SpareBank 1 Ostlandet

Here in the north, but there is also a lot happening in the east, and in Sparbank 1 in the east. Not least, the company is about to merge with Toten's Sparbank. The work looks to be going pretty well, and with a new company manager from Toten, I think it will be a smooth transition for most people. Klara Lise Aasen and finance director Geir Egil Bolstad will surely come up with more details about this, and in any case about the company's other talks. Welcome to you.

Thank you. Thank you very much. And if anyone thinks I'm going to start singing a Vaseline song or a Preussen song, I can assure you that I won't. But I can say that I've become a little dialect confused after starting in Østland, because I'm from Toten. And of course, when you've lived 30 years outside of Bærum, you become a little dialect confused. So just excuse me if I speak a little weird. We have a good first half year in the savings market in the Østland. We have a net result that is 28% better than it was at the same time last year. And we have a good income tax return in this quarter. 14.2%. We think that is solid, especially because it is driven by underlying good banking services. We have growth both in the personal market and the business market, which is good, both in foreign and investment. Our export growth is almost 5%, and our income growth is a solid 9% year-on-year. So that's very, very good. And we also have some daughters and sisters who, fortunately, behave just as well as in Northern Norway. And I would also like to point out that we have a particularly high unemployment rate this quarter. And when you have all-time high-paying income, what happens? Yes, they have a provisional loan, so that also affects our costs. Of course, we also have a provisional loan on the income. But it's not just that that drives the costs up, and we are not entirely satisfied with the costs. They are high. This quarter, we have also taken into account the possible discount on the anti-whitewash report we got last summer. Summer gift from Finanselsynet, from a... This is an estimate from two years ago, of the 30 million potential residents that we have managed to manage. In addition, we are 7% more employees in the company than we were a year ago. 42 of the 80 projects came from Rengskapshuset Siffer, which we bought at the end of 2023, and which is part of the agreement from 2024. But in addition, we have increased investments in customer rights activities, both in finance, where it has increased by 7-8 years, and we have also increased in customer rights activities at Direkte Banken and in our main investment areas. And we are very happy that we have managed to increase market share in the Oslo region. The loss rate is moderate, 11 basis points. I will tell you more about that later. But what stands down, everyone can read and count with now. We have revised our financial goals and have now put up to an ambition of a long-term goal of a 13% return on investment. That's up from 12%. And then we are quite close to the rest of the regional banks. We just need to put measures back to deliver on that. But... All in all, satisfied with this quarter, especially since it is an underlying business we see growth in. And not least because we are a demanding market segment. In our primary area, which is of course inland and Oslo Akershus, it has been a demanding macroeconomic backdrop for a long time. And we see that the number of competitions is moving up. We don't see our portfolio that much. I have to say that our portfolio is solid, robust and net and positive migrations. Employment is also increasing within our regions, but what I am happy about is that we are a little less pessimistic than before. You can see that on the left side. The expectation survey we do twice a year shows that the trend is on its way up, so there are still more pessimists than optimists. Hedmarken and inland, but there is some more light in the tunnel, we can say. But of course we don't have the plus figures on the macro that Northern Norway has, but we have very nice flat buildings, and it's coming up. A little bit about the personal market. Very good development in the last quarter. We defend our market share well in the mainland. It is a good competition. And Oslo Akershus will all take part, and it is fun to see that we take market shares. Our foreign growth is at over 2% in the isolated quarter, and we are very pleased with that. And we also look at revenue. There it is especially fixed income revenue and savings products that are up. So we see our customers, they adapt to the situation well, tough times and save. We also see that the fund is doing pretty well. The business market is also good this quarter, and especially on the domestic and large-scale market. We are growing in both renewable energy, industry and projects, so quite good and diversified growth, and we are especially coming towards the end of the quarter. And that is very good. Because we have also given quite a few discounts on new loans, which then affects the capital coverage, which I will tell you more about later. But in total, we have net growth of customers, both in the personal market and the business market. And we also see that good collaboration with LO is important in generating new customers, and I am very proud of the collaboration we have here. So, let's see if I can get it to work. Yes, we are lifting our financial goals. We think this is important and right. And of course, right now, the goals may look a bit ambitious. We have 15.7% of single-catering revenue so far this year. But of course, now the interest rate has been higher for a long time, where the costs have been higher. And over time, we need to work with that, to get back to that. In exchange, we also make a small change. Instead of having a fund that says that we deliver 50%, we now have a B. We distribute at least 50% in exchange. And having a flexible exchange policy is important. We are going to put the capital into work. Where we don't need to use it for growth, we are going to distribute it to the owners. I think it is important to have a good capital strategy. We will change the solidity later, and some might wonder why we don't have cost goals. Well, we will see what we will have, but the most important thing now is to deliver on the totem fusion. And everyone who has been through fusion, and there are quite a few here and there, knows that this requires resources, and it is important for us to deliver on that in a good way, and then we will see when we are ready to specify potential cost goals. But in order to achieve new financial goals, activities must be carried out. We have four strategic goals. It's a bit hard to read, but it's a bank that delivers the best customer experiences. That's goal one. The second goal is to have a robust, inclusive and engaging working environment. We want to be the preferred place to work in finance in the Østland region. And we will continue to be a strong driver of the sustainable transformation that is changing. And the fourth goal is to be one of the most attractive single-capital companies in Oslo and Børs. And then we have said that we have to think about the future. We have to be together with the customers, regardless of whether they work in the company, so that the focus should be to think about the future. And through tools such as Forenkle, we have to look at how we work with things, get increased performance, cut out things that do not give value, and at least use the power line, use technical tools to reduce manual tasks and see how we can spare time so that we have more time for the customers. So simplification will be important in the future. Everything from small to large. The next is redesign. We will continue to deliver the best customer experiences. Then we have to have a good mix of good digital bank deliveries and service deliveries, but also to continue to be an advisory bank. And using data and insight to design good personalized solutions for customers will be important in the future. The alliance, we are part of the Sparbank 1 alliance, very good. And we will continue to use it in a good way together with the other banks to scale the areas that we need to develop together, because it's good for customers, good for us. And at least we will work with modernization. Modernization and organization, among other things, that we bring together areas that we think are essential. I will mention two short examples. One is that we are now bringing technology together, together with innovation and development, for a strong environment. And there we have also appointed a new leader, which I am looking forward to starting on October 1st. Stine is perhaps in this room. There we go, great. Signe Haugestedt is starting there, I'm looking forward to it. And we have also chosen to lift up the market and branded goods together with communication, so that we get a strong, clear owner in the company management, also on the market strategy. Because that will be important, because Østlandet is so big that we have to think of a strategy that fits all types of customers. And one size does not fit all. That was half a year in English, wasn't it? But at least we are aware that we must have a market strategy that hits our customers, and they are quite different. We will continue to work on this. We will continue to work on this. We will continue to work on this. We will continue to work on this. We will continue to work on this. We will continue to work on this. We will continue to work on this. We will continue to work on this. And I've had the pleasure of visiting almost all of our offices, and it's incredibly fun. And I look forward to us opening in Drammen on October 1st. And then we were in the top three. Congratulations to NordNorge for winning. Top three on the customer survey in the best customer service in the bank. Also very funny. Briefly about Fusion. Before I hand over the floor to Greger, we're working on it. For me, it's very important that Totens Fusion becomes a we. It is not so stupid. Then someone said, yes, but you are a quoted influence of Toten. Some others will say that, but in any case, I am concerned that we will do our best also from Toten's in the group. It is important that we manage to have an integration plan that takes care of all members of the group. And what we are waiting for now is formal approval from the financial department. We have not received it yet. We have received it from the competition department. We are now working on a good integration plan. What is on the slide is how we do it in practice. We work together with Totens in a very good way. The legal version is scheduled for November 1st. We will see the technical version in the second half of 2025. So with that, Bessie, we deliver a very good quarter. Super understating operation. New financial goals, we will deliver on them. And there will be rules to follow. There it was. Have a good one.

Good afternoon, and I hope everyone has had a good summer. It's going to be seven minutes, four seconds, three seconds. We're not going to go very deep, but I'm going to comment on, is it five minutes now? That's fine, thank you. I still think I have relatively good timing, so this is going well. I'm going to go, let's see if we can get to this one. A little in detail. Rent netto, take that with you. We still have growth in the net netto when we also include the provisions from the managed loans in housing credit and business credit. So it is a point to note that in spite of good growth and good margin development in both PM and BM, we see that the net net in the percentage of the average in managed capital is a lot lower than last quarter. Behind that, it seems that there has been There are two things. One is pre-funding in the second quarter of a major euro fall in September. We think that using the market in June can prove to be a chess game, as seen in the future, or a lucky draw. Regardless, we have locked in good margins on the funding for later. In addition, we have strengthened the responsible capital as an adjustment to new capital opportunities in Pillar 2. We will come back to that later. So you can see a bit of the background for the fact that we have some, what shall I say, wear on the margins in total. Provision revenues, they are cyclical, second quarter, tend to be very good. There are natural reasons for that. We draw from the broker this time, just like NordNorge. There has been an extremely high level of activity in our two property broker companies. We have an all-time high, and with good margin to what we also saw during the pandemic with extremely low interest rates, when we now see the second quarter in the NO-sector, both in the inland and in the Oslo-Akershus. This is very positive, and it lifts the collection of supply revenues, also in comparison with the previous year's second quarters. The other point I want to make, which is not as clear as what is written there, is this with the supply from the insurance agencies, and especially what is going on with damage insurance. Svarbank Nøstlandet has a very strong culture for this with cross-examination, and we are struggling to maintain the position as the best bank for this with re-examination of damage insurance, and also to maintain our portfolio. We are at the top of the league in sales and portfolio provisions. We are very proud of that, because there are a lot of good people and banks in that league. What draws us down is this with the profitability provisions, where we still bring with us the effects of extreme weather in the last 12 months. The Danish authorities also deliver the best quarter for several years. This is a good and even development in Finans Østlandet. A small reduction in the interest rate net, but also a significant reduction on the loss side. This is positive. The property management companies deliver very, very well, and that is many years since we have seen such good contributions there. And when it comes to business partners, we also see that they have had a good second quarter and a very good first half year, compared to where we have come from in recent years. So that is good contributions from our new colleagues from Regenskapshuset Siffer, which I have included, so it also hits the revenues well, in addition to what we have seen, as Klara Lise has also been talking about, on the costs. And the operating costs. I'm not going to spend much time on it. Klara-Lise has done it. But there has been an increase of 80 years, 7%. The last 12 months, it's ready to go. Half of that is from figures, and it shows good results on provisions and from contributions from our cleaning company. Moreover, there is a strengthening of both the defence line and the attack line within the bank, back office compliance of course, but also the strengthening of both PM and BM customer rights, as we have been talking about. The second point to take with us is this with the other operating costs. There you can see the fairly low 30 million we have now booked. And then there is the fact that in the second quarter, isolated, there were no major increases in fusion costs. But there it will come closer to technical fusion. The period's stock cost is flat on its own balance, 11 basis points, including those managed by the loan, 8 basis points. What we see is that even though the levels are very stable in relation to the previous ones, the mix is a little different. We see that model-wise, Trin 1 and Trin 2, there are reversals as a result of that we see better views, price increases in both housing and business. While what we see is an increase in something more on the individual. Several, but fewer customers compared to what we saw last year, where there were a few big ones. But what we can see as a common denominator is this with housing and housing construction, which is a business that we see there is pressure on, otherwise in the country as well. Finally, a small uptick in the confirmed losses, but not far below the levels we have seen in the previous quarters. Finally, the capital coverage. It is reduced by 0.2%, from 17 to 16.8%, despite a very good quarter. This is linked to the foreign growth that Clara Lise was talking about. In addition, there has been an increase in loan payments and commitments on a total of 3 billion kroner. This also attracts capital. But as I said in the first quarter's presentation, it is often a foreshadowing against this. We can hope and expect a good wage growth, also in the next quarters. The risk weights are stable, both PD and LGD are very stable, so this is the growth that drives the RVA. The last thing to mention is that the core capital coverings and total capital coverings are strengthened, both through the first quarter and the second quarter, and this is also an adjustment to new opportunities in the capital set-up in Pillar 2. So then I'm in the red area. 30 seconds left, so I'm wondering if we should use that for any questions from the audience.

We can take some questions. There is one right in front of me, on row 2. I'll get a microphone for you.

Vegard Dovru from Pareto Securities. On the Q1, I think you mentioned that you might come back on Q2 with an application for fusion costs. I couldn't find it in the report, but if you can point me to where you are, possibly if I have to wait until Q3, that would be nice.

I can take that, Vegard. No, you won't find it, no matter how hard you search. And I also hear that there is a well-founded optimism about being able to have something on track, but you're not going to promise it. And that's because this is processes against the third parties, especially on the technical side, that are going to help us. There it is not agreed, so we are going to make an attempt, and if we feel that we have a good estimate, we will come with it. But it is completely true, we do not have it now, despite the fact that we had an ambition about it.

I think a range is much better than an estimate, which we will try to adjust to later.

Then I think we have to stop there, because we are a little over time, but thank you very much for having us, and then you can ask some questions.

Thank you.