Hello, and welcome to the First Quarter Presentation for SpareBank 1 SMN. To give you the news about the results in our region, we have our CFO, Kjell Fordal, and our CRO, Ola Neråsen. Before we start, I'd just like to mention that you can ask questions in the chat window or by email to ir@smn.no, and we'll try to address these at the end of the presentation. Kjell, would you like to start? Thank you, Trond. Good afternoon. It's a pleasure to bring forward the results of the performance of our banking group for the first quarter. We see, and the headline is, strong performance and a bright outlook. That's a good thing to realize just one year after the coronavirus struck us. What we have seen is that we have stable net interest income despite margin pressure, but we see very healthy growth especially in the corporate sector. That is very outstanding for this quarter. Very strong performance for the SpareBank 1 Markets, which has been, it's fair to say, over the last 10 years, the ugly duckling in our system, but very strong figures this quarter. We are working on making the bank more efficient. We have low loan losses in the first quarter, which is very important for the strong performance we have. We see a continued decline in the offshore exposure. The bank is well capitalized. We see that the society is working well and the prospect is very strongly improved as the vaccination programs is going forward. Figures, net profit NOK 768 million as opposed to NOK 290 million one year ago. It's very much better. 14.8% return on equity, well above our target of 12%. That on a capital that's 18% capital CET1 ratio, which is 18%. Segment-wise, which we like to present our figures, we can see that the personal banking, the banking for individuals and the real estate brokerage is performing well. It's not as good as the two previous quarters. That has to do with some margin pressure. However, we see that the real estate brokerage is performing very well with a higher volume of sold homes. Another business line that is performing very well, and I think that's fair to say that that is connected to the liquidity situation for the individuals, that we have very strong and improved performance in the savings area. When it comes to corporate banking, we have business lines as the bank, of course. We have SpareBank 1 Markets, the accountancy company, and the SpareBank 1 Finans Midt-Norge, which is a leasing and car financing company. Corporate banking has improved significantly, mostly due to reduced loan losses. As I have mentioned, very strong performance in the markets operation that's improved every quarter over the last four quarters, and also stable and very good performance for the accountancy company and the leasing business. Also, the related companies is performing very well. BN Bank has a very healthy figure and a nice return on equity. Also the insurance company and the investment activities is performing very well. One important topic this quarter and the last quarters is to implement our improvement program, One SMN, which has to make all these business lines that I have been through to cooperate more intimately and gain synergies in order to improve the experience for the customer and, of course, increase the sales. Another important part of that is to make the distribution system more efficient and reduce the cost and, of course, a continuous efficiency of improving the efficiency of the capital utilization. We have restructured our branch network, collected into 17 finance houses where all business lines are represented in order to improve the synergies. We are still present, but with fewer people and a more efficient organization. On the digital side, we are continuously improving the product in order to improve the experience for the customers to have these cross-selling activities I have been mentioning and have a good and efficient experience for the customer. One of these cooperation activities is to improve the banking and accounting business lines, so there is a significant advantage for the customer that is a banking customer to be an accounting customer and vice versa. This is in the beginning of our process, but we have very strong expectations for this. We have a strong position in the corporate market. We have a strong position in the accounting business, but there is not enough synergies between the two of them. Sustainability. ESG is an important topic. We have moved another step forward in order to implement the ESG strategy in the bank, and here we have established targets on the different ways of implementing it. We are going to reduce our climate footprint by 50% over the next 10 years, which means 8% every year. We have, in order to improve the proportion of green loans in our lending portfolio. The climate footprint, we start with ourselves and the footprint of the bank operation. Then we can move that, going forward, also to have a meaning for our customers and the customer's footprint, which the green loan part of the book portfolio is an important one. From this more long-term targets and the important strategies, we also do the small things. We have implemented an app. This is in Norwegian, which says that you can analyze the transaction on your current account, and you can see your footprint as you are going forward. We have started to climate track the transactions for our customers, and we have also launched a green bond this year. SpareBank 1 is a self-owned institution. We are taking steps forward to tell the customers that we are a part of the society, so they should use us in order to make a big profit and a social dividend, so to say. The targets are as they have been, and they are still valid. Profitable 12%, we are there. Solid about 16.9%, we are there. We are paying out 50% of the profitability or the profit, and we are reducing the cost in order to make the bank more efficient. The new thing is that we have put this climate target as one of the four most important targets for the bank's operation. We are going to reduce, as I mentioned, the climate footprint by 50% until 2030, and maybe more important, 8% every year. This slide we have used for several presentations, and interesting enough, we find it very relevant every time. We have high return over time and on our high capital base, efficient banking, very strong position in the market we operate within, which we see through a very good growth in all product lines. We have a very good brand. In the companies we own, both the subsidiaries and the affiliated companies in the SpareBank Group and BN Bank, we have substantial underlying assets or underlying values. We are well positioned for whatever consolidation should be relevant to us. To go in some more detail into the financial information, 14.8% return on equity. As you can see, the return equity is slightly volatile. This time we can say that the quality of the return equity is very good, and on the lower right slide there, you can see that very much of this has to do with that we have had high loan losses over a period. The figures is created on very high capital. Figure-wise, what you can see is slightly reduced net interest margin coming from a high level, and that has to do with margin pressure, even though we see some more positive prospects going forward. The commission income and other income is now well above 50% of the total operating income. This last two quarters, very much connected to the SpareBank 1 Markets operation. Cost is very good cost control, but there is some volatility connected to the variable salary system of the SpareBank 1 Markets operation. Low loan losses, fairly good results in the related companies, and there's also the securities and foreign currency and derivatives line. There is one-off profit of NOK 100 million connected to one investment we have in the investment company. Otherwise, it's profits that is sustainable, so to say. Lending growth. In the retail market, we have 7.3%. That's high growth. We see some slower growth over the last months. We had good sales on new loans. There is increasing prices for the homes, and we sell a lot on new loans. The new thing we see is that due to the very good liquidity among the customers, there is more repayment of the mortgages, which has dampened the growth somewhat. New thing is that we have strong and stronger growth in the corporate market. We have for many years had fairly low growth due to that we wasn't competitive under the CRD regulation that was in place, which is now certainly improved. We have enough capital, and we are able to take profitable and low-risk customers. Margins. As I mentioned, the mortgage margins is under pressure as they are from time to time. We don't have margin loans on the mortgage side, so they are affected on an increasing market rate. That will change when and if we have an increase in the interest rate level, known as NIBOR interest. On the corporate side, we have done some efforts in order to increase the margins, and there is more margin-based pricing of those loans. The COVID situation has made the inhabitants fairly liquid. They have a job, they have reduced interest cost, and there is nothing to use the money to. You can't travel. There are many limitations in that respect. We see high growth in all banks in Norway and also our bank by 11% over the last 12 months. It's very good to see that also on the corporate side, there is a high growth in deposits, low level of investment, and also very liquid public sector. The margins on the deposits is reflecting the flip side of the lending margins. Our bank has a very broad spectrum of products. We like to have a high pocket share of our customers, which we find profitable. It improves loyalty for the customers. It has been a long-lasting strategy. Here we can see that there is growth in all areas apart from credit cards and payments. That has to do with the liquidity situation for the individuals and the fact there is very little traveling, which is negative for those business lines. Savings, insurance, estate agency, accounting services, and not to forget markets is performing very well. Cost is important. We are continuously growing the business volume. On the other hand, we are working very hard on reducing the cost so we can improve the efficiency of the bank and improve the bank's competitive edge. We have been through this 1 SMN program, which we can see has resulted in some reduction in cost. Also, of course, you have a COVID effect here with no traveling, no seminars, and lots of things that is much cheaper in such a situation. We have stated that we're going to have NOK 200 million in reduced cost annually, and we are still working on lots of implementation to come. The cost of variable salaries in the market operation will vary from year to year. This has been an extremely profitable quarter with very high variable salaries. We have to keep that apart. Loan losses at a very low level. My colleague, the CRO, Ola Neråsen, will come back to them. As I think I started with is that the capitalization is very solid. We have 18 percent CET1 ratio. We have a target which is well above the regulatory requirements of 16.9%. We can say that we have a big levy towards those targets and in absolute terms, the capitalization with 7% leverage ratio for a bank with a high proportion of mortgages is very well. I will leave the floor to Ola Neråsen that is going to take us in the credit side. Thank you, Kjell. Certainly, the outlook has changed dramatically since 12 months ago when we were very uncertain about how COVID would impact our lending book. We see that outlook is revised up for agriculture and construction, the COVID impact has been significantly less than we assumed that it would be. The one challenging segment that we are exposed to is offshore. Otherwise, things are looking strong. As I mentioned, the COVID brought about a significant spike in unemployment in our area. Unemployment have dropped again and our region is the region with the lowest unemployment level in the Nordic countries. We have benefited from a large public sector. Many of our customers on the retail side have not had any problems with unemployment. Housing prices have increased over the past year after a long period with very stable housing prices. That is primarily due to the fact that the interest rate has been significantly lowered, and we expect that this house pricing trend will taper off. It is after many years without any significant changes, we saw a strong growth last year. When it comes to the effect of the COVID, you can see that the effect was very much a temporary thing, and both for the retail and the corporate side, payment defaults were spiked in first quarter and have been slowly or rather sharply decreasing towards normal levels again. The level of the government-guaranteed loans has been stable. We also see that there have been prepayments on those loans. The composition of the loan book is so that we have around 68% of mortgages, and the largest exposure on the corporate side is commercial real estate. We also have growth in commercial real estate during the last 12 months. Agriculture is a large sector for us and one that has historically been very low risk. The one sector where we see challenges is related to offshore, and we have a slightly decreased exposure in offshore. The growth in the rest of the sectors is stable and healthy. If we look further into the offshore exposure, around 50% of the exposure is related to subsea, which we view as a segment with low risk. We have taken substantial write-downs on the portfolio and also been increasing both the absolute and relative size of this portfolio over the years. We are fairly comfortable, although there is certainly the one segment where there is the highest level of uncertainty if we are looking forward. Loan losses, as Kjell mentioned, has come significantly down around NOK 59 million in the first quarter. Of that, we still see that offshore is the major contributor to those loan losses. Overall, very satisfactory development in losses. Problem loans have seen a slight increase, which we view as a one-off related to the new definition of defaults, which came into place in January 1, 2021. That was credit risk very short. Trond, I don't know if there are any questions for us. Of course, there are questions. Thank you very much, gents. If you both join me here, we have some questions from our viewers around the world. The first thing is growth, lending growth. It's a little lower in the retail segment this quarter. How are you going to maintain the historically high growth that you've had? Retail growth has to do with the market, I think. We for many years had higher growth than the market growth, which is taking market share, and that is the real growth, actually. We improve the concept, we adjust the prices, and we improve the sales efforts. We take overshare and more than that. Thank you. The high growth in the corporate segment, can you maintain that? No. I think the growth in the corporate segment is much more a question of whether you want to have that growth or not. Taking market share is certainly a possibility, but it has to be solid, good credit quality. Any concentration risk in the corporate growth? Is it broad? I think our largest sector there is commercial real estate, but that is relatively, to other Norwegian banks, fairly small in our loan book, so there is no particular concentration risks that we are concerned with. Right. Thank you. Of course, margins. The increase in the corporate segment, there seems to be a bit pressure in the retail. We've been working very hard in better pricing models for corporate loans. That is probably an impact on that. On the retail segment, one thing is the competition. In addition to that, it's changes in NIBOR, which is increasing over the last month, and that is hurting us. Lately, it has been decreasing somewhat. We don't know what will happen forward. I think it's fair to say that an interest rate increase, national bank increase in interest rate level would be healthy for the banking margins. Thank you. Next topic, losses. This is significantly lower this quarter than last year. Any guidance going forward? Any expectations, rather? We don't formally guide, but what we would like to say that this quarter's loan loss level is a correct one. It's taken into account every knowledge we have, and I think there is some guidance in that. Thank you. here's an interesting one. You have a small digital bank called BN Bank. Yes. What's your plan on that with everything that's going on with Sbanken and DNB? This makes an improved room for that bank, certainly. As I know, you can see the figures when they were released last week. We have a healthy growth there. We have a profitable growth there, and the ambition there is to take an increased market share, both in the corporate sector and in the retail sector for that bank. Thank you. Last couple of questions on capital. What's your plan for the excess capitals? Do you continue growing, extra dividend? What causes the drop in the CET1 ratio from the first quarter? The general answer is that we have the capital we need or regulatory-wise have. We don't put into place an excess growth due to much capital. We take the growth we find profitable and suitable for the bank. If we have too much capital, we pay back. That is not exactly the situation for the time being. Okay. The drop is related to the new definition of default, which has given an increase in regulatory expected loss. Okay. Good answer. Thank you. I think that concludes. We've answered most of the questions that have come. Thank you all for watching and tune back in in August.