Annual Report 2010 Hedmark 190 000 Inhabitants 27 000 Squ Are Kilometers 22 Municipalities 190 000 Inhabitants 27 000 Squ Are Kilometers 22 Municipalities
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ANNUAL REPORT 2010 Hedmark 190 000 inhabitants 27 000 squ are kilometers 22 municipalities 190 000 inhabitants 27 000 squ are kilometers 22 municipalities Innhold 2010 - a year of challenges and good results 05 Cash flow statement 24 This is Sparebanken Hedmark 07 Notes to the accounts 26 Revy 2010 08 Statement from the Board of directors and chief executive officers 87 Socially committed 11 Control comittee report 89 Directors`report 13 Independent authors report 90 Income statement 21 Financial statement analysis group 92 Balance sheet 22 Subsidiaries 95 Changes in equity 23 Editing: Siv Stenseth and Trine Lise Østberg, Design & production: Ferskvann reklamebyrå, Photo: Ricardofoto, Aud Ingebjørg Barstad and Siv Stenseth. 4 ”With its 165-year history in Hedmark, Sparebanken Hedmark has evolved into a full-fledged financial services institution with all the banking, insurance and financial products retail and corporate customers need.” Richard Heiberg, CEO, Sparebanken Hedmark. Os Region Østerdalen Tynset Folldal Alvdal Rendalen Engerdal Stor- Elvdal Region Hedmarken Trysil Åmot Ringsaker Elverum Hamar Richard Heiberg Våler Løten Stange CEO. Våler Våler Åsnes Education: Siviløkonom (MBA), Population: about 3,900 Norwegian School of Management Area: 705 km² Grue (BI). Våler is one of Norway’s largest forest Sør-Odal Heiberg was previously CEO of municipalities, with agriculture consti- Kongsvinger Nordic Paper A/S, Forestia and tuting a major part of the economy Norske Skog. He has been a along with forestry and related indus- member of Sparebanken Hedmark’s tries. A millennium site was created Eidskog Board since 1995 and was ap- outside Sparebanken Hedmark’s branch Region Glåmdalen pointed CEO of the bank on 1 June office and serves as a meeting place for 2010. Heiberg is a resident of visitors and residents of the municipality. Våler municipality. CEO 5 2010 – a year of challenges and good results We can be very pleased with our consolidated profit of NOK 779 million, which includes good income from financial investments. But the good result is also a reflection of our ability to live up to the bank’s vision Together - to create. It was with humility and respect for many years of solid I have both seen and experienced how solid and well run banking that I took over as CEO after Harry Konterud on the bank is during my first six months at Sparebanken 1 June 2010. I was given responsibility for a bank on a Hedmark. I have visited almost all the offices and met steady course, even if the outlook for the Norwegian and many employees. It has been an enjoyable and educatio- international economy at the beginning of the year was nal experience. somewhat uncertain. I am proud of the fact that nearly 100 of my colleagues Improved economic growth, low unemployment and have become authorised as financial advisers during the rising house prices are now confirming that conditions in year. No other bank in our vicinity can boast of the same, the Norwegian economy are back to normal. In Hedmark and during the first half of 2011, 160 advisers became we are seeing increased willingness to invest in agriculture authorised. and in business. I am also proud of the excellent results delivered through- The bank increased its lending last year slightly above the out the year, which included achieving a market share of growth of credit in Norway. Deposit growth also picked 20 per cent in home and car insurance. While banking up in 2010. Net interest income is back to the 2008 operations are generally healthy, we have also noticed level. The bank’s losses are lower than the previous two challenges. Higher funding costs and stronger price com- years, and our liquidity is very satisfactory. petition are factors we must tackle in the future. We are more than well enough equipped to do so, and the bank The bank reached an important milestone in 2010 when will take proactive steps in meeting these challenges. the Group’s equity exceeded NOK five billion. With competent and ambitious staff by my side, and, Solid equity provides security for the future, for both the not least, satisfied customers on the team, this is a task I bank and its customers. It is important for Hedmark that look forward to taking on. we have a strong source of capital headquartered in the county that has the development of Hedmark as its I would like to thank all staff members for their hard work primary focus. Since the bank has no shareholders and customers for doing business with us in 2010. requiring dividends, it puts all of its profits into new projects in Hedmark. Richard Heiberg CEO 66 Os Region Østerdalen Tynset Folldal Alvdal Business concept Rendalen Sparebanken Hedmark will offer new and existing Engerdal customers comprehensive and forwardlooking bank-, finance- and insurance products. Sparebanken Hedmark will be so proficient, close and engaged Stor- with private customers, compa- nies and the public sector that Elvdal customers would prefer to have a longstanding relationship Trysil with the Bank. Through good profitablity, financial strength and independence, the Bank will contribute to growth and development in Hedmark. Åmot Vision Ringsaker Region Hedmarken The Bank’s vision, Together Elverum to create, promotes that it is Hamar teamwork with the environ- Løten ment that the Bank’s results will be attributed to. At the same time, the vision entails Stange Våler expectations about better Åsnes teamwork, several initiatives and better results. Grue Values Proficient, close and engaged are our customer values, and Sør-Odal signal that we would like to be Kongsvinger a professional working partner that defines needs and finds solutions with our customers. We will also be active and reach Region Glåmdalen out in customer contact. Eidskog THIS IS SPAREBANKEN HEDMARK 7 This is Sparebanken Hedmark Business concept Market Sparebanken Hedmark shall offer existing and new The bank has a unique competitive advantage by virtue of customers integrated and forward-looking banking and its 165 years of local knowledge. Sparebanken Hedmark insurance products. The aim of Sparebanken Hedmark has a market share of 50 percent, with approximately is to be so competent, close and committed that private 167,000 customers. The bank is close to the market with individuals, companies and the public sector will prefer to 500 full-time equivalents across 27 offices. have a long-term customer relationship with the bank. Through good profitability, sound financial strength and Self-owned independence the bank shall contribute to growth and Sparebanken Hedmark is a self-owned financial institution development in Hedmark. without Primary Capital Certificate (PCC) holders and equity of NOK 5 billion. Due to its unique form of ownership, the Vision bank does not issue dividends. It pays approximately 30 The bank’s vision, Together - to create, communicates that percent tax on its annual profit. The rest of the profit is put the bank’s profits are generated by its interaction with the to work and reloaned, benefiting Hedmark as a whole. communities it serves. At the same time the vision implies an expectation of better interaction, more initiatives and About Hedmark higher profits. With 190,000 inhabitants the people of Hedmark account for just over four percent of Norway’s population. In terms of Values area Hedmark is the third largest county in Norway. The Competent, close and committed, are our customer values county has scattered towns and small communities, and and signal that we want to be a professional partner that nearly half of the population lives in the municipalities of defines needs and finds solutions together with our Hamar, Ringsaker, Strange and Løten. Hedmark has a customers. We will also be active and outgoing in our diverse business community and is the country’s largest contact with customers. agricultural and forestry county. Broken down by sector, Sparebanken Hedmark is the leading private and business manufacturing, building and construction and the public bank in Hedmark. sector are the leading employers. Unemployment is on par with the national average. 165 years in Hedmark Sparebanken Hedmark can trace its ancestry back to 1845 Hedmark’s natural environs when funds from local granaries, forest commons, munici- Hedmark has a wide variety of scenery ranging from farm- palities and private individuals were pooled to found the land in its southern reaches to vast forests in the east and first savings banks. The bank is the result of mergers of mountain ranges in the north. Large parts of these moun- previously independent savings banks in Hedmark. Through tain ranges are protected. Norway’s largest lake, Mjøsa, and several mergers 22 local savings banks evolved to become the country’s longest river, Glomma, are important elements Hedmark’s largest source of capital. Headquartered in of our cultural landscape. Hamar, Sparebanken Hedmark took its current name in 1982. Co-owner of SpareBank 1 The Bank has been a co-owner of the Sparebank 1 Gruppen Mainstay (12 percent) since June 2006. The partnership ensures the Today Sparebanken Hedmark is a mainstay of Hedmark bank competitive advantages through efficient IT services, society with its many branches in 20 of the county’s 22 purchasing schemes and transfer of skills. Pooling our municipalities. The bank offers a wide range of products resources through our national alliance ensures local in loans, deposits, insurance and payment services. strength. This allows customers outside Hedmark to get As the leading player in our market area, we take responsi- better offers throughout the country since they can now deal bility for growth and development by financing individuals with all SpareBank 1 alliance bank offices. and companies who want to see good ideas come to fruition. In this way, the bank helps people build, live and work here.