1 Pohjola April 2008

Transcription

1 Pohjola April

2 OP-Pohjola Group & Pohjola Bank in brief 2 The leading financial services company in Finland - with a strong diversified presence in Retail and corporate banking Insurance Mutual Funds and Asset Management Market position 1. or 2. in all key areas One of the highest rated banks in Europe (AA-/Aa1/AA-; all stable) Characterised by a strong capital position stable earnings strong liquidity low loan loss provisions no SIV exposure, low risk exposure in bond portfolios OP Bank Group has changed name to OP-Pohjola Group, and OKO Bank to Pohjola Bank

3 Finnish Economy 3

4 Change in GDP volume 8 % 6 4 United States Finland EMU countries f Source: Reuters EcoWin

5 Trade balance and current account in Finland 12-month moving total 20 EUR billion 15 Trade balance 10 5 Current account f Source: Bank of Finland

6 Harmonized index* of consumer prices annual change 5 4 % * except United States United States EMU countries Finland Source: Reuters

7 25 % Unemployment rate in Finland Source: Statistics Finland

8 8 Average House Prices Average house prices have been increasing at a moderate phase compared with other European jurisdictions Average House Prices Index Finland France 1996=100 Netherlands Sweden United States Source: Reuters EcoWin, Statistics Sweden n Average House Prices 450 Index 1996= Great Britain Ireland 200 Finland Spain Source: Reuters EcoWin

9 Finnish Financial Industry 9

10 36 % OP-Pohjola Group market share of residential mortgages ,4 34,4 34,5 34,5 34,6 34,6 34,6 34,7 34,7 34,8 34,8 34,8 34, /07 3/07 5/07 7/07 9/07 11/07 1/08

11 11 Market Shares September 30, 2007 Deposits Loans 40 % 35 % * Nordea* OP Pohjola Group Danske Bank* Savings Banks Local Cooper. Banks Aktia Savings Bank Other 0 Nordea* OP Pohjola Group * Danske Bank* Handelsbanken Savings Banks Aktia Savings Bank Other

12 % Mutual fund companies market shares Nordea OP- Pohjola Group Source: Finnish Association of Mutual Funds Danske Bank SEB Gyllenberg Evli Glitnir Others

13 35 30 % 30,8 Market shares in life insurance Gross premiums written ,5 21, ,3 7,2 9,3 0 OP-Pohjola Group Nordea Sampo* Skandia Tapiola Others * Sampo Life and Kaleva

14 35 % Market shares of non-life insurance premiums written 2006 Domestic direct insurance ,6 26,3 20, ,4 8,6 6,6 5 0 If OP-Pohjola Group* Tapiola** Fennia Local Insurance*** * Pohjola Non-Life, A-Insurance and Eurooppalainen ** incl. Turva *** incl. Palonvara Other Source: Federation of Finnish Financial Services

15 15 OP-Pohjola Group Structure, strategies and financial performance

16 16 The Structure of OP-Pohjola Group and Pohjola Bank Group Retail Bank in in Helsinki Area Mutual Funds Life Insurance Other OP-Pohjola Group Central Cooperative 229 Member Cooperative Banks Banking and Investment Services Pohjola Bank plc OP Mortgage Bank Non-life Insurance Legal structure: OP-Pohjola Group has joint and several liability for each others commitments.

17 17 Joint Responsibility for Liability Joint responsibility within the OP-Pohjola Group is based on the Cooperative Bank Act and the Member Credit Institutions are committed to the joint responsibility in their articles of association (commercial banks) or statutes (Member Cooperative Banks) In the event that a Member Credit Institution or the Central Cooperative is unable to pay any debts owed the other Member Credit Institutions/ Central Cooperative are jointly and severally responsible for paying that debt The outstanding debt is apportioned among the Central Cooperative and the Member Credit Institutions in proportion to their assets as a percentage of the total group assets from the most recently adopted balance sheets The joint responsibility under the cooperative system includes the Central Cooperative and its Member Credit Institutions The Member Cooperative Banks of the OP-Pohjola Group, Pohjola Bank plc Helsinki OP Bank Plc, OP-Kotipankki Oyj and OP Mortgage Bank Insurance companies within the OP-Pohjola Group are not included in the cooperative joint responsibility

18 % 40 OP-Pohjola Group on the deposit and lending markets* * Up until 12/2002 deposit banks' loans to and deposits placed by Finnish non-mfi's; since 1/2003 MFI's loans to and deposits placed by euro area non-mfi's Market share of lending Market share of deposits 0 Latest value 6/

19 19 OP-Pohjola Group Earnings before tax, 12 month moving total FAS 1, million

20 20 OP-Pohjola Group Income statement million Change 1 January to 31 December million % Net interest income 1, Other income 1,198 1, Total income 2,246 1, Personnel costs Other expenses Total expenses 1,129 1, Impairment losses on receivables Returns to owner-members Earnings before tax 1,

21 Diversified business mix 21 OP-Pohjola Group - Earnings before tax, 1-12/2007 Pohjola Bank Group - Earnings before tax, 1 12/ % 18% 44% 56% 69% Banking and Investment Services Non-Life Insurance Life Insurance Banking and Investment Services Non-Life Insurance

22 22 OP-Pohjola Group Balance sheet items million 12/ /2006 Total assets Credit stock Non-performing and zero-interest claims Deposits Equity capital

23 OP-Pohjola Group Ratios 23 12/ /2006 Net interest margin, % * Cost/ income ratio, Banking and Investment Services, % Return on equity (ROE), % Return on equity at fair value, % Return on assets (ROA), % Non-performing and zero-interest bearing receivables of loans and guarantees, % Tier 1 ratio, % Capital adequacy ratio, % * Net interest income as a % of average total assets

24 24 The amalgamation of the cooperative banks Own funds and capital adequacy 6 6,000 million % 24 Tier 2 own funds Subordinated loans ,3 14,3 14,3 14,1 13, ,7 12,8 12,6 12,7 12,6 12 Tier 1 own funds excl. capital loans Capital adequacy ratio, % Dec March 2007 June 2007 Sept Dec Tier 1 funds/ Riskweighted items, total, % Deductions of own funds are not included

25 Nordic banks: Total capital ratio Danske Bank Nordea Latest data: September 30, 2007 SEB Handelsbanken DnB NOR Swedbank OP-Pohjola Group Sampo Bank %

26 Asset Mix OP-Pohjola Group Loans and leasing assets by sector 26 December 31, 2007 Households: other loans 23% Corporates 29% Telecommunications and electronics 2% Construction 6% Services 9% Others 7% Communication and publishing 2% Housing associations 11% Energy 2% Food industry 3% Wholesale and retail trade 12% Households: housing loans 48% Other industry 4% Forest industry 4% Metal industry 5% Transports and traffics 5% Real-estate activities 28%

27 27 OP-Pohjola Group Loan portfolio by sector Change Non-performing and zero-interest loans million 31 Dec Dec million % 31 Dec Of loans Corporate loans and leasing assets 12,822 29% 11,122 28% 1,700 15% % Industry 2,310 5% 2,111 5% 199 9% % Construction 803 2% 693 2% % 5 0.7% Trade and catering 1,936 4% 1,585 4% % % Property investment 3,287 7% 2,822 7% % % Other companies 3,057 7% 2,618 7% % % Housing corporations 1,429 3% 1,294 3% % 2 0.1% Finance and insurance 12 0% 44 0% % 0 0.0% Public corporations and non-profit organisations 854 2% 765 2% 89 12% 1 0.1% Households 30,560 68% 27,351 69% 3,208 12% % Home mortgages 21,547 48% 18,953 48% 2,593 14% % Foreign 589 1% 411 1% % 0 0.0% Other items, net -62 0% Total 44, % 39, % 5,181 13% %

28 28 OP-Pohjola Group Non-performing and zero-interest loans million 31 Dec Dec Dec Dec Dec Households Companies Housing corporations and others Total Non-performing loans of loan and guarantee portfolio, % 0,3 0,3 0,4 0,5 0,6

29 Pohjola Bank plc 29

30 Earnings before tax by business line January-December 30 million Banking and Investment Services Non-life Insurance Other operations 1-12/ /2007

31 31 Financial Targets Q1/2007 Q2/2007 Q3/2007 Q4/2007 Target 31 March June Sept Dec Banking and Investment Services Operating return on equity, % > 19 Operating cost/income ratio, % < 40 Non-life Insurance Operating return on equity, % > 20 Operating combined ratio, % Operating expense ratio,% < 20 Solvency ratio Group Return on equity at fair value, % Tier 1 ratio (previous approach) Tier 1 ratio (new approach) > 8.5

32 Own funds and capital adequacy 32 million % /02 12/03 12/04 12/05 12/06 12/ Deductions of own funds are not disclosed. Tier 1 Tier 2 Capital adequacy ratio, % Tier 1 ratio, %

33 Quarterly Income statement 33 million 1-3/07 4-6/06 7-9/ /06 1-3/07 4-6/07 7-9/ /07 Net interest income Impairment losses on receivables Net interest income after impairment losses Net income from non-life insurance Net commissions and fees Net trading income Net investment income Other operating income Total income Personnel costs IT expenses Amortisation on intangible assets from acquisition Other depreciation and amortisation Other expenses Total expenses Share of associates' profits/losses Earnings before tax

34 Funding Profile 34

35 35 Credit Ratings*) Moody's Investors Standard Fitch Service & Poor s Ratings Pohjola Bank Aa1 AA- AA- Danske Bank Aa1 AA- AA- Handelsbanken Aa1 AA- AA- Nordea Aa1 AA- AA- Swedbank Aa1 A+ A+ DnB NOR Aa1 AA- - SEB Aa2 A+ A+ Pohjola Non-Life Insurance**) A2 A+ - If **) A2 A - Finnish government Aaa AAA AAA *) Long-term debt **) Insurer financial strength Companies internet pages 4/08

36 36 OP-Pohjola Group Funding Profile 70 billion Non-life insurance liabilities Life insurance liabilities Liabilities to financial institutions Liabilities to customers Dec Dec Debt securities issued to the public Other liabilities Equity capital

37 37 Issued Senior Debt by Maturity Other USD EUR

38 38 LT2, UT2 and Tier1 by Call date Tier1 Upper tier2 Lower tier

39 39 Contact Information Ilkka Salonen, CFO tel mobile Hanno Hirvinen, Executive Vice President Head of Group Treasury tel mobile

40 40

41 APPENDIX: Additional information on liquidity reserve 41

42 42 Banking and Investment Services Liquidity Reserves by Maturity and Credit Rating on 31 Dec ( million) Year (s) Total % AAA % AA % A % BBB % BB+ or lower % Internally rated % %

43 43 Non-life Insurance Fixed-income Portfolio by Maturity and Credit Rating on 31 Dec ( million) Year(s) Total % AAA % AA % A % BBB % BB+or lower % Internally rated % %