Handelsbanken January December February 2009

Transcription

1 Handelsbanken January December February 2009

2 Summary Q compared with Q Operating profits rose by 39% to SEK 5,216m and by 20% excluding capital gains Net interest income went up by 13% to SEK 5,474m Inflow of household deposits +7%, loans to the public increased by 63bn The Bank had 52% of new loans to Swedish companies and acquired 3,061 new corporate customers during the quarter Good reputation in the funding market led to low funding costs Liquidity reserves of more than SEK 300bn Continued high level of cost-effectiveness in the Swedish branch operations The Bank issued risk-bearing Tier I capital loans for SEK 2.6bn Tier I capital ratio calculated according to Basel II rose to 10.5% and return on equity was 23.8% 2

3 Summary January-December 2008 compared with January-December 2007 Operating profits went up by 4% to SEK 15,326m Income grew more rapidly than expenses Net interest income rose by 23% to SEK 19,223m Liquidity was good throughout the period Record inflow of household deposits, 19%, lending increased by 15% The number of satisfied customers continued to increase The board proposes an ordinary dividend of SEK 7.00 per share (8.50) 3

4 Income statement, Q compared to Q Q4 Q3 Change SEK m % Net interest income 5,474 4,856 Net fee and commission income 1,694 1,656 Net gains/losses on financial items at fair value 2, Risk result - insurance Other income Total income 9,512 7,124 Staff costs -2,170-2,015 Other expenses -1,430-1,118 Total expenses -3,600-3,133 Profit before loan losses 5,912 3,991 Loan losses, net Disposal prop. equipmt./ intang. assets 0-2 Operating profit 5,216 3,

5 Key ratios Q Q Jan-Dec 2008 RoE total operations, actual tax 24.0% 15.4% 16.2% RoE total operations, after standard tax 20.0% 15.1% 15.0% C/I-ratio, before loan losses continuing operations 37.8% 44.0% 44.3% Earnings per share total operations, SEK Capital ratio, Basel II 16.0% 15.2% 16.0% Tier I ratio, Basel II 10.5% 10.0% 10.5% Change Q4 Tier I ratio, SEK m 5,074 5

6 Q3-07 Q1-08 Q3-08 Q3-06 Q1-07 Q1-06 Q3-05 Q1-05 Q3-04 Q1-04 Q Handelsbanken Group Net interest income, quarterly SEK m Q1-98 Q3-98 Q1-99 Q3-99 Q1-00 Q3-00 Q1-01 Q3-01 Q1-02 Q3-02 Q From 2004 according to IFRS

7 Deposits from the public Q 4 Change Change Average volumes, SEK bn 2008 Q Q Branch offices in Sweden Private 157 7% 22% Corporate 146 7% 16% Total 303 7% 19% Branch offices outside Sweden Private 41 8% 24% Corporate % 7% Total % 11% Other operations 47-14% -42% Total 507 6% 6% 7

8 Loans to the public Q4 Change Change Average volumes, SEK bn 2008 Q Q Branch offices in Sweden Private 472 2% 10% of which mortgage loans 413 2% 10% Corporate 488 3% 10% Total 960 2% 10% Branch offices outside Sweden Private 131 8% 21% Corporate % 42% Total 489 9% 36% Other operations 13-1% -30% Total 1,462* 5%* 16% 8 * Of which currency effect SEK 18.4bn, excl currency effects volume increases by 3%

9 Fees and commissions, Q compared to Q SEK m Q4 Q3 Change % Brokerage Mutual funds and custody Advisory services Insurance Payments Lending & deposits Guarantees Other Commission expenses Total 1,694 1,

10 Net gains/losses on financial items at fair value SEK m Trading* Stapel 2 Available for sale Other Liquidity portfolio Q4 Q1 Q2 Q3 Q *Incl fair value option

11 Expenses, January December SEK m Change SEK m Change % Staff costs -8,114-7, Other expenses -4,688-4, Depreciation Total expenses -13,229-12, %-points Expenses outside Sweden Expenses in Sweden

12 Expenses, Q compared to Q Change Change SEK m Q 4 Q 4 SEK m % Staff costs -2,170-1, Other expenses -1,309-1, Depreciation Total expenses -3,600-3, %-points Expenses outside Sweden Expenses Sweden of which IAS of which other

13 Bad debt and loan losses as a percentage of lending Proportion of bad debts, net, % Loan loss ratio, % 1,2 1,2 1,0 0,8 0,6 0,4 0,2 0,0-0, ,0 0,8 0,6 0,4 0,2 0,0-0,2 13

14 Branch office operations in Sweden January December 2008 Operating profit SEK 9,944m RoE 19.9% Income increased by 7% Net interest income increased by 17% C/I ratio before loan losses 37.7% Number of branch offices 461 Average number of employees 4,681 Average volumes, bn Loans 930 Deposits

15 Change in private deposits in Sweden 2008, quarterly Market share deposits Q4 17.7% Q3 17.1% Q2 16.6% Q1 16.2% Account deposits Net savings mutual funds 16.0 % in Dec SEK m 15 Account deposits, change in average balance Mutual fund savings, deposits minus withdrawals during the quarter in funds managed by Handelsbanken Fonder AB

16 New corporate customers in Sweden 2008, quarterly Two thirds of new corporate customers were acquired in Q Q Q Q Q

17 Direct loans to corporates in Sweden, Q In Q4, total bank lending to companies in Sweden increased by SEK 22.5bn Handelsbanken +SEK 11.6bn 52% 48% Other banks +SEK 10.9bn Source: Statistics Sweden Refers to bank and mortgage loans to non-financial companies in Sweden 17

18 Branch operations in Sweden more time for meeting customers Average time spent meeting customers has increased by 40% since 2006 Total productivity Index 2006= Increased time with customers improvement of 8% 75 Freed up time equivalent to 250 full-time employees C/I ratio in Q4 was 35.4% Spring 2008 Autumn Source: Frequency measurements and information on number of available staff , Swedish branch operations

19 Branch offices in Sweden Profit per employee Profit before loan losses, SEK m 10,778 9,633 Average number of employees 4,681 4,500 Profit per employee, SEK thous. 2,302 2,141 Profit per employee increased by 8% or SEK164 thous. in

20 Branch office operations outside Sweden January December 2008 Operating profit SEK 2,264m RoE 8,3% -excl. operating deficit 9,8% Total income increased by 22% Net interest income increased by 33% C/I ratio 59.0% Number of branch offices 241 Average number of employees 2,785 Average volumes, bn Loans 433 Deposits

21 Lending outside Sweden Average volumes Jan-Dec 2008 Jan-Dec 2007 Change % Denmark, DKK bn Finland, EUR m 9,857 8, Norway, NOK bn Great Britain, GBP m 4,812 3, Rest of the world, SEK bn * Lokalbanken included from 21 October

22 Net interest income outside Sweden, quarterly SEK m No Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q Branch offices outside Sweden *Lokalbanken s 14 branch offices, included from 21 October 2008 Number of branch offices within regional banks outside Sweden

23 - Regional banks outside Sweden Income and expenses trend 147 branches opened Average per branch, SEK m* Branch offices Total income Total expenses Number of branch offices, Dec Y 0 Y 1 Y 2 Y 3 Y 4 Y 5 Y 6 Y 7 Y 8 Y 9 Y 10 Y 11 Y * Refers to figures for

24 Net lending in SEK in the Swedish interbank market 28 January December 2008, weekly SEK m Proportion of bond funding has increased from 29% to 33% since January At year-end, liquidity reserves of over SEK 300 bn v 01 v 04 v 07 v 10 v 13 v 16 v 19 v 22 v 25 v 28 v 31 v 34 v 37 v 40 v 43 v 46 v 49 v 52

25 Summary of the fourth quarter Highest quarterly result ever Increase in volumes and good funding position led to higher net interest income Liquidity reserves of more than SEK 300bn Tier 1 ratio increased to 10,5% according to Basel II SEK 2.6bn in new Tier 1 capital loans Record high increase in lending volume and household deposits and strong inflow of deposits from credit institutions Loan loss ratio increased to 0.11% during 2008 Return on equity in continuing operations was 23.8% and excluding capital gains it was 20.0% 25

26 Dividend Per share, SEK ordinary ,00 Per share, SEK additional 5.00 Number of shares class A and B Change, % ordinary dividend Dividend, SEK m Class A and B 8,416 4,364 Profit per share, Profit per share, continuing operations Dividend as % of profit per share

27 27 Appendix

28 Income statement, five quarters Q4 Q3 Q2 Q1 Q4 SEK m Net interest income 5,474 4,856 4,494 4,399 4,010 Net fee and commission income 1,694 1,656 1,706 1,739 1,956 Net gains/losses on financial items at fair value 2, Risk result - insurance Other income Total income 9,512 7,124 7,199 6,055 6,616 Staff costs -2,170-2,015-1,946-1,983-1,995 Other expenses -1,430-1,118-1,249-1,318-1,354 Total expenses -3,600-3,133-3,195-3,301-3,349 Profit before loan losses 5,912 3,991 4,004 2,754 3,267 Loan losses, net Disposal prop. equipmt./ intang. assets Operating profit, continuing operations 5,216 3,758 3,433 2,919 3,101 Operating profit, discontinued operations Net gain from disposal of discontinued op. 4,082 Operating profit, incl. discont. op. 5,277 3,828 3,501 2,980 7,360 28

29 Income statement, January December Change SEK m % Net interest income 19,223 15, Net fee and commission income 6,795 7, Net gains/losses on financial items at fair value 3,169 3,045 4 Risk result - insurance Other income Total income 29,890 27, Staff costs -8,114-7,528 8 Other expenses -5,115-4,840 6 Total expenses -13,229-12,368 7 Profit before loan losses 16,661 14, Loan losses, net -1, Disposal prop. equipmt./ intang. assets Discontinued operations 260 4, Operating profit, incl. discont. op. 15,586 19,

30 Loan loss as a percentage of lending % 0,25 0,20 0,15 0,10 0,05 0,00-0,05 Handelsbanken Other Swedish banks -0, * Only SEB updated with year-end figures, other Swedish banks as at 30 September

31 Change in net interest income, Q compared to Q SEK m Net interest income Q ,856 Deposits SEK - margin volume 82 Lending SEK - margin volume 37 Volume & margin branch offices outside Sweden 149 Other 380 Change in net interest income 618 Net interest income Q , % 3M STIBOR ref.rate in the respective quarter. 31

32 - Handelsbanken Group Change in net interest income, January - December SEK m 2008 compared to 2007 Deposit SEK - margin volume 731 Lending SEK - margin volume 533 Volume & margin branch offices outside Sweden 1,387 Other * 1,122 Change in net interest income ex IFRS effects 3,719 IFRS effect repurchased bonds -104 Change in net interest income 3, Ref. rate from 2007 incl. to Q incl, 1M STIBOR and in Q3-4, 3M STIBOR has been used

33 Effect of repurchased bonds SEK m Total Q Q Q Q Total

34 Fees and commissions, January December SEK m Change % Brokerage 1,676 2, Mutual funds and custody 1,559 2, Advisory services Insurance Payments 2,257 2,153 5 Lending & deposits Guarantees Other Commission expenses -1,235-1,298-5 Total 6,795 7,

35 Equity-related commissions, January December SEK m Change % Brokerage 1,640 2, Mutual funds and custody 1,449 1, Corporate finance Commission expenses Total 3,024 4,

36 Q Q Q Q Q Handelsbanken Group Oktogonen quarterly SEK m Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Expense Adjust for previous yr

37 Expenses, Q compared to Q Change Change SEK m Q 4 Q 3 SEKm % Staff costs -2,170-2, Other expenses -1,309-1, Depreciation Total expenses %-points Expenses outside Sweden of which FX-effect of which Oktogonen of which other Expenses Sweden of which non-recurring costs of which other

38 Effective tax burden Corporation tax on the profit for banking operations No tax on the administration result and the risk result in the insurance operations, except for outright risk insurance The yield split has already been taxed Corporation tax on yield on shareholders equity in the insurance operations Effective tax burden January-December was 22.1% (26.3% excl SPP sales) and Q % (Q3 26.6% Q 27.7%) The lower tax rate for 2008 is due to Profit on sale of property and shares in NCSD AB is not taxed Changed corporation tax rate from 2009 affects the deferred taxes 38

39 Balance sheet, 30 December Change SEK bn % Loans to the public 1,481 1, Loans to credit institutions Interest-bearing securities Other assets Total assets 2,159 1, Deposits and borrowing from the public Due to credit institutions Issued securities Other liabilities Shareholders equity Total liabilities and equity 2,159 1,

40 Loans to the public, quarterly Average volumes Q4 Q3 Q2 Q1 Q4 SEK bn Branch offices in Sweden Branch offices outside Sweden Private Corporate Other operations Total 1,462 1,399 1,346 1,310 1,256 Private Corporate

41 Market shares in Sweden, Jan 2007 Dec % Market share, Lending to non-financial companies in Sweden 29% 28% 29.0% 27% 26% 26.1% 25% 24% 23% 22% 21% 20% jan-07 apr-07 jul-07 okt-07 jan-08 apr-08 jul-08 okt Source: SCB (Statistics Sweden)

42 Deposits from the public, quarterly Average volumes Q4 Q3 Q2 Q1 Q4 SEK bn Branch offices in Sweden Private Corporate Branch offices outside Sweden Private Corporate Other operations Total Private Corporate

43 Loans to the public Branch offices in Sweden, quarterly Average volumes Q4 Q3 Q2 Q1 Q4 SEK bn Mortgage loans Private Corporate Bank loans Private Corporate Total Branch offices in Sweden Private Corporate

44 Conditional bonus* in relation to total insurance assets SEK m 31 Dec Conditional bonus 3,327 4,824 5,713 4,874 3,552 3,248 % of total insurance assets * Refers to conditional bonus from a customer perspective