Presentation Q3 2014 En drivkraft for vekst p Helgeland 1 - PowerPoint PPT Presentation

Presentation Q3 2014 En drivkraft for vekst på Helgeland 1

Presentation Q3 2014 (HSB group) Main features Lisbeth Flågeng Profit & Loss Acting Chief Executive Balance Officer Lending Deposits Ranveig Kråkstad Funding Solidity Acting Chief Financial Summary Officer Appendices En drivkraft for vekst på Helgeland 2

Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 3

Main features 3rd quarter Result Good basic operations – gross profit MNOK 235 (193) • Net interest increased by MNOK 22 • Return on financial investments increased by MNOK 38 • Some increased losses on loans and operating costs • Normalised losses in Q3 Profitability Improved return on equity 11,7 (9,9) % Solvency Strengthened capital adequacy – CET1 ratio 12,5 (11,2) % – total capital ratio 16,0 (14,9) % En drivkraft for vekst på Helgeland 4

Main features 3 rd quarter Lending Reduced 12-month growth 0,8 (7,4) % – reduced growth in CM in line with the bank’s targets • Retail Market 3,3 (7,9) % • Corporate Market -3,6 (6,4) % Deposits Increased 12-month growth 10,9 (13,0) % – deposit ratio 66,4 (60,3) % • Retail Market 9,3 (6,6) % • Corporate Market 13,5 (25,3) % En drivkraft for vekst på Helgeland 5

Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 6

Profit & Loss Good result so far this year Helgeland Sparebank Profit development (mnok) Stable net interest 300 • Meeting pricing competition 266 by reducing interest rates 235 on mortgages • Reduction on deposits in the 201 same period 172 • Net effect should not lower the net interest 133 133 150 • Individual adaption of commitments, particularly in the corporate market • Positive effect from official Engangs- one time rating effekt eff 45 45 0 2009 2010 2011 2012 2013 30.09.14 Gross Profit En drivkraft for vekst på Helgeland 7

Result Good result so far this year Helgeland Sparebank Profit development(mnok) and return on equity % Stable net interest 300 • Meeting pricing competition 266 by reducing interest rates 235 on mortgages • Reduction on deposits in the 201 same period 172 • Net effect should not lower the net interest 133 133 150 • Individual adaption of 11,7 % 10,4 % commitments, particularly in 9,2 % 7,2 % the corporate market 6,5 % 5,6 % • Positive effect from official One time Engangs- rating eff 45 effekt 45 0 Return on Equity • Goal at least 10.0 % 2009 2010 2011 2012 2013 30.09.14 • Per Q3 11.7 (9.9) % Gross Profit Return on equity % En drivkraft for vekst på Helgeland 8

Key figures Helgeland Sparebank Commentary Keyfigures in % of average BTA Net interest • Improved margin from 2011 2% • Unchanged in last three quarters Net commissions • Stable level from 2011 • Same level as last quarter 1% 0% 2009 2010 2011 2012 2013 30.09.14 Gross profit Net interest Net provisions En drivkraft for vekst på Helgeland 9

Key figures Helgeland Sparebank Commentary Keyfigures in % of average BTA Net interest • Improved margin from 2011 2% • Unchanged in last three quarters Net commissions • Stable level from 2011 • Same level as last quarter Operating costs • Decreasing costs from 2009 1% • Flattening in 2014 Losses on loans • Relatively low level since 2009 • increase in Q2 2014, normal in Q3 0% 2009 2010 2011 2012 2013 30.09.14 Gross profit Net interest Net provisions Operating cost Losses on loans En drivkraft for vekst på Helgeland 10

Key figures Helgeland Sparebank Commentary Keyfigures in % of average BTA Net interest • Improved margin from 2011 2% • Unchanged in last three quarters Net commissions • Stable level from 2011 • Same level as last quarter Operating costs • Decreasing costs from 2009 1% • Flattening in 2014 Losses on loans • Relatively low level since 2009 • increase in Q2 2014, normal in Q3 Financial investments • Positive development in 2014 0% 2009 2010 2011 2012 2013 30.09.14 Gross profit Net interest Net provisions Operating cost Losses on loans Finance inv. En drivkraft for vekst på Helgeland 11

Key figures Commentary Helgeland Sparebank Keyfigures in % of average BTA Result, net interest, net- commission and financial 1,02 % Gross profit investments improved 1,20 % 1,70 % Operating costs almost Net interest unchanged and somewhat 1,76 % increased losses on lending 0,30 % (individual commitment Q2) Net provisions 0,32 % 0,94 % Operating cost 0,95 % 0,11 % Losses on loans 0,18 % 0,04 % Finance inv. 30.09.13 30.09.14 0,24 % En drivkraft for vekst på Helgeland 12

Profit & Loss Helgeland Sparebank (group) Profit & loss (MNOK) Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Net interest- and credit provision earnings 117 118 113 114 116 Net provision earnings 22 20 19 22 22 Other operatios income 1 3 1 1 2 Ordinary operations cost 59 62 62 61 63 Result basic operations 81 79 71 76 77 Write-downs lending and warranties 7 12 11 18 6 Net value change financial instruments 2 6 6 23 17 Gross profit 76 73 66 81 88 Net profit 54 56 48 59 73 Net extended income posts 2 41 13 -7 2 Profit for the period 56 97 61 52 75 Commentary Still good and stable core operations Normalised losses Net value increase on financial investments last quarter – increased P&L contribution from associated company En drivkraft for vekst på Helgeland 13

Net interest Commentary Helgeland Sparebank Development net intr.(mnok.) and % of average BTA Net interest somewhat down 150 toward 2014, maintained from Q1 to Q3 118 117 116 114 113 Still strong price competition • The bank has signalled a reduction on the mortgage 1.82 % 1.79 % 1.75 % 1.75 % 1.75 % 75 interest rate. This is funded by a reduction on deposit rates (15.12.14) • Individual adaptions. 0 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Net interest Net interest % En drivkraft for vekst på Helgeland 14

Operating cost Commentary Helgeland Sparebank Development operating cost (mnok) and % of income Relatively flat cost 80 development in NOK toward 2014. 63 62 62 61 The cost percent still at a low 59 level. The challenge is increased 44,6 % 42,2 % 41,5 % 40 payroll tax from 01.07. 40,1 % 38,1 % The HSB group will end up with a higher cost level than target figure for 2014 0 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Operation cost Operation cost % En drivkraft for vekst på Helgeland 15

Theme Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 16

Total Assets Commentary Helgeland Sparebank BTA (MNOK) Controlled growth – reduction 30.000 of corporate commitments 26.378 25.985 24.594 22.802 20.160 18.376 15.000 0 2009 2010 2011 2012 2013 30.09.14 Total Asset En drivkraft for vekst på Helgeland 17

Total Assets Commentary Helgeland Sparebank BTA whereby lending (MNOK) The reason for a flattening 30.000 BTA is the reduction in 26.378 25.985 24.594 corporate commitments 22.802 20.978 20.160 Lending 18.376 • Q3 NOK 20.9 (20.8)bn. • 12-month growth MNOK 15.000 175 • 9-month growth MNOK 270 0 2009 2010 2011 2012 2013 30.09.14 Total Asset Lending En drivkraft for vekst på Helgeland 18

Total Assets Commentary Helgeland Sparebank BTA whereby lending and deposits (MNOK) The reason for a flattening 30.000 BTA is the reduction in 26.378 25.985 24.594 corporate commitments 22.802 20.978 20.160 Lending 18.376 • Q3 NOK 20.9 (20.8)bn. • 12-month growth MNOK 13.918 15.000 175 • 9-month growth MNOK 270 Deposits • Q3 NOK 13.9 (12.6)bn. • 12-month growth MNOK 1,365 0 • 9-month growth MNOK 929 2009 2010 2011 2012 2013 30.09.14 Total Asset Lending Deposits En drivkraft for vekst på Helgeland 19

Theme Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 20

Credit growth Commentary Helgeland Sparebank 12-month credit growth Controlled lending growth • 12-month growth 0.8 (7.4)% • 9-month growth 1.3 (4.2)% PM Helgeland Norway BM 66,1 % 83,8 % 16,2 % 33,9 % RM-share • Goal at least 60 % • Per Q3 – 66.1 (64.6) % Helgeland’s share • Per Q3 – 83.8 (83.0) % 5,3 % 0,8 % 2009 2010 2011 2012 2013 30.09.14 HSB Helgeland totalt Statistic Norway totalt En drivkraft for vekst på Helgeland 21

Credit growth CM and RM Helgeland Sparebank Helgeland Sparebank 12-month credit growth retail market 12-month credit growth personal market 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% 2009 2010 2011 2012 2013 30.09.14 2009 2010 2011 2012 2013 30.09.14 HSB Helgeland corp. Statistic Norway corp. HSB Helgeland pers. Statistic Norway pers. Commentary 12 month growth 0.8 (7.4) % of which CM -3.6 (6.4) % and RM 3.3 (7.9) % En drivkraft for vekst på Helgeland 22