Presentation Q1 2017 1 En drivkraft for vekst p Helgeland - PowerPoint PPT Presentation

Presentation Q1 2017 1 En drivkraft for vekst på Helgeland

Presentation per 31.03.17 (HSB Group) Main Features Profit & loss Lisbeth Flågeng Chief Executive Officer Balance Lending Deposits Funding Sverre Klausen Solidity Chief Financial Officer Helgeland Appendices 2 En drivkraft for vekst på Helgeland

Main features per 31.03.17 Result Gross profit MNOK 84 (154) • Adjusted for one-time effect pension, gross profit was MNOK 79 in Q1 2016. • Good profitability in the banks basis operations, net interest increased in NOK and maintained in % • Lower Nibor has given lower prices on lending from Mars. Profitability • ROE (after tax) 8,1 (12,1)% Solidity Capital adequacy – CET1 ratio 15.8 (14.9)% – total capital ratio 19.2 (18,2)% • FSA concluded in Q1 2017 with a Pilar 2 addition of 2.2 % • The Group’s capital demands included Pilar 2 amounts to 14.2 % from 31.12.17 3 En drivkraft for vekst på Helgeland

Main features per 31.03.17 Lending 12-month growth 9.8 (9.1)% • Retail market 8.8 (10.3)% • Corporate market 11.9 (6.9)% Growth in RM is normalized, growth in CM is as expected Deposits 12-month growth 11.9 (4.3)% – good deposit ratio 64.5 (63.3)% • Retail market 4.8 (6.6)% • Corporate market 22.4 (0.5)% VIPPS • All formal approvals are landed, the last one from FSA 28.04.17 4 En drivkraft for vekst på Helgeland

Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 5 En drivkraft for vekst på Helgeland En drivkraft for vekst på Helgeland

Profit Profit developement (MNOK) Good result Q1 Gross profit MNOK 84 500 40% • ROE after tax 8,1 % 35% 85 Adjusted for one time effect pension 400 30% (MNOK 75) profit in Q1 2016 was MNOK 79. 106 25% 300 49 20% 92 73 88 107 200 15% 59 76 10% 75 80 100 8,1% 58 66 5% 79 71 66 84 51 0 0% 2013 2014 2015 2016 Q1 2017 Q1 Q1 EE Q2 Q3 Q4 ROE % 6 En drivkraft for vekst på Helgeland

Key figures Keyfigures in % of average BTA Stable net interest • 1.83% per 31.03.17 2,5 % Net provisions • 0.27% - reduced from 0.30% 1,83% Operating costs 1,5 % • Flattening 1,14% Moderate write-downs on lending 0,94% 0,5 % 0,27% 0,08% 0,04% -0,5 % 2013 2014 2015 2016 31.03.2017 Gross profit Net interest Net provisions Operating cost Losses on loans Finance inv. 7 En drivkraft for vekst på Helgeland

Profit & loss Helgeland Sparebank (group) Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1 2017 Net interest- and credit provision earnings 116 121 125 128 133 134 135 Net provision earnings 23 22 20 22 22 21 20 Other operatios income 6 2 2 1 1 2 1 Ordinary operations cost 66 66 65 69 65 72 69 Result basic operations 79 79 82 82 91 85 87 Write-downs lending and warranties 9 12 5 6 5 20 6 One-time cost 8 Income by conversion to defined contribution 75 1 -2 Net value change financial instruments -11 33 2 30 20 22 3 Gross profit 59 92 154 107 106 85 84 Net profit 45 70 117 85 84 69 64 Net extended income posts -14 36 1 -19 5 8 8 Profit for the period 31 106 118 66 89 77 72 Commentary • Stabile and good basis operation • New finance tax affected operating costs by MNOK 1.3 in Q1 2017 • Moderate write-downs on lending Q1 • Net value change financial instruments ,profit share Helgeland Invest amounts to MNOK 4.1 • Extended income statement: Value increase; Owner share in Brage Finans AS and interest-bearing securities 8 En drivkraft for vekst på Helgeland

Net interest Development net intr.(mnok.) and % of average BTA Increased net interest 150 Still strong competition 135 134 133 128 regarding price 125 121 • Maintained net interest in %. • Reduced credit spread on 100 1,85% 1,84% 1,83% 1,83% 1,82% 1,77% lending • Lower lending costs with falling Nibor from Mars 50 0 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1 2017 Net interest Net interest % 9 En drivkraft for vekst på Helgeland

Operating costs • Costs in % of BTA unchanged in the quarter • Costs increased with finance tax of MNOK 1.3 in Q1 2017 (One time effect pension 2016 is not included in the calculation above) 10 En drivkraft for vekst på Helgeland

Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 11 En drivkraft for vekst på Helgeland En drivkraft for vekst på Helgeland

Balance Helgeland Sparebank (group) 31.03.17 31.12.16 Change Assets 579 -23 liquid assets 602 25 089 457 Net lending to customers 24 632 4 106 255 Shares/investments in AC and DC 3 851 Debt and equity 16 270 97 Deposits from customers 16 173 9 961 703 Money market financing 9 258 300 0 Subordinated debt 300 3 054 -154 Equity 3 208 30 102 719 719 Total assets 29 383 12 En drivkraft for vekst på Helgeland

Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 13 En drivkraft for vekst på Helgeland En drivkraft for vekst på Helgeland

Credit growth 12-month credit growth Commentary 20% Credit growth HEBO • 12-month growth 9.8 (9.1)% BM 23,1 % 32,7 % PM 15% 44,2 % PM share • Target minimum 60% 10% 9,8 % • Per Q1 67.3 (67.9)% 5,3 % 5% Locally in Helgeland • Per Q1 84.0 (83,6)% 0% -5% 2013 2014 2015 2016 31.03.2017 HSB Helgeland total Statistic Norway total 14 En drivkraft for vekst på Helgeland

Credit growth CM and RM 12-month credit growth corporate market 12-month credit growth retail market 20% 20% 15% 15% 11,9 % 10% 10% 8,8 % 6,8 % 5% 5% 2,4 % 0% 0% -5% -5% 2013 2014 2015 2016 31.03.2017 2013 2014 2015 2016 31.03.2017 HSB Helgeland corp. HSB Helgeland pers. Commentary 12-month growth 9.8 (9.1)% whereby CM 11.9 (6.9)% and PM 8.8 (10.3)% 15 En drivkraft for vekst på Helgeland

Lending CM Lending distributed in sector Commentary Good diversification in the CM 13,2 % lending portfolio and very loyal Real estate 12,3 % corporate customers 5,6 % Farming and forestry Share CM of total lending 32.7 5,2 % (32.1)% or MNOK 8 256 4,0 % (7 379) Construction and power 4,9 % 2,8 % Transport and services 3,9 % 3,5 % Fishery and aquaculture 3,5 % 1,8 % Processing and mining 1,7 % 1,2 % Trade, hotel and restaurant 31.03.16 31.03.17 1,2 % 16 En drivkraft for vekst på Helgeland

Non-performing and other impaired commitments Good portfolio quality Net defaulted and com. exp. to loss Net non-performing and other 200 impaired commitments amounts to MNOK 103 (114) 150 Which equals 0.4 (0.5)% of gross loans 100 Total group write-downs • MNOK 87 50 • 0.35% of gross loans 0,6 % 0,5 % 0,5 % 0,4 % 0,3 % 0 2013 2014 2015 2016 31.03.2017 Net commitments exposed to loss Net defaulted commitments (>90 days) Net defaulted (>90 days) and exp. Com. In % of lending 17 En drivkraft for vekst på Helgeland

Main features Profit & loss Balance Lending Deposits Funding Solidity Helgeland Appendices 18 En drivkraft for vekst på Helgeland En drivkraft for vekst på Helgeland

Deposit growth 12-month deposit growth Commentary 20% 12-month growth 11.9 (4.3)% Norway PM share 15% Helgeland 8,3 % 91,0 % • Per Q1 56.1 (59.9)% 10% 11,9 % Locally in Helgeland • Per Q1 91.0 (91.0)% 7,2 % 5% Deposit ratio BM PM • Target minimum 60% 43,9 0% 56,1 % • Per Q1 64.5 (63.3)% % -5% 2013 2014 2015 2016 Q1 2017 HSB total Helgeland Statistic total Norway 19 En drivkraft for vekst på Helgeland

Deposit growth CM and RM 12-month deposit growth corporate market 12-month deposit growth retail market 35% 20% 30% 15% 25% 22,4 % 20% 15,0 % 10% 15% 10% 5% 4,8 % 5% 3,5 % 0% 0% -5% -10% -5% 2013 2014 2015 2016 Q1 2017 2013 2014 2015 2016 Q1 2017 HSB Helgeland Corp. HSB Helgeland pers. Commentary 12-month growth 11.9 (4.3)% whereby CM 22.4 (0.5)% and PM 4.8 (6.6)% 20 En drivkraft for vekst på Helgeland

Deposits CM Commentary Customer deposits Well diversified deposit 9,4 % portfolio in the CM Municipalities 10,8 % 5,7 % Farming and forestry Share CM 43.9(40.1)% or 8,0 % MNOK 7 146 (5 836) of total 8,9 % Transport and services 8,9 % deposits 5,5 % Construction and power 6,3 % Deposits from municipalities 3,3 % Real estate 3,8 % constitute 25% of the CM 2,8 % Food deposits Industry Trade, hotel and forestry 23 % 2,7 % 16 % Real Services estate 2,2 % 26 % Fishery and aquaculture Municipa 9 % 2,0 % lties Financial 25 % 1 % 1,1 % Insurance and finance 0,6 % 1,1 % Processing and mining 31.03.16 31.03.17 1,0 % 21 En drivkraft for vekst på Helgeland

Deposit development 100 % Deposit 90 % 18 000 80 % 16 000 70 % 14 000 60 % 12 000 50 % abow 8 mill 10 000 40 % between 2 and 8 mill 8 000 between 1 and 2 mill. 30 % 6 000 below 1 mill 20 % 4 000 10 % 2 000 0 % - A large share of PM deposits is under MNOK 2 (52.5 % of total deposits). The level is the same as last quarter end, but slightly declining because of the strong growth in corporate deposits. About 60 % of the deposit is covered by the guarantee scheme 22 En drivkraft for vekst på Helgeland

Main features Profit & Loss Balance Lending Deposits Funding Solidity Helgeland Appendices 23 En drivkraft for vekst på Helgeland En drivkraft for vekst på Helgeland