sparebanken møre - the group dnb sb 1 smn spb møre sb 1 sr-bank sb 1 nord-norge spb vest reported...
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Sparebanken Møre - the Group
Presentation
Results Q3 2013
Agenda
Main results
Introduction
Deposits and Loans
Funding and Hedging
Results
Equity and EC
Future prospects
Macroeconomic Overview
side 2
Main results
3
Historical performance – in NOK and ROE
1
65 78
114 120 136 173
205
265 272
172 180 217
264 272
333 338 335
458
379
530
308 320
0
50
100
150
200
250
300
350
400
450
500
550
600 Favourable operating environment, a strong
county in a strong Norwegian economy
Positive development in net interest income
Low loan losses and low volume of loans in default
Growth in all areas – total assets above NOK 53,2 billion by quarter end
Still high funding cost due to market uncertainty and strong competition in the deposits market
Positive one off effect on costs in 2012 related to amendments in the Pension scheme
Improved solvency and strong liquidity - issues completed in Q3: Gross proceeds NOK 378,5 million (Core Tier 1)
0,2
20,2
16,5 17,7
14,9 15,0
17,1 16,4
19,2
17,3
10,1 10,2
11,5
14,0 13,4
15,6
12,8 14,1
16,0
12,2
16,4
12,6 11,5
0
2
4
6
8
10
12
14
16
18
20
22
24
26 ROE in per. cent
Results in NOK
High and stable return
Main results
side 4
17,7%
12,7%
11,6%
9,3%
6,5%
4,3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
DNB SB 1 SMN Spb Møre SB 1 SR-Bank SB 1 Nord-Norge
Spb Vest
Reported ROE – 5 year average Annualised total return – 3 years
Total returns based on reivested dividend at ex-date Source: Annual reports, FactSet
Average of reported return on equity after
tax for the 2008 – 2012 period
Combination of share price appreciation and
dividends since 31 May 2010
14,3%
13,4% 12,9%
11,8% 11,8%
9,0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Spb Møre SB 1 SMN SB 1 SR-Bank DNB SB 1 Nord-Norge
Spb Vest
Introduction to the bank and the market
3
Introduction
side 6
Introduction to Sparebanken Møre
Independent savings bank
Head office in Ålesund
30 branches in Møre og
Romsdal county
NOK 53,2 billion in total assets,
about 170 000 customers
398 man years 260.000 inhabitants
Established in 1843
Listed on the Oslo Stock
Exchange since 1989
No. 1 bank in Møre og Romsdal
Full service bank in Møre og Romsdal
Introduction
side 7
Corporate Market
Retail Market
Capital Market
Møre Boligkreditt AS
Key business
areas Adm/
support
Fully owned
companies
Core values
Enthusiastic Local Solid
“Maintain position as no. 1 bank in Møre og
Romsdal"
"Local decision making,
independent, and present"
"High competence,
financially solid and safe "
Møre Eiendomsmegling AS
The company has a license to operate as a mortgage company and issue covered bonds
Real estate brokerage towards retail and corporate customers
Contract Banking
Introduction
8
Lev. av prod/tj ä nst
Lev. av prod/tj ä nst
Lev. av adm.st ö d Lev. av
adm.st ö d
Prod/tj ä nster i egen regi
Adm.st ö d i egen regi
Kontrakt Kontrakt Kontrakt Kontrakt
Bankens egna resurser
Bankens ” totala ” resurser
Kund - ansvarig
” Kontrakt ” ” Kontrakt ”
Relation v ä rde
” Kontrakt ”
… … Prov. of
prod/serv.
Prov. of prod/serv.
Prov. of adm.supp. Prov. of
adm. supp.
Prod,/serv.
’in-house’
Adm.supp. ’in-house’
Contract Contract Contract Contract
Bank’s own resources
Bank’s ”total” resources
- Advisor
Customer
” Contract ” ” Contract ”
Relationship
”Contract”
… …
The business model Contract Banking
means that the Bank has opted to conduct
operations and manage all development ’in-
house’ or together with partners/providers
based on what is considered best for the
Bank`s customers and what provides the
best revenue generation for the Bank.
Contract Banking requires:
- Competence to identify partners when this
creates value both for our customers and the
Bank
- Competence to identify partners, enter into
agreements with these partners, develop,
maintain and discontinue relationships with
partners
Sparebanken Møre – a brief overview
Introduction
9
• Sparebanken Møre is the 6th largest Norwegian bank – the bank serves customers
from the county of Møre og Romsdal
• The population of Møre og Romsdal is close to 260 000, and the population in the
municipalities where the bank is located is 200 000
• The bank serves about 170 000 customers, whereof
• 160 500 customers in the retail market
• 9 500 customers in the corporate market
• The activity is based on traditional banking services
• Loans to the retail market: 65,2 %
• Deposits from the retail market: 58,0 %
• Sparebanken Møre is a fully fledged foreign exchange bank
• Sparebanken Møre is rated A3 (stable) by Moody`s
Møre og Romsdal county
Sparebanken Møre's market area
Introduction
side 10
260,000 inhabitants
The 3rd largest GDP per employee
among 19 counties in Norway
Norway's 3rd largest export county
Diversified business structure
Sparebanken Møre with 30% market
share
Selected companies in Møre og Romsdal Diversified business structure in the region
Fisheries/seafood
Marine construction
Agricultural
Offshore services
Oil & gas
Aluminum
Tourism
Furniture
• Norwegian maritime areas are rich in natural resources, and play a very important role in commercial activities in Møre og Romsdal
• The petroleum sector is responsible for 1/4 of the total investments in Norway
• Nyhamna in Møre og Romsdal receives gas from from The Ormen Lange Oilfield, and from there through another pipeline to Easington UK
• A large part of Norway’s strength in the field of advanced marine operations is concentrated within an hours drive from the town of Ålesund.
• The region is home to 14 shipyards, and is one of very few complete maritime clusters in the world.
• Over 75 % of the worlds large, hi-tech offshore vessels are designed here
• 40% of the world’s most advanced offshore fleet is controlled by 19 shipowning companies in the region
• The fishing industry is the second largest export sector in Norway after oil and gas. The value of Norwegian seafood exports totals NOK 51.6 billion in 2012
• Møre og Romsdal is by far the largest food exporting Norwegian county, responsible for 1/3 of the nations total food export
• In addition to fish and fish products the food production and exports also include agricultural products (fruit and berries) and other foodstuff industry (pizza, cured ham, salami, etc)
Oil and offshore
Maritime industry
Fisheries and
seafood
Tourism
• Trollstigen Mountain Road is one of Norway's most dramatic and most visited attractions
• The UNESCO-protected Geirangerfjord will be visited by more than 200 cruiseships in 2013
• The city of Ålesund is known for its architecture in Art Nouveau style, its surrounding fjords and the high peaks of the Sunnmøre Alps
Møre og Romsdal – Diversified industries
Introduction
Summary
Introduction
side 12
Norway
•The Norwegian mainland economy has grown since late 2009
•Large government budget surplus, record high petroleum investments and strong household sector
•Ability and willingness to move monetary and financial policy in more expansive direction if needed
•Well managed petroleum wealth, value of government pension fund of NOK 4 800 billion
•Good labour market performance with low unemployment and high participation
Møre og Romsdal
•Population of approx. 260,000
•Dominant industrial and commercial sectors are fisheries, tourism, maritime- and oil industry
•Responsible for approximately 1/3 of Norway’s total export of food, mainly fish and fishery products
•Unemployment is low 2.0%, well below national average of 2.6%
•Below average national real estate prices and above average disposable income levels
Sparebanken Møre
•Sixth largest savings bank in Norway, solid financial performance with total assets of NOK 53,2 billion
•Market leader in main market, the county of Møre og Romsdal
•65% of lending to retail customers, of which more than 95 % are mortgages
•Strong capitalization reflected by Core Capital of 15,30% and Core Tier 1 of 12,30%
•The Bank is rated A3 (stable outlook) by Moody’s
Deposits and loans
20
Stable growth
Deposits and loans
14
41.391
44.441
48.468
51.632
35.851 37.676
40.305
43.434 45.262
21.793
24.551 25.325
27.081 27.312
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
Total assets Loans Deposits
53.188 NOK mill.
Growth during the last 12
months
• Total assets 5.7 %
• Loans (net) 7.0 %
• Deposits 3.8 %
Breakdown of gross lending
Deposits and loans
15
14.083 14.424 15.395 16.070 15.821
22.155 23.647
25.296 27.650
29.706
14 12
10
20 39
36252 38083
40701
43740 45566
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Public sector Retail banking Corporate banking
Mill. kroner
Annual net lending growth
2009: 1.6 %
2010: 5.1 %
2011: 7.0 %
2011: 7.8 %
Q3 2013: 7.0 %
Lending growth last 12 months
Gross, retail banking 10.2 %
Gross, corporate 1.2 %
Gross, public sector -
Loans by sector
Deposits and loans
16
Retail
65,20% Fisheries
6,60%
Supply 3,40%
Property
12,30%
Other
12,70%
Other 12.7 %
Private and public services
3.4 Financial services
1.5 Agriculture 1.0 Other 1.9
Building/construction 1,8 Fishing Industry 1.0 Restaurant/ hotel
0.1
Retail/wholesale trade 1,2 Ship Yards 0,7 Furniture 0.1
Breakdown of deposits
Deposits and loans
17
7.523 9.746 10.325 11.155 10.750
12.620
13.274 14.307
15.221 15.854
1.650
1.531 693
704 708
21793
24551 25325
27080 27312
0
5000
10000
15000
20000
25000
30000
Corporate banking Retail banking Public sector
NOK mill.
Annual deposit growth
2009: 5.4 %
2010: 12.7 %
2011: 3.2 %
2012: 6.9 %
Q32013: 3.8 %
Deposit growth last 12 months
Retail banking 5.3 % Corporate banking 3.9 % Public sector -22.5 %
Funding and hedging
18
Unrest, but good access to the market
Funding and hedging
19
• Covered Bonds issued by Møre Boligkreditt AS has replaced senior bonds as the Group`s main source of long-term market financing and now account for close to 74% of our long term market financing
• Unrest in the financial markets has
contributed to higher margins, but over the last quarters the spread development has been positive both for Covered and Senior bonds
• Sparebanken Møre`s refinancing the coming years can primarily be met by issuing Covered Bonds
• Sparebanken Møre is rated A3 (stable) and Covered Bonds issued by Møre Boligkreditt AS are rated Aaa by Moody's
Margins
High deposit to loan ratio - total financing by quarter end
Funding and hedging
20
27.312
11.950
4.266 1770
500 162
Deposits Covered Bonds
Senior Bonds CDs
Subordinated Loans Long Term FX
Other
338
• High deposit to loan ratio (60,1 % in the Group) - focus on long term market funding
• Total market funding close to NOK 19.0 billion – approximately 70 % with remaining maturity of more than one year (20 - 30% of market funding is renewed annually)
• Senior Bonds: Weighted average maturity of 1.73 years
• Covered Bonds with a weighted average maturity of 3.81 years
The quality of the liquidity portfolio is good…
Funding and hedging
21
… and no exposure towards the most vulnerable European economies
Rating
Market Value
Country
Market Value
Currency
Market Value
AAA 4.122.135 Norge 2.890.861 NOK 4.094.921
AA+ 120.117 Sweden 724.048 EUR 920.398
AA 80.709 Finland 345.813
AA- 180.236 Luxembourg 246.750
A 179.515 Int. org. 229.163
A- 302.299 Germany 186.130
BBB+ 15.309 Denmark 161.238
BBB 14.999 UK 137.584
Austria 49.930
Netherlands 43.801
Total 5.015.320 Total 5.015.320 Total 5.015.320
Off-balance activity - quarterly
Funding and hedging
30
Low risk profile in the interest rate,
equity and FX markets
• Sparebanken Møre has no trading
portfolio in these or other similar
markets/instruments
• Client's positions are hedged in the
market
• The bank's positions are hedged
0
5000
10000
15000
20000
25000
30000
35000
40000
IRS (NOK & Curr.) FRA (NOK & Curr.)Forward FX Caps/FloorsCross Currency Swap FX-Options
NOK MLN.
Payments
Funding and hedging
31
43.778 51.145 53.994 56.771 60.259
68.370
19.040
20.929 21.213
21.097 22.028
21.541
2007 2008 2009 2010 2011 2012
Numbers of SWIFT Commercial payments
Outgoing Incoming
NOK; 18855
EUR; 18222 USD; 6252
SEK; 5322
PLN; 5197
DKK; 4371
GBP; 2500
THB; 2137 LTL; 2126
Others; 1604
Numbers of outgoing SWIFT commercial payments pr currency
Results
24
Main figures
Results
25
Q 3 2013 Q 3 2012 Change during last 12 months
From the Profit and Loss Account NOK mill. % NOK mill. % NOK mill. P. points %
Net interest income/av. int. margin 761 1.96 698 1.94 63 0.02 9.0
Net return, financial investments 15 0.04 85 0.20 -70 -0.16 -82.4
Other income 131 0.34 125 0.38 6 -0.04 4.8
Total income 907 2.34 908 2.52 -1 -0.18 -0.1
Personnel costs 242 0.62 248 0.69 -6 -0.07 -2.4
Other costs 200 0.52 198 0.55 2 -0.03 1.0
Total ordinary operating costs 442 1.14 446 1.24 -4 -0.10 -0.9
Result before credit losses 465 1,20 462 1.28 3 -0.08 0.6
Losses on loans and guarantees 28 0.07 36 0.10 -8 -0.03 -22.2
Result before tax cost 437 1,13 426 1.18 11 -0.05 2.6
Tax cost 117 0.30 118 0.33 -1 -0.03 -0.9
Result after tax cost 320 0.83 308 0.85 12 -0.02 3.9
From the Balance Sheet
Total assets 53,188 50,308 2,880 5.7
Net lending 45,232 42,306 2,956 7.0
Deposits 27.312 26,319 993 3.8
Capital adequacy ratio 5,410 3,830 1,580 41.3
Core capital ratio (incl. 50 % of result) 16.90 12.70 4.20 b.p.
Pure Core Capital (incl. 50 % of result) 15.30 11.70 3.60 b.p.
Return on equity capital ( incl. 50 % of result) 12.30 10.15 2.15 b.p.
Percentage return on equity capital (corr.) 11.50 12.60
Costs as a percentage of income 48.70 48.70
Earnings per EC (the Bank) 14.50 16.30
Results
26
Result as a percentage of average assets
2,2
1,95 1,93
1,68
1,54
1,32 1,40 1,44
1,35
1,52
1,23
1,63
1,2
0,55
0,86 0,83
0,34
0,1
0 -0,01
0,17 0,2
0,07 0,09 0,1 0,07
1,65
1,09 1,10
1,34
1,44
1,32
1,41
1,27
1,15
1,45
1,14
1,53
1,13
-0,25
0,25
0,75
1,25
1,75
2,25
Result from ordinary operations before losses
Result before taxation
Losses
Higher net interest income
Results
27
• Net interest income is higher than year despite:
• Strong competition on loan and deposits
• More liquidity on the balance sheet with higher quality
• Unrest and still high margins in the funding market
• Low interest rate level: Less return on free capital
• Higher margins have given a positive development in 2013
• Q1: 1,85%
• Q2: 2,00%
• Q3: 2,04%
1,97 2,03
1,96 1,93 1,94 1,96
0,00
0,50
1,00
1,50
2,00
2,50
3,00AS A PERCENTAGE OF AVERAGE ASSETS
Results
28
Other operating income
0,63
0,72
0,46
0,6 0,58
0,38
0,00
0,25
0,50
0,75
1,00AS A PERCENTAGE OF AVERAGE ASSETS Lower other operating income,
compared with Q3 in 2012:
• Mark to market valuation of the liquidity portfolio
• Lower income from IRS-business
• No gains from sale of the banks`s own buildings
Results
29
Target of Cost/Income ratio below 50 % remains
46,7
44,8
49,5 48,8 48,7 48,7
20
25
30
35
40
45
50
55
Results
30
Losses at a very low level
Losses totalled NOK 28 million
• Corporate: NOK 33 million
• Retail NOK 0 million
• Group of loans NOK -5 million
• Other NOK 0 million
Total provisions amounted to
NOK 306 million by 30.09.2013
0,17
0,2
0,07 0,09 0,1 0,1
0,07
0,00
0,05
0,10
0,15
0,20
0,25
0,30
Losses - details
Results
31
0 0 0
21
2 3 0
16
2
-11
0
-20
-10
0
10
20
30
40
Corporate
28
0
33
-5
-20
-10
0
10
20
30
40
Total
Problem Loans and loan loss reserves
Results
• The volume of Problem loans has declined over the last years
• As a percentage of gross loans this figure ended up 1.31 % by the end of Q3 2013
• The Bank`s loan loss reserve coverage ratio shows a similar positive development and ended up at 51.7 % by quarter end
1,31 %
51,7 %
0,0 %
10,0 %
20,0 %
30,0 %
40,0 %
50,0 %
60,0 %
0,0 %
0,5 %
1,0 %
1,5 %
2,0 %
2,5 %
3,0 %
3,5 %
2007 2008 2009 2010 2011 2012 Q3 2013
Problem loans & Provisions
Problem loans % of gross loans Provisions in % of bad and doubtful
Equity and ECs
33
Equity and related capital: Strong capital
Equity
34
647 784 784 784 989 187
186 186 186
355 393
362 482 593
593
1446 1560
1698 1835
1836 477 482
494
1002
1000
479 479
479
299
500
32 72
52
87
12
3661
3925 4175
4786
5285
0
400
800
1200
1600
2000
2400
2800
3200
3600
4000
4400
4800
5200
5600
6000
NOK mill.
2,36 2,74 2,64 2,39 3,00
0,68 0,65 0,61 0,57
1,08 1,43 1,27 1,57 1,81
1,79
5,27 5,45 5,53 5,60
5,56
1,70 1,68 1,61
3,06
3,02 1,75 1,67 1,56
0,90
1,54
0,16 0,28 0,18
0,30
0,03
13,35 13,74 13,70
14,63
16,02
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
9,00
10,00
11,00
12,00
13,00
14,00
15,00
16,00
17,00
18,00%
ECs Premium Fund
Dividend Equalisation Fund Savings Bank's Fund
Capital Bonds Supplementary capital
Miscellaneous
Møre's equity issue has strengthen CET1
Equity
side 35
Sparebanken Møre will maintain a strong
financial position as the leading bank in the
region
Sparebanken Møre sees opportunities for
increased business with solid customers in
markets with attractive margins
Strong macroeconomic development in the
region offering good credit quality and low
loan losses – expecting continued low losses
and write downs
Ability to maintain growth, existing dividend
policy and meet regulatory changes to
capital structure
9,84 10,38 10,4 10,55 12,3
1,71 1,65 1,61
3,15
3
11,55 12,03 12,01
13,7
15,3
0
2
4
6
8
10
12
14
16
18
2009 2010 2011 2012 Q3 2013
Other Tier 1 Capital
Core Tier 1 Capital
Equity
Implementing improved profitability
side 36
Interest margin increase
Loan portfolio adjustments
Increased cost efficiency
Selective growth
Four additional key measures implemented to strengthen profitability and CET1
1 2
3 4
Summing up and outlook
Future prospects
side 37
From the CEO:
We expect the moderate growth in the regional economy to continue
Maintained focus on further improving the efficiency of bank operations
The Bank has a good Capital and Liquidity base, and hence good capacity to reach the targets in our long-term strategic plan "Møre 2017“
Still low losses and low level of loans in default - loss level is expected to continue at a moderate level
The development of the new regulatory framework is followed closely and with tension
Dividend policy
Equity
side 38
Based on the fact that new legal rules relating to capital and organisation forms in the
savings bank sector etc. were sanctioned at a Cabinet Meeting on 19.06.2009 on the
basis of coming into force on 01.07.2009, Sparebanken Møre changed its dividend policy
with effect from the 2009 accounting year. The dividend policy reads as follows:
“Sparebanken Møre’s aim is to achieve financial results which provide a good and stable
return on the Bank’s equity capital. The results shall ensure that the owners of the
equity capital receive a competitive, long-term return in the form of dividends and
increase in the value of the equity capital.
The equity capital owners’ share of the net result being set aside as dividend funds, will
be adapted to the Bank’s equity capital situation. Sparebanken Møre’s allocation of
earnings shall ensure that all equity capital owners are guaranteed equal treatment.”
Dividend and EC-price
Equity
side 39
• The PCCs/ECs of Sparebanken Møre have been listed at Oslo Stock Exchange
since 1989
• Total EC capital: NOK 989 million by September 2013
Dividend pr. EC:
1990 10 2001 17
1991 0 2002 15
1992 0 2003 16
1993 13 2004 18
1994 12 2005 20
1995 13 2006 20
1996 13 2007 23
1997 13 2008 20
1998 15 2009 12
1999 16 2010 12
2000 17 2011 8
2012 12
Macroeconomic Overview
40
Economic environment - Norway
side 41
The Norwegian economy remains strong. However,
The Norwegian economy is characterised by: Low unemployment Record high house prices Increased private demand High activity in the oil sector Strong public sector growth Low inflation and interest rates
Growth will be lower this year due to: Lower growth in petroleum investments The downward cycle in Europe High costs in the export sectors Higher customer interest rates We expect a GDP growth in Mainland Norway of 2 per cent in 2013 and 2 ½ per cent in 2014
growth will decline this year
Economic environment - Norway
28.10.2013 side 42
Growth was low in Q2 2013
Economic environment - Norway
28.10.2013 side 43
High household debt is the main risk factor
4
5
6
7
8
9
10
11
12
100
120
140
160
180
200
220
1988 1991 1994 1997 2000 2003 2006 2009 2012 2015
Debt ratio and interest burden
Debt ratioInterest burden (R. H. Scale)
Economic environment - Norway
28.10.2013 side 44
House prices in Norway has risen significantly
Economic environment – Norway and Møre og Romsdal
45 Source: Norwegian Association of Real Estate Agents (NEF)
Considerable differences in housing prices
31,2
22,8
0
5
10
15
20
25
30
35
40
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Q1
-13
Q2
-1
3Q
3 -
13
NO
K 1
00
0 p
r. k
vm
Housing prices
Norway Møre og Romsdal
20,7
16
0
5
10
15
20
25
30
35
40
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Q1
-13
Q2
-1
3
Q3
-1
3
NO
K 1
00
0 p
r. k
vm
Detached
Norway Møre og Romsdal
26,9
21,6
0
5
10
15
20
25
30
35
40
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Q1
-13
Q2
-1
3Q
3 -
13
NO
K 1
00
0 p
r. k
vm
Semi detached
Norway Møre og Romsdal37,8
26,7
0
5
10
15
20
25
30
35
40
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Q1
-13
Q2
-1
3
Q3
-1
3
NO
K 1
00
0 p
r. k
vm
Appartment
Norway Møre og Romsdal
Economic environment – Møre og Romsdal
side 46
The business sector in Møre og Romsdal is doing well
The most important drivers of growth and activity in 2013 and forward:
Private consumption
Public expenditures
The construction sector
Oil production and investment
Food production and fish exports
The maritime cluster
Main reasons for higher growth:
Low interest rates
Expansionary fiscal policy
High oil prices
A competitive business sector
Some export market growth
95
100
105
110
115
2009 2010 2011 2012 2013 2014
Private Service Sector in M & R
Production Employment Iinvestments
95
100
105
110
115
2009 2010 2011 2012 2013 2014
The Public Sector in M & R
Production Employment Investments
Economic environment – Møre og Romsdal
side 47
However, the outlook for the manufacturing
sector is somewhat weaker
• The outlook for the manufacturing
industry is somewhat weaker due to:
- Low export market growth
- A high level of costs
However, a continued weaker NOK will lead
to increased competitiveness.
• Unemployment in Møre og Romsdal will
stabilise around 2 ½ per cent in the
coming years
• Increased demand for labour due to
increased production of goods and
service and limited productivity growth
will keep unemployment low
96
97
98
99
100
101
102
103
104
2009 2010 2011 2012 2013 2014
The Manufacturing Sector in M & R
Production Employment
0
5
10
15
20
25
30
35
Production
Employment
Distribution of production and employment between sectors
Lower production growth in Møre og Romsdal - growth will vary among the sectors
Economic environment – Møre og Romsdal
side 48
Low growth in traditional exports
Moderate growth in private services
Increased activity in the public sector
High production within hydro electric power shipbuilding and the petroleum sector
High production in the fishing industry
Increased number of bankruptcies, although smaller growth than in Norway on average
Slightly increasing unemployment
Most important risk factors:
International economy
The oil price
The Norwegian krone
Household debt and house prices
Number of unemployed in Møre og Romsdal (sadj)
Actual number of unemployed in Møre og Romsdal
Contact
Head Office
Keiser Wilhelmsgt. 29-33
P.O.Box 121
6001 Ålesund
Tel: +47 70 11 30 00
Telex: 42 193 spare n
Reuters Dealing: MORE
Fax:
General Management +47 70 12 26 70
Corporate Division +47 70 12 44 67
Retail Customers Division +47 70 12 98 85
Treasury/Markets +47 70 12 13 01
International Payments +47 70 12 99 12
www.sbm.no
Treasury and Markets Division Head of Division Runar Sandanger, EVP, e-mail: [email protected] + 47 70 11 31 73
+ 47 95 04 36 60
Chief Economist Inge Furre, e-mail: [email protected] + 47 70 11 31 44
Treasury Ove T. Ness, VP, e-mail: [email protected] + 47 70 11 31 74
Aud Janne Myklebust, VP, e-mail: [email protected] + 47 70 11 31 75
Møre Boligkreditt AS: Ole Andre Kjerstad, CEO, e-mail: [email protected] + 47 41 40 09 55
Markets Martin H. Skuseth (SVP), e-mail: [email protected] +47 70 11 31 85
Louis Helge Nordstrand, e-mail: [email protected] + 47 70 11 31 55
Hilde Sveen, e-mail: [email protected] + 47 70 11 32 80
Roger Lervik, e-mail: [email protected] + 47 70 11 31 77
Tove Lunde, e-mail: [email protected] + 47 70 11 31 90
Svein Arne Tynes, e-mail: [email protected] + 47 70 11 31 82
Discretionary Asset Management Trond Moldskred, VP, Head, e-mail: [email protected] +47 70 11 31 87
International Payments and Settlements Karl Otto Hessen, VP, Head, e-mail: [email protected] + 47 40 20 09 54
side 49