Norwegian Finans Holding ASA. Third quarter 2014 results

Transcription

1 Norwegian Finans Holding ASA Third quarter 2014 results

2 Third quarter 2014 earnings were 94.1 MNOK, compared with 82.1 MNOK in the second quarter Norwegian Finans Holding Group MNOK Q Q Change Interest income % Interest expenses % Net interest income % Commission and bank services income % Commission and bank services expenses % Net change in value on securities and currency n/m Net other operating income % Total income % Personnel expenses % General administrative expenses % Ordinary depreciation % Other operating expenses % Total operating expenses % Provision for loan losses % Profit before tax % Tax charge % Profit after tax % Net interest income driven by strong loan growth. Net loss on securities in the Swedish portfolio. Improved operating efficiency. Stable provisioning. ROE 38.6 %, up from 37.2 %*. Earnings per share NOK (annualized) * Bank Norwegian AS 2

3 Earnings in Norway were MNOK, a gain of 9.8 MNOK from the second quarter Norwegian Finans Holding Group Key figures Norway Sweden* MNOK Q3 14 Q2 14 Q3 14 Q2 14 Total income Total operating expenses Provision for loan losses Profit after tax Liquid assets 3,042 2, Net loans to customers 7,491 7, ,311 1, Intangible assets Deposits from customers 7,446 7, ,054 1, Swedish operations impacted by nonrecurring items in the third quarter and is expected to turn profitable in the fourth quarter. Mainly group provisions in Sweden. * No allocation of overhead expenses. 3

4 Solid loan and earnings growth Quarterly loan growth Quarterly earnings MNOK MNOK

5 Rising market share in Norway Total unsecured loans Market growth and market share BNOK BNOK Source: The financial supervisory authority of Norway, adjusted for Bank Norwegian s Swedish loan portfolio. First half 2014 annualized growth figures. 5

6 High loan and deposit growth MNOK 14,000 12,000 10,000 8,000 6,000 4,000 2, ,771 1,632 4, ,694 1,751 4,734 Assets 297 2,747 1,944 5, ,919 2,215 6, ,371 2,408 6,571 Cash & cash equivalents Securities Credit card 1 Consumer loans 2 Total gross loans increased 740 MNOK, compared with 846 MNOK in the second quarter. Installment loans rose 547 MNOK and credit card loans grew 193 MNOK. Installment loan run-off 395 MNOK, compared with 323 MNOK in the second quarter. 0 MNOK 14, Liabilities & equity Intangibles Other assets Liquid assets comprise 30 % of total assets. Deposits up 460 MNOK. 12,000 10,000 Issuance of 500 MNOK in senior debt securities. 8,000 9,040 9,500 Deposits Deposits to loans ratio ,000 4,000 6,243 6,592 8,496 LCR 326% NSFR 115% 1,602 2, , , Bank Norwegian AS Debt securities issued Other liabilities Sub debt & hybrids Equity 1 Includes sales financing 2 Includes personal lines of credit

7 Strong loan growth MNOK Quarterly loan growth Loan growth in line with expectations Credit card growth in Sweden impacted by down payments after expiry of interest free period Norway Sweden Norway Sweden Installment loans Credit card Q2 14 Q3 14 7

8 Rapid customer growth Number of customers 450, , , , , , , ,000 50, , , , , ,000 43,000 48,100 52,900 32,800 37,700 53,700 56,900 66,200 69,200 71,900 Deposit Consumer loan Credit card Number of customers total 422,400 32,100 net new customers in the third quarter. Swedish card customers total 79,300. 8

9 Quarterly balance sheet Norwegian Finans Holding Group MNOK Assets Change Deposits with Norges Bank 57 0 % % % Loans and deposits with credit institutions % % 17 4 % Loans to customers 8, % 8, % % Certificates and bonds 3, % 2, % % Shares and other securities 0 0 % 0 0 % 0 0 % Other intangible assets 33 0 % 31 0 % 2 6 % Deferred tax asset 2 0 % 2 0 % 0 6 % Fixed assets 1 0 % 1 0 % -0-9 % Other assets % % % Total assets 12, % 11, % 1, % Liabilities and equity Deposits from customers 9, % 9, % % Debt securities issued 1, % 1,100 9 % % Taxes payable 90 1 % 55 0 % % Other liabilities 16 0 % 31 0 % % Accrued expenses and unearned income received % % % Subordinated debt % % 0 0 % Total liabilities 11, % 10, % 1, % Share capital % % - 0 % Share premium % % - 0 % Retained earnings % % % Total equity 1,037 8 % % % Total liabilities and equity 12, % 11, % 1, % 9

10 Stable yields and margins 14% Margins as a % of average assets 12% 11.5 % 12.1 % 11.9 % 11.9 % 11.6 % Interest income 10% 8% 8.4 % 7.4 % 9.0 % 9.1 % 9.0 % 7.9 % 7.9 % 7.9 % 8.7 % 7.6 % Net interest margin Risk-adjusted margin 6% 4% 2% 3.0 % 3.0 % 3.0 % 3.0 % 2.8 % Interest expenses Deposit rates lowered in the third quarter. 0% 18% Asset yield and cost of deposits 16% 14% 12% 15.3 % 15.6 % 15.8 % 15.8 % 15.4 % 15.4 % 15.5 % 15.4 % 15.3 % 15.4 % 13.8 % 13.9 % 13.8 % 13.7 % 13.8 % Credit card loan yield Installment loan yield Risk-adjusted total loan yield 10% 8% 6% 4% 3.3 % 3.3 % 3.3 % 3.3 % 3.2 % Deposit costs 2% 2.4 % 2.4 % 2.3 % 2.2 % 2.3 % Liquidity yield 0% 10 Bank Norwegian AS - Norwegian operations

11 Improved operating efficiency Quarterly operating expenses MNOK Increased marketing expenses in Sweden. Higher personnel expenses related to seasonal accrual effect in the previous quarter Nine out of 55.5 FTE s allocated to Swedish operations Cost/income ratio in Norwegian operations was 0,32. Depreciation IT Other Personnel Marketing Cost/income 11 Bank Norwegian AS

12 Stable credit metrics Consumer loans Non-performing loans to loans Loan loss provisions to average loans 12% 3.0 % 10% 2.5 % 8% 2.0 % 6% 5.0 % 5.0 % 5.0 % 5.1 % 4.8 % 1.5 % 1.4 % 1.5 % 1.5 % 1.5 % 1.5 % 4% 1.0 % 2% 0.5 % 0% 0.0 % 3.0 % Loan loss allowance to loans 140% Loan loss allowance to non-performing loans 2.5 % 120% 2.0 % 1.5 % 1.8 % 1.8 % 1.9 % 2.0 % 2.0 % 100% 80% 67.2 % 67.6 % 68.8 % 69.4 % 82.6 % 60% 1.0 % 40% 0.5 % 20% 0.0 % 0% 12 Norwegian operations

13 Stable credit metrics Credit card loans Non-performing loans to loans Loan loss provisions to average loans 7% 3.0 % 6% 2.5 % 5% 4% 3.9 % 4.2 % 4.2 % 4.2 % 4.0 % 2.0 % 1.5 % 1.6 % 1.5 % 1.6 % 1.5 % 1.4 % 3% 2% 1.0 % 1% 0.5 % 0% 0.0 % 3.0 % Loan loss allowance to loans 140% Loan loss allowance to non-performing loans 2.5 % 120% 2.0 % 1.5 % 1.9 % 2.0 % 2.0 % 2.0 % 2.0 % 100% 80% 60% 70.2 % 68.0 % 69.5 % 73.0 % 81.8 % 1.0 % 40% 0.5 % 20% 0.0 % 0% 13 Norwegian operations

14 High profitability 45% 3.5 % 40% 3.0 % 35% 30% 2.5 % 25% 2.0 % 20% 15% 10% 35.8 % 35.0 % 32.2 % 37.2 % 38.6 % 1.5 % 1.0 % 5% 0.5 % 0% ROE ROA 0.0 % 14 Bank Norwegian AS

15 High risk absorption capacity 20% Capital ratios 18% 17.7 % 16% 14.8 % 15.7 % 15.3 % 15.3 % 14% 12% 13.2 % 12.7 % 12.7 % 13.2 % 13.1 % 13.2 % 11.5 % 11.5 % 11.7 % Strong capital ratios despite strong loan growth. 10% Adequate capital for growth. 8% 6% Common equity tier 1 ratio of 11.7 %. 4% 2% Leverage ratio equals 8.0 % 0% Common equity tier 1 Tier 1 capital Total capital 15 Bank Norwegian AS

16 Well positioned for continued earnings growth Earnings growth and strong returns Continued strong loan growth Stable margins Cost-efficient operations Stable provisions Swedish operations expected to turn profitable in the fourth quarter Preparing further geographical expansion Stable credit quality Resilient economies in Norway and Sweden Enhanced credit models Stable portfolio risk Strong and resilient balance sheet Strong liquidity position Continued diversification of funding base Strong capital generation and capital ratios Adequate capital for growth 16

17 Top 20 shareholders SHAREHOLDER # OF SHARES 1 NORWEGIAN AIR SHUTTLE 34,600, % 2 GOLDMAN SACHS & CO 14,999, % 3 SOCIETE GENERALE 14,700, % 4 LAGUAN AS 12,871, % 5 BORAK AS 8,580, % 6 MP PENSJON PK 7,500, % 7 SPENCER TRADING INC 7,138, % 8 STENSHAGEN INVEST AS 6,170, % 9 TVENGE TORSTEIN 4,000, % 10 SNEISUNGEN AS 3,720, % 11 SKAGEN VEKST 3,555, % 12 BLYSTAD ARNE 2,000, % 13 KLP AKSJE NORGE VPF 1,960, % 14 JENSEN ERIK 1,617, % 15 DIRECTMARKETING INVEST 1,500, % 16 GJERSVIK KARSTEIN 1,408, % 17 LITHINON AS 1,282, % 18 AWILCO INVEST AS 1,258, % 19 VERDIPAPIRFONDET OMEGA 1,242, % 20 SVENKERUD PÅL 1,199, % Top ,303, % Total 173,000,202 17

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