Helgeland Sparebank, 1st Quarter 2007
The Group
Other operating income
Other operating income for the first quarter totalled
NOK 3 million, which is down by NOK 1 million from
the first quarter 2006. There are fewer companies in
the Group in 2007, thus reducing operating income.
The costs from the same companies were
correspondingly less.
Highlights (compared with 1st Quarter 2006)
•
•
•
•
•
•
•
•
•
Pre-tax profit: NOK 84 (35) million.
Net interest income: 2.30 % (2.28 %)
Return on equity: 13.5 % (8.9 %)
Result per PCC: NOK 21 (14)
Cost-income ratio: 54.0 % (56.2 %)
Losses on loans, guarantees etc.: NOK 4 (4)
million.
12-month increase/decrease in lending: 8.9 % (1.8 %)
12-month increase in deposits: 11.4 % (9.4 %)
Deposit-to-loan ratio: 64.4 % (63.1 %)
Operating expenses
Operating expenses totalled NOK 50 million, which is
the same figure as for first-quarter 2006. The figure for
total operating expenses as a percentage of income
(excluding foreign exchange gains) was 54.0 %, and
operating expenses measured as a percentage of
average total assets were 1.59 %, as against 1.63 % for
the same period last year.
Results
The Group posted record profits for the first quarter
to 31 March 2007. Proceeds from sales of shares in
the Parent Bank and associated companies were
taken to income for a total of NOK 44 million during
the quarter. Following this, the pre-tax profit was
NOK 84 million, compared with NOK 35 million for
the first quarter of 2006, an improvement of NOK 49
million. Net profit after tax totalled NOK 72 million,
giving a return on equity of 13.5 %.
Bad debts and non-performing loans
Losses on loans and guarantees totalling NOK 4
million were charged as expense, which is the same
figure as for first-quarter 2006. The Group’s volume of
net bad debts and doubtful loans fell by NOK 29
million. Net non-performing loans at 31 March 2007
totalled NOK 107 million, or 0.9 % of gross lending.
Tax
Capital gains on shares have been held outside the tax
calculation. Otherwise 28 % tax is calculated on
profits. Wealth tax comes in addition to this.
Net interest income
Net income from interest and credit commissions
totalled NOK 73 million. Net interest income as a
percentage of average total assets was 2.30 %,
compared with 2.28 % at 31 March 2006. Although
the Bank has maintained its net interest income there
is still pressure on margins, particularly margins on
home loans which are still pressured in the market.
The Bank’s net interest income over time has been
above average for savings banks and is still
approximately 0.3 percentage points higher than
average.
Balance sheet developments for the first quarter
Total assets have increased by NOK 342 million since
the turn of the year and now stand at NOK 12.9 billion.
Lending
At the end of the first quarter, gross lending totalled
NOK 11.6 billion. In the past 12 months lending has
risen by NOK 952 million, or 8.9 % from 31 March
2006. Of this, the growth in lending to personal
customers was 7.3 %, while lending to business
customers grew by 11.8 %. Lending during the quarter
as a whole grew by NOK 179 million, or 1.6 %.
The share of lending to personal customers is NOK 7.2
billion, or 62.7 %. At the end of 2006 this share was
63.6 %.
Net commission income
Net commission income for the first quarter was
NOK 16 million, up by NOK 2 million on the same
period last year. Of this increase, NOK 0.8 million
derives from the sale of non-life insurance and NOK
0.5 million from guarantee commissions. Net
commission income as a percentage of average total
assets was 0.53 %, compared with 0.47 % for the first
quarter 2006.
Guarantees
Guarantees provided to customers have remained
unchanged since year-end 2006 and total NOK 626
million. Guarantees are down by NOK 118 million
from the first quarter 2006.
Gains and losses on non-current assets held for
sale and income from investments in associates
Net return on financial investments totalled NOK 31
million in all, which is NOK 30 million up on the
same period last year. The Bank has taken to income
a capital gain on the sale of shares in the company
Vigner Olaisen AS in the amount of NOK 29 million.
The Group’s share of the capital gain on the sale of
shares in associates was taken to income in the
amount of NOK 15 million.
Customer deposits
Customer deposits are continuing to grow and since 31
March 2006 have risen by NOK 771 million, or 11.4%.
Growth in deposits from personal customers is 6.4 %,
and growth in deposits from business customers is
20.1%. During the quarter customer deposits rose by
NOK 147 million or 2.0%.
1
At the end of the quarter deposits as a whole totalled
NOK 7.5 billion, of which NOK 4.6 million, or
60.7%, were deposits from personal customers.
Customer deposits were 64.6 % of gross lending at
the end of the quarter.
Effect, subsidiaries and IFRS
Parent Bank, result
Effect, subsidiaries/assoc. comp.
Group result, N-GAAP
Funding
The Group’s objective with respect to the proportion
of long-term funding has been achieved. The Group’s
long-term credit facilities total NOK 0.5 billion and
were unutilised at 31 March 2007.
31.03.07
57.2
15.7
72.9
IFRS adjustments
Group result, IFRS
-1.0
71.9
Parent Bank
The Parent Bank had a pre-tax profit of NOK 69
million for the first quarter, which is NOK 34 million
up on the same period last year. Capital gains from the
sale of shares totalling NOK 29.4 million have been
added to the profit.
Equity
The Group’s equity totals NOK 1,262 million. The
Group’s capital adequacy ratio under N-GAAP at 31
March 2007 was 14.5 %, whereof a tier 1 capital
ratio of 13.01 %. If half the pre-tax profits are
included, the capital adequacy ratio is 15.0 %.
Total assets at 31 March 2007 were NOK 12.9 billion,
which is an increase of NOK 312 million, or 2.5 %,
from 31 December 2006. Measured in terms of total
assets, Helgeland Sparebank was the 13th largest
savings bank in Norway at year-end 2006.
Primary Capital Certificates (PCCs) - HELG
The Bank’s primary capital of NOK 202 million is
spread over approximately 3,017 PCC holders. A
specification of the 20 largest PCC holders is
provided in a note to the financial statements. The
price of the Bank’s PCC at 31 March 2007 was NOK
192.
Outlook
Helgeland Sparebank has joined with three
independent savings banks to establish two new
companies to provide life and non-life insurance in the
Bergen area. The other banks are Sparebanken Vest,
Sparebanken Øst and Fana Sparebank. Helgeland
Sparebank has a 10 % stake in these companies. The
aim of establishing the companies is to strengthen the
banks’ competitiveness and long-term earning
potential.
Accounting policies
Helgeland Sparebank prepares its consolidated
accounts in compliance with IFRS (International
Financial Reporting Standards). The same accounting
policies are applied to the interim financial
statements as to the annual financial statements.
IFRS have not been applied to the Parent Bank’s
accounts for the first quarter 2007. First-quarter
application is voluntary. The obligation to apply
IFRS to the Parent Bank’s accounts will be
introduced from the second quarter 2007.
The Bank’s continued monitoring of non-performing
and doubtful loans is expected to result in more
reductions in bad debts.
There is high activity in business and industry, and the
Bank expects its share of growth in lending and
deposits in Helgeland to continue.
Mo i Rana, 31 March 2007
Mo i Rana, 26 April 2007
Eivind Lunde
Chairman of the Board
Thore Michalsen
Deputy Chairman
Siv. B. Westvik
Inger-Lise Pettersen
Steinar Aufles
Brit Edvardsen
Bjørn Johansen
May Heimdal
Employee Representative
Elisabeth Helmersen
Employee Representative
Arnt Krane
Chief Bank Executive
2
31.03.07
31.03.06
Group
31.12.06
171
98
137
67
586
300
Net interest- and credit commission income
73
70
286
Commissions receivable and income from banking services
Commissions payable and costs relating to banking services
20
4
18
4
77
14
Net commission income
16
14
63
Gains/losses on financial assets available for sale
Gains/losses from associated companies
Other operating income
Operating costs
Losses on loans, guarantees etc.
31
15
3
50
4
1
0
4
50
4
6
14
10
206
14
Result before tax
84
35
159
Tax payable on ordinary result
12
10
42
Result from ordinary operations after tax
72
25
117
31.03.07
31.03.07
Group
31.12.06
Interest receivable and similar income
5,42
4,44
4,66
Interest payable and similar costs
3,12
2,16
2,39
Net interest- and credit commission income
2,30
2,28
2,27
Commissions receivable and income from banking services
0,64
0,60
0,61
Commissions payable and costs relating to banking services
0,11
0,13
0,11
Net commission income
0,53
0,47
0,50
Gains/losses on financial assets available for sale
1,47
0,05
0,16
Other operating income
0,09
0,13
0,08
Operating costs
1,59
1,63
1,64
Losses on loans, guarantees etc.
0,13
0,14
0,11
Result before tax
2,67
1,16
1,26
Tax payable on ordinary result
0,39
0,34
0,34
Result from ordinary operations after tax
2,28
0,82
0,92
Profit and loss account (Amounts in NOK million)
Interest receivable and similar income
Interest payable and similar costs
Profit and loss account items as a percentage of average assests
3
Balance sheet (Amounts in NOK million)
Group
31.03.07 31.03.06 31.12.06
ASSETS
Cash and claims on central banks
Loans to and claims on credit institutions
Loans to and claims on customers
Certificates, bonds and shares available for sale
Investments in associated companies
Deferred tax benefit
Other intangible assets
Fixed assets, investment property and fixed assets held for sale
Financial derivatives
Other assets
Total assets
LIABILITIES AND EQUITY CAPITAL:
Liabilities to credit institutions, with agreed maturity
Deposits from customers and liabs. To customers
Financial liabilities incurred through the issuance of securities
Financial derivatives
Other liabilities
Subordinated loan capital
Total liabilities
Paid-in equity capital
Accrued equity capital/retained earnings
Total equity capital
Total liabilities and equity capital
295
94
11.488
696
108
44
0
111
43
110
12.989
688
81
10.513
823
64
38
1
189
44
62
12.503
239
3
11.312
725
96
44
0
117
41
70
12.647
162
7.525
3.617
49
234
140
196
6.754
3.964
55
220
190
158
7.378
3.514
45
195
140
11.727
321
869
72
11.379
321
778
25
11.430
321
896
1.262
12.989
1.124
12.503
1.217
12.647
Group
Cash flow statement
31.03.07 31.03.06 31.12.06
Cash flow from lending operations (A)
Cash flow from deposit operations ( B)
Cash flow from securities investments (C)
Cash flow from deposits with credit institutions ( D)
Remaining cash flow from current operations ( E)
Cash flow from operations (A+B+C+D+E=F)
-18
145
-21
3
-28
81
133
94
6
4
-41
196
-212
590
8
12
-157
241
Cash flow from financing ( G )
Cash flow from investments in fixed assets ( H )
Changes in liquid assets (F+G+H)
49
2
132
-38
12
170
-689
1
-447
914
1.046
1.361
1.531
1.361
914
295
94
657
688
81
762
239
3
672
Liquid assets at the start of the period
Liquid assets at the end of the period
Liquid assets consist of:
Cash and claims on central banks
Loans to and claims on credit institutions
Certificates and bonds with fixed yield
4
Parent bank
31.03 07
31.03.06
31.12.06
Interest receivable and similar income
Interest payable and similar costs
Net interest- and credit commission income
Dividends and other income from securities with variable yield
Commissions receivable and income from banking services
Commissions payable and costs relating to banking services
Net gains/losses on securities classified as current assets
Other operating income
Total net other operating income
Wages, salaries and social costs
General administration costs
Depreciation etc of fixed- and intangible assets
Other operating costs
Total operating costs
Result before credit losses and write-downs
Losses on loans, guarantees etc.
Write-downs and gains/losses on secure. classified as fixed assets
Result after credit losses and write-downs
Tax payable on ordinary result
After-tax result from ordinary operations
171
98
73
1
20
3
2
0
20
26
14
2
7
49
44
4
29
69
12
57
138
67
71
1
18
4
587
299
288
8
77
14
2
3
76
111
48
8
28
195
169
11
-3
155
49
106
Profit and loss account items as a percentage of average assets
31.03.2007
Profit and loss account (Amounts in NOK million)
Losses on loans, guarantees etc.
Write-downs and gains/losses on securities class. as fixed assets
Net interest- and credit commission income
Dividends and other income from securities with variable yield
Commissions receivable and income from banking services
Commissions payable and costs relating to banking services
Net gains/losses on securities classified as current assets
Other operating income
Total net other operating income
Wages, salaries and social costs
General administration costs
Depreciation etc of fixed- and intangible assets
Other operating costs
Total operating costs
Result before credit losses and write-downs
Losses on loans, guarantees etc.
Write-downs and gains/losses on secure. classified as fixed assets
Result after credit losses and write-downs
Tax payable on ordinary result
After-tax result from ordinary operations
5
1
16
25
13
2
7
47
40
4
-1
35
10
25
31.03.2006 31.12.2006
5,47
3,14
2,33
0,04
0,65
0,11
0,04
0,01
0,63
0,81
0,46
0,06
0,24
1,57
1,40
0,13
0,94
2,20
4,49
2,17
2,32
0,02
0,61
0,13
-0,00
0,02
0,52
0,81
0,46
0,07
0,21
1,55
1,29
0,13
-0,02
1,14
4,69
2,39
2,30
0,06
0,62
0,12
0,02
0,02
0,60
0,88
0,39
0,06
0,22
1,55
1,35
0,09
-0,03
1,23
0,38
0,34
0,38
1,82
0,80
0,85
Balance sheet (Amounts in NOK million)
Parent bank
31.03.07 31.03.06 31.12.06
ASSETS
Cash and balances at central banks
Loans to and claims on credit institutions
Loans to and claims on customers
Certificates, bonds, and shares with fixed yield
Investments in associated companies
Investments in subsidiaries
Repossessed assets
Deferred tax benefit
Other intangible assets
Fixed assets
Other assets
Total assets
LIABILITIES AND EQUITY CAPITAL
Liabilities to credit institutions, without agreed maturity
Deposits from customers and liabilities to customers
Borrowings through the issuance of securities
Other liabilities
Subordinated loan capital
Total liabilities
Paid-in equity capital
Accrued equity capital/retained earnings
Total equity capital
Total liabilities and equity capital
295
93
11.525
688
47
46
20
13
0
34
108
688
79
10.605
818
31
47
19
35
1
38
67
239
3
11.361
716
48
47
20
14
0
34
75
12.869
12.428
12.557
158
7.554
3.605
192
140
196
6.782
3.960
190
190
159
7.408
3.507
180
140
11.649
321
842
57
11.318
321
764
25
11.394
321
842
1.220
12.869
1.110
12.428
1.163
12.557
Parent bank
CASH FLOW STATEMENT
31.03.07 31.03.06 31.12.06
Cash flow from lending operations (A)
Cash flow from deposit operations ( B)
Cash flow from securities investments (C)
Cash flow from deposits with credit institutions ( D)
Remaining cash flow from current operations ( E)
Cash flow from operations (A+B+C+D+E=F)
-20
145
-6
3
-28
94
136
94
-141
4
-41
52
-214
591
-27
12
-157
205
Cash flow from financing ( G )
Cash flow from investments in fixed assets ( H )
Change in liquid assets (F+G+H)
50
2
146
-37
12
27
-705
2
-498
Liquid assets at the start of the period
Liquid assets at the end of the period
Liquid assets consist of:
242
388
740
767
740
242
Cash and claims on central banks
Loans to and claims on credit institutions
295
93
688
79
239
3
6
Notes review Group
Note 1.
Accounting principles
Note 2.
Losses on loans, guarantees etc.
Note 3.
Bad and doubtful loans, guarantees, etc.
Note 4.
Commitment and losses split by sector/industry
Note 5.
Risk classification Gross lending and Guarantees
Note 6.
Capital adequacy
Note 7.
Change in equity capital
Note 8.
Profit per primary certificate
Note 9.
Deposits from customers split by sector/industry
Note 10.
Financial derivatives
Note 11.
Quarterly profit development
Key figures
7
NOTE 1. ACCOUNTING PRINCIPLES
The accounts have otherwise been prepared using the same accounting policies as the Bank’s annual financial
statements and in accordance with the NRS 11 standard for interim reporting. The consolidated accounts have
been prepared according to IFRS; see otherwise comments with respect to IFRS in the annual report 2006.
NOTE 2. – LOSSES ON LOANS GUARANTEES, ETC.
– Losses on loans, guarantees etc.
Group
31.03.07 31.03.06 31.12.06
-2
-8
-38
+ Period’s change in collective write-downs
0
0
-3
+ Period’s conf. losses against which ind. write-downs were made in prev. years
+ Period’s confirmed losses against which no individual write-downs were
made in previous years
4
14
27
4
-1
31
+/- Period’s change in individual write-downs
-1
+ Period's change in amortised cost
- Period’s recoveries from previous periods’ confirmed losses
1
1
3
Total losses on loans, guarantees etc.
4
4
14
Group
NOTE 3. BAD AND DOUBTFUL LOANS, GUARANTEES ETC
31.03.07 31.03.06 31.12.06
173
188
210
66
54
61
Total net loans, guarantees etc. in default
107
134
149
Other bad and doubtful loans and guars., not in default
129
139
116
Loss provisions for other bad and doubtful loans, guarantees etc., not in default
42
77
42
Total net bad and doubtful comms., not in default
87
62
74
Loans, guarantees etc. in default
Loss provisions for loans, guarantees etc. in default
31.03.07 31.12.06 31.12.05
4
Amortised cost written down commitments as at 01.01
Net amortised intrest on written-down commit.–included in the profit and loss acc.
Net amortised loss on written-down commit. –included in the profit and loss acc.
Amortised cost written-down commitment as at 31.03.
Individual- and collective write-downs of loans and guarantees
Individual write-downs to cover losses on loans and guarantees as at 01.01
4
4
4
2
2
-3
-2
3
4
Group
31.03.07 31.03.06 31.12.06
109
141
141
-. Period’s conf. losses, against which indi. Write-down was previously made
4
13
27
+. Period’s increased individual write-downs, against which write-down was
previously made
+ New individual write-downs during the period
9
0
21
6
6
10
+Period's change in amortised loans and credit
1
14
1
39
= Total individual write-downs on loans
107
133
106
* Of which individual write-downs on loans accounted for
104
124
101
3
9
5
55
58
58
0
0
-3
55
58
55
- Reversal of individual write-downs during the period
* Of which ind. write-downs on guars. accounted for
Collective write-downs:
Collective write-downs to cover losses on loans at 01.01
+ /- Period’s change in collective write-downs
Total collective write-downs
8
Group
NOTE 4. COMMITMENT AND LOSSES SPLIT BY SECTOR/INDUSTRY
31.03.07
Gross loans %-stake
Municipalities and municipal enterp.
Loss
prov.
31.03.06
Defaults Gross loans
%-stake
Loss
prov.
Defaults
5
0
0
0
8
0,1
0
0
Agriculture and forestry
736
6,3
4
0
704
6,6
3
0
Fisheries and aquaculture
588
5,1
27
0
352
3,3
33
2
Mining and industry
220
1,9
5
0
219
2,0
4
0
Building and construction
254
2,2
3
0
242
2,3
4
0
Trade, hotel, restaurants.
448
3,8
15
2
545
5,1
24
1
1.494
12,8
28
-2
1.296
12,1
30
-1
600
5,2
11
2
521
4,9
19
2
7.302
62,7
14
2
6.808
63,6
16
0
11.647
100
107
4
10.695
100
133
4
Property, property development
Transport and services
Retail market
Total
NOTE 5. – RISK CLASSIFICATION
Group
31.03.07
Corporate market (regional model)
Low risk
31.03.06
Gross lending
31.03.07 31.03.06
Guarantees
2.677
61 %
2.310
60 %
429
462
Medium risk
883
20 %
742
High risk
788
18 %
835
19 %
53
155
21 %
123
71
4.347
100 %
3.887 100 %
605
688
6.514
89 %
5.907
87 %
17
33
Medium risk
676
9%
766
11 %
3
13
High risk
110
2%
136
2%
1
2
21
48
Total corporate market
Retail banking market (behavioural score)
Low risk
Total retail banking market
Grand total
7.300
100 %
6.809 100 %
11.647
10.696
626
736
Loss provisions
-159
-182
-3
-9
Total net loans
11.488
10.514
623
727
9
NOTE 6. CAPITAL ADEQUACY
Group( NGAAP)
31.03.07 31.03.06 31.12.06
873
798
872
19
0
19
Total accrued equity capital/retained earnings
892
798
891
PCC-capital
202
202
202
Premium Fund
120
120
120
-1
-1
-1
321
321
321
-7
-9
-8
-15
-31
-10
1.191
1.079
1.194
140
190
140
0
-4
0
Total net equity and related capital
1.331
1.265
1.334
Weighted asset calculation basis
9.154
8.454
8.841
Savings Bank’s Fund
Donations fund
Own PCCs
Total paid-in capital
Over-funded pension liabilities
Goodwill
Total core capital
Supplementary capital: subordinated loan capital
Deductions for capital in other financial institutions
Capital adequacy ratio
14,54 % 14,93 % 15,09 %
Of which core capital accounted for
13,01 % 12,73 % 13,51 %
NOTE 7. CHANGE IN EQUITY CAPITAL
Group
31.03.07 31.03.06 31.12.06
1.217
1.113
1.113
-27
-15
13
19
70
4
1
-2
72
25
1.262
1.124
1.217
Change in equity capital
Equity capital at 01.01
Dividend
Donations fund
Change Savings Bank’s Fund
Change shares
Other value changes – implementation of IFRS
Profit after taxes
Equity cap.with the end of the per
Group
Change in equity capital during the quarter review:
Savings
Bank’s Fund
Equity capital as at 01.01
864
Donations
Fund
19
PCCcapital
202
Other
equity
capital
Premium Own
Fund
PCCs
120
-1
Dividend
Profit after taxes
Equity capital pr 31.03
864
19
10
202
120
-1
Total
13
1.217
-27
-27
72
72
58
1.262
NOTE 8. PROFIT PER PRIMARY CERTIFICATE
Profit per primary certificate
31.03.07
31.03.06
31.12.06
Profit after taxes
72
25
117
PCC percentage
27,7 %
29,4 %
29,4 %
21,5
14,5
17,0
31.03.07
31.03.06
Group
31.12.06
Profit group N-GAAP
72,9
24,1
118
Value change Financial instruments and remaining changes
-0,9
0,4
-1
Profit Group IFRS
72,0
24,5
117
Yield per primary certificate (NOK)
Profit Group N-GAAP and Group IFRS
NOTE 9. DEPOSITS FROM CUSTOMERS SPLIT BY SECTOR/INDUSTRY
Group
Financial institutions
31.03.07
%
31.03.06
%
61
0,8
66
1,0
Municipalities and municipal enterp.
601
8,0
555
8,2
Agriculture and forestry
242
3,2
219
3,2
Fisheries and aquaculture
235
3,1
154
2,3
Mining and industry
546
7,3
408
6,0
Building and construction
143
1,9
106
1,6
Trade, hotel, restaurants.
222
2,9
230
3,4
Property, property development
459
6,1
317
4,7
Transport and services
448
6,0
407
6,0
4.568
60,7
7.525
100,0
Retail market
Total
4.292 63,5
6.754
100
NOTE 10. FINANCIAL DERIVATIVES AND GUARANTEES
Group
31.03.07
Nominal
Market
value
value
Interest rate swaps – certificates and bonds
Interest rate swaps – bank deposits with share yield
31.03.06
Nominal
Market
value
value
0
439
18
23
Interest rate swaps – fixed interest rate loans
145
Currency swaps – Syndicated loans
504
-6
1
274
-12
Total financial derivatives
-6
CONTINGENT OFF BALANCE SHEET COMMITMENTS
Group
31.03.07 31.03.06 31.12.06
Guarantee obligations
-11
626
11
744
621
NOTE 11. KEY FINANCIAL FIGURES FOR THE GROUP
Quarterly profit development
Net int. and credit com.inc
Net commission income
Net gains/losses on securities classified as current assts
Other operating income
Total operating costs
Result before credit losses and write-downs
Losses
Result after credit losses and write-downs
1. q.
2007
73
16
46
3
50
88
4
84
4. q.
2006
75
17
14
-1
58
47
0
47
2. q.
2006
70
16
1
3
48
42
4
38
Group
1. q.
2006
70
14
1
4
50
39
4
35
31.03.07
31.03.06
31.12.06
2,7
1,6
2,0
1,0
-0,4
1,5
3,9
8,9
11,4
64,6
62,7
14,5
13,0
9,7
13,5
1,3
53,44
54,0
1,6
12.840
11.647
-104
-55
-3
21,5
21,5
61,9
1,4
-1,8
9,4
63,1
63,6
14,9
12,7
9,0
8,9
0,8
55,8
56,2
1,6
12.494
10.696
-124
-58
-9
14,5
14,5
66,1
2,2
6,8
10,8
64,3
62,8
15,1
13,5
9,6
10,0
0,9
54,4
54,2
1,6
12.613
11.468
-101
-55
-5
17,0
17,0
50,2
1,5
0,9
1,4
0,03
1,8
1,3
1,7
0,04
1,8
1,3
1,4
0,1
3. q.
2006
71
17
3
3
50
44
5
39
Other key figures
Group
Development in the last 3 months
-Total assets
-Gross lending
- Deposits
Development in the last 12 months
-Total assets
-Gross lending
- Deposits
Deposit coverage ratio (deposits as a percentage of gross lending)
Lending to retail customers
Capital adequacy ratio as percentage ( Group N-GAAP )
Core capital ratio as percentage ( Group N-GAAP )
Equity capital ratio
Rate of return on equity capital
Return on assets
Costs as a percentage of income
Costs as a percentage of income adjusted for trading gains
Cost in percentage of average total assets
Average assets
Gross loans
Individual write-downs
Period's change in collective write downs
Individual write-downs on gurantees
Result per PCC, in kroner
Diluted result per PCC, in kroner
Specified loan provision in % of gross default on loan
As a percentage of gross lending
Gross defaults over 90 days
Net defaults over 90 days
Total loan loss provision
Losses on lending
12
Notes survey parent bank
Note 1.
Accounting principles
Note 2.
Losses on loans, guarantees etc.
Note 3.
Bad and doubtful loans, guarantees, etc.
Note 4.
Commitment and losses split by sector/industry
Note 5.
Risk classification gross lending and guarantees
Note 6.
Capital adequacy
Note 7.
Change in equity capital
Note 8.
The 20 largest primary capital certificate holders and Profit per
primary certificate
Note 9.
Deposits from customers split by sector/industry
Note 10.
Subsidiaries
Note 11.
Guarantee
Note 12.
Quarterly profit development
Key financial figures
13
NOTE 1. ACCOUNTING PRINCIPLES
The accounts have otherwise been prepared using the same accounting policies as the Bank’s annual financial
statements and in accordance with the NRS 11 standard for interim reporting. The consolidated accounts have
been prepared according to IFRS; see otherwise comments with respect to IFRS in the annual report 2006
Parent bank
NOTE 2. LOSSES ON LOANS, GUARANTEES etc.
– Losses on loans, guarantees etc.
31.03.07 31.03.06 31.12.06
-2
-7
-38
+ Period’s change in collective write-downs
+ Period’s confirmed losses against which individual write-downs were made
in previous years
+ Period’s confirmed losses against which no individual write-downs were
made in previous years
0
0
-3
4
13
27
4
-1
28
- Period's change in amortised losses on loans and credits
1
- Period’s recoveries from previous periods’ confirmed losses
1
1
3
Total losses on loans, guarantees etc.
4
4
11
+/- Period’s change in individual write-downs
NOTE 3. BAD AND DOUBTFUL LOANS, GUARANTEES ETC
bank
Parent
31.03.07 31.03.06 31.12.06
173
188
210
66
54
60
Total net loans, guarantees etc. in default
107
134
150
Other bad and doubtful loans and guars., not in default
160
188
159
54
54
54
106
134
105
Loans, guarantees etc. in default
Loss provisions for loans, guarantees etc. in default
Loss provisions for other bad and doubtful loans, guarantees etc., not in default
Total net bad and doubtful comms., not in default
31.03.07 31.12.06 31.12.05
4
4
4
Net amortised intrest on written-down commit.–included in the profit and loss acc.
2
2
Net amortised loss on written-down commit. – included in the profit and loss acc.
-3
-2
3
4
Amortised cost written down commitments as at 01.01
Amortised cost written-down commitment as at 31.03.
4
Parent bank
Individual- and collective write-downs of loans and guarantees:
Individual write-downs
Individual write-downs to cover losses on loans and guarantees as at 01.01
31.03.07 31.03.06 31.12.06
121
157
157
- Period’s confirmed losses, against which ind. write-down was previously made
4
13
27
+ Period’s increased ind. Write-downs, against which write-down was
prev.made
+ New individual write-downs during the period
9
1
17
6
6
10
+Period's change in amortised loans and credits
1
14
1
39
= Total individual write-downs on loans
119
150
118
* Of which individual write-downs on loans accounted for
116
141
113
3
9
5
55
58
58
0
0
-3
- Reversal of individual write-downs during the period
* Of which ind. write-downs on guarantee accounted for
Collective write-downs:
Collective write-downs to cover losses on loans at 01.01
+ /- Period’s change in collective write-downs
14
55
Total collective write-downs
Municipalities and municipal enterp.
Loss
prov.
55
Parent bank
NOTE 4. COMMITMENT AND LOSSES SPLIT BY SECTOR/INDUSTRY
31.03.07
Gross loans %-stake
58
31.03.06
Defaults Gross loans
%-stake
Loss
prov.
Defaults
5
0
0
0
8
0,1
0
0
Agriculture and forestry
736
6,5
4
0
704
6,5
3
0
Fisheries and aquaculture
588
5,0
27
0
352
3,3
33
2
Mining and industry
220
1,9
5
0
219
2,0
4
0
Building and construction
254
2,2
3
0
242
2,2
4
0
Trade, hotel, restaurants.
448
3,8
15
2
545
5,1
24
1
1.543
13,2
40
-2
1.405
13,0
47
-1
600
5,0
11
2
521
4,8
19
2
7.302
62,4
14
2
6.808
63,0
16
0
11.696
100
119
4
10.804
100
150
4
Property, property development
Transport and services
Retail market
Total
NOTE 5. RISK CLASSIFICATION
Parent bank
31.03.07
Corporate market (regional model)
31.03.06
Gross lending
Low risk
31.03.07 31.03.06
Guarantees
2.694
61 %
2.373
59 %
429
463
Medium risk
883
20 %
742
19 %
53
164
High risk
820
19 %
880
22 %
123
62
4.396
100 %
3.995 100 %
605
689
Total corporate market
Retail banking market (behavioural score)
31.12.06
31.12.05
31.12.06 31.12.05
6.514
89 %
5.907
87 %
17
33
Medium risk
676
9%
766
11 %
3
13
High risk
110
2%
136
2%
1
2
21
48
Low risk
7.300
Total retail banking market
Grand total
100 %
6.809 100 %
11.696
10.804
626
737
Loss provisions
-171
-199
-3
-9
Total net loans
11.525
10.605
623
728
15
NOTE 6. CAPITAL ADEQUACY
31.03.07
31.03.06
Parent bank
31.12.06
822
763
822
19
0
19
Total accrued equity capital/retained earnings
841
763
841
PCC-capital
202
202
202
Premium Fund
120
120
120
-1
-1
-1
321
321
321
-8
-9
-8
-14
-36
-13
1.141
1.039
1.142
140
190
140
0
-4
0
Total net equity and related capital
1.281
1.225
1.282
Weighted asset calculation basis
9.071
8.398
8.791
Capital adequacy ratio
14,13 %
14,59 %
14.58 %
Of which core capital accounted for
12,58 %
12,37 %
12,99 %
31.03.07
1.163
31.03.06
1.085
57
1.220
25
1.110
1.163
Own PCCs
Total
Savings Bank’s Fund
Donations funds
Own PCCs
Total paid-in capital
Over-funded pension liabilities
Goodwill
Total core capital
Supplementary capital: subordinated loan capital
Deductions for capital in other financial institutions
NOTE 7. CHANGE IN EQUITY CAPITAL
Change in equity capital
Equity capital at 01.01
Savings Bank’s Fund
Deposits funds
Profit after taxes
Equity cap.with the end of the per
Change in equity capital during the quarter :
Savings
Bank’s
Deposits
Fund
fund
Equity capital as at 01.01
Profit after taxes
Equity capital pr 31.03
822
PCCcapital
Premium
Fund
19
202
121
-1
1.163
19
202
121
-1
1.220
57
879
Parent bank
31.12.06
1.085
59
19
57
16
NOTE 8. PRIMARY CAPITAL CERTIFICATE HELG
The 20 largest primary capital certificate holders at 31 March 2007:
Sparebank 1 Nord Norge
%
Nr.
stake
403.652 20,00 Tromstrygd
%
Nr.
stake
25.000
1,24
Romern AS
121.650
6,03 Warrenwicklund
23.620
1,17
Sparebanken Øst
115.002
5,70 Institurtt for sammenlig. kulturforskning
20.100
1,00
MP Pensjon
112.893
5,59 DnB NOR bank ASA investeringdivisjon
19.143
0,95
Terra utbytte
102.467
5,08 BBS ansatte fond
17.400
0,86
Haslum Industri AS
73.899
3,66 Sivesind Johan
13.610
0,67
Sparebankstiftelsen DnB NOR
72.300
3,58 Rana Invest AS
13.000
0,64
Helgelandskraft AS
52.151
2,58 Hartviksen, Harald
12.500
0,62
Hifo Invest AS
35.000
1,73 The Northern trust
12.360
0,61
Nervik Steffen
26.000
1,29 Ews-stiftelsen
10.000
0,50
1.281.747
63,50
The 10 largest PCC-holders 1.115.014
55,24 The 20 largest PCC-holders
The Bank has issued a total of 2.018.260 primary capital certificates of NOK 100,-.
Profit per primary certificate
31.03.07
31.03.06
31.12.06
Profit after taxes
57
25
106
PCC percentage
27,7 %
29,4 %
29,4 %
19,5
14,5
15,4
Yield per primary certificate (NOK)
NOTE 9. DEPOSITS FROM CUSTOMERS SPLIT BY SECTOR/INDUSTRY
Parent bank
31.03.07
Financial institutions
% 31.03.06
%
61
0,8
66
1,0
Municipalities and municipal enterp.
601
8,1
555
8,1
Agriculture and forestry
242
3,2
219
3,2
Fisheries and aquaculture
235
3,1
154
2,3
Mining and industry
546
7,2
408
6,0
Building and construction
143
1,9
106
1,6
Trade, hotel, restaurants.
222
2,9
230
3,4
Property, property development
485
6,4
345
5,1
Transport and services
448
5,9
407
6,0
4.568
60,5
4.292
63,3
7.551
100,0
6.782
100,0
Retail market
Total
17
NOTE 10. SUBSIDIARIES
The Parent Bank’s accounts have been presented and prepared in accordance with the requirements laid down
by law and regulation governing savings banks in Norway. Subsidiaries where the ownership stake is more than
50 % are consolidated and substantial ownership interests have been included in the accounts using the equity
method.
Investment in subsidiaries
Subsidiaries
Share
capital
Number
of shares
Ans Bankbygg Mo
Equity
stake
Nominal
value
Cost
price
Market
value
Book
value
97%
AS Sparebankbygg
100
100
Helgeland Sp. Eiendomsselskap
100 %
45
1.000
100
100
0,1
100 %
Helgeland Utviklingsselskap AS
200
200
100 %
Norestgruppen AS *
500
100 %
Denbygget AS *
100
100 %
Ultra Invest AS *
100
100 %
0,4
1.000
200
0
0
Book value as at 31.12.
46
The shares in Norest Gruppen AS are included in Helgeland Utviklingsselskap AS. The shares in Denbygget
AS and Ultra Invest AS are included in Norest Gruppen AS.
Investment in associated companies (AC)
Share
capital
Number
of shares
held by
HSB
Equity
stake
Nominal
value
Cost
price
Market
value
Book
value
Rana Invest AS
53
4.136
37,6 %
1.000
10
67
10
Eiendomsmiding Helgeland AS
0,3
1.071
34,0 %
100
4
4
4
Helgeland Vekst AS
73
38,9 %
100
34
36
33
Storgt. 73 AS
0,1
42,9 %
1
0,1
108
47
Total investment in AC
Parent bank
31.03.07 31.03.06 31.12.06
NOTE 12 CONTIGENT OFF BALANCE SHEET COMMITMENTS
Guarantee obligations
626
745
626
NOTE 11. KEY FINANCIAL FIGURES
Quarterly profit development
Net int. and credit com.inc.
Net other income
Operating expenses
Merger expenses
Pre tax oper. Before losses
Losses on lend./write downs
Pre tax operating profit
1.q.
2007
73
20
49
0
44
+25
69
4.q.
2006
74
23
52
0
45
-1
44
18
3.q.
2006
71
20
49
0
42
5
37
2.q.
2006
72
17
47
1. q.
2006
71
16
47
42
3
39
40
5
35
4. q. 3. q.
2005 2005
78
77
18
17
61
51
8
13
26
30
5
+7
21
38
2. q.
2005
79
19
53
5
40
53
-13
1. q.
2005
79
15
49
30
15
4
11
Parent Bank
31.03.07 31.03.06 31.12.06
Other key figures
Development in the last 3 months
-Total assets
-Gross lending
- Deposits
Development in the last 12 months.( proforma)
-Total assets
-Gross lending
- Deposits
Deposit coverage ratio (deposits as a percentage of gross lending
Lending to retail customers
Capital adequacy ratio as percentage
Core capital ratio as percentage
Equity capital ratio
Rate of return on equity capital
Return on assets
Costs as a percentage of income
Costs as a percentage of income adjusted for trading gains
Cost in percentage of average total assets
Average assets
Gross loans
Individual write-downs
Period's change in collective write downs
Individual write-downs on guarantees
Result per PCC, in kroner
Diluted result per PCC, in kroner
PCC price quoted on the Oslo Stock Exchange
P/E (price as at 31.12 divided by profit per PCC)
P/B (price as at 31.12 divided by book value of equity capital per PCC)
Number of man-years
Specified loan provision inkl. Gurantees in % of gross default on loan
As a percentage of gross lending
Gross defaults over 90 days
Net defaults over 90 days
Total loan loss provision (excl. write-downs on guarantees)
Losses on lending
19
2,5
1,4
2,0
1,0
-0,4
1,4
3,5
8,2
11,4
64,6
62,4
14,1
12,6
9,5
11,7
1,1
52,9
53,7
1,57
12.720
11.696
-116
-55
-3
19,5
19,5
192
9,9
1,2
187
68,8
1,6
-1,3
9,8
62,8
63,0
14,59
12,37
8,9
9,0
0,8
54,6
54,6
1,55
12.419
10.804
-141
-58
-9
14,5
14,5
200
13,8
1,3
198
74,8
2,2
6,3
10,8
64,3
62,5
14,6
13,0
9,3
9,4
0,9
53,9
55,1
1,60
12.523
11.529
-113
-55
-5
15,4
15,4
200
13,0
1,3
184
82,3
1,5
0,9
1,5
0,03
1,7
1,2
1,8
0,04
1,8
1,3
1,5
0,1