Investor presentation

Transcription

1 Q2 Investor presentation RESULTS DNB GROUP SECOND QUARTER AND FIRST HALF Rune Bjerke (CEO) Bjørn Erik Næss (CFO)

2 Second quarter Pre-tax operating profit before impairment in NOK billion 6.7 (6.1) Cost/income ratio in per cent 43.8 (48.0) Return on equity in per cent 12.7 (11.6) Earnings per share 2.86 (2.33) Common equity Tier 1 capital ratio in per cent (transitional rules) 12.1 (10.8) 1) Figures in parentheses refer to 2Q13 1) Including 50 per cent of profit for the period

3 Development in first half Pre-tax operating profit before impairment excl. basis swaps NOK million Profit for the period excl. basis swaps NOK million H13 1H14 1H13 1H14 Return on equity excl. basis swaps Cost/income ratio excl. basis swaps H13 1H14 1H13 1H

4 Development in lending and deposits Milliarder kroner June Sept. Dec. March June Sept. Dec. March June June Sept. Dec. March June Sept. Dec. March June 2012 Loans at end of period Loans adjusted for exchange rate movements 2012 Deposits at end of period Deposits adjusted for exchange rate movements Deposits adjusted for short-term money market investments

5 Development in average interest rate spreads Lending spread Combined spread - weighted average (0.11) (0.13) (0.27) (0.) (0.24) (0.29) (0.) (0.29) (0.27) Deposit spread 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q

6 Development in commissions and fees NOK million + 5% growth H09 1H10 1H11 1H12 1H13 1H14 Sale of insurance products Asset management and custodial services Real estate broking Money transfer and banking services Corporate finance, credit and securities broking etc. Net commissions and fees

7 Changes in operating expenses Change in Amounts in NOK million 2Q14 Change 1Q14 per cent Total adjusted operating expenses (19) (0.4) Income-related costs Prepaid advertising - real estate broking 20 Expenses directly related to operations IT expenses (66) Properties and premises (23) Other costs 51 Non-recurring effects Restructuring costs - employees Other restructuring costs and non-recurring effects 8 (22) Operating expenses

8 Impairment of loans and guarantees 1st half 1st half Amounts in NOK million 2Q14 1Q14 4Q13 3Q13 2Q13 Individual impairment: Personal customers - Mortgage loans (5) (16) (21) 26 - Consumer finance Small and medium-sized enterprises Large corporates and international customers - Nordic Corporates Division 97 (56) International Corporates Divison (17) Shipping, Offshore and Logistics Division (271) Energy Division (2) 24 (17) Baltics, Russia and Poland Other units 1 3 (3) Total individual impairment ,408 Collective impairment: DNB excl. Baltics, Russia and Poland 71 (227) (171) (174) 173 (156) 332 Baltics, Russia and Poland (19) (25) (29) (25) (27) (44) (65) Total collective impairment of loans 52 (252) (200) (199) 146 (200) 267 Impairment of loans and guarantees ,674 Total impairment in relation to average volumes (annual basis) DNB excl. Baltics and Poland 16 2 (1) Baltics and Poland

9 Impairment of loans and guarantees 1st half 1st half Amounts in NOK million 2Q14 1Q14 4Q13 3Q13 2Q13 Write-offs New individual impairment ,506 1,717 Total new individual impairment 759 1, ,136 1,759 2,271 Reassessed individual impairment Recoveries on loans and guarantees previously written off Net individual impairment ,408 Change in collective impairment of loans 52 (252) (200) (199) 146 (200) 267 Impairment of loans and guarantees ,

10 Net non-performing and net doubtful loans and guarantees 1) NOK billion Dec. Dec. Dec. Dec. March June Sept. Dec. March June Baltics and Poland 1) Includes non-performing commitments and commitments subject to individual impairment. Accumulated individual impairment is deducted. DNB Group excl. Baltics and Poland As a percentage of net loans As a percentage of net loans excl. Baltics and Poland

11 Common equity Tier 1 capital ratio 1) CET1 transitional rules ) Leverage ratio Basel III 3) June Sept Dec. March CET1 Basel III estimate 13.6 June June Sept. Dec. Basel III applying average weights used by Swedish banks 4) March June June Sept. Dec. March June June Sept. Dec. March June 1) Including 50 per cent of profit for the period, except for the full year figures 2) 12.4 per cent if 75 per cent of profit for the period is included 11 3) Calculated according to CRD IV rules 4) Estimated common equity Tier 1 capital ratio according to Basel III, applying average weights used by Swedish banks

12 Robust Norwegian economy: - expected GDP growth of 2% and unemployment to stay at a low level Gross Domestic Product Mainland, year on year Unemployment rate 8% 6% 4% 2% 0% % -4% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Source: Statistics Norway

13 Oil investment expected to decline in 2015, but to remain at a historically high level. Stable price trend in the housing market Development in oil and housing investments In 2011 prices, NOK billion Seasonally adjusted house price index All dwellings in Norway, Month over month price change June 0.5% 0.0 jan-07 jan-08 jan-09 jan-10 jan-11 jan-12 jan-13 jan Source: Statistics Norway, Norges Bank, Eiendom Norge, Finn.no og Eiendomsverdi

14 Outlook The build-up of Tier 1 capital is on schedule, and regulatory uncertainty has been reduced The ambition to achieve 3-4 per cent trailing 12-month lending growth and stable volume-weighted spreads remains firm High level of activity in all customer segments and a continued increase in commissions is expected Underlying nominal costs are expected to be stable in the period up to 2016, and the cost/income ratio will remain highly competitive Credit quality will improve further, and losses are expected to be well below normalised levels

15 Q&A