Norwegian Finans Holding ASA. Second quarter 2015 results

Transcription

1 Norwegian Finans Holding ASA Second quarter 2015 results

2 Second quarter 2015 earnings were MNOK, an increase of 15.5 MNOK compared with the first quarter Norwegian Finans Holding Group MNOK Q Q Change Interest income % Interest expenses % Net interest income % Commission and bank services income % Commission and bank services expenses % Net change in value on securities and currency % Other income % Net other operating income % Total income % Personnel expenses % General administrative expenses % Ordinary depreciation % Other operating expenses % Total operating expenses % Provision for loan losses % Profit before tax % Tax charge % Profit after tax % Net interest income driven by strong loan growth and lower funding costs. Higher fee income despite one-off related to profit sharing on ancillary services in the first quarter. Net loss on securities in the Norwegian portfolio. Increased administrative expenses due to higher marketing costs. Stable provision levels. ROE stable at 39.6 %*. Earnings per share NOK (annualized) * Bank Norwegian AS 2

3 Earnings in Norway were MNOK, compared with MNOK in the first quarter Norwegian Finans Holding Group Key figures Norway Sweden* MNOK Q2 15 Q1 15 Q2 15 Q1 15 Net interest income Net fee income Gain/-loss on securities and currency Sales and marketing expenses Other operating expenses Provision for loan losses Profit after tax Liquid assets 3,062 3, Net loans to customers 8,631 8, ,372 1, Intangible assets Deposits from customers 8,590 8, ,283 1, Earnings in Norway driven by loan growth and lower funding cost. Earnings in Sweden driven by loan growth. Lower other operating expenses due to non-recurring items in the first and second quarter. Mainly group provisions in Sweden. * No allocation of overhead expenses. 3

4 Strong loan and earnings growth Quarterly loan growth Quarterly earnings MNOK MNOK

5 Rising market share in Norway Total unsecured loans Market growth and market share BNOK BNOK Source: The financial supervisory authority of Norway, adjusted for Bank Norwegian s Swedish loan portfolio. First quarter 2015 annualized growth figures. 5

6 Strong balance sheet MNOK 16,000 14,000 12,000 10,000 8, ,919 2, ,371 2,408 Assets 345 3,454 2, ,980 2, ,855 3,102 Cash & cash equivalents Securities Credit card 1 Total gross loans increased 922 MNOK, compared with 735 MNOK in the first quarter. Installment loans rose 670 MNOK and credit card loans grew 252 MNOK. 6,000 4,000 2,000 0 MNOK 16,000 8,138 6,024 6,571 6,934 7, Liabilities & equity Consumer loans 2 Intangibles Other assets Installment loan run-off 591 MNOK, compared with 547 MNOK in the first quarter. Liquid assets comprise 23 % of total assets. Deposits up 918 MNOK. 14,000 12,000 Redemption of 200 MNOK senior debt securities. 10,000 8,000 6,000 9,040 9,500 10,156 9,955 10,873 Deposits Deposits to loans ratio LCR 312% 4,000 2, ,602 1,602 1,875 1,675 1, ,024 1,129 1,242 1,371 Bank Norwegian AS Debt securities issued Other liabilities Sub debt & hybrids Equity 1 Includes sales financing 2 Includes personal lines of credit NSFR 139%

7 Strong loan growth MNOK / MSEK Quarterly loan growth Norway Sweden Norway Sweden Installment loans Credit card Q1 15 Q2 15 7

8 Rapid customer growth Number of customers 550, , , ,000 38,700 new customers in the second quarter. 350, , , , , , , , , , ,600 total customers. Swedish credit card customers total 118, ,000 50, ,100 52,900 57,200 61,700 66,800 69,200 71,900 72,900 73,800 76,000 Deposit Consumer loan Credit card 8

9 Quarterly balance sheet Norwegian Finans Holding Group MNOK Assets Deposits with Norges Bank % % Change -3-5 % Loans and deposits with credit institutions % % % Loans to customers 11, % 10, % % Certificates and bonds 2, % 2, % % Shares and other securities 0 0 % 0 0 % - 0 % Other intangible assets 40 0 % 37 0 % 3 8 % Deferred tax asset 2 0 % 1 0 % 0 9 % Fixed assets 1 0 % 1 0 % % Other assets % % 9 5 % Total assets 14, % 13, % % Liabilities and equity Deposits from customers 10, % 9, % % Debt securities issued 1, % 1, % % Taxes payable 89 1 % % % Other liabilities 25 0 % 23 0 % 2 9 % Accrued expenses and unearned income received % % % Subordinated debt % % 0 0 % Total liabilities 13, % 12, % % Share capital % % 0 0 % Share premium % % 5 4 % Retained earnings 1,066 7 % % % Total equity 1, % 1,255 9 % % Total liabilities and equity 14, % 13, % % 9

10 14% Stable yields and margins Norway Margins as a % of average assets 12% 12.0 % 11.5 % 11.3 % 11.2 % 11.2 % Interest income 1 8% 9.0 % 7.9 % 8.7 % 8.7 % 8.7 % 8.9 % 7.6 % 7.5 % 7.8 % 7.9 % Net interest margin Risk-adjusted margin 6% 4% 2% 3.0 % 2.8 % 2.6 % 2.5 % 2.2 % Interest expenses Deposit rates lowered at the end of the first quarter. 18% Asset yield and cost of deposits Further rate reductions in the third quarter. 16% 14% 12% 15.8 % 15.4 % 15.5 % 15.3 % 15.4 % 15.5 % 13.7 % 13.8 % 13.8 % 15.7 % 15.6 % 15.4 % 15.2 % 14.2 % 13.9 % Installment loan yield Credit card loan yield Risk-adjusted total loan yield 1 8% 6% 4% 2% % 3.2 % 3.0 % 2.8 % 2.5 % 2.8 % 2.5 % 2.5 % 2.3 % 2.2 % 2.2 % 2.3 % 2.2 % 2.1 % 1.8 % Bank Norwegian AS - Norwegian operations Deposit costs Debt securities cost Liquidity yield

11 14% Higher margins Sweden Margins as a % of average assets 12% % 11.1 % 10.0 % 11.9 % 10.9 % Interest income Net interest margin 8% 6% 6.6 % 7.6 % 5.7 % 7.9 % 5.9 % 7.3 % 8.2 % Risk-adjusted margin 4% 2% 18% 4.6 % 4.2 % 3.0 % 2.1 % 1.9 % 1.5 % 1.2 % 1.0 % Asset yield and cost of deposits Interest expenses Increased margins due to higher yields, improved asset utilization and lower interest expense. Deposit rates reduced in the second and third quarter. 16% 14% 14.6 % 14.1 % 14.3 % 14.2 % 14.6 % Installment loan yield 12% 1 8% 9.6 % 9.9 % 10.6 % 10.4 % 11.1 % 10.2 % 11.5 % 10.7 % Credit card loan yield Risk-adjusted total loan yield 6% 7.0 % 7.1 % 4% 2% % 2.0 % 1.6 % 1.3 % 1.2 % 1.6 % 1.3 % 1.1 % 0.2 % 0. Bank Norwegian AS - Swedish operations in SEK Deposit costs Liquidity yield

12 High operating efficiency MNOK Quarterly operating expenses Increased sales and marketing expenses Lower personnel expenses related to seasonal accrual effect. Cost/income ratio in Norwegian operations was Depreciation IT Other Personnel Marketing Cost/income 12 Bank Norwegian AS

13 Strong credit metrics Consumer loans 1 Non-performing loans to loans 3.0 % Loan loss provisions to average loans 9% 8% 2.5 % 7% 6% 5% 4% 3% 5.1 % 4.8 % 2.6 % 2.8 % 3.3 % 2.0 % 1.5 % 1.0 % 1.5 % 1.5 % 1.4 % 1.3 % 1.3 % 2% 1% 0.5 % 0.0 % 3.0 % Loan loss allowance to loans 14 Loan loss allowance to non-performing loans * 2.5 % % 2.0 % 2.0 % 1.8 % 1.9 % 1.9 % % % 70.8 % 71.0 % 70.9 % 64.5 % 1.0 % % % 13 Norwegian operations * Historical figures adjusted

14 Strong credit metrics Credit card loans Non-performing loans to loans Loan loss provisions to average loans 7% 3.0 % 6% 2.5 % 5% 4% 3% 2% 4.2 % 4.0 % 2.6 % 2.6 % 3.0 % 2.0 % 1.5 % 1.0 % 1.5 % 1.4 % 1.1 % 1.0 % 1.4 % 1% 0.5 % 0.0 % 3.0 % Loan loss allowance to loans 14 Loan loss allowance to non-performing loans * 2.5 % % 2.0 % 2.0 % 1.9 % 1.8 % 1.9 % % % 75.9 % 72.0 % 73.7 % 68.1 % 1.0 % % % 14 Norwegian operations * Historical figures adjusted

15 Improving profitability 45% 4.0 % % 35% 3.0 % 3 25% 2 15% 37.2 % 38.6 % 38.9 % 38.4 % 39.6 % 2.5 % 2.0 % 1.5 % ROA Swedish operations at 1.75% compared to 0.8 in the first quarter % 5% 0.5 % ROE ROA 0.0 % 15 Bank Norwegian AS

16 High risk absorption capacity 18% Capital ratios 16% 15.3 % 15.3 % 15.9 % 15.5 % 15.7 % 14% 12% 11.5 % 13.1 % 13.2 % 11.7 % 13.9 % 13.7 % 12.5 % 12.4 % 12.8 % 14.0 % Strong common equity tier 1 ratio of 12.8%. 1 Leverage ratio equals 9.2%. 8% Ample capital for growth. 6% 4% 2% Common equity tier 1 Tier 1 capital Total capital 16 Bank Norwegian AS

17 Well positioned for continued earnings growth Earnings growth and strong returns Continued strong loan growth Stable margins Cost-efficient operations Stable provisions The bank aims to launch operations in Denmark and Finland in the first quarter of 2016 Stable credit quality Resilient economies in Norway and Sweden Enhanced credit models Stable portfolio risk Strong and resilient balance sheet Strong liquidity position Diversification of funding base Strong capital generation and capital ratios Ample capital for growth 17

18 Top 20 shareholders SHAREHOLDER # OF SHARES 1 NORWEGIAN AIR SHUTTLE 34,638, % 2 GOLDMAN SACHS & CO - NOM 14,999, % 3 LAGUAN AS 12,871, % 4 BORAK AS 8,580, % 5 SOCIETE GENERALE - NOM 8,000, % 6 STENSHAGEN INVEST AS 7,420, % 7 MP PENSJON PK 6,796, % 8 SPENCER TRADING INC 6,038, % 9 PROTECTOR FORSIKRING 4,510, % 10 SNEISUNGEN AS 3,720, % 11 HANDELSBANKEN NORGE 3,700, % 12 TORSTEIN TVENGE 3,500, % 13 SWEDBANK ROBUR NORDENFOND 3,124, % 14 SWEDBANK ROBUR SMÅBOLAGSFOND 3,124, % 15 NORDEN SONGA AS 2,000, % 16 ERIK JENSEN 1,669, % 17 VEVLEN GÅRD AS 1,536, % 18 DIRECTMARKETING INVEST 1,500, % 19 LITHINON AS 1,250, % 20 KLP AKSJE NORGE 1,240, % Top ,220, % Total 173,194,708 Norwegian Finans Holding ASA registered on the NOTC-list with ticker code BANK. 194,506 shares issued related to incentive compensation scheme. Management holds 3.41 % of shares outstanding. 18

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