Sparebanken Vest

Welcome to our presentation of our numbers for Q3 2022. As usual, you can send questions to us through the presentation, so we will answer them as soon as possible after the presentation. If we don't get answers to all questions in the sequence afterwards, we will follow up all questions one by one afterwards, if there are any who have sent in questions that we don't have time for in the last sequence. I'm going straight to the presentation of the talks to Sparbank Invest and the direction we have been in for the bank in recent years. We are very much concerned about performing a high own capital transfer. The most important building blocks in our good performance is to build a bank with low complexity. To be in the forefront of the digital, which we know is super important in the time we have in front of us. To have a conservative loan book and not least to invest in our people, our culture, so that we have a really good team that wants to be in the forefront when it comes to performance in the Norwegian banking sector. And we have done that, especially this year, because we know that we are going to enter a more demanding terrain. So this year we have spent a lot of time on our organization, and we will spend some time on that later in the presentation. We have had a number of leadership meetings where we have invited our leaders in. the collective leadership corps to put direction into more challenging times. We have also ended these leadership meetings with a meeting of all employees that we had just a few weeks ago, where we also invited our employees to put direction where we are right now. It has been a great success. I am sure that we are a team that is also very well equipped in the face of tougher times, and will also be a bank that performs to the fullest in the time we go into, and I will come back to that later. And when we look at the bank's own capital issuance over time, we have performed well and in line with our goals. We have an own capital issuance goal, which is a minimum of 12% of our own capital issuance. We have applied this with a margin of two years since 2013. That was in 2017 and 2018. But then we were at 11% or 11.9% in these two years, as you can see in this picture. And we have a very good performance so far this year. We have a one-capital transfer, even in the third quarter of this year, of 15.3%, as you can see in this picture. And the expectations are also, when we complete the year as a whole, that we will be well above the one-capital transfer target to the bank, which is 12%. We have performed relatively well if we compare ourselves with the banks we use to compare ourselves with, as you can see in the selection here. Here you can see DNB, NordNorge, MidtNorge, SR and so on, as you can see in the bottom of the picture. In this period from 2012 to the first half of the year, since we do not have a number for all per quarter yet, you can also see that the bank is at the forefront of one capital transfer. I am quite confident that the reason we are at the forefront is that we have one of Norway's strongest banking teams as a starting point for delivering good performance. In my next presentation, I will divide it into four parts. A little about the banking industry, a little about our foreign book in meeting with me demanding times, a little about the market position as the starting point for delivering good one-capital transfer in the future, and finally the strategic agenda that we have drawn up together with our leaders and employees in the many meetings we have had in 2022 in relation to mobilizing, working with organizational culture and setting direction. If we take a look at the above key figures for the third quarter, we have a one-capital drop in this quarter at 17.3, up from 12.1 in the second quarter last year, and up from 13.8 in the corresponding quarter last year. We have a result per one-capital proof of 3.11 in the quarter, We are very solid. We have a pure core capital of 18.3%. This is good for further growth and also meeting with more challenging times. And then we have a book value per one capital proof per exit of three quarters of 73 kroner. If we look at the result development from Q3 last year to Q3 this year, we have a significant increase in the net income. The net income is 193 million. We have a provision income that has increased by 24, mainly driven by payment reporting and insurance. The associated business is a little down. This is due to finance in foreign insurance, which of course mainly follows the market. Finance at Sparebanken Vest is up 117 million, so we have slightly higher costs, I think with new investments, among other things in Ålesund and a little in Einar's Mengde Vest. We also have a small underlying growth in IT. And we have returns on losses in this quarter, but a little less than we had in the same quarter last year. And then our tax drops by 74 million, which means that we have a result per 3Q of 846 million. I feel that we are a bank that has strengthened our market position from Ålesund to Stavanger quite well in recent years. And that results in good growth. We have growth in the last 12 months on the personal market at 9.2. If we correct for bulls, the underlying growth is 4.4%. We also have very good growth in the operating market at 13.9. If we correct for currency effects, the 12-month growth is 14.4%. Very good underlying growth. It is clear that we take market shares and gradually build a strong market position through high customer satisfaction, which results in good growth with reasonable margin. For us, high growth is not the most important thing. For us, it is the most important thing that we grow with reasonable margin and net income, something I mean to show that we have managed the balance in this quarter as well. Income growth is important for us. The magic is coming back again with a higher interest rate level. Income growth in the last 12 months is 13.3 on the personal market. We have a significant increase, among other things, in financing in bulls in the last few quarters. We also have a very strong income growth on the business market in the last 12 months at 25.4 percent. We have a net profit of 1 billion and 41 million in this quarter, and we also have a relative net profit of 1.49 in the previous quarter to 1.59 in this quarter. The associated companies that are most important to us, Frende, Brage and also Nordne, have a good underlying drift, even though we see that we have had a negative financial result in Frende at 184 million, which affects the results for Frende, so the underlying drift is very good. The underlying damage percentage is good. The underlying damage percentage in the third quarter for Frende was 57.2, which is slightly lower from the same quarter last year, which was 59.9. So the underlying trend is good, even though finance is a bit against it so far this year and also this quarter. Brage Finans is growing very strongly, has a growth of 19% and also has a very good development when it comes to profitability and is on the one-capital rate of 12%. and I am quite sure that we will get a lot of excitement from Brage Finance. A very large share of distribution in Brage now does not come through the banks, but comes through direct distribution, a strong market position. Nordne has a good result and is on positive and positive per quarter, and has the best results per quarter since the start in 2008. Not what will make the biggest difference for the bank's results, but it is incredibly important for us all business areas has a positive development and contributes to the sum we present every quarter. We see that there is a little more usefulness when it comes to renewals and maintenance on fund distribution. Naturally, a little more delaying savings in the market. You see that on net renewals. No drama in this, but the maintenance value is naturally a little lower compared to what is happening in the financial market, and there is a slightly increased uncertainty that naturally becomes special on the personal market when it comes to net and renewals. We have managed to strengthen this area over time, and we also have a strategic agenda regarding how to take a strong position in this area in the coming years. We have been very concerned about low cost efficiency. Our K1 in the third quarter is 27.7%. It is 35.9% so far this year. If you look at the second quarter in comparison with other banks, you will see that we are at the forefront when it comes to cost efficiency. We are extremely concerned that we will also be a bank, with moderate losses and at least a low cost development and a good cost development. On the right side of this picture, you can see that we have had a continuously decreasing K-I factor, which we are also working with further to reduce in the coming time. We have good liquidity, we have a diversified interest rate structure, we have a high LCR at 174, we have exceeded the minimum requirements at 100. We are very well positioned, even if it would be a little more broken when it comes to funding and the liquidity market. We are well diversified with our interest rate structure and we have a very good LCR on the way into a little more demanding time, as you can see in this picture. We also have a significant margin for regulatory capital requirements. We are at 18.3 at the beginning of the quarter. The lowest requirement is 14.5 now. We have a good starting point in meeting with more demanding times, and not least in terms of being able to exploit our market position for profitable growth. Summing up the key figures in this first part of the presentation. Our interest income is significantly driven by growth and implemented repricing. Very well satisfied with the net interest rate this quarter. Our costs are a little higher in line with the new investments, but still a very good KI. Our declines, a return on losses of 10 million in this quarter. I will come back to the loss picture, but we have had very low losses for a very long time now. The result is then closer to 1.1 billion before tax in this quarter, and a one-capital loss of 17.3. If we correct for finance, then the one-capital loss is 14.6, so still a very good underlying trend in this quarter. A little about our loan book, our credit risk. We are a bank with the main part of our loans on the personal market. 75% of our loans are on the personal market, including bills, and the rest of the loans are on the operating market with 25%. We have been very concerned about our time to build an international book in the market area we know well from Ålesund to Stavanger, and have not been concerned about establishing offices in Oslo or other places in Norway. We believe that we are best at evaluating credit risk in these three provinces, also in the long term. And then we have, as I said, a robust international book, a well-diversified international book with a main focus on the personal market. We have had a good growth in the last 12 months. We experience that it is well diversified with acceptable risk within a number of industries that are heavy in our region. We experience that we have very good risk selection in most industries and that the growth we have taken in the last 12 months is with good risk. The growth we have had in the last 12 months is two thirds of existing customers and otherwise within the industry we know well and have good competence in. If you look at our individual portfolio, it is also very well diversified. If you look at business buildings, combination buildings are the largest part, if you look at the cake diagram we have on this picture. We are quite confident that we have a good exposure, and we also have limited exposure to open offices and hotels, which may be the most cyclical in the face of a slightly calmer time. We have had low losses over time, and we have had quite significant model deductions through the pandemic that we have not been left behind for so long. We have retained these model deductions in the big picture, and have not had very big repercussions on model deductions in the last quarter, as we may have seen others have done. If we look at our loss costs since the first quarter of 2020, then 71% of the loss costs we have had in this period, model revenues that we have kept in the last quarter, because we see that we are going a little more demanding times in the meeting. This quarter, we have a return of 10 million in losses. Three of them are linked to individual deposits, and seven are linked to model-based deposits, as you can see on the last panel. If we look at our losses and loss costs over time, compared to the banks we like to compare ourselves with, you will also see that over time, if we go back to 2016 in this picture, we have put the average of banks in natural comparison well below. In the last two quarters, all banks have been put at zero, but we have perhaps in a slightly lower degree. We have reversed earlier model assumptions than others, so there is a small break in the curve in the last two quarters, but over time we have had a very advantageous stage picture in relation to many of our competitors. We work hard with that, that we will also be able to perform in the quarters we have in the meeting. We also see that we have a decline in lost and lost engagement from the second quarter to the third quarter, mainly in business, as you can see here. We also have a good degree of decline in relation to lost and lost engagement, and especially in the business market, we have a 92% decline in relation to lost and lost engagement, something that we think is robust and reassuring in the face of a slightly more demanding time. We also see a long-term positive development in the cost of living, as you can see in this picture. We see a small increase in debt-free loans, with LTV below 60% and above 60% at a stable level, so nothing worrying when it comes to debt-free, at least where we are today when it comes to our housing loan portfolio. But there is no doubt that the room for improvement is further greater than perhaps for a long time, and we also see that in the Vestland index, which we have implemented and have implemented for quite a long time towards the business market in the region. Then we naturally see that the expectation index, both for results and future expectations, is a little lower than what we have seen in the last quarter. Not worrying, but of course a little greater uncertainty among our companies and companies in the Vestland region than we have seen before. We are focused on being one step ahead, so we have processes and do evaluations running both connected to our most important industries and not least our most important customers. On this slide, where it will be too long to go through, one of the main features that we evaluate is the status of our different industries and our most important industries in the business market. But our main conclusion from these interviews is that we consider the risk of loss for the business market as little affected, but we see of course some increased uncertainty both with us and our companies in relation to the future picture we see in the next 12 months. We believe that the fall height in the PM portfolio we have is moderate. We have a very moderate LTV on that portfolio. 95.8% is within 70% of LTV. We are in a region that has had a slightly less aggressive price development when it comes to the housing market than it has been in the Oslo region. If we look from 2014 to 2022, The price development for housing in Oslo has been 73%, but for example in Stavanger 12%, Rogaland and Ekstavanger 26%, and Vestland with 37%. This indicates that the fall height, if it were to be much more demanding on the housing market, is smaller in Norway than in other geographies. That was a little about our loan book. Then a little about our market position, which we think is good for citizens to also be able to deliver strong growth, low KI, and not least good self-sufficiency in the coming time. We have a very good distribution power in our region. We have 34 offices, divided into these three counties. We experience that we have a very strong market position, both through physical management, through our business model, and through very motivated employees who deliver a good customer satisfaction. And that will come back to the following light images. We have the highest customer satisfaction we have had since we started measuring customer satisfaction in 1997 in this quarter. Tangera is the best we have had in the last three quarters on the stock market, and we have the highest customer satisfaction we have had on the operating market. And especially in the business market, we are a little extra proud in this quarter, since we came to the top of the EPSI-measure for 2022 when it comes to the satisfaction of business customers in Norway. This has not come by itself. We have a very dedicated group of business owners with us who have worked for many years, targeted both with role description, channel selection and not least good service and signature principles. towards our performance of the business market portfolio. And that has finally given results, as we see here, at the top of EPSI for 2022 when it comes to customer satisfaction among business customers in Norway. We have also been successful, even though we have not entered permanent premises in Ålesund. We have employed a very strong team that has started very well with our expansion in the Ålesund region, where we first started with Ålesund. Now it is not so long until we go into new permanent premises and are quite safe. that you will get a good profitable growth in the Ålesund region with reasonable risk selection, with the team we have equipped in the Ålesund region. As we see it now, and we also see that we have succeeded with a billion new expenses on the personal market and the same on the operating market as you see in this picture. Agnes Megler-Vest has also strengthened in a demanding market. There is no doubt that there are fewer returnees now than in previous periods. But we also see that we take market shares. We have strengthened our market share this year by 1.4%. And the revenues, despite fewer returnees, are up by 1.5% compared to the same period last year. It is also on this market that I was just talking about, the personal and business market, The basis for good future growth is to provide good quality to the employees, and we see that we have succeeded in doing so. We see that our customer satisfaction has been increasing over time, and we have also raised significant amounts of solar recommendations in relation to how this has been earlier this year. but stable compared to the previous quarter. This is good for further growth for Einar Smegler Vest, which is also important for us in terms of stimulating our housing growth on the private market in the bank. We have a completely unique business model. We are 60% owned by the region through our basic fund, and we are 40% owned by the capital market. This means that we have quite formidable budgets with the same degree of allocation as we have for gifts to the general public and, not least, customer exchange. We have tried to conceptualize this in recent years to make our business model even more visible. One of these signature arrangements that will make our business idea and business model visible in a good way is Hjerte Bank. We have recently had four Hjerte Bank concerts where we have distributed a good amount of money to teams and associations with great success and great media coverage. A unique and very nice way of showing how we differ from the other Nordic banks in our geographical Nesla-field. There is no doubt that we have a tool to put us on a map that is different from the business banks. If we look at what we have given to Almenyttig Formål in recent years, it is significant. We have given 1.8 billion kroner in this ten-year period back to the region, to the teams and associations, and others, in a time, especially in recent years, when this has been very commonplace. This is with us to differentiate ourselves from our competitors on a very clear basis. This is with us to build customer satisfaction. This is with us to build goodwill in our region. My suspicion is that this will become even more important in the next ten years than in the last ten. We all see what happens to the state budget, and we all see how the municipalities, at least in our region, are affected by significantly higher electricity prices, which again puts pressure on municipal budgets. Bergen municipality alone has 0.5 billion in increased electricity costs next year, compared to what they had earlier, and of course that affects especially the things and the offers that are important for this to be an attractive region to live and live in. Here we come in, these funds will become more important, these funds, if we do as we do today, will become even bigger in the next ten years than they have been. A few examples from the last few weeks. 15 million to Bjarg Arena. The hall was in danger of not being able to be realized due to increased building costs. We contribute 15 million, which makes this hall most likely to be realized now after seven years of planning. There is no doubt that these are very valuable resources that make a difference in our market area. And we also see that in addition to our social responsibility, customer exchange, the customer is concerned about good digital space. We have managed to develop an app on the business market that gets very good scores in the App Store, and we still have a very high rating of our Bank App in Google Play and App Store on the personal market, which you see to the right in this picture. It is also incredibly important for us in relation to our value proposition that we should be right in front of the digital platform, and it is also these good digital platforms that were the key man and the starting point for the establishment of Bulder, which has established a fantastic position at record time. In Bulder, we are now moving from a foundation phase to escalating Bulder further. We have implemented a lot of that functionality with the launch of credit cards and funds, which I will come back to in this quarter, which will ensure that we have a full-fledged bank offer on mobile alone. In connection with the fact that we are moving into a new phase, Thorvald has decided to start a consulting business. Incredibly grateful for the work Thorvald has done to get Bulda Bank up in volume and with the service offer we have today. I am also very happy that we have young stars like Simen who are ready to take this path forward with full force from day one when Thorvald has made the choice he has chosen. The status per 26. October for Bulder is almost 23 billion in housing loan volume, but through LTV, i.e. moderate risk, at 39. Through the housing loan is 2.3 million, a diversified structure on the housing loan. Many have very good income, but low loans have become customers in Bulder. We now have 10,000 housing loans, and I am especially impressed that we have managed to raise the income tax so significantly in the last few quarters. The income tax is now 20% of the volume we have in Burda Bank. As I said, we have complemented our service offer in this quarter with funds and credit cards, and then we will continue to work with a number of new services that are coming, but now we have everything that is necessary in relation to basic banking, we think, and we have a functionality and a user interface in this bank that is unique and that I think very few will be able to copy in the short term. We continue to work on increasing the right conversion in our loan process and the development of future digital financing evidence. We feel that we have the traffic we need on our plate. It is about becoming even more fine-tuned in order to ensure that all the customers who start the process with us actually get an offer in the end. We have been conservative at the start of this journey, and we will continue to be, but we see that there are still too many customers that we could imagine having as customers, who have not been able to get through our housing floodgates, and we are very focused on that, so that we do not take risks that we do not want, risks that we have not taken before, but at the same time get those customers into a digital loan flow that we want. In the office network, it is often the case that the customer advisors adjust the things that are not 100% accurate in relation to policy and credit framework. We can't afford that, and we can't do that in the digital loan flow. Then it has to sit digitally, and that is very demanding to get in place. We have been working on that for a couple of years now, and we will continue to work very hard with it, so that we ensure that all the customers we want, as much as possible, come down to our level when it comes to our loan flow. We are also working further to see if we can increase our access by providing financing evidence and further increase the market base for Bulder. It is a long-term journey, but there is a positive development in this process. We will test a prototype in the first half of 2023, which again will give an even broader foundation for good growth for Bulder. As I said, we have a very good starting point, we have satisfied customers, we have strong product companies, we have an organization that I will come to at the last point as well, which works very well to be able to deliver good numbers in the time we have available. So what is at the top of our strategic agenda is to build a strong performance culture through very good leadership in the bank. We have now spent three years trying to write out our target image for organizational culture, which has become what we have called our internal culture document. that will describe what it looks like when we as a team are at our very best. This is divided into six chapters, as you can see here, and we have been working very actively with this for the last six months to anchor, discuss and ensure that we are even more at our best in terms of development, in terms of commercial operations, in terms of playing each other well. So we started using this culture document actively internally, and we also use it actively in recruitment, where candidates can read through culture documents. We ask them if this is something they identify with, if this is a bank they could think of being a part of, for example. Lately, we have also become very clear about what the goal image we have for the performance culture, the organizational culture that we must build to be sure that we are also rigged to be a winning team in banking and finance in the time we have in the meeting. As part of this, we have invested heavily in our people in the last quarter, but not so much this year. Out of a pandemic and into more demanding times, we believe that alignment, ownership to common goals and a feeling of being on the winning team is extremely important. We started with five leadership meetings in Finse with our leaders, where we have discussed what now, how do we ensure that we also perform well in relation to what we see we have in store. So these first leadership meetings we started this year with, had as a goal to develop more and more common language, common language, common starting point to discuss the challenges we have in store. And then, after we have had these five meetings over three frequencies, we have gathered all employees a few weeks ago in Kalvåg, in the old Sognefjord, to also involve in relation to the strategic agenda that we will come to afterwards. I think it has been a very good investment. I feel that we are a culture, an organization that is very well equipped for the next few years, which will be a little more demanding to run a bank in than what we have seen in the last ten years. Low interest rates, unusual low losses, high foreign growth and so on. These things will be different in the time we have in mind. So the goal for the last collection we had recently was to set the direction, build culture and alignment in the organization, and not least create energy in a little more demanding times. I feel that we succeed very well. I feel that we are very well equipped to deliver good results in the coming time. I feel that we are a team that really wants to perform, that really wants to develop, and that is also curious about everyday learning and learning loops, whether it's credit, it's the way to develop, all forms of learning. I feel that we have managed to get a little better at setting up systems. So what we have used these collections for, when it comes to setting direction, in addition to working with a goal for our culture, is that on who exists, we have been very focused on becoming good at change, becoming best at change of behaviour. That is actually our competition strategy, so we have developed a new HR strategy. We have worked a lot with what our IT strategy should be in the next period, and we have also worked with a part of the strategy on sustainability, where we are going to be right at the front when it comes to setting ambitious goals and turning sustainability ambitions into practice. At Kempfest, we work with what we define as our strategic agenda in everyday life. Top rolling 10, which is the management and management of the next six months, in relation to what are the most important themes we see we need to change. We also have Must Win Battles, which is an important part of our strategic agenda. areas where we see that we need to move through broad mobilization of the organization. Two different things that make up our strategic agenda in relation to improvement measures. If we look at TRT, which is our corporate management's strategic agenda for the first quarter of next year, it is to strengthen our competitiveness by reducing running costs by 45 million kroner. It is to ensure even better waiting times on our direct banks. It is to ensure even more customers, which is point three. from our customers who want to borrow for a self-sufficient solution, so that they can do it themselves, so that we don't have to spend time on borrowing things where the customer has good behavior and low reward. The third goal is to ensure a weekly and stable growth of 230 million in bulls. The fifth point is that we are in a very thorough process, together with the other foreign banks, where we evaluate our future core bank solution. What will help us become cost-effective in the long term? And not least, at the top of which core should we develop our modern and future-oriented consumer solutions on in the future? We are in a very thorough process. We have been working on this for half a year and will work on it for the next half year by deciding what our long-term supplier is when it comes to new core banks. The sixth point is to strengthen the market share in Einar Smøgla Vest. It is extremely important and at the top of our strategic agenda. We have strengthened ourselves so far this year. We are going up by 16% within our market area within March 2023. That is the ambition level. Then we work with our set-up on future savings and capital management. We do that right where we are now, together with the other foreign banks as well. Then we work with our A and V processes. There we have some very defined things that we have decided that we will deliver on before the change of year. Then we work, which is point 9, to improve our credit processes, support tools for our BM advisors, and then we work on the implementation of these three part strategies, which have just been decided over the past few weeks. So that is the top-rolling time for the board of directors and management right now, and we will be there until and with the first quarter. When it comes to the areas where we see that we need broad mobilization in the organization, we have defined four battles. We have used the Must Win Battles methodology for strategy development to achieve development and movement, which I feel we have succeeded in. We have defined four games, starting with December 1 and running out to June 15 next year. Where we want to reduce costs and time, where we see it is unnecessary, ensuring that we are still super effective in terms of time and costs, so that we are still on the front when it comes to cost-income. We have a fight that is about working with a very good starting point in terms of meeting more challenging times, ensuring that we still have a very good risk selection and not least a low loss picture within a slightly more demanding time. We see that when the foreign exchange growth goes down, we must become even better to convert BSU accounts to first-hand loans. This is the third fight, and we see that we have a potential to continue when it comes to moving revenue that our customers have in other banks to Sparbank Invest, and that becomes even more important at a time when revenue margins come back again. These are the four fights that we have just launched, that we are just about to start involving the organization in, in order to create a delta until June 15 next year. That was the most important part of our strategic agenda, the most important part of why we think we have a market position, which is a very good starting point in terms of delivering strong performance in the next quarter. We have talked a little about our foreign book, which we think is robust and good, and also gone through some of our key figures, which you can see are also very good for the third quarter. Through this value proposal to the capital market, we are going to deliver high returns and so on. We are quite confident about that. I also hope that we have given those who have listened today a good confidence that we have a good starting point. We are very dedicated in terms of delivering over one capital return target of 12%. At the same time, we have a relative goal of being among the two best savings banks in Norway in one capital return over time. I feel that we have been in the last few years. We know it will be a great competition, but we will do our best to be that in the coming quarters and years. We believe that Sparbank Invest will still be an attractive proof of equity to invest in, because we are a low-risk and low-complexity bank, because we have proven over time that we have built up an ecosystem that, although we do not have the largest IT budgets compared to the Nordic banks, we have a complexity that allows us to be at the forefront of digital development and competence. We have a bank with a customer exchange rate of high interest rates, which we think also means something for the 40% who have invested in our own capital. We have a class of owners who use their share of exchange to build loyalty and position. We have high ambitions for sustainability. We have proven that over time. It will be incredibly important for us in the future. We have built a strong performance culture. I think few people invest more in their people than we have done in recent years. I think that is the most important driver for our performance and results. We also have a lot of employees who are owners in the bank. We think that affects the way the bank's results are taken care of. Yesterday, the board decided to renew the one-capital proof program we have for bank employees for 2022. We are busy ensuring that we also have a good employee ownership in the bank, so that we get extra focus on our performance. And then we have a relative goal, as I mentioned, an absolute goal of one capital release, so we believe that we are well within the scope of delivering. Finally, we also had the General Assembly yesterday, and it is worth noting that after the General Assembly yesterday, and the VTEC changes that the General Assembly decided yesterday, we will also increase the share of the ECB's representation in the General Assembly from 25%, as you can see here, which is today's solution with 12 representatives, up to 19 representatives in 2024, and still a representation close to 40%, which is our share price today, and which is the maximum in relation to the representation of the owner of the equity certificate in the General Assembly. I also hope that this will show that we are a bank that is concerned about performing well, concerned about what our owners think about the equity certificates, and also concerned about giving the owners of the equity certificates influence, and not least veto in VTAC changes in our General Assembly. This was decided yesterday. We will phase this gradually in connection with elections, so that we are in place in 2024, but also that everyone who is elected today can spend their working hours. It has been important for us to do this in a smooth way, so that we get this done in a good way. That was the end of the presentation, so it's time for questions in the Q&A. I would like to invite Brede, who is our economic director, and Frank Johansen, who is our CFO.

Thank you, Henrik. Yes, we have received a number of questions during the presentation, and we will not be able to answer everything, but those we will not be able to answer will come back to you bilaterally, as you mentioned earlier, Jan-Erik. The net income in the quarter is crucially strong, we get comments on, and over consensus. Are there one-time effects here, or do we see an underlying shift in the net income?

No, it's not a one-time effect. One of the most important reasons for the recovery is that there is one more day of interest. Secondly, we have good growth, especially on the business market side. We have not only good growth on the foreign side, but also growth on the investment side, which gives positive effects. At the same time, we have also taken out the effects of the interest adjustments that have come recently. We have adjusted the investment side a little less than we have done on the foreign side. So that's the sum of all the factors that have given compared to the net income we have had in the quarter.

In this quarter, we do not have full effect from the income changes we have made either, so of course we have a good starting point for a good net income and so on.

Is there any increased competition or increased pressure from customers to increase the interest rates more?

This will be a very running assessment. We are concerned about being competitive, but at the same time not driving our growth by being price leaders, so we are very aware of what is happening on the investment side. It is important to say that with many of the last interest rates down, we did not fully adjust to what was the Norwegian Bank's interest rate changes. It is also not natural, I think, that everyone gets the increase in interest from day one on the interest side, if you have reasonable margins on interest. But this will be a consideration in relation to the competitive situation, but I would say that it does not seem unnatural that the interest rate is a bit back at the start on the way up, when it has calmed down quite a bit on the last interest adjustments. So it's an image that we have expected, which we may not think is unnatural. tough competition on interest. We see that we have Forbruksbank and others where maybe alternative financing goes up and which is very special due to the Norwegian interest guarantee order. So there will be a tough competition on interest further, I think. But we have now at least recently had a very good interest development and as I was in the presentation, then interest is one of four strategic areas we will actually mobilize the organization on in the future. So I think we will be able to make a good balance when it comes to growth and profitability there as well.

That's good. The growth on the foreign side has been good for the last 12 months for the personal market and Bulder, but seems to be declining. How do you see this development in the quarters in the future, and will you be able to reach the goal of 6% foreign growth on PMX Bulder for 2022?

In 2022, we are on target with our growth of 6%. There is no doubt that the housing market is more demanding than it has been before. We see that it is slowing down a bit. It will be tough to reach 6%, but we are on target so far this year. It should not be so bad when we do it in total. I'm talking about X-bulls there. That's where we have 6% foreign growth as a target. I feel that we are well equipped. We have very good tools. In competition with the other banks, we have a very good tool cluster. We have a very strong office network. We have a very strong team that we have invested in lately. We have customer exchange, we have a heart bank, we have a public business. Our challenge is to be even better at converting BSI accounts to first home loans. There we see that they have a potential. Therefore, it is also a defined area on the Muslim battles and strategic agenda. But I am quite positive that we will be able to strengthen ourselves on market shares. But it is clear that we will also be influenced by foreign growth in the PM market. If it goes down a little, it will also affect our growth. But I think that in the end we will be able to do well.

You can see that the growth on bulls is lower this year than it was last year, and you have to see that in comparison with the fact that there were a lot of trades last year that generated a significant push towards bulls, and that we got a lot of new loans into our concept. But we also want to say that the growth we have this year is actually quite good compared to the others. So you see it a little in perspective when we grow up to a billion in a month.

And if we look at the business market, the analysts note that there is still strong growth abroad. How do you see this developing in the future and in which sectors do you see the growth?

We don't believe in blinking out individual sectors and thinking that's where we're going to grow. Then suddenly we're going to grow a lot on shipping now because things don't look different there. We think there is good engagement in all industries and I'm concerned about diversified growth. I was a bit of an adjusted growth of 11.4% the last 12 months. And it's a strong growth. I think we have a very good starting point to strengthen ourselves in a more demanding time. I think that soon single customers again. I have been in the bank for so long that I know that when it gets more difficult, it is even a little longer for the credit committee in Copenhagen, Stockholm and even Oslo. So I think that our value proposition in the market, especially in the business market, will do very well in the coming time. I think we will be able to take market shares at a reasonable margin, and I am quite sure that we will get a reasonable growth, and we have capitalized very well. So what I am most concerned about is that growth has a reasonable risk selection. Not necessarily that if it is 11% on a 12-month basis a little further or goes down to 8%, So I am concerned that we will use the capital we have, we will put it to work, and we will continue to strengthen ourselves in a time where I believe that our value proposition stands stronger than many of the others. Because we know that when it gets a little tougher times, there are many who think that the long-term risk is very difficult. Right.

And at BM, at Bedriftsmarked, I have received a question from an analyst on business units. Are there any special approaches to that as a business?

No, not as a business. What Jan-Erik says is that there can be individual differences between different customers. You go in and look at each customer and see if there are reasons to do something. As we have been talking about in the presentation, the portfolio is good, the quality is good, and there has not been a significant increase in the loss of engagement in the period. So here it is to go in and make individual assessments of each customer, not any general approach within different industries.

But what we are doing right now is to be closer to the evaluation of the portfolio. Our individual customers are closer to it. And we have again, take the third fight, which is best at losing, then it is to be even tighter, even more thorough in the portfolio transition, even faster in acting when we see that things slide on the runway, for example. So we are closer now than we may have been a little earlier, and we will get even closer through the fight where we mobilize quite strongly to be very close to the credit risk in a more demanding time.

One of the analysts has said that we have received letters from the department about Bulldo Bank in recent times. How will you meet and handle the last message from Finansstyrelsen regarding the use of Bulldo Bank as a trademark?

After that letter had been left in the finance department for one year and eight months, we jumped on it. Maybe it was another bank that made it more relevant than it had been before. We take it with very low shoulders. We have a deadline for March 1 next year to adapt to this. It is not said that we can not use the Bulldog Bank concept further, but that requires a little adjustment in some other areas, so we have to consider the trade-off there. I am quite sure that most people already call this Bulldog, so this takes us very easy steps. We note, by the way, that Bank Norwegian was sent a letter that they would continue with the Bank Norwegian name after they were bought up, and then we are of course excited about what the NBS bank does, so there will also be some correlations in relation to how we will adapt, but we have a good time on this. The first of March next year. And we think it's going to be fine if this is called a bull. We are a bit curious about the Nordic for the time being, and have been looking at both Stabelo and Hypothek in Sweden, for example, and they are not called Hypotheke Bank or Stabelo Bank, they are called Stabelo and Hypotheke. So we take this with a very relaxed shoulder, and then we think it's a little witty that the answer came now.

Yes, that's good. You have been open to wanting to contribute to shaping the savings banking sector structurally in the future. Can you give an update on that work?

As I have been in this sector for a long time, I know that these are things that we do not affect. I can go out and say that yes, if everyone finds a bigger bank, they will become a part of it, but that is not the case. Many of these banks in our sector do not even have a single-capital loan, and then there is no profitability and rejection of the primary goal. They make up a social function. So what we have said is that we are going to run a bank that is fun to be a part of. We are going to run a bank where we invest in our people. We are going to invest in a bank where the employees feel that they are on the winning team. And then we hope and believe when they see other banks, they think that it might be a bit difficult to stand alone, that they look at us. But we don't spend a lot of time on other things than running our store well. A lot of people think a lot about a lot of other people. We don't do that. We believe that there is room for small and medium-sized banks, as long as they don't want to be the best at peace, or they define what they want to be and what their conditions are for being in a good way. And then it always happens less, what both we and the capital market think. Therefore, I think it's a good life rule to focus on what you can do something with, and what we can do something with, and do well. If they were to think that they would put their social capital somewhere else, then we think that Svegg is a very good place to be. We think it's a good place to be for the employees to be in Sparbanket Vest. And we also think that if you come into Sparbanket Vest, you will get access to a public utility business that also comes with the region you come from. If you look at Hardanger or Etne now, they get a fantastic gift capacity. They get the gift capacity through the foundation they have, and we will also use our fantastic muscles when it comes to gift capacity in that region, as we have just done when it comes to the Heart Bank Arrangement in Ettene, where we have contributed with significant gifts. In this way, the banks that come to us will get a double gift capacity and a significantly increased gift capacity in the region they come from in Etterkant, so it may not be so stupid to operate.

Good point. The gift capacity in the local community will also come from the exchanges. Some analysts ask for good results and solid pure core capital coverage. Will there be high exchanges from Svegen in the future?

We have one of our financial goals, which is that we will be able to deliver an executive order up to 50%, and that is fixed. We also have a guide on what we believe the results will be for the coming year, that they will deliver in total over the 12% that are our goals. And based on that, everyone can expect that it can also give quite large gift distributions for next year.

When we grow by 9% in the last 12 months on the pension market, and we grow by 13% on the operating market, and if you deliver in that range in peace, then that capital is put into work. Because if we deliver very good results, you also have to look at our growth. I hope that many investors will think that if they can put this into Sparbank Invest to 15% which is calm so far this year, then it might be a good alternative to put the capital into work here instead of taking it out and trying to place it to 15% somewhere else with the same risk. This will be a consideration and I also hope that investors will see that. We have said that we will be attractive on direct throwing and have a good starting point for that. Very good.

I think that was a nice place to end. Last questions here from Mediasit in Bergen. We will wrap up. If there are questions for Sparbank Invest, then of course just contact the e-mail address that was in the email afterwards. And we thank you for following the broadcast and wish you a nice day.