Hi, and welcome to the second quarter presentation for SpareBank 1 SMN. Today, we have a little one-man show for you, but first, I'd just like to make a note that you can send questions, and we'll try to address these at the end of the presentations. You can either do it by chat or to ir@smn.no. The show starts with our CFO, Kjell Fordal. Thank you, Trond, and good afternoon. We start with a picture from the beautiful Norwegian mountainside in our region. We are very happy to deliver another strong quarter with our return on equity above 14% for the second time in a row. It's a highly satisfactory result driven by sound revenue development and cost control, and not to forget low loan losses. This quarter is more quality in the figures than last quarter when we had some one-offs. We see that we have strong contribution from all parts of the organization, from product companies, from subsidiaries, and from the divisions in the bank itself. Loan losses are substantially reduced. As you can see from the previous quarters, we have been hit by rather high loan losses, but now we are back on a level that we certainly can live with and live very well with. The bank is very well capitalized. We have capacity for profitable growth and for good dividend payouts in the time to come. Figures, NOK 755 million this quarter after tax, as opposed to NOK 719, 12 months ago. That time, it had very much been back from the situation due to the mark-to-market evaluations of the securities portfolio after the COVID situation. Return on equity, 14.3%, is at a very high level. We see that the COVID situation is coming to some kind of an end. The society is reopening, and we can see that the unemployment figures are back at the very low level as we are used to, and we also see that there is a healthy market for housing. Most of the industries in our region are performing well. As you can see, we have 58% loans to mortgages or to private customers, and then a very well-diversified loan portfolio to different industries in our region. The personal banking consists of the banking operation for private customers, mainly mortgages and real estate brokerage. We are very happy to see improvement in both areas and especially happy to see that there is high growth and high activity in the housing market, which gives loan growth and increased profitability in the real estate brokerage business. You can see the head of corporate banking is smiling, and that I think is due to a significant drop in the level of loan losses. I will come back to in some detail later on. You also see that all the business line targeting corporate customers is performing very well. SpareBank 1 Markets, another very good quarter. Not as good as the previous one, but certainly satisfactory in accounting. Company is also performing well, same with the SpareBank 1 Finans, which is the car funding and leasing company. Important part of our bank's business model is to own companies together with our friends in other banks and predominantly SpareBank 1 banks, and we have a very good return on these investments. The return on the investment is one part. The other is the commission we get from the selling of the products. Here you can see the SpareBank 1 Gruppen has a very strong profitability driven by non-life insurance in Fremtind Forsikring, lower cost and very low damage levels, and also improved profitability in the bank we own 35% of, BN Bank. We are doing a continuously turnaround to become even better when it comes to digitalization, which is the reason for our success in the market and our reduced cost level. We see that the level of sales that is done through digital means is improving, and we also see that the customers approve that we are a very attractive bank. We do some investments in order to improve the profitability in the years to come. Together with all the other Norwegian banks, we are establishing a Nordic platform for payments and through the Vipps. And also, as at a smaller level, together with some of the other SpareBank 1 banks, we are investing in mobility market to take part in car subscription, as this market is transforming from self-ownership to subscription systems. As a partly community-owned bank, 40% of the bank is owned by the community, we are able to do donation in order to underpin and support the region we are a part of. This time, we are putting aside NOK 100 million to be there to help the society to reopen and support different topics in that respect. All of this, we think is underpinning that SpareBank 1 SMN is an attractive investment with high return, strong position, a good brand, underlying value, as we see is realized in the SpareBank 1 Alliance, and a good position for consolidation in the banking industry. Profitable and solid. As we can see, the reason for the increased profitability is to a large extent that the loan losses is at a much lower level. Still, these figures are delivered with ordinary loan losses, so there is very few one-off that is influencing the figures this time. Growth is telling the story of whether we are attractive to the customers. We have, for a long time, had a very strong growth story when it comes to mortgages or to loans to individuals, 7% over the last 12 months, 2.2% over the last three months, saying that we are attractive and that we have a concept that is accepted by the customers. The new trend from last quarter and up to this quarter is that we also have a growth in the corporate sector, 9.9% over the last 12 months. We have had a history of lower growth in corporate sector due to capital regulations. Now we are back again and are able to compete in this important part of the banking area. Margins are improved this quarter, that is the reason for that we have improved market net interest income level. The improvement this quarter is due to lower funding costs. The NIBOR 3 months is 20 basis points lower this quarter than last quarter. We are able to have strong growth also with increased margins. It is expected that the interest rate level will increase from next month and going forward, which we feel is a positive happening for our net interest income in the years to come. Deposit growth, very strong, as for all banks, I have to say, that is a result of the coronavirus situation. In the private market, it's very much a question of not having all the things to use the money for, which creates savings. In the corporate sector, we see that there is good liquidity with the corporate customers, which is positive, of course, and that we have success in the market for public customers. We have, today, a deposit-to-loan ratio, 58%. It's not very many quarters since we were down at 50%. It's making a more robust and solid bank. The market, the interest rate is decreasing, NIBOR three months, we have a positive effect on the lending margins and a negative effect on the deposit margins, obviously. One of the strong sides of the bank, strengths of our bank is that we have a very high level of commission income. The ordinary commission income is larger than the net interest income, and it's reflecting that we have a high level of cross-selling. Our customers have many of the bank's products, which is good for the bank's profitability, but it's also good for the satisfaction of the customers. One-stop shopping is an attractive concept. The biggest growth and so on is connected to estate agency, securities business, and accounting services. It's also important to see the continuously growth in guarantee commission from insurance companies. As we learned earlier on, we have a high level of profitability from the insurance companies, also we have a direct income as commission. Cost has been a big topic for very many years. As you can see, we have 0 growth in the parent company, saying that the continuous digitalization is taking effect. We have been through a project that is called One SMN in order to reduce the cost. When we have zero growth in the cost and growing balance sheet and growing number of customers and inflation, of course, here as everywhere, we have an improved efficiency of the bank. When it comes to the market, it's a reflection of the income level, where there is a high level of variable salaries. The decrease there has to do with a lower income this quarter than the previous quarter and to some extent the same applies to the other subsidiaries. It's activity-based cost increase. It's a one-man show today, and that is a quality because we don't need to have our head of corporate to explain the loan losses because that is a much easier story. The loan losses are NOK 39 million. Most of it is corporate. Half of that is still some offshore exposure loan losses. The other is different customers that hasn't performed too well. We can see that the retail and SpareBank 1 Finance losses is very close to 0. There is, and we see now and can maybe conclude that we will not have any significant corona related loan losses through this crisis. That is very good to have as an experience of a crisis like this. When it comes to the CET1 ratio, it's 18.3%. We have a target of 16.9%, which is including full countercyclical buffer and management buffer. We today have a CET1 of 1.4% above that level, very well capitalized. The dividend we are planning to pay out from 2020 in the fourth quarter this year is deducted from the capitalization itself. We are very well capitalized, have the ability to grow if we find, which I think we will, find profitable projects to fund. We're also able to stick to our dividend policy of paying out 50% of the profit for this year. As we can see, the leverage ratio is showing that we also measured in that way have a very high capitalization these days. That was a brief walkthrough of the figures. Then, Trond, you can lead us through the questions. Hello. Thank you, Kjell. We do have some questions from our viewers. First one goes on growth. It's been a growth story this quarter. How do you expect that going forward and start with lending? Yeah. We have a positive view on the market. We see that there is high growth in the mortgage market. We see that our concept is working and that we are able to continue with this growth 7%-10% that we have had over the last years. When it comes to corporate lending, we see that we have improved our ability to compete. We have capital, we have very good funding sources. We also have a positive view. I won't put any figures to it, but we have a positive view going forward. Good. Thank you. Deposits, I guess it is hard to maintain the growth in the corporate market? It's- your expectations. Deposits, it's a different story. We have very high growth through this period of capital or money, excess capacity for the individuals. It is expected that the growth will be slightly slower going forward. Certainly, much of the excess cash in the corporates, probably they will be used something. We have our market share and that's important for us. Good. Margins. Yeah. Very much related to that. No, as I mentioned in my speech here, we are very focused on having a concept that is so that the customers will like to pay high healthy margins, have a good concept. We see that an increased interest rate level will make it possible to increase especially the deposit margins and also the return on equity itself. It's generally a positive view on that even though that is, of course, difficult to say. Yes. Good. Costs. Do you think you can maintain the zero growth cost in the parent bank? We have been through a project for improving the efficiency in the bank and we have still some of the measures planned for to be implemented. We plan for that, a low growth at least in the quarters to come. Good. We'll finish on a, that used to be a very hot topic, losses. Very low levels this quarter. Is there pre-oil price crisis levels? Yeah. Do you expect that to continue? We expect that in the coming quarters we'll have low loan losses. We will not come back to the levels we were and I don't think I'm able to quantify it more than that. We certainly believe that this is a new level. You're targeting still growing higher margins, low losses and zero cost growth? Yes. It's a good prospect. Yeah. Thank you all for watching. We'll see you again in three months. Thank you.