESS CORE BUSINESS BEFORE AND AFTER IMPAIRMENT CHARGE Adjusted MNOK Q2.14 Q3.14 Q4.14 Q1.15 Q2.15 Q3.15 Q4.15 Q1.16 Q1.16 Net interest income Net commision income Other income Operating expenses Basic operations before imp. charge Loan impairment charge Basic operations after imp. charge Excl. dividends and changes in values of financial instruments