Welcome to the fourth quarter presentation for Sbanken. My name is Jesper Hatletveit, and I am responsible for investor relations. For the first time in the bank's history, we are today holding the presentation from our home offices in Bergen. Today's presentation will be held in English by CEO, Øyvind Thomassen, and CFO, Henning Nordgulen. We will start with giving the status of the business and the financials before we open up for Q&A. All report. After releasing our Q4 figures this morning, we can now finally close the chapter on 2020, a special year, which has impacted both Sbanken and society in many unexpected ways. While we have been hoping for a slow and safe return back to the office for our whole organization, that unfortunately has not been possible yet. Our daily operations continue to be conducted from our home offices, and I'm pleased to see that Sbanken continues to deliver performance at a very high level. I'd like to shift the focus over to how Sbanken performed in the last quarter of 2020. The financials we present to you this quarter are strong, underpinned by sound profitability, improved cost control, and reduced losses. If you look at 2020 as a whole and taking into account the financial headwinds presented by the pandemic, including margin pressure from the record low key policy rate, we are proud of the results we present. Compared to 2019, growth has improved with strong inflow of new customers, we are still seeing churn for low yielding mortgages above normalized levels. Lending to consumer loans continued to trend lower in line with higher saving rates and the bank's tightened credit standards for the higher risk loans. Increased saving rates has also been an important driver for the bank's 11% deposit growth recorded in 2020. In a year characterized by uncertainty and increased unemployment to the bank's cost and efficient program initiated at the start of the year. Compared to a year ago, employment is down by one tenth, from 425 to below 375. Within savings, which I'll come back to later in the presentation, I'm proud to say that there we are delivering our strongest quarter ever. Our customer base, market share, and inflows are all exhibiting large growth. Looking at capital and dividends, a favored topic within the industry, I throw over to you, Henning, who'll go through the financial highlights of the quarter. Thank you, Øyvind. Financially, this was a solid quarter with ROE of 12.5%. Earnings increased to NOK 2.01 per share, and we passed the milestone with profit before tax of NOK 1 billion for the full year. Compared to Q4 of 2019, profit before tax was up NOK 69 million. This was primarily due to reduced costs and losses, but net non-recurring items also supported the result in this quarter compared to a net negative. The CET1 increased by 80 basis points from Q3 to 17.6% at year-end. Taking both the decided and proposed dividends that I will mention into account, the CET1 ratio was at 15.5 percent, and the yield, considering the low underlying risk, is attractive. The picture is complemented by growth in capital revenues, which we will come back to in more detail in the presentation. Net interest income is marginally down in the quarter and also compared to Q4 of last year. The net interest margin is also marginally softer following minor adjustments to some mortgage price points in October. When comparing to Q4 of 2019, keep in mind that the interest environment was quite different back then and allowed for better margins in the banking industry in Norway as a whole. Going forward, the recipe to develop net interest income is the same, shifting the back book over time to higher loan-to-value brackets, securing stable funding, primarily from retail deposits. On the right-hand side, net fee and commission income continues to trend up, driven by strong growth in fund savings and equity trading on our platform. Of course, when compared to Q4 2019, card transactions and currency interchange is still hampered by the corona limitations. Turning to operating cost, we are quite satisfied that our cost guiding of NOK 175 million per quarter has been delivered in 2020 and that we reached our year-end manning target. Costs are up somewhat compared to Q3 due to increases in marketing, external services, and personnel. With minimum capitalization to the balance sheet, intangibles continue to reduce also in this quarter. The provision for severance pay in the quarter relates to an offer for some of our more senior colleagues to retire early. This signals that we will continue to work with cost control and efficiency improvements also in 2021. On that basis, we indicate that the cost level will come down to NOK 165 million in Q4 this year. The cost-to-income ratio is level over the last quarters, but the absolute cost level depicted in the columns on an LTM basis decreased also in Q4. In 2021, a key initiative will be to increase scalability in our core bank by further optimization of our loan processes. Please note that the 34% target in the top bullet relates to our previous financial targets. We have updated this to 30% in the period 2021- 2023, and the figure should thus read 30%, which Øyvind will get back to when we cover our targets later in the presentation. In line with our cost guiding for Q4, we expect this ratio to start trending down during 2021. Cost to risk is really trending in the right direction. The provisioning ratio for secure loans was at normal and historical levels in the quarter, and we booked very low losses for unsecured credit. Our credit metrics have improved as a result of measures implemented in 2019 and 2020, and we are confident that the trend of lower losses will continue. We are therefore pleased to tighten our loss guiding to be around 10 basis points for 2021. Going to mortgage lending on the right-hand side, we see that the front book LTV is marginally up in the quarter, a sign that we are starting to shift towards higher loan-to-values in the front book. Deposits grew by 11% year-over-year, and 1% from the end of Q3. Deposit ratio was stable at around 70%. Turning to capital, the bank's minimum CET1 requirement is currently at 12.5%. Actual ratio at year-end before dividend, as mentioned, was 17.6%, partly influenced by the postponement of 2019 dividends. On that basis, the board has concluded to use the current authorization from the AGM in November to distribute NOK 3.15 per share, equivalent to a payout ratio of 49.6% and 26.6% of the parent bank cumulative net result for 2019 and 2020. The board has also decided to propose an authorization to the AGM in April to distribute up to NOK 4.40 per share, equivalent to 62.8% of the net result for 2020. The 2020 proposal is subject to current regulatory restrictions, due to the cumulative dividend limitation, it can largely not be used until October this year. If used in full, thus this in aggregate would amount to 56.6% of the net result from 2019 and 2020 cumulative. Finally, given the strong capital position and outlook for the year, the board has reviewed the bank's dividend policy. The new target is to return capital to shareholders through distribution of approximately 50% of the group's net profit in cash dividends in addition to buybacks. I then hand the word back to you, Øyvind. Thanks, Henning. Okay, let's talk a little bit about SME. The pandemic has, without doubt, brought headwinds when looking at customer acquisition within the SME space. As we have said before, partly a factor of the bank not offering liquidity through its highly scalable and digital concept. SME integrations have stalled. We are now in the pilot phase with several leading ERP platforms, including solutions under the Visma umbrella. We will soon be covering 70% of the market. I'm happy to see that our proposition within savings and equity trading is appealing to our SME customers, especially for private investment companies, where we are recruiting a healthy amount of new customers. In savings, I'm proud to say that we are delivering our strongest quarter in history. Funds under management grew by NOK 3.9 billion, of which a record high NOK 2.3 billion came from net inflow of customer funds. From year-end 2019, as Henning said, FUM is up by 50%. Net inflows for the whole year total NOK 4.4 billion, double from the previous record from 2017, the year when the tax shield account, the so-called ASKs, were introduced for retail customers. In December, we reached new record high contribution from fixed saving agreements with NOK 145 million in inflows. This provides a strong foundation for continued growth within savings, irrespective of market sentiment. We have continued our customer focus campaigns in this quarter, both through our own channels with targeted cross-selling push efforts, but also via external channels. Of the new saving rate agreements, 40% came through our robo-advisor, a trend that I'm hopeful will continue to the benefit of our customers. In equity trading, we're also seeing strong growth. For 2020 as a whole, we recorded close to 700,000 trades, double the number of trades from last year. The drive towards savings in Sbanken is about helping customers to save smarter, and preferably more, and not primarily about moving funds from our competitors, though we won't stop customers wanting to have all their savings on our platform. If we look at the Norwegian population, it actually amazes me that the savings towards pension, a topic so important, doesn't receive more attention. The topic is especially true when looking at a typical Sbanken customer, someone aged between 40 and 60 years old. The majority of them save in two ways, either in their bank accounts with a negative real interest rate or in their home. More than 80% of all Norwegians own the home they live in. To improve their financial flexibility towards retirement, the solution is obvious. They need to save more and put more in financial savings, not to keep saving via their bank accounts or in paying down mortgages. The real challenge here is how we can reposition what savings is for the Norwegian public. The first step in doing this is to deliver a customer experience suited to their competence level and interest, combined with transparent and definitely low prices, and a strong proposition towards sustainable investments. This includes also access to advice and support to make it easy to choose the mix of funds index funds and actively managed funds. This enables the Norwegian people access to the same services and proposition as the most wealthy ones, but to a significantly lower cost. If we can recruit customers for a few hundred NOK and evaluate the customer lifetime value, the valuation of our saving offering should be in line with the likes of. Why shouldn't Sbanken, with a customer portfolio of a half a million of Norway's most satisfied banking customers, get there? I'm convinced that savings will be a strong source of capitalized revenues, essential to realize our 14% return on equity target. Talking about that brings us over to our financial targets. Our 40% target continues to be the main long-term goal we are driving for. The cost and efficiency program initiated at the start of 2020 is showing clear results, as Henning was talking about. Employment from a year ago is down to 375, and the underlying cost level continues to trend in the right direction. From Q4 this year, we expect our cost-to-income ratio to be below 35%, while for the longer term, we are aiming a sub 30% ratio, which puts us simply on top as the Norwegian bank with the most automated and scalable core banking solutions. Currently, the bank is significantly over-capitalized. After considering dividends for 2019 and 2020, our buffer to capital target is still 2.5 percentage points or approximately NOK 1 billion. To manage the bank's capital level more flexibly and distribute more capital at times where the buffer is large, we have decided to remove the payout ratio for our target from our financial targets. At the same time, increase the target payout ratio in our dividend policy. In other words, the underlying principle in our shareholder and dividend policy going forward is to distribute excess capital to our shareholders. These factors in combination will bring the bank on a strong footing to achieve 14% return on equity. With that, I'd like to thank you for listening in and hand the word back to Jesper. Thank you, Øyvind. We will open up for questions from the telephone conference. If you should experience technical difficulties in getting through, I ask that you instead email me your questions. I will then direct them to Øyvind and Henning. Please go ahead. Thank you. If you do have a question for the speakers, please press five star on your telephone keypad now. That's five star. We will have a brief pause while questions are being registered. The first question is from the line of Johan Ström. Please go ahead. Your line will now be unmuted. Thank you very much. Two quick questions from my side. First of all, on loan growth, and in particular mortgages, what's your short-term net loan growth expectations? Secondly, on the CET1 ratio, with the comments you've had on the dividends, potentially on the loan growth and return on equity target, what's your expectation for the CET1 ratio if you look at, for example, year-end 2021? Is that something that's going to continue to grow, or you think you're going to be able to keep the CET1 ratio stable? Thank you. Okay, thank you, Johan. I'll answer the first one, and then Henning, you can take the second one. Just to start with, I'm not too happy about growing less than the market. In this market sentiment, we prefer profitability before growth. Our inflow is quite good, but the problem has been our churn. That has been higher than normal, but this is also driven by our strategy that we communicated a year ago to move towards higher LTVs and be more relevant in the transaction market. Directly to your question, our ambition is to come back to at least market growth, and then we're talking about 2021. In parallel, our focus this year, and especially in this market condition, is to really focus on building an extremely cost-efficient and scalable mortgage platform. As we all know, this is a commodity. In the longer term, scalability is the keyword here. Henning, do you want to comment on the CET1 ratio question? I can do that, Øyvind. Of course, there are many factors impacting the CET1 ratio, at least if you look forward to year-end, not the least the regulatory environment, which of course is limiting as we speak. Of course, we don't know how this will play out going forward. I think our most important message here that we are going towards a tighter capital management in the company. We have been over some time, but we are certainly continuing that, and we are underpinning that with the change of the dividend policy. As we yield returns at the current levels, of course, we generate capital, and over the last two quarters, you can see that we have generated substantial capital. Capital would be generated even if we grew at market growth plus in mortgages, et c. It's really down to how much we will grow, of course, and to the extent that we can tune the capital within the parameters of our dividend policy, which of course is the dividend in itself, and also share buybacks. Many of our shareholders favor share buybacks. That also is restricted as we speak. I cannot give you a target or indicative CET1 year-end figure other than saying that we will generate capital definitely for growth, and we will generate capital for attractive direct return for shareholders. Many thanks to both of you. The next question is from the line of Christopher Alves. Please go ahead. Good afternoon. You're clearly focusing on the savings market. What is your offering towards the own pension account market, and how large is that opportunity for Sbanken in review? Okay. I think I'll answer that, Henning. Well, as you probably know, we are not in that market at the moment. It's opening up with the personal pension account. We think that there are lots of things to really understand in that market before we enter that, and there could be several ways to do it. Our focus is on the huge assets that Norwegians have, partly as net assets in their home. As I said in my comments that, especially people in my age, we actually should stop paying down our mortgage and start increasing our financial savings, and there is a huge potential there. Of course, we have too much money on deposit accounts, and some of that money should be moved over to financial savings like mutual funds. I think at the moment, we can grow quite nicely where we are. In the longer term, we will definitely look into the pension part of the market as well, because that will be growing quite aggressively also over the next years. Okay. Thank you. If I could also follow up on your comment about not being happy about losing market share. How much do you think you'd have to reduce the mortgage rates in order to maintain your market share? As I said, I don't think we have to move down our mortgage at the moment. I think our inflow is okay. It has been the churn that has been the problem. As I said, we started a strategy change, which Henning was commenting on, which you can see in the average LTV on new business, which is increasing. We want to move to higher pockets. Then we had a very special year in 2020 with lots of interest rate changes and also quite aggressive pricing in the lower LTV pockets. That has driven the outflow. We think that that will be normalized going forward. If we can continue the growth or the inflow that we see now, we'll come back to market growth, and that's our ambition for this year. Okay. Thank you. The next question is from the line of Håkon Østorp from DNB Markets. Please go ahead. Good afternoon. Two questions from me. First one on loan losses. You have a loan loss guiding our expectations of around 10 basis points for 2021. Is it any specific elements there, or is this 10 basis points in line with what you see as a normalized level given your current lending books? That was the first question. The second question is on capital. Clearly, you have a very strong capital position. How soon can we see share buybacks? Is it possible to see that during the last part of this year if the regulatory situation allows for it? Thank you. To the first question, the explanation is that it's an all-in blended rate. We expect the mortgage losses to be at historical levels. Excuse me, I'm getting a lot of echo on my line here, but okay, I'll continue. It's an all-in rate where we see the underlying level for the mortgages being at the historical real levels, and typically between one and three points in any given month or quarter. The balance would be from the unsecured side. Car loans are also very modest loan losses over time. It's really a leveling out of the loss rates we've seen in the unsecured business. The fact that we have gone from the so-called forward flow agreement and introduced new loan loss models that have stabilized. That gives us confidence that we will now see a more stable level going forward. This quarter is a bit special. We don't see a rate as low as this as probably being realistic for the full year, but certainly within the 10 points. Maybe if things progress as the trend lines goes, we could come back to a tighter guiding during the course of the year. For the time being, we guide on 10 points. The share buybacks, of course, from a regulatory perspective, it's complicated. We proposed an authorization to the AGM last April of 3%. We have only been able to use that for limited amount of buybacks for employee share purchase programs. We would definitely propose a similar type of authorization to the board for this year, at least 3%, we would say. Then the question is when we can use that from a regular perspective. We would like to progress with the use of share buybacks. It's, as we understand it, highly favorable also among our shareholders. As we see today, it's really restricted until beyond 30th of September this year. The next question we have is from the line of Joakim. Please go ahead. Your line will now be unmuted. Yes, thanks for taking my questions. I have three questions as well. It's just regarding your return on equity and the target of 14%. How many hikes are you dependent on to deliver that as you see it towards the end of your new period in 2023? That's basically just if we should add a buffer on top of the CET1 plus 50 basis points that you indicate. Is that the only limitation when we look at the distribution, or should we be a bit on the conservative side there? The third question is relating to savings. Could you say something about the mix of index and actively managed funds in the net inflow in the quarter and what kind of margins you have in average? Thank you. I can start with the first two then, Joakim. There is not a clear link, an expectation in terms of, I expect you mean interest rate hikes, which then would allow us to expand our NIM. Of course, that would be favorable for any bank, and I guess more likely a bit into the future than it is today. I cannot give you a figure of the number of hikes. Of course, with being a balance sheet dominated revenue bank, that will certainly help us. It's very much about scalability. We made some comments during the call earlier, it's about continuing to run tight operations in terms of cost control, increasing optimization, improving processes, securing scalability, making sure that we have a core bank, i.e. all the traditional banking products, which is highly efficient. We think we have among the industry's most efficient processes, but we think we can still, or we are confident that we can still improve on that and have concrete projects that are underway in that respect. That's very interesting in our opinion. The other part, of course, ties in really with the third question with savings, which we are growing at a very attractive rate, which of course doesn't have a big impact on the P&L so far, but which we think can be quite substantial over the next 2- 3 years. Maybe I can add a little bit on that on the third question. To the second question, we are really advocating, again, reflecting our very low-risk structure, a regulatory requirement plus 50 points. Of course, when we make that a dynamic target, it also means that we are, of course, knowledgeable about the fact that the countercyclical buffer might start to move again and come back over some time, and that there is a systemic risk buffer that we'll have to factor in. Therefore, of course, the target ratio will increase over the next couple of years, naturally, and we take that into our consideration. If you're asking if there is a buffer over the 50-point management buffer, I would say in any case that's quite low. It would just be to take care of any short-term fluctuation. In theory, we are advocating that we are going towards a tighter capital management. If we had more flexibility in terms of dividend, I think the board would have used that more extensively than we have the ability to do with the current regulatory environment. Okay, Henning, I'll support a little bit on the third question then. I think the answer is around 30% was indexed in Q4, so 70% was actively managed funds. Just to give a little bit more flavor on what Henning was saying around savings, we have a large ambition for our savings business going forward. I think if we don't put it into time, but say what the ambition is, my ambition is to grow from today around 100,000 saving customers to 250,000 saving customers. We have today NOK 35 billion in assets under management, and I would like that to be three times as high. When we will reach this, I'm not sure yet, but I think it's absolutely possible for us to grow into those kind of numbers. Okay, thanks very much. As a reminder, if you have a question for the speakers, please press five star on your telephone keypad. The next question is from the line of Jan Erik Gjerland from ABG. Please go ahead. Your line will now be unmuted. Good afternoon, and thank you for taking my questions. I also have a couple of questions. The first one is really to the CET target, and I think you mentioned it, Henning, but would you drop down to a low level ahead of the countercyclical buffer increase and the systemic risk buffer, which will maybe be introduced in 2023? So that we should really say that you are dropping down from the 15.5 towards the 13 in the times ahead, and then you have to rebuild the capital level to be compliant again if those come through. Is that what you are thinking about? I just want to understand how quickly you can start the buybacks. Yes, of course, as we know, at least for those familiar with Norwegian regulation, which are not different from E.U. regulation, there are limitations on total distributions and share buyback, as you know. For the time being, until October this year, we consider those options to be quite limited, and that by using the current authorization and the proposal for the AGM, we will use the flexibility we have in the current regulatory climate. Of course, we will not venture into a capital management structure which will risk and hamper our strategic options in terms of growth ambitions, et c, by being so tight that we might risk a difficult buildup period, which of course, banks are familiar with in Norway over the last couple of years when building up to regulatory requirements. When we discuss here and elaborate a bit on the title of capital management, it is that ideally, we would like to return, as a guiding principle, return capital that we cannot employ for active attractive returns. Actually, going back to one of the former questions with do we need more interest hike to reach ROE at 14%, we certainly will struggle to reach 14% with way too much capital. Within the parameters that we have, we will of course use our capital wisely and not put ourselves in a tight spot where we have to stop growth and build capital. Of course, with the countercyclical that is normally you have more or less a full year to adapt, the systemic risk is quite easy to plan for. Okay. Very clarifying. Thank you. On the lending growth, you said that you're having the mortgage book is sort of struggling to get moving because of the turn. What about the unsecured lending and car loans and other lending, which is not mortgages? What is your strategy on those loans as well as the SME side? Will you start to lend towards SMEs at one point, not only take deposits? Let me start here, Henning, and you can fill in. I think if you talk about car loans and consumer loans, we think that based on the comments that Henning did and myself as well on how we are now tightening the criteria, and we are very confident about the risk, we would like to try to keep that portfolio. As you all know, the market for especially consumer loans has been quite tough over the last quarters. Growing in these markets is not easy. That's why we are seeing a little bit slowdown in the portfolio. Over time, this is not a strategic focus area for us, but we think it's a nice way to add on to return on equity. We will try to keep that portfolio with some fluctuations going forward. Car loan, it's quite small, but it's the same strategy for that one. When we talk about SME, our long term ambition there is to introduce SME, but we would like to demonstrate more commercial success before we take that step. Because we are now in the process of piloting with lots of the big ERP platforms, we would like to both come through the pilots and then launch them for full and then see the results from that before we take the next step. It's definitely a long-term ambition in the SME space because that will drive profitability as well. Agree. Is that sort of 2023 area, or is it likely to see something in 2022 already, do you think? Just off the top of your head, just so I can understand where to put our money, so to speak. Well, let me put it like this. Let's first prove the commercial success, and then I'll come back and answer that in the next or the next couple of quarters. Okay. Thanks a lot. That will be all from my side. As there are no further questions at this moment, I will hand it back to the speakers. Okay, that concludes the session. Thank you very much.