Interim report Q1 2020 Headlines Q1 2020 (Figures in brackets are - - PowerPoint PPT Presentation

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Interim report Q1 2020 Headlines Q1 2020 (Figures in brackets are - - PowerPoint PPT Presentation

May 12, 2023 231 likes •550 views

Interim report Q1 2020 Headlines Q1 2020 (Figures in brackets are for the same period last year) Solid growth in loans to customers: 6,0 % over the past year Growth in net interest income: NOK 250 mill. (NOK 220 mill.) Negative results from

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Interim report Q1 2020

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Headlines Q1 2020

Solid growth in loans to customers: 6,0 % over the past year Growth in net interest income: NOK 250 mill. (NOK 220 mill.) Negative results from financial instruments : NOK -49 mill (NOK 30 mill.) Higher losses as a result of the corona pandemic: NOK 80 mill. (NOK 1 mill) Solid liquidity and solidity:

  • LCR 122 % (165 %)
  • Core Tier 1 Capital adequacy ratio: 15,9 % (15,3 %)

Return on equity: 0,9 % p.a. (10,8 % p.a.)

(Figures in brackets are for the same period last year)

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Development important key figures

Cost/income ratio Impairment loss Return on equity Core Tier 1 capital adequacy ratio

43,3 % 41,6 % 37,0 % 39,1 % 53,2 % Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 0,00 % 0,02 % 0,02 % 0,04 % 0,16 % Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 10,8 % 10,1 % 12,5 % 13,4 % 0,9 %

0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 14,0 % 16,0 %

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 15,3 % 14,8 % 14,7 % 16,3 % 15,9 %

0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 14,0 % 16,0 % 18,0 %

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

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Solid growth in lending and higher customer margins increase net interest income

Net interest income Net interest income as a percentage of average assets

Net interest income in NOK million and as a percentage of average total assets (GFK)

220 230 241 248 250

50 100 150 200 250 300

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 1,62 1,65 1,69 1,71 1,73

0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40 1,60 1,80 2,00

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

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Solid growth in the retail market

Deposits retail market Loans retail market

36,4 37,2 37,7 38,2 38,6 7,3 % 5,4 % 5,8 % 5,8 % 6,0 %

0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 5 10 15 20 25 30 35 40 45

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 NOK billion 12 months growth in % 17,0 17,7 17,5 17,5 18,0 5,9 % 4,4 % 4,9 % 5,0 % 5,5 %

0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 5 10 15 20 25 30

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 NOK billion 12 months growth in %

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The corporate market shows a satisfactory development

Loans corporate market Deposits corporate market

. 12,4 12,6 12,7 12,9 13,1 3,9 % 6,5 % 4,8 % 4,5 % 5,9 % 0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 2 4 6 8 10 12 14 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 I mrd. kr

  • 12. mnd. vekst i %

10,6 11,0 10,6 11,1 10,8 2,2 % 0,3 %

  • 0,5 %

0,6 % 1,6 %

  • 5,0 %

0,0 % 5,0 % 10,0 % 15,0 % 20,0 % 2 4 6 8 10 12 14

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 I mrd. kr

  • 12. mnd. vekst i %
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Impairment losses on shareholdings give a negative result on financial instrument

Total income

Figures per quarter in mill. NOK.

Other income

32 37 36 37 32 30 20 45 53

  • 49

61 57 81 90

  • 30

20 70 120 170 220

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Other oper. income

  • Fin. investments
  • 17

220 230 241 248 250 61 56 81 90

  • 17

281 286 322 338 233

  • 25

25 75 125 175 225 275 325

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Net interest income Other operating income

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Low cost growth The cost precentage increases due to negative results from shares

Operating expenses Cost/income ratio

Figures per quarter in mill. NOK.

122 119 119 132 124

20 40 60 80 100 120 140

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 43,3 % 41,6 % 37,0 % 39,1 % 53,2 % Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

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Increase loss provisions as a result of the corona pandemic

Impairments Impairment provisions

Figures per quarter in mill. NOK.

1 8 9 22 80

  • 20
  • 10

10 20 30 40 50 60 70 80

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 295 301 306 321 364

0,60 % 0,60 % 0,61 % 0,64 % 0,71 %

0,00 % 0,20 % 0,40 % 0,60 % 0,80 % 1,00 % 50 100 150 200 250 300 350 400

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

  • Mill. NOK

As a % of gross lending

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Increased credit losses on loans and negative contribution from shares result in a decline in profits

Total comprehensive income Return on equity

Figures for the quarters in NOK mill. Return on equity is calulated based on the opening equity excl. hybrid capital.

126 117 148 163 12

20 40 60 80 100 120 140 160 180

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 10,8 % 10,1 % 12,5 % 13,4 % 0,9 %

0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 14,0 % 16,0 %

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

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Strong capital adequacy

Capital adequacy ratio Leverage ratio

8,3 % 8,0 % 8,0 % 8,8 % 8,7 %

0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 14,0 % 16,0 %

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 15,3 % 14,8 % 14,7 % 16,3 % 15,9 % 0,9 % 0,8 % 0,8 % 1,2 % 1,1 % 2,1 % 2,6 % 2,6 % 2,0 % 2,0 % 18,3 % 18,2 % 18,1 % 19,5 % 19,0 %

0,0 % 5,0 % 10,0 % 15,0 % 20,0 % 25,0 %

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Tier 1 capital adequacy ratio Hybrid capital Suplementary capital

Capital adequacy per Q4 19 has been changed from previous reporting period due to reduced dividend and an error in reported capital adequacy in connection with the introduction of SME discount

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Segments and industries

Lending segments Lendings to the corporate market in NOK mill.

25 % 75 % Corporate market Retail market

343 539 826 858 911 931 1.319 1.518 2.161 3.707

  • 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000

Transport Hotels/tourism Commerce Electrical power Services Industry and mining Building and construction Farming and forestry Fishing and fish farming Property managment

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Credit risk to the corporate market is stable

Loans to the corporate market at high risk Loans to the corporate market in default

10,2 % 10,1 % 10,0 % 10,0 % 10,0 %

0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 14,0 %

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 0,79 % 0,90 % 0,82 % 0,89 % 0,83 %

0,00 % 1,00 % 2,00 % 3,00 % 4,00 % 5,00 % 6,00 % 7,00 % 8,00 % 9,00 % 10,00 %

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

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Low risk in the retail market

Loans to the RM in default (%) Composition of risk for loans to RM

0,33 % 0,32 % 0,36 % 0,32 % 0,26 %

0,00 % 0,50 % 1,00 % 1,50 % 2,00 %

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

71,3 % 70,1 % 69,9 % 69,7 % 71,9 %

25,2 % 26,1 % 26,4 % 26,5 % 24,8 % 3,5 % 3,8 % 3,7 % 3,8 % 3,5 %

0,0 % 10,0 % 20,0 % 30,0 % 40,0 % 50,0 % 60,0 % 70,0 % 80,0 % Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Low risk Middle risk High risk

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Maturity structure of funding

Figures in NOK mill.

385 2200 2100 1200 600 400 197 2500 2500 2500 2500 3000 500 500 1000 700 300 150 100 200 300 200

  • 500

500 1500 2500 3500 4500 5500

2020 2021 2022 2023 2024 2025 2030 2033 2034 Senior bonds and commercial papers Covered bonds Loans from other credit institutions incl. central bank Subordinated debt and hybrid capital (call date)

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Strategy and society

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A driving force for Sogn og Fjordane

Retail market Corporate market Real estate

46,7 % 32,5 % 47,0 %

Kjelde: SSB, Eiendomsverdi, number per april 2020

* Market share of lending: number per Q4 2019

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In the first quater we launched green mortage loans and climate loans for our customers

Sustainable society

Sogn og Fjordane is Everything we have, we create together.

We are a society

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19

Google pay and smartwatch payment establiched

Google pay launched in March 2020 At the same time, we launched watch payments with smartwatch from Fitbit and Garmin

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20

Podium place at EPSI – regardless

  • f industry

In competition with companies from eleven different industries in Norway, we are in the second place on customer satisfaction with private customers.

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21

Ownership and social responsibility

In 2020 around NOK 55 millions will be used for socially useful purposes through both gifts and sponsorships.

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Dividend ensures stable gift capacity for the years to come

Many voluntary

  • rganisations in Sogn og

Fjordane have been affected by the corona situation. We have allocated MNOK 90 in dividends and gifts to ensure stable gift capacity for the years to come.

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New application round due to the corona situation

Much has changed since the ordinary application deadline for our largest owner foundation expired on March 1. We see that many voluntary

  • rganisations face financial challenges.

We are therefore opening up for one extra application round to help in demanding times.

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Tablets reduce social distance

Retirement- and nursing homes have introduced isolation measures due to the corona pandemic, which means that residents should not receive visits from their families. Our foundation have purchased tablets to all retirement homes in Sogn og Fjordane to reduce social distance.

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Contact information

Sparebanken Sogn og Fjordane

Visiting address: Langebruvegen 12 6801 Førde Website: www.ssf.no E-mail address: kundesenter@ssf.no Organisation no: 946 670 081 Tel no. 57 82 97 00 Contact: Trond Teigene Frode Vasseth CEO CFO

  • Tel. no. + 47 908 25 086
  • Tel. no. + 47 951 98 452
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Attachments

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Book value per equity certificate

Book value per equity certificate Comprehensive income per equity certificate

Figures in NOK per quarter

5,6 5,3 6,6 7,3 0,5

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 207,8 212,9 219,4 226,1 222,8

0,0 50,0 100,0 150,0 200,0

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

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Consolidated financial results by quater

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31/03/2020 31/03/2019 31/12/2019