FIRST QUARTER APRIL JAN ERIK KJERPESETH MANAGING DIRECTOR

Transcription

1 FIRST QUARTER APRIL JAN ERIK KJERPESETH MANAGING DIRECTOR

2 KEY DEVELOPMENTS IN THE FIRST QUARTER PRE-TAX OPERATING PROFIT PROFIT PERFORMANCE NOK 407 MILL. (526) PROFIT PERFORMANCE EXCL. NON-RECURRING EFFECTS* NOK 370 MILL. (360) GOOD RETURN ON EQUITY 13.6% (19.8%)* 12.4% (11.9%)* MODERATE WRITE-DOWNS NOK 39 MILL. (47) NOK 39 MILL. (47) LOWER COSTS NOK 356 MILL. (365) NOK 356 MILL. (365) Figures in brackets: first quarter 2014 *Non-recurring effects first quarter 2015 Gain basis swaps First quarter 2014: Gain sale of Nets.

3 PROFIT PERFORMANCE AND RETURN ON EQUITY Pre-tax profit Pre-tax profit excl. non-recurring effects* Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 The figures for Q include a gain of NOK 166 million on the sale of Nets, and the Q figures include a gain of NOK 143 million on the sale of property. Gains of NOK 37 mill. on basis swaps are included in the first quarter

4 PROFIT PERFORMANCE AND RETURN ON EQUITY Return on equity Return on equity excl. non-recurring effects* 19,8 11,9 10,7 12,2 12,4 16,8 12,2 13,6 6,2 6,2 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 The figures for Q include a gain of NOK 166 million on the sale of Nets, and the Q figures include a gain of NOK 143 million on the sale of property. Gains of NOK 37 mill. on basis swaps are included in the first quarter

5 PROFIT AND BOOK VALUE OF EQUITY CERTIFICATES Profit per equity certificate Book equity per equity certificate 2,66 2,32 58,7 1,79 1,88 56,6 57,2 56,5 0,89 54,4 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 5

6 MARGIN DEVELOPMENT - INCREASED DEPOSIT MARGINS, SLIGHT FALL IN LENDING MARGINS Lending Deposits 3,27 2,54 3,14 3,16 3,18 3,09 2,38 2,34 2,4 2,36-0,35-0,32-0,23-0,06-0,50-0,58-0,51-0,54 (0,47) -0,76 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Retail Corporate Personmarked Bedriftsmarked 6

7 GROWTH IN THE RETAIL AND CORPORATE MARKETS Retail market Deposits: NOK 39.8 bill. Lending NOK 92.3 bill. 7% 7,6 % 7,6 % Corporate market Deposits: NOK 25.1 bill. Lending NOK 29.4 bill. 2,5 % 4,3 % 3,5 % 0,4 % 1,4 % 0,6 % -6,7 % Goal 12 mnd growth deposit 12 mnd growth lending Q1 deposit Q1 lending Goal 12 mnd growth deposit 12 mnd growth lending Q1 deposit Q1 lending 7

8 NOKm Per capital unit % p.a. STABLE NET INTEREST Development in net interest and credit commission income 700 3,5 % ,0 % 500 2,5 % 400 2,0 % ,67% 1,69% 1,65% 1,67% 1,63% 1,5 % 1,0 % 100 0,5 % 0 Q Q Q Q Q Net interest income and credit commisions (NOKm) Net interest income and credit commisions per capital unit (% p.a.) 0,0 % 8

9 ASSOCIATED COMPANIES THE COMPANIES' PROFIT/LOSS AFTER TAX AT THE END OF THE FIRST QUARTER (NOK MILL.) 27,9 16,3 2,4 2,1 7,1 5,4 5,7 4,1 Norne Verd Brage Frende Q1 14 Q1 15 *Converted from NGAAP to IFRS 9

10 PROFIT CONTRIBUTION, ASSOCIATED COMPANIES NOKm Q Q Frende Forsikring Norne Securities Brage Finans Verd Boligkreditt Net profit from associated companies

11 EIENDOMSMEGLER VEST - GOOD GROWTH IN PROFIT AND TURNOVER Pre-tax profit 6,3 Sold 841 (654) houses in the first quarter Information -1,5 Increase in turnover of 28.5% Q1 14 Q1 15 Turnover Better cooperation between the bank and estate agents is producing results Certain staff and support functions transferred to Sparebanken Vest for more cost-efficient operations. BERGEN HORDALAND U/BERGEN STAVANGER ROGALAND U/ STAVANGER Q1-14 Q

12 REDUCED COSTS IN THE FIRST QUARTER Cost development Full-time equivalents -2.2% NOK 364 million. NOK 356 million. Q1 14 Q1 15 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Cost control better than target

13 TARGETED COST-CUTTING MEASURES HAVE PRODUCED RESULTS Reported C/I As a percentage C/I excl. non-recurring effects 49 46,9 48, ,4 47,2 46,9 44,7 46,5 38,8 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 The figures for Q include a gain of NOK 166 million on the sale of Nets, and the Q figures include a gain of NOK 143 million on the sale of property. Gains of NOK 37 mill. on basis swaps are included in the first quarter

14 DEFAULTS AND OTHER POTENTIAL BAD DEBT* ,00% ,00% ,00% ,00% 500 1,34% 1,32% 1,64% ,98% 0,94% 1,00% Q Q Q Q Q Retail Corporate % of total 0,00% *) Includes all defaults, not just defaults of payment. Includes commitments with individual write-downs, calculated as a percentage of the total lending volume. 14

15 WRITE-DOWNS - INCREASED GROUP WRITE-DOWNS, STABLE PERCENTAGE PROVIDED FOR 15

16 BREAKDOWN OF LENDING, CORPORATE MARKET By volume* By sector 2 % 3 % 4 % 14 % 6 % 0 % 13 % 6 % OTHER BUILDING AND CONSTRUCTION REAL ESTATE ENERGY FISH FARMING FISHERIES/ SEAFOOD INDUSTRY HOTELS AND RESTAURANTS PRIMARY INDUSTRIES 1 % 1 % 4 % 4 % 42 % AGRICULTURE AND FORESTRY MAINLAND TRANSPORTATION SHIPPING WHOLESALE AND RETAIL TRADE SHIPYARD * Measured by commitment 16

17 COMPOSITION OF DEPOSITS LARGE PROPORTION COVERED BY DEPOSITS GUARANTEE SCHEME Breakdown of deposits Breakdown of deposits % Retail 14 % SME % 58 % Corporate Financial over Q1 14 Q1 15 Stable deposits, covered by deposits guarantee scheme, treated favourably in LCR and NSFR 17

18 CAPITAL ADEQUACY Basel 1 floor* IRB * 1,0 % 1,9 % 2,0 % 2,0 % 1,4 % 1,4 % 2,0 % 2,0 % 1,4 % 1,4 % 1,3 % 2,3 % 2,4 % 2,5 % 1,7 % 1,7 % 2,3 % 1,6 % 2,1 % 1,4 % 11,5 % 11,8 % 11,8 % 12,2 % 12,3 % 14,0 % 15,0 % 14,7 % 14,0 % 12,8 % Q Q Q 2014 Q Q1 Core Tier 1 Capital Hybrid Capital (Tier 1) Additional Capital (Tier 2) Q Q Q 2014 Q Q1 Core Tier 1 Capital Hybrid Capital (Tier 1) Additional Capital (Tier 2) * The quarterly figures include 80% of the accumulated profit after tax, with the exception of the fourth quarter 18

19 CAPITAL PLANNING LEVEL CONSIDERABLY HIGHER THAN THE MINIMUM AND BUFFER REQUIREMENTS Core Tier 1 capital adequacy ratio taking into account Basel I floor Assumptions (ICAAP ) The bank wishes to be capitalised on a par with the biggest institutions. 11,2 % 12,2 % 12,3 % 10% 10% 12,9 % 13,5 % 13,5 % 11% 11% 11% The capital adequacy ratio of 13.5% gives us considerable freedom of action even with a countercyclical capital buffer fully implemented. 9% Growth: Retail market 7.0% Corporate market 2.5% An annual expected loss cost of 10 bp of gross lending Q Core Equity Basel 1 floor Forecast Core Equity Basel 1 floor Combined Pilar 1 minimum and Buffer requirements Continued capital accumulation in 2015 and 2016 with a distribution percentage at the lower end of the bank's dividend policy (50%/5%). An increased distribution percentage from

20 STATUS FINANCIAL TARGETS FIRST QUARTER Lending growth in retail and corporate markets Target % / 2.5% Status 7.6% / 4.3% Return on equity > 11% 13.6% Cost growth 2% -2,2 % Capital accumulation 12.9% 12.3% *12-month growth 20

21 ONE OF THE BEST MOBILE BANKING SERVICES Total score Customer service by mobile phone Source: Survey carried out by penger.no / Deloitte / Halogen

22 OUTLOOK Strong competition MEASURES More and more customers are using digital channels, with high expectations Simplify the user experience and capitalise on lower production costs for housing loans Adaptation to changed framework conditions also provides opportunities A changed cost culture will continue to produce results Loss level for 2015 in line with first quarter 2015 Further develop collaboration with Eiendomsmegler Vest and associated companies

23 WE WILL BE HERE SOON

24 WE ARE HERE.