Sparebanken Vest

We look forward to it. It was too easy here. There I am. Hey, check. What do you think?

Welcome to this year's Capital Market Day. We at Sparmarket Norge have been looking forward to this since August 28 last year. The opportunity to come and tell you about the results of the first quarter and our ambitions further. We have an exciting agenda in front of us today. We start with a result presentation by Jan-Erik Kjelpseth. He will also talk about the direction and strategy for Sparebanken Norge, before a Q&A session after that. Then we take a short break, and then we come back with three deep breaths to give you a little look behind the curtain and see the underlying performance of the bank. First, Fredrik Giske-Neslin will tell us about the ambitions of Egnåsmegler Norge, and the direction they have set for the coming years. After that, we look forward to hearing Simen Eilertsen talk about Bulder and Norway's most effective home loan flow, and how Bulder will take the next step in the growth journey, and Sparbank Norway in general. Then we top it all off with Jan-Erik Kjerpeseth, who talks about the next step for national distribution in Sparbank Norway, and how Sparbank Norway will take the road from regional bank to national bank. We will end this session with a panel discussion with some central leaders in Sparebanken Norge. Ariel Andersen from our Oslo investment, who is the CEO of Nye Marketsområder. Margun Minne, who is the CEO of Bedriftsmarked Vest. And Paul Ekberg, who is the CEO of Personmarked Sør. We will have an incredibly exciting and nice conference today. There will be a lot of opportunities to ask questions. Then it remains to give the floor to the Administrative Director of Sparbank Norway, Jan-Erik Herpeseth.

Tusen, tusen takk for det. Tusen takk for at det er så mange som vil følge oss her, og så håper det er mange som følger oss også på webkasten på nett. Vi har gledet oss veldig länge til dette. Vi er utrolig glad for å være i gang med Sparbanket Norge, og vi er utrolig glad for å være i gang med noe som vi tenker er et visionært byggeprosjekt, der vi skal klare to ting samtidig. Vi skal bygge nytt land, og vi skal levere en god avkastning til enkapitalbevisseierne våre samtidig som vi bygger nytt land. Og det er jo et komplisert kvartal vi skal legge fram denne gangen. Vi fusionerer jo midt i kvartalet, og det gjør jo at denne gangen så kan det være litt vanskeligere å få oversikt over den underliggende driften. Vi har gjort så godt vi kan i presentasjonsmaterialet som vi skal gå gjennom i denne dagen for å gjøre muligheten til å få et godt bilde av hva som er den underliggende driften på konsolidert basis i den nye banken. Og jeg skal dele den første runden i to, litt om kvartalstalene våre, og så litt om de finansielle målene som styret i dag har vedtatt for Sparbanket Norge. Og så slår vi det sammen til en felles spørsmål- og svarssekvens etter disse to første innledningene. And if you have any questions, send them to this email address. If you follow us on webcast, we will answer them after the first two presentations. There is no doubt that we have been only one bank for a little over eight weeks, if you look away from a joint vacation. I am very proud of the starting point we have after such a short time. We have achieved a lot. Vi har tydelige planer, og jeg opplever også at vi har klart å holde støddrift og god drift i en periode der vi har stått på hodet i forhold til å få til en rekordrask juridisk fusion, og ikke minst en veldig rask prosess for å sette nyt organisasjonsdesign og ny organisering. This is one of the most important things I would like to start with, namely that we have managed to keep pressure on the fusion work, do this as quickly as possible, in as good a way as possible, while not losing pressure on the market. Here we have our biggest competitors, Region Sparbank 1 and DNB, when it comes to growth in the first half of the year on the personal and business markets. And if we look at the personal market, we have grown by 4.2% in the first half of the year. That's a lot better than all the big competitors we like to compare ourselves with. And especially in the business market, we have done a very good half of the year. We have a foreign growth of 5.1%. The next best bank is DNB, at 2.5% in the first half of the year. So we are very proud of the work that the employees have done in terms of keeping pressure on Kunder og marked er en periode der vi har hatt ekstremt mange prosesser som har trekt i andre retning. I would also like to point out one more thing, and that is that even with the fusion costs that we have in Q2, we deliver on cost income. We have a cost income of 29%, which even with fusion costs of 53 million per quarter, is below the financial goal that we are going out with today when it comes to future cost income for the new bank. And we are very pleased that we are able to do this in a way that does not take away the pressure from the market, but that is also cost-effective. We are as aware of the fusion costs as we are of the running costs in Sparbank Norway. Vi er i ferd med å bygge en kraftfull norsk bank, Norges tre største bank, Norges nest største norsk eidebank. Og vi har en størrelse når det gjelder kunder på 808 000 kunder årsverk mellom 1600 og 1700. Vi vil ligge fremover. Og så har vi bruttet utlån ved utgangen av andre kvartal på 463 milliarder kroner. Vi er med det. Norges største sparbank med god magin. Og som jeg skal komme tilbake til senere i dag, så har vi også et veldig godt veikart når det gjelder videre vekst. Og vekst på en god måte som vi tror skal understøtte at vi fortsatt også framover vil være Norges største sparbank. We have tried in several areas to make this as easily accessible as possible, in relation to what is the underlying drive. Up to the left, you see consolidated one-capital issuance, where we have not taken into account the close to 5.4 billion that we now get in goodwill and added value. We have taken that out and will show it with goodwill and added value, and a description of the immaterial parts afterwards. But if we first look at the consolidated one-capital transfer for Sparbank Norway in the last five quarters, as we look away from Goodwill and immaterial units, then this is the best quarter we have in underlying operations in these last five quarters. It's a very good quarter, consolidated by Sparbank Norway, and as I said, a one-capital transfer at 18, if we don't include Goodwill, immaterial units, and decryption of immaterial units. We have a very good capital position. We have a capital coverage of 18.4. We have a solidity target of 16. So we have a very good headroom for our target of pure core capital coverage. And then many of you will know that in the course of 2027 we will become SIFI. So then the solidity target will go from 16 to 17 percent. Book value per one capital proof now at the beginning of the quarter is 108 kroner per team. And then the result per one capital proof in this quarter is 4.18 kroner. So we have tried to set up here what is consolidated one-capital issuance, if we look away from goodwill, immaterial units, and writing down immaterial units, which is a direct diffusion effect. And then we have here, in this part, put in what the one-capital issuance will be. If during this entire period we had just under 5.4 billion immaterial shares in Goodwill as a part of the fusion. If the fusion had been carried out earlier and influenced the NKRT in this entire period. Then you see, for example, that the NKRT shown here, which was without Goodwill, immaterial shares, and the description of immaterial shares, goes from 18 to 15.6, that is 2.4 percentage points down. This we will come back to when it comes to financial goals, but the difference and the importance it has, makes us both launch a one-capital investment goal today, and a root goal, which is then corrected for the things I was talking about. I will come back to that in the next part of the presentation, but with an important point in mind, that the one-capital investment in Sparbanken Norge will be strongly influenced by a significant goodwill and immateriality in part, which occurs on the 2nd of May in connection with the fusion. If we look at our growth, we are in a very good position, even before we introduced the investment in Oslo, Tromsø and the new market area. We have a foreign growth on the personal market in the last 12 months at 8.2%, and we have a 12-month growth on the business market at 7.1%, but a very good growth in the first half of the year, as I showed you initially. Even... Before we introduce the investment in the new market area, we are very well positioned, and I dare say that the choice of Sparbank Norway, the positioning we have taken, and this fusion also gives significant help when it comes to market work and positioning in the existing geography. The investment growth is very good, 11.2. Well driven by a very good investment growth, among other things, in Bull. And then we will do some tuning now in Ny Bank in relation to large business market investments. We have a very favorable funding position. Sparbanket Norge has a very good name in the funding market. That means that we may think a little differently than these two banks have thought each other when it comes to particularly large investments. And that will probably affect the growth in the short term. Bulder has had an adventurous journey in the past. Here we have taken out loans per 11th of August. Bulder is very affected by triggers in the market. So that means that when interest rates change, for example, we get a lot of lift in the traffic on Bulder. We are much better positioned today to exploit the traffic that comes in waves than we have been before. That's what Simen will get into in his presentation. We will dive a little deeper into Bulder later on in the Capital Market Day today. But I would also like to say that it is incredibly fun to see that we have a growth of 4 billion kroner just in July on Bulldar, which illustrates what, for example, the movement in the interest market and interest changes mean for Bulldar's growth over time. We have an increase in interest rates. We were at 27 last quarter, now we are at 28, which is good for a new investment. We have a very low risk profile. Now we are starting to open slowly with security up a little more when it comes to housing loans in some areas that have a slightly lower area score, which we have been very careful with historically. But LTV is still very low in the bulls. A high knowledge, 130,000 customers, very good development, PT. This means that we are on the guided curve when it comes to growth, and not least the one-capital transfer. We have a one-capital transfer on the marginal basis of the concept now at 13%. It is up here, a little ahead of the curve. And then we are with the last development when it comes to growth, we are also a little ahead of the curve. We have very good opportunities to reach at least 73 billion from our outputs. As many know, our goal in 2016 was the same volume that S-Banken had when they were bought by DNB, 380 billion. So we are very well prepared to achieve that growth goal, as it looks at PT. The number one net income, fine development, also in this quarter, and is, among other things, influenced by very good growth, which is with us to lift the net income to 2.7 billion kroner in Q2. We will have time to be able to raise other net provision revenues. I also see that it has increased on a pro-forma basis. We have a very good development in the real estate sector, which Fredrik will talk about. There we also have significantly greater potential. We have a fine development in Borea, absolutely certain that it was a strategically important and correct purchase, which also has a fine development in AUM, which we will come to later. And surprisingly, a good progress on the profit income on Sammeslott Bank. We will be very concerned about costs. We are coming back to a cost goal of having under 30% in cost income, and we have an ambitious cost synergy goal that we are launching today, which is adjusted compared to earlier, including Oslofjordsparbank, with 425 million in annual synergies on the cost side. And then we have something that is involved in raising our costs, which is about consolidation. We want to consolidate foreign capital administration, which owns 70% of Borea. We have fusion costs that are involved in raising the costs a little. We have increased immaterial properties. Of the immaterial properties that make up about 1.7 billion, of the 5.4 billion in goodwill and immaterial properties that are shown in the state, we will annually, in the coming years, have about 180 million in the year, that is 45 million in the quarter. Then we have an increase in activity in Megaland, which has a very good result. This pulls up activity-based costs. And then we have an overall cost development of 21 million, which is quite high. This gives a cost in the second quarter of 1.37 million kroner, according to what we have reported in this quarter. We are a bank that will also be characterized by low risk, a robust personal market portfolio that is dominant. As you can see here, if we open up Brage, we will have a personal credit loan of 58%, then we start with 15%, and then we have a business market share, ex-Brage Finance, of 27%. Solid portfolio, where a very large part of the PM portfolio is housing loans, and which gives a low to moderate risk profile also at Sparbank in Norway. We have and will get a steadily better geographical spread in Norway when it comes to concentration risk geographically through our investments in new distribution. And on the same basis, it also sees that The concentration around the western part of the country has increased with Agder and a slightly larger proportion in Oslo, Akeshus, Vestfold and Helmark, which is contributing to a slightly different geographical spread than what we have had before. We see a very low rate of payment for pension customers. We have shown it here. Here you can see that the rate of payment over 90 days for housing loans is below 0.1%. It's very low. And here you can also see the distribution of the reward rate on our pension market portfolio, on our housing portfolio, and you can see that 92.18% is below 60% loan-to-value, which gives a very robust and conservative loan book, as we consider it. We also have a well-diversified business market portfolio, a little higher on the business side compared to what maybe those who have been invested in Sparbank Invest earlier are familiar with. But we have a good diversified branch exposure and an even better new bank than we would have had before the merger. And we also see that we have a very sensible and good development in the last three quarters. If you look at this timeline, it goes from 2022 to the second quarter of 2025. Stabilized low loss. We had one single engagement here, as some of you know, in Brage Finans, where many Norwegian banks and financing companies were involved. Otherwise, a very moderate loss level. We work very well with credit quality, also in Ny Bank. We can get to it later, probably also in Q&A, but we are very concerned about not significantly increasing the credit full powers isolated in Ny Bank, in order to have control over credit risk. i en periode der vi også tar opp blant annet nivået på største engasjement. Vi følger kreditutvikling, kreditkvalitet, kreditkultur, og ikke minst er vi veldig bevisst på fastsetting av bevilgingsfullmakter som en del av Ny Bank for å være sikre på at vi klarer å opprettholde den gode kreditkulturen og de lave tapene som begge disse bankene har hatt vært for seg før fusjonen. The capital coverage was a bit out of place. What I didn't say out of place is that this new level of risk on the stock market will also hit us. With a high stock market share, that means it's a part. So when this level is from 20 to 25, we will in the next quarter see a drop in core capital coverage at around 0.8, as a consequence of this level. Now we believe that this level is milder than before. We believe that this It may look different the next time the finance department will consider this, and that maybe the VDM floor will be removed, and we will see 20% again. But it has meaning, as you can see, 0.8% in the next quarter. We will see a decline in the capital coverage as the starting point in the change of this floor. Otherwise, a very robust capital situation, very well positioned, will eventually lead to significant capital synergies that are not reflected in this capital coverage. This means that we are quite confident that we will be able to achieve a good organic growth, while at the same time we have attractive exchanges in Sparbanken Norge. Anders Møgler Norge is not legally funded yet. It will happen in the fourth quarter, as it says here. We have a very good half year in total. Results for tax on 49 million. It is significantly up compared to what we had on a consolidated basis last year. Fredrik Giskeneslin, who you will see later, is an employee as administrative director. Øyvind Åsen will be with us as vice-administrative director of Anders Møgler Norge. Norway, we believe this is a very exciting set-up, and that they are fulfilling each other in a good way, and that we are going to get a very strong and good national equity, which will mean a lot for Svarbank in Norway in the coming years. Borea said in the beginning that it is strategically right for us to take a larger part of the value chain in saving and placement. We have a significant growth in AUM in the new bank in the last couple of years, both in the south and the old west. We see that we have had a nice rise in AUM from the first quarter to the second quarter for Borea. And in addition to a significant growth, we see that we may have a result in the size of 25-30 million for 2025 before tax. And we will continue to develop this company together with a very talented group in Borea. And a talented group that is also with us on the owner side and owns 30% of the company further. Then it is not to step under a chair that there has been a very good insurance quarter. We saw that on Fremtind, and we also see that on Frende. A result ratio here that is quite significant for our part in the second quarter. An annualized calm on Frende Holding at 23.6%. This is due to good growth, but not least. So there have been significant price adjustments in the sector, which is also part of lifting the results in the future, and lifting both the results and not least the premium stock in the future, in addition to the acquisition of Granneforsikring, which we bought in Mølleromsdal, which some of you know well. If we look at the overall picture when it comes to result development, we have a good development on most lines. We are up 137 million on net income compared to the performance result in the second quarter last year. We are up 39 million if we look at the provision revenues here in the city. We are up 97 million. In connection with business, we have 173 million in finance, even if we take out this fusion effect of 55 million in Prague finance. Our shares are there. Then we have fusion costs of 58 million, and then we have an additional cost growth, which I was talking about at the beginning of my own waterfall diagram, of 102 million. And then we are a little up and down when we adjust for these 114 million, which is a one-time effect linked to fusion. In total, this gives the result of 2.4 billion NOK in the second quarter of 2025. Before I go into the landing on this part, I would like to conclude with a little about what we do at the organization, how far we have come in organizational design and setting up a new organization. But before I get to that, I would like to say that But what I've been through, we have a fantastic starting point in Sparbank Norway to build a national savings bank in a sector in a time of crisis. I think we have, even though we are quite young, we have only been in the air for a few months, we have made some choices that we think are smart, whether it's name choices, our investments in the new market area, Aril who is sitting here, Reimon who is sitting here, who will take responsibility for the Tromsø investment. I feel that we have achieved a lot. We have taken some decisions before the legal discussion. This means that we have a very good speed out of the legal discussion on the 2nd of May. A completely unique starting point. We have a low complexity in our store. We do what we can best. And we are also very happy that we are not part of an alliance, which means that we have a low complexity, short decision paths, and quite a large strategic trade freedom in relation to what we do next, whether it's product investments, or geographical investment. I have experienced that there is an incredibly fine energy in the bank. I want to shout out once again to the employees who have had a significant push towards the market, while we have worked with this legal fusion and are on the way into work with the technical fusion. Oslofjord Sparbank is a good example. I think Oslofjord Sparbank is a good example. Oslofjord Sparbank is a good example. Oslofjord Sparbank is a good example. Oslofjord Sparbank is a good example. Such things also contribute to structural growth in addition to organic growth. We have been approved by the competition, and we have a clear goal to get a legal fusion with Oslo Fjord Sparebank on December 1, 2025. I have a project on this, which is in the beginning, and I think I will deliver well on it. A little about organization and organization. When I start by saying that we have been very successful with growth for the first six months, it is of course primarily about very talented, committed employees who want to show that this vision is correct and who want to show that we are a team to count on in the coming years in BankNorge. I also think that the approach we have taken to have continuity on the customer side in the new bank is an extremely important approach. Vi har skjermat både lederne her, gitt i kontinuitet vidare, sånn som de hadde både