Good morning, and welcome to the first quarter presentation for Sbanken. My name is Jesper Hatletveit, and I am responsible for investor relations. We are today holding the presentation from the bank's headquarters in Bergen. Today's presentation will, as per normal, be held in English by our presenters, CEO Øyvind Thomassen, and CFO Henning Nordgulen. We will start with giving you the status of the business and the financials before we open up for Q&A. All reports and presentations can be found on the bank's web pages. I now give the word to our CEO, Øyvind Thomassen. Thank you, Jesper, a good morning to all of you listening in to today's call. We are today addressing you in a special situation, given DNB's tender offer for Sbanken. We are currently in the middle of the offer period and have exciting times ahead of us. Before touching on specific details regarding the quarter, I'd like to focus on what today defines the Sbanken brand and organization. The bank has more than 485,000 customers. A large portion of these, we call members, customers who have been with the bank for many years and who, together with us, share a passion for the simplest and best digital banking solutions in the market. Just this morning, we received results from Norsk Kundebarometer, where Sbanken once again was ranked as the Norwegian bank with the most satisfied and loyal customers. This marks the 20th year in a row that Sbanken has been rewarded with the top spot. Our people and culture are the key foundations for delivering superior digital banking services that simplifies the daily life of our customers. As the bank's CEO, I'm truly proud for how the organization has tackled the difficult year past with regards to coronavirus restrictions, and I'm equally impressed with the passion they are showing for our customers following the news of DNB's offer only a few weeks ago, news that came as a surprise to the majority. As I'm sure you'll understand, there is no new information we can add to the situation with DNB's voluntary offer. The board has recommended the offer, and our shareholders are in the process of considering the offer presented. Updates on the process will be communicated when relevant. We are naturally flattered by the interest that DNB is expressing for our bank and organization. DNB benefit from a large set of resources, and if they become our new owner, we will be well-positioned to create the banking solutions of the future. This will benefit both of all customers. If we look towards the first quarter of 2021, credit losses are remaining at historic low levels, with our lending portfolio displaying clear signs of having Norway's lowest risk. Loss levels were somewhat influenced by the implementation of the new definition of default, and without this, we would be reporting net write-backs. Within savings, we are continuing the strong momentum we had through 2020. Funds under management are almost doubled from a year ago, with over half of the increase coming from strong customer inflows. Looking to capital, in March, we finally distributed a much overdue dividend of NOK 3.15 per share. Still, the bank remains significantly overcapitalized, with excess capital above NOK 1 billion, even after considering the 2020 dividend authorization. If we could run the bank from a capital efficient standpoint, return on equity this quarter would be 14.3%, not the reported 10.7%. There is also the perspective of the bank operating at competitively unfavorable risk weights through the standardized model. Considering both these elements and a conservative balance sheet, the bank's underlying profitability is strong. In the fourth quarter, with the majority of our developers and designers working from home office, we launched a brand new mobile banking app. When Cicero conducted a test of the 16 most popular banking apps in Norway, including from fintech players like Revolut and new banking concepts like Bulder Bank, Sbanken was placed first. The result is a clear testament to Sbanken being at the forefront of digital innovation in Norway, irrespective of industry. With that, I'd like to pass the word over to our CFO, Henning, who will run you through the Q1 numbers in detail. Thank you, Øyvind. Apart from soft asset growth, there are positive developments in the drivers behind the P&L in the quarter. Compared to the first quarter of 2020, profit before tax was up NOK 4 million. This was primarily due to reduced cost and losses, which compensated for the 30 basis points drop in the net interest margin from the pre-pandemic rate levels in Q1 last year. Net commission income is stable compared to Q1 of 2020. Given the fact that the general activity level is still affected by the pandemic, this is clearly a positive development, much owed to the significant increase in funds under management and total AUM, which drives the growth in fund and security trading revenues. We continue to build capital, and the core equity Tier 1 ratio is close to 300 basis points above our target level, and it is demanding to employ such amounts of capital at attractive deals organically. To a slide which depicts a core principle in Sbanken over many years, namely finding the balance between profitability and growth. The development over the last quarters, with a focus on profitable lending growth, has continued also in Q1. It is clear that profitability in our low-risk mortgage book remains very strong, and that we see attractive product ROEs even after significant NIM compression. It is also becoming clear that the high over-capitalization and the negative capital arbitrage we have as a standard method bank, and which we have tried to influence over several years, is becoming a factor in our competitive landscape. Our aim remains to preserve and develop the yield by increasing the average loan-to-value, maintaining attractive deposit funding, and get back to market growth. On revenues, net interest income is down 2.7% from the previous quarter, and also down compared to Q1 last year. The net interest margin is reduced from the previous quarter, following minor adjustments to some mortgage price points in Q4 with full quarter effect in Q1 this year, together with elevated money market rates. When comparing to Q1 of 2020, do keep in mind that the interest environment was very different a year ago before the onset of the pandemic and the reduction of the key policy rate to zero. Continued strong retail deposit funding and the fact that the three-month NIBOR market rate has depreciated since quarter end is a contributing factor for the cost of funding short term. Net fee and commission income is stable, despite that compared to Q1 2020, card transactions and currency exchange is still hampered by the corona limitations, and again, this is mitigated by strong growth in fund savings and equity trading. Turning to costs, we continue the trend from Q4 last year with operating expenses just below NOK 175 million in the quarter. Our cost and efficiency initiatives have continued in 2021, and we have been on track for a Q4 run rate target. In normal circumstances, we would expect OPEX to trend around NOK 175 million and then come down towards the NOK 165 million run rate towards the end of the year. With the ongoing transactions, there will be one-offs, at least in Q2, and to a certain extent the situation also affects our operations. We will not go into details concerning the extent of expected one-offs, but we'll report these items separately in Q2. Cost of risk continues to trend well below our 10 basis points guiding for 2021. There is no underlying uptick from Q4 to Q1 despite the line graph to the left-hand side. These are simply the effects of implementing a new LGD model in Q4 last year and a new NPL definition as advised by the EBA in Q1 of this year. As you also can read from the notes to the accounts, we maintain a post-model buffer of NOK 30 million. This, together with the continuing positive trend both for secured and unsecured lending, also implies that we tighten the loss guiding to be below 10 basis points in the coming quarters. Going to mortgage lending on the right-hand side, we see that the front-book loan-to-value is again marginally up in the quarter, as has been our intention. Here it's also worth noting that although the book is flat in the quarter, we have high incoming activity, but churn levels remain higher than normal in the most price-sensitive categories. Deposits grew by 2.2% in the quarter and 8.5% year on year. Deposit ratio increased marginally in the quarter and is now at historical high levels. The bank's minimum CET1 requirement is 12.5%, and the target ratio is 13% flat. The actual ratio at quarter end increased by 40 points to 15.9%. This is even after the NOK 3.15 per share dividend distribution in March and factoring in the unutilized dividend authorization for 2020 of NOK 4.40 per share. To summarize, the balance sheet is in excellent shape. Asset quality is high, and yields are attractive. Deposit funding is strong and stable, and the liquidity position is very robust. Capital ratios are well above our target levels, which also means that we are over-capitalized and that the underlying ROE, especially if you consider the very low risk in our lending book, is very appealing. Back to you, Øyvind. Thanks, Henning. The bank's offering to SMEs continues to progress, although the rollout over the last 12 months has been slower than we had anticipated. This quarter, we have surpassed the milestone of 10,000 corporate customers. After completing pilots with the much-anticipated ERP platforms from Visma PowerOffice GO, and Visma eAccounting, they have now all finally become important building blocks to our SME offering. These integrations are key in driving capital-light revenues from our SME platform. I'm equally glad to see that our SME offering on fund savings and equity share trading is finding significant momentum. Our value proposition here is just as attractive to investment companies as it is to retail customers. Within savings, we recorded a record strong 2020. This quarter, we are continuing the strong momentum. Funds under management is up to NOK 25.9 billion, an increase of 86% over the last year. More than half of the increase comes from customer inflows, and a quarter of this came from fixed saving agreements. In March, saving agreements reached a record high NOK 164 million, providing a strong foundation to our inflows going forward. We're also seeing a significant increase within equity share trading. Customer trades and associated revenues are more than double from pre-COVID levels. Securities under management is up to a total of NOK 13.6 billion, bringing our combined assets under management close to NOK 40 billion. I'd like to finish off today's call with some final remarks on the ongoing offer process with DNB. While the news has received a lot of attention in both the capital markets, in Norwegian media outlets, and on social media, our focus and attention remains unchanged. Sbanken prides itself on always putting the customer first and will continue to both deliver and develop Norway's leading digital customer experiences, irrespective of industry. We are continuing our efficiency improvement initiatives to create the market's most automated and scalable core banking solutions, a key principle for us to deliver attractive financial returns in the future. Drive for innovation and a skilled and highly motivated workforce that has delivered the best customer experiences 21 years in a row is what defines Sbanken, one of Norway's strongest brands. I'm in no doubt that a potential new owner will see large benefits in protecting these values for the future. With that, I'd like to hand the word back to you, Jesper. Thank you, Øyvind. We will open up for questions from the conference call. Naturally, as we are in the middle of an offer period, we cannot comment on any questions specific to the pending transactions. Operator, please go ahead. Thank you. Ladies and gentlemen, if you have a question for the speakers, please press five star on your telephone keypad. If you would like to withdraw your question, please press five star again. Our first question comes from the line of Christoffer Adams. Your line will now be unmuted. Yes, good morning. This is Christoffer Adams from Kepler Cheuvreux. My first question has to do with the volume growth and your pricing of mortgages. You're now offering a mortgage rate, I think your best rate is 1.59, which is well above the most aggressively priced mortgages in the market today. At the same time, you're seeing a negative development in volumes, both quarter-on-quarter and year-on-year. How will you think about balancing growth and profitability going forward, and are you okay with volumes declining? That's the first question. The second question is relating to your excess capital. You say that the bank is significantly overcapitalized. Is that taking into account expected changes in the regulatory requirement, including the potential increase of the countercyclical buffer? Okay. Thank you. Thank you for the questions. I'll answer the first one, Henning will take the second one. As Henning said, we're always conscious in finding the right balance between growth and profitability. Our aim is to grow profitable, we are naturally not satisfied with the past sub-market growth rates in recent quarters. We want to come back to market growth. If you remember, if you go a little bit back in time, we launched a strategy in the beginning of last year to slowly increase the LTV mix in the portfolio to increase the average loan size, followed by also a more sophisticated price model. Also try to focus more on helping our customers when they do property transactions. In April, we issued the bank's first mortgage rate guarantee, valid to year-end 2020. We have also then launched a fixed mortgage rate offering, now representing more than 10% of the mortgage book. We also are in the process of streamlining, as we have said before, the organization and also the processing to deliver mortgages swifter and especially related to property transactions. We now see that inflows of loan promises and also bridge loans are increasing. We also made some mortgage rate adjustments in October, and we are also continuously optimizing our data-driven digital marketing process. Of course, we also see, as you say, that there are certain competitors that are really aggressive in the market. I don't want to comment on what we will be doing, but I can assure you that we'll come back to this when we report the second quarter. As I said, our ambition is to come back to market growth. That's probably something there in that answer. Henning, you also on the capital question. Our capital target is 50 basis points above the current minimum requirement, and hence, technically does not account for the full return of the CCyB, the countercyclical buffer, as we speak. However, our Pillar 2 is also 150 basis points, which is significantly above our calculations, and where we have argued with the Ministry of Finance since 2019, that our opinion is that this should be offset towards the increase in the countercyclical buffer. Undecided so far to our knowledge. Of course, the final element that even though we will continue to grow the bank, we do expect to build some capital, which will also build towards the CCyB before introduction. Okay. Thank you. Thank you. As a reminder, if you have a question for the speakers, please press five star on your telephone keypad. We'll now have a brief pause while questions are being registered. We have a question from the line of Jan Erik Gjerland. Your line will now be unmuted. Yes, good morning. It's Jan Erik from ABG here. Some couple of questions. Firstly, on your capital situation to refer, would there be any meaning for you to go to the IRB Foundation or Advanced somewhere? Is that an option you haven't considered at all to do? Is the book still too small? What's the real problem behind it, if you can shed some light into that, please. It's something we have considered for a long time. As you know, it has been more or less prevented by the regulation from the Norwegian FSA, where it has required a corporate banking portfolio of NOK 30 billion. Having said that particular part of the wording and comments from the FSA has been modified recently. In our opinion, there is now a better opening for making an application. As we've said many times, we did groundwork back in the Skandiabanken days with a joint application. When we introduced the IFRS 9 models in 2018, we also made sure they were ready for going towards an IRB solution. The bank both has the loan book and the history and the competence to progress with an IRB application, should that be an opportunity that's worth pursuing in the future. I see. On the fixed mortgage offer, what kind of rate is it? A one-year product, three, five, six, 10-year? What is customers taking these days? Well, given the longer interest rate level now, we see less volume in that product category. That had significant growth last year and came up to balance over NOK 8 billion, and that's been quite stable in the start of the year. It's not as attractive in comparison to the floating rate offers as it was during most of 2020. What's the timeline for the market growth expectation? Is this during 2021, or is it a year ahead, or could you shed some light into that? I think it's very difficult to give you any guidance there. We usually don't do that. As you see, it's quite competitive market at the moment, especially in the lower LTV buckets. That's certainly influencing. Of course, this transaction could also be influencing. It's very difficult to see how that will play out. We will not sit still, of course, because we would like to grow profitably. I think that there'll be a lot of dynamics going forward. That's why I said that I would like to address this again in Q2. Then we know a little bit more how this have been played out. Hopefully I'll give you a better answer then, Jan Erik. Okay. Finally, on the churn, have you actually seen clients leaving you? As you said at the start, is the members still with you until there is a final decision on this potential offer by DNB? Yeah, as you all have noticed, of course, there's been a lot of noise. More noise than churn. We see some activity, especially on the lower LTV portfolio churn, and that has been going on for some time. As you have noticed, some of the competitors have been even more aggressive in pricing. Quite interesting is that we are also seeing higher inflow, especially after the DNB announcement. There are different flows here. As you also know, we have changed a little bit the strategy. There are lots of different dynamics in this, actually. I think we should expect some churn, especially in the mortgage side. When it comes to churn of customers, we haven't seen that at all. This is more customers looking for one product, and that is mortgages. The rest of the products, they keep with us, and I think they are very, very satisfied, confirmed today again then by Norsk Kundebarometer. Okay, thank you. That was all from my side now. Thank you. Our next question is from the line of Christoffer Adams. Your line will now be unmuted. Yes. You're obviously performing very well in the savings market, but you haven't launched own pension account, which Norway has opened up for. Do you have any plans there? What do you think the potential opportunity could be? Yeah. We find that actually very interesting in the longer perspective. Why we haven't entered that market is that there are still some uncertainties around both infrastructure and also the pricing models, et cetera. We have said that we will wait a little bit before we enter that market, but we'll definitely look at that, and I expect us to enter that market over the next couple of years. The total market is around NOK 1 trillion. Obviously very interesting. We have also a customer base who is typically looking for the, or they're planning of their pension. It's spot on for our customer base as well. Yes, we'll come back to that. Thank you. Thank you. As we have no further questions, I'll hand the word back to the speakers for any closing remarks. Okay. That concludes the session. Thank you for listening in. Bye.