quarterly presentation q4 2015 4 th quarter report 2015
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Quarterly presentation Q4 2015 4 th quarter report 2015 - Group - PowerPoint PPT Presentation

Quarterly presentation Q4 2015 4 th quarter report 2015 - Group Profits before tax: NOK 1 033 mill (1 345 mill) ROE: 9.1 % (12,2 %) Proposed cash dividend: NOK 2.00 kr (1.90) Retained portion of Group result: 70.1 % (73.3 %)


  1. Quarterly presentation Q4 2015

  2. 4 th quarter report 2015 - Group • Profits before tax: NOK 1 033 mill (1 345 mill) • ROE: 9.1 % (12,2 %) • Proposed cash dividend: NOK 2.00 kr (1.90) • Retained portion of Group result: 70.1 % (73.3 %) • Very good solidity. Satisfactory liquidity • Continued limited signs of weakness in the regional economy. 2

  3. Macro and Economic trends 3

  4. Everybody is familiar with the traditional image of Northern Norway... 4

  5. ...but not everybody knows of its modern aspects 5

  6. Export growth 2015: Northern Norway 7%, Norway 1%... Source: Economic barometer, autumn 2015 (Menon) 6

  7. …or as a well-known chief economist in the south puts it: Message to Northern Norway: “If you don’t make it NOW...” 7

  8. Regional dependence on oil is low in the north... Share of employment in oil-related business 8

  9. …and the unemployment rate is low and stable Registered unemployed, Change: December 2014 - December 2015 90% 75% 60% 45% 30% 13% 15% 3% 2% 1% 0% -15% 9 Source: The Norwegian Labour and Welfare Administration - NAV

  10. A broad, export-oriented business sector... Arctic based Seafood Power intensive Tourism Oil/gas/ industries minerals knowledge industry 10

  11. ...and substantial investment in infrastructure 11

  12. Regional house prices lower than the Norwegian average… House prices, January 2016 Average price, NOK per m2, all units 50.000 41.293 40.000 35.463 33.292 30.000 21.635 19.023 19.097 20.000 10.000 0 Tromsø Bodø Finnmark Norge Troms ex Tromsø Nordland ex Bodø Source: Norwegian Association of Real Estate Agents, Finn.no and Eiendomsverdi 12

  13. ...and slower price growth Price growth and turnover January 2016 10% 9.0% 105 104 8% 90 90 5.3% 6% 5.0% 4.9% 75 3,2 % 4% 60 5.2% 2% 47 45 45 0% 33 32 30 -2% 6.0 % 19 15 -4% -6% 0 Tromsø Bodø Nord-Norge ex NORGE Oslo Bergen Stavanger Tromsø/Bodø Price growth y/y, all units Turnover (days) 13 08.02.2016 Source: Norwegian Association of Real Estate Agents, Finn.no and Eiendomsverdi AS

  14. Strategy 14

  15. Digitalisation is resulting in unexpected competition The world's largest taxi company does not own a single car The world's largest media company writes nothing itself The world largest arranger of overnight accommodation owns no rooms 15

  16. The competitive landscape has never been this fragmented… Deposits Savings Lending Value increasing Payments services FX and Capital markets “Remittance” 16

  17. …”FinTech” is the new buzzword… 17

  18. …and many are subject to a different regulatory framework 18

  19. Adapting to a new competitive situation Business model Customer experience Technology Individuality 19

  20. That is why we are investing heavily in new business concepts… 20

  21. …while streamlining our in-house processes… “Robbie the robot is doing the boring part of the work” 21

  22. …and adapting our organisation 150 50 22

  23. We are concentrating on our core activities SNN Markets SNN Forvaltning SpB 1 Markets SNN Invest 23

  24. Distribution is being concentrated on 16 financial centres… Bank Estate agents Accounting firm Product specialists 24

  25. …and our digital sales knowledge and expertise are being strengthened 25

  26. In a digital world the banks looked alike in 2015… 26

  27. …and they will in 2016 as well 27

  28. Our uniqueness (DNA) is being turned into a competitive edge 28

  29. A leading player on the savings banks’ national team

  30. Financial figures 30

  31. Main financial targets Profitability: Banking operations at top international level: Minimum 12% ROE • Solidity: Undisputable solid • • Internal capital buffer of at least 0.5 percentage point above the statutory minimum requirement. • Long term goal for Core Tier 1 level is currently 14.5 %. The intention is to achieve the target of 14.5% in 2016. 31

  32. Capital adequacy ratio - Group 32

  33. Profit and loss account - Group ������������������������� 31.12.15 �������� �������� ������������������� 1 512 ����� ����� �������������������������������������� ������� 933 �!�� �!�� ����������������������������"�������� 249 ��#� ��#� Total net income 2 694 ��!!� ��!!� $���������� 1 461 ����% ����% Result before losses and write�downs 1 233 ����� ����� ���������������&�������&�� 200 ���� ���� Result before tax 1 033 ����' ����' $�( 163 ���� ���� )�������������������������������������� 5 ��* ��* +������,���������� � 7 ��� ��� Result for the period 872 ��#!� ��#!� )����������-���,�������� 9,1 % �����. �����. 33 33

  34. Quarterly summary – Profit and loss account figures ������������������������� 4Q15 �/�' �/�' �/�' �/�� ������������������� 390 �%' ��% ��! �*% �������������������������������������� ������� 222 ��� ��! ��! ��* ����������������������������"�������� 46 �% !� ��% '� $��������������� 658 ��# *## *�� ��� $���������� 451 ��� ��� ��% �'� )������0�����������������&�������&�� 207 �*� ��� �%% ��� ���������������&�������&�� 92 �# �� �� ��� Result before tax 115 ��� ��% �'� *� )����������-���,�������� 5,2 % *�%�. �����. ���'�. ��'�. 1���2������ 68,5 % ''���. �%�#�. �����. '����. 34

  35. Net interest income - Group 35

  36. Changes in net interest income last quarter 5 2 0 1 450 3 4 400 350 447 446 300 250 200 Net interest Deposits Deposits Lending Lendring Volume Other Net interest income margin margin retail margin margin retail income 3Q15 corporate corporate 4Q15 Measured against average funding cost 36

  37. Lending margin, Parent bank The interest margin is defined as the difference between the customer lending interest rate and average 3 month NIBOR 37

  38. Customer deposits, Parent bank The interest margin is defined as the difference between average 3 month NIBOR and the customer deposit interest rate 38

  39. Deposit volume – repricing potential 39

  40. Quarterly summary – Profit and loss account figures ������������������������� 4Q15 �/�' �/�' �/�' �/�� ������������������� 390 �%' ��% ��! �*% �������������������������������������� ������� 222 ��� ��! ��! ��* ����������������������������"�������� 46 �% !� ��% '� $��������������� 658 ��# *## *�� ��� $���������� 451 ��� ��� ��% �'� )������0�����������������&�������&�� 207 �*� ��� �%% ��� ���������������&�������&�� 92 �# �� �� ��� Result before tax 115 ��� ��% �'� *� )����������-���,�������� 5,2 % *�%�. �����. ���'�. ��'�. 1���2������ 68,5 % ''���. �%�#�. �����. '����. 40

  41. Total commission and other income 1.200 40% 34,7 % 36,3 % 32,3 % 35% 31,5 % 1.000 100 27,8 % 30% 100 114 25,1 % 800 25% 44 600 20% 8 19 15% 866 834 817 400 612 10% 505 487 200 5% 0 0% 2010 2011 2012 2013 2014 2015 Net commision income Total other operating income Net fee-, commission and other income as % of total net return 41

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