Annual Report ya Holding ASA and Group. ya Holding ASA and Group

Transcription

1 Annual Report 2008 ya Holding ASA and Group

2 Key figures Results by company 2008 Figures in NOK 1000 Profit/Loss Group ya Bank ya Personf. ya Holding Metatech Net interest and credit commission income Net other operating income Operating expenses Operating profit/loss before losses and write downs Loss on loans issued, guarantees etc Write-downs and losses on long-term securities Operating profit/loss before tax Tax on ordinary profit Profit/loss from ordinary operation after taxes Minority interests 781 Profit/loss without minority interests The Group All figures in NOK 1000 Profit/Loss Development Net interest and credit commission income Net other operating income Operating expenses Operating profit/loss before losses and write downs Loss on loans issued, guarantees etc Write-downs and losses on long-term securities Operating profit/loss before tax Tax on ordinary profit Profit/loss from ordinary operation after taxes Minority interests Profit/loss without minority interests Balance sheet development Gross loans issued to and receivables from customers Individual write downs on loans issued Group write downs on loans issued Net lending to and receivables from customers Deposits from and liabilities to customers Liabilities created on issue of securities 0 0 Subordinated loan capital 0 0 Perpetual hybrid Tier 1 securities 0 0 Shareholders equity Total assets Average total assets Profitability and operation Net interest margin 1) 4,9 % 4,4 % Net other operating income as % of average total assets -0,2 % -0,1 % Operating expenses as % of average total assets 4,7 % 6,7 % Cost/earnings ratio (%) 2) 99,0 % 154,7 % Loan loss ratio (%) 3) 3,5 % 1,3 % Declared loan loss ratio (%) 4) 0,9 % 0,3 % Total profitability ratio 5) -2,7 % -2,8 % Return on equity ratio 6) -15,1 % -9,6 % Financing and liquidity Net loans to customers as % of deposits by customers 73% 84% Deposit-to-loan ratio 7) 137% 119% Changes in net lending to customers last 12 months as % 6% 140%

3 Key figures Solvency Net equity and subordinated capital Calculation basis Core capital adequacy as % 16,8 % 21,0 % Capital adequacy as % 16,8 % 21,0 % Shareholders equity etc Total shares issued Nominal value per share 0,004 0,004 Share capital Share premium fund Book shareholders equity Profit per share -1,27-0,91 Number of FTEs ) Net interest and credit commission income as % of average total assets 2) Total operating expenses as % of net income from interest and net other operating income 3) Losses on loans issued and guarantees as % of gross lending to and receivables from customers 4) Declared losses on loans issued as % of gross lending to and receivables from customers 5) Profit/loss after tax as % of average total assets 6) Profit/loss after tax as % of average shareholders' equity 7) Deposits by and debt to customers as % of net loans to and receivables from customers

4 Annual Report Corporate structure The ya Bank og Forsikring Group comprises the companies: ya Holding ASA, ya Bank AS, ya Personforsikring AS and Metatech AS. Shares in the Group are traded via ya Holding ASA. ya Holding ASA owns 100% of ya Bank AS and ya Personforsikring AS, and 51% of Metatech AS. ya Holding ASA is linked to the Norwegian Securities Dealers Association s OTC List (NOTC - the Norwegian Over The Counter Market) with the ticker YAHO. ya Holding ASA was formed in January 2005 and ya Bank AS and ya Personforsikring AS were formed in May The Group has office addresses in Oslo and Trondheim. ya Holding ASA is owned by Norwegian institutional enterprises and investors, and by Norwegian and foreign investment funds. Activity in the Group ya Bank og Forsikring s aim is to be a preferred provider of financial services to private individuals in Norway. Using modern technology, the Group will challenge the traditional way of buying and using financial services. ya Bank og Forsikring offers a selection of financial services based on low prices, no charges and self-service. The Group does not offer products that require the provision of personal advice. The Group is based on the idea that banking and insurance can be made simpler and cheaper than is the case today. ya Bank og Forsikring has its own IT systems development operation. The Group offers its products on a white label basis, i.e. products, systems and competency are also made available to third parties who can thus offer financial services in their own name, even though ya Bank stands behind the provision. ya Bank AS ya Bank AS is an internet bank accessible via the Company s website and telephone number , or via collaborating agents and partners. is the bank s sales channel where potential and existing customers are offered the following products: deposit accounts, payment services, debit cards, credit cards with travel and accident insurance, consumer loans and mortgages. ya Bank AS opened on 26 June As of 31 December 2008 the bank had more than 38,000 customers. For three successive years ya Bank has been selected by the magazine Dine Penger as the bank in Norway with the best current and savings account. ya Personforsikring AS Until 1 October 2008 the company offered fatal accident insurance to all ya Bank s credit card customers. The insurance was offered as group life insurance cover with ya Bank as the policyholder and ya Bank s credit card customers as members of the scheme. From 1 October 2008 VITAL Forsikring took over all ya Personforsikring AS s insurance business. ya Personforsikring AS is being wound up and is expected to be merged with ya Holding ASA by the end of March Metatech AS. Metatech supplies bank systems to small banks and to organised interests groups, including systems for handling ya Bank s credit cards. The company was formed in 1990 and has its office in Trondheim. In 2008 Metatech had profit after tax of MNOK 1.6. Financial situation The Group s result was a deficit of MNOK 46.5 before tax, and MNOK 34.7 after tax. The result after tax for the parent company ya Holding ASA was a loss of MNOK The loss results from write-down of the value of subsidiaries and it is proposed it be set off against other shareholders equity. The Group s capital adequacy was 16.8% at the end of the year and the Group s shareholders equity was MNOK The Board of Directors proposes to make a Group contribution from ya Personforsikring AS to ya Holding ASA of MNOK Cash flow analysis The Group has strengthened its cash holding over the year from net cash flows related to operation. This is mainly because ya Bank received more in deposits from customers than the bank s increase in lending to customers. The Group has invested MNOK 9 in in-house development of IT applications in order better to support the bank s products and in due course to achieve lower operating costs. The sums that have been invested in the Group s bonds and certificates portfolio have varied through the year. However the portfolio s value is almost unchanged on an annual basis with the exception of the write-downs. MNOK 10 was injected into ya Bank through a private placement by the parent company ya Holding ASA. The purpose of the placement was to strengthen the bank s capital adequacy. The effect of the placement has been eliminated in the Group s cash flow analysis. Organisation ya Bank AS employed 32 FTEs as at the end of the year. ya Personforsikring AS has two employees and ya Holding ASA has one employee. With the exception of ya Personforsikring AS s chief actuary, the employees of the holding company and the insurance company are paid 100% by ya Bank. Metatech AS employed 12 FTEs as at the end of the year. The Group attaches importance to promoting gender equality in all functions and roles. The HR policy of the business has been designed with the aim of preventing discrimination between the genders. Special measures in this area are considered unnecessary. Considerable attention is paid to ensuring a good working environment. Bright and pleasant offices, good workstations and comfortable air are considered important. The Safety Representative and the HR Director regularly check that the staff are comfortable with their working situation.

5 Annual Report During 2008 an employee survey has been carried out with good results. A climate study has also been carried out, also with good results. Sickness absence was 2.4% during 2008, a reduction of 1.2 percentage points from There have been no injuries or accidents of any sort. The working environment is assessed as good. The staff are represented on the Board of Directors of the holding company. The Board of Directors of ya Holding ASA comprises 3 representatives plus a deputy representative. Of the four representatives 2 are women and 2 are men. The Group impacts on the external environment. The impact occurs through consumption of paper and energy, travel activity and purchase of other goods and services, but not in excess of what is normal for similar businesses. Future prospects The latter part of 2008 was characterised by the financial crisis and the various banks liquidity problems. ya Bank is 100% financed in the deposit market, a factor which meant ya Bank did not experience liquidity problems. However Norwegian banks liquidity crisis has led to higher funding costs, which has put pressure on the net interest margin and earnings of ya Bank, particularly through the second half of will be a demanding year. This applies particularly to two matters: The likelihood of more than normal losses in the existing portfolio Reduced growth potential as a result of reduced demand and stricter risk assessments On the positive side the interest rate reductions in the beginning of 2009 meant that ya Bank can expect an improvement in the net interest margin of close to 2 percentage points. ya Bank expects growth in lending during 2009 and is planning to continue its current risk profile in the lending portfolio. The conditions are present to be able to render the accounts on the basis of the going concern assumption. Risk considerations Assuming ya Bank s deposit interest rate continues to be one of the best in the market, the liquidity risk on the balance sheet is considered to be low. The bank always has a large proportion of its deposits in its liquidity- reserve, which means the bank is robust in regard to normal changes in its deposits. Because all of the bank s money placements command interest rates in line with the money market, the interest rate risk on the balance sheet is considered to be low. ya Bank s credit strategy is primarily to operate in the market for unsecured loans, i.e. consumer loans and credits without surety. The bank has increased its risk profile in the lending portfolio during 2008 as a result of the proportion of unsecured loans having increased and the proportion of securitised loans having reduced. The bank uses a scoring model developed in-house in the credit rating process. All customers are classified in risk classes based on the customer s actual risk profile. Customers with too high a risk are turned down. ya Bank s lending portfolio is well diversified geographically and by amount. The bank has no guarantee liabilities. ya Bank complies with the Financial Supervisory Authority of Norway s rules for accounting for and making provision for losses in the income statement and the balance sheet. In 2008 losses recognized amounted to MNOK 8.2. Provision for loss recorded in the balance sheet was MNOK Loans in default are defined as loans that have not been serviced within 45 days after payment falling due. Expected loss levels given normal economic conditions are calculated at about MNOK 20. Departmental managers in the different operational areas are responsible for identifying, limiting and checking operational risks within their respective areas. Operational risks are identified and communicated via the bank s procedures for internal audit. The Board of Directors regularly examines the Company s internal audit. The bank has a complex IT infrastructure that must work at all times. Particular attention is therefore paid to risks associated with IT. On the Internet ya Bank publishes a special memo entitled Basel 2 pilar 3 Offentliggjøring av finansiell informasjon for 2008 (Basel 2 - Pillar 3 - Publication of financial information for 2008) which thoroughly discusses the bank s risk profile and capitalisation, as well as corporate governance. Disputes The Group makes provision on the basis of individual assessments in those cases where there are disputes with subcontractors or customers concerning financial matters. At the end of December 2008 the Group had no known legal disputes. Oslo, 9 March 2009 The Board of Directors of ya Holding ASA Jørgen Randers Chair of the Board of Directors Turid Solvang Board Member Audun Danielsen Board Member Tonje Solvang Deputy Member

6 Income Statement ya Holding ASA The Group Figures in NOK 1000 Note 12/31/ /31/ /31/ /31/2007 INTEREST INCOME AND SIMILAR INCOME Interest and similar Income from loans issued to and receivables from credit institutions Interest and similar Income from loans issued to and receivables from customers Interest and similar Income from certificates, bonds and other interest-bearing securities Total interest income and similar income COST OF INTEREST AND SIMILAR COSTS Interest and similar costs of deposits from and liabilities to customers Other interest costs and similar costs Total interest costs and similar costs Net interest and credit commission income DIVIDEND AND OTHER INCOME FROM SECURITIES WITH VARIABLE RETURN Income from ownership interests in associated companies 0 Income from ownership interests in Group companies Total dividends and other Income from securities with variable return COMMISSION INCOME AND INCOME FROM BANKING SERVICES Other charges and commission income Total commission income and Income from banking services COMMISSION COSTS AND COSTS OF BANKING SERVICES Other charges and commission income Total commission costs and costs of banking services OTHER OPERATING INCOME Other operating income Total other operating income PAY AND GENERAL ADMINISTRATION COSTS Pay etc Administration costs Total pay and general administration costs DEPRECIATION ETC. OF TANGIBLE FIXED ASSETS AND INTANGIBLE ASSETS Ordinary depreciation 1, Total depreciation etc. of tangible fixed assets and intangible assets OTHER OPERATING EXPENSES Other operating costs 6, Total other operating costs LOSS ON LOANS ISSUED, GUARANTEES ETC. Loss on loans issued 1, Loss on guarantees 0 0 Total loss on loans issued, guarantees etc WRITE DOWNS/REV. OF WRITE DOWNS AND GAINS/LOSSES ON FIXED ASSETS Write down of bonds Write down of investments in subsidiaries Write down of goodwill Total write downs/rev. of write downs and gains/losses on fixed assets PROFIT/LOSS BEFORE TAXES TAX ON ORDINARY PROFIT PROFIT/LOSS FOR THE ACCOUNTING YEAR Minority interests Profit/loss without minority interests Profit/loss per share -1,3-0,9 TRANSFERS AND ALLOCATIONS: Allocated to/from(-) other equity

7 Balanse SHEET ya Holding ASA The Group Figures in NOK 1000 Note 12/31/ /31/ /31/ /31/2007 Assets CASH AND RECEIVABLES FROM THE CENTRAL BANK LOANS ISSUED TO AND RECEIVABLES FROM CREDIT INSTITUTIONS Loans issued to/receivables from credit institutions without agreed maturity/termination date 1, Loans issued to/receivables from credit institutions with agreed maturity/termination date 1, Total net loans to and receivables from credit institutions LOANS ISSUED TO AND RECEIVABLES FROM CUSTOMERS Overdraft facilities 1, 11, 12, Repayment loans 1,11 12, Write-down on individual loans 1, Write-down on groups of loans Total net lending to and receivables from customers CERTIFICATES, BONDS AND OTHER FIXED-RETURN INTEREST-BEARING SECURITIES Issued by others - Certificates and bonds Total certificates, bonds and other fixed-return interest-bearing securities HOLDINGS IN GROUP COMPANIES Holdings in other Group companies Total holdings in Group companies INTANGIBLE ASSETS Goodwill Deferred tax benefit Other intangible assets 1, Total intangible assets TANGIBLE FIXED ASSETS Machinery, inventory and vehicles 1, Total tangible fixed assets Dividend and Group contribution Other assets OTHER ASSETS PRE-PAID COSTS NOT YET ACCRUED AND EARNED, NOT RECEIVED, INCOME Earned, not received, income Other pre-paid costs not yet accrued Total pre-paid costs not yet accrued and earned, not received, income TOTAL ASSETS

8 Balanse SHEET ya Holding ASA The Group Figures in NOK 1000 Note 12/31/ /31/ /31/ /31/2007 Liabilities and equity DEPOSITS FROM AND LIABILITIES TO CUSTOMERS Deposits from and liabilities to customers w/o agreed maturity 1, Total deposits from and liabilities to customers OTHER LIABILITIES Group contribution and dividend Tax payable Other liabilities 1, Total other liabilities PROVISION FOR ACCRUED COSTS AND LIABILITIES Deferred tax 1, 9 Other accrued costs and liabilities Total provision for accrued costs and liabilities TOTAL LIABILITIES SHAREHOLDERS EQUITY PAID-UP EQUITY Equity - Share capital 17, Share premium fund 17, Total paid-up shareholders' equity RETAINED EARNINGS Other shareholders' equity 17, Other equity options programme Total retained earnings Minority interests TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND EQUITY OFF-BALANCE SHEET ITEMS: Contingent liabilities Liabilities Oslo, 9 March 2009 The Board of Directors of ya Holding ASA Jørgen Randers Chair of the Board of Directors Turid Solvang Board Member Audun Danielsen Board Member Tonje Solvang Deputy Member