Handelsbanken January June July 2009

Transcription

1 Handelsbanken January June July 2009

2 Summary January - June 2009 compared with January June 2008 Operating profit increased by 14% till SEK 7,251m (6,352) Return on shareholders equity increased to 13.1% (12.9) Net interest income rose by 24% to SEK 11,031m (8,893) The C/I ratio improved to 45.3% (49.0) The average volume of loans increased by 13% Household deposits rose by 21% The capital ratio increased to 18.4% (16.1) Tier 1 capital according to Basel II went up to 12.6% (10.6) The liquidity reserve exceeded SEK 450bn 2

3 Income statement, January - June Change SEK m % Net interest income 11,031 8, Net fee and commission income 3,595 3,445 4 Net gains/losses on financial items at fair value 1, Other income Total income 16,606 13, Staff costs -4,981-3, Other expenses -2,539-2,567-1 Total expenses -7,520-6, Profit before loan losses 9,086 6, Loan losses, net -1, Disposal prop. equipmt./ intang. assets Operating profit 7,251 6,

4 Income statement, Q compared to Q Change SEK m Q2 Q1 % Net interest income 5,638 5,393 5 Net fee and commission income 1,856 1,739 7 Net gains/losses on financial items at fair value 541 1, Risk result - insurance Other income Total income 8,220 8,386-2 Staff costs -2,539-2,442 4 Other expenses -1,297-1,242 4 Total expenses -3,836-3,684 4 Profit before loan losses 4,384 4,702-7 Net loan losses Disposal prop. equipmt./ intang. assets Operating profit 3,445 3,

5 Key ratios, January - June RoE, actual tax 13.1% 12.9% RoE, after standard tax 13.3% 12.6% C/I-ratio 45.3% 49,0% Earnings per share continuing operations, SEK moving 12 months

6 Capital ratio and Tier I ratio, June Change Capital ratio, Basel II 18.4% 16.1% Tier I ratio, Basel II 12.6% 10.6% Capital base, SEK m Tier I capital, SEK m Shareholders equity, SEK m

7 Financial strength Assets Liabilities Rating Long-term Short-term Moody s Aa1 P-1 S&P AA- A-1+ Fitch AA- F1+ Liquidity reserve >450 SEK bn Lending etc. Senior funding, deposits etc. Capital base 18.4% 7

8 Q2-98 Q4-98 Q2-99 Q4-99 Q2-00 Q4-00 Q2-01 Q4-01 Q2-02 Q4-02 Q2-03 Q4-03 Q2-04 Q4-04 Q2-05 Q4-05 Q2-06 Q4-06 Q2-07 Q4-07 Q2-08 Q4-08 Q2-09 Handelsbanken Group Net interest income, quarterly SEK m From 2004 according to IFRS

9 - Handelsbanken Group Change in net interest income, Q2 compared to Q1 SEK m Net interest income Q Deposits in Sweden - margin volume 1 Lending in Sweden - margin 13 - volume 9 Volume & margin branch offices outside Sweden 149 Mandatory fees, deposit insurance, stability fund 46 Other 67 Change in net interest income 245 Net interest income Q % RR 9 3M STIBOR ref.rate in the respective quarter.

10 - Handelsbanken Group Change in net interest income, January - June SEK m 2009 vs Deposit in Sweden - margin volume 128 Lending in Sweden - margin volume 257 Volume & margin branch offices outside Sweden Mandatory fees, deposit guarantees,stability fund -234 Other 948 Change in net interest income Ref.rate 2008, 1M STIBOR and in M STIBOR has been used

11 Higher interest rates provide significant potential Change in net interest income SEK m 4,500 Illustration of how changes in interest rate levels impact the net interest income generated by Swedish household deposits and the Group's equity 4,000 3,500 3,000 2,500 2,000 1,500 1, % +0.25% +0.50% +0.75% +1.00% +1.25% +1.50% +1.75% +2.00% +2.25% +2.50% +2.75% +3.00% Change in interest rate level 11

12 Deposits from the public, January - June Average volumes, SEK bn Change % Branch offices in Sweden Private Corporate Total Branch offices outside Sweden Private Corporate Total Other operations Total

13 Loans to the public, January - June Average volumes, SEK bn Change % Branch offices in Sweden Private Of which mortgage loans Corporate Total Branch offices outside Sweden Private Corporate Total Other operations Total

14 Fees and commissions Q2 Q1 Jan Jun 09 / SEK m Jan Jun 08 Q2 09/Q2 08 Brokerage % Mutual funds and custody % Advisory services % Insurance % Payments % Lending & deposits % Guarantees % Other % Commission expenses % Total 1,856 1,739 7% 4% 9% 14

15 Equity-related commissions Q2 Q1 Q4 Q3 Q2 SEK m Brokerage Mutual funds and custody Corporate finance Commission expenses Total Market shares OMX Stockholm Turnover, % 8,37 6,48 7,92 7,60 7,63 Number of trades, % 6,48 6,30 6,20 5,89 5,67 15

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

17 Market risks reduced by more than 50% Handelsbanken s Bankens kapitalkrav för capital marknadsrisker requirement Basel II, for mnkr market risk in Basel II, SEK m jun-06 sep-06 dec-06 mar-07 jun-07 sep-07 dec-07 mar-08 jun-08 sep-08 dec-08 mar-09 jun-09 Market Marknadsrisk risk total 17

18 Expenses, January June Change Change Change SEK m SEK m % Q2-Q1 % Staff costs -4,981-3,929 1, Other expenses -2,300-2, Depreciation Total expenses -7,520-6,496 1, %-points Oktogonen Performance-related remuneration IAS Exchange rate fluctuations Lokalbanken Running costs ,

19 Bad debts and loan losses as a percentage of lending Proportion of bad debts, net Loan loss ratio % % 1,0 1,0 0,8 0,8 0,6 0,6 0,4 0,4 0,2 0,2 0,0 0,0-0, ,2 19

20 Share of net bad debts 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% SHB bad debt / Total bad debt, SHB and peers* 14% 13% 12% 11% 10% SHB loans to the public / Total loans to the public, SHB and peers* Q1 06 Q3 06 Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q1 06 Q3 06 Q1 07 Q3 07 Q1 08 Q3 08 Q * Peers: SEB, Nordea, Swedbank, Danske Bank and DnB NOR. The exchange rate as at 30 June 09 (EUR, DKK and NOK) has been used when converting all quarters

21 Loan loss ratio second quarter 2009 % Sweden 0.31 Norway 0.09 Finland 0.13 Denmark 0.31 Great Britain 0.13 International 0.12 Group

22 Loan losses as a percentage of lending % 1,75 1,50 1,25 1,00 0,75 0,50 0,25 0,00 Handelsbanken Other Swedish banks* -0, ** 22 Q2 2009: Average of SEB and Swedbank. ** Nordea is included with figures for Q1 2009

23 Sum of interest income and loan losses Handelsbanken Peers * SEK m SEK m Q2 06 Q4 06 Q2 07 Q4 07 Q2 08 Q4 08 Q Q2 06 Q4 06 Q2 07 Q4 07 Q2 08 Q4 08 ** Q * SEB, Nordea, Swedbank, Danske Bank and DnB NOR ** Q2 09: Danske Bank and Nordea are included with figures for Q1 2009

24 Branch office operations in Sweden January June 2009 Operating profit SEK 4,516m RoE 17.5% Income increased by 5% Net interest income increased by 10% C/I ratio before loan losses 36.1% Number of branch offices 461 Average number of employees 4,489 Average volumes, SEK bn Loans 970 Deposits

25 Branch operations in Sweden increased productivity The average working hours spent on talking to customers has increased by 51% since 2006 Index 2006 = % 151 The goal of increasing the time spent with customers by 50% between 2006 and 2010 was already achieved in 2009 There is potential for even more improvement

26 Loans to corporates in Sweden SEK bn, end of period Dec 2008 May 2009 New loans Handelsbanken Other banks Total market Refers to bank and mortgage loans to non-financial companies in Sweden

27 Branch operations in Sweden Active customers Private customers, thousands Corporate customers, thousands All values as of June 30 in the respective year.

28 Branch office operations outside Sweden January June 2009 Operating profit SEK 1,583m RoE 8.6% - excl. operating deficit 10.3% Total income increased by 31% Net interest income increased by 40% C/I ratio 54.0% Number of branch offices 245 Average number of employees 3,013 Average volumes, SEK bn Loans 516 Deposits

29 Handelsbanken had 62 branches in Great Britain January June 2009 Net interest income rose by 24% (Q2/Q1 +25%) Lending volumes rose by 18% Loan loss ratio: 0.12% London 1988 London 1989 Manchester 1989 Manchester 1994 Birmingham 1994 Birmingham 2000 Nottingham 2000 Nottingham 2001 Leeds 2001 Reading Leeds Reading 2002 Bristol 2002 Newcastle Bristol upon Tyne Newcastle upon Tyne 2003 Cardiff 2003 Southampton Cardiff Southampton 2004 Norwich 2004 Guildford Norwich Chelmsford Guildford Stoke Chelmsford Hull Stoke Hull 2005 Liverpool 2005 Bournemouth Liverpool Plymouth Bournemouth Maidstone Plymouth Cambridge Maidstone Cambridge 2006 Slough 2006 Sheffield Slough Wolverhampton Sheffield Oxford Wolverhampton Leicester Oxford Swindon Leicester Swindon 2007 Doncaster 2007 Brighton Doncaster Preston Brighton Bath Preston Tees Bath Valley Croydon Tees Valley Portsmouth Croydon London Portsmouth West End Milton London Keynes West End Northampton Milton Keynes Wakefield Northampton Enfield Wakefield Coventry Enfield Basingstoke Coventry Carlisle Basingstoke Chester Carlisle Chester 2008 Exeter 2008 Swansea Exeter St Swansea Albans Crawley St Albans Bradford Crawley Grimsby Bradford Dartford Grimsby Kingston Dartford Shrewsbury Kingston Harrogate Shrewsbury Lincoln Harrogate Scarborough Lincoln Stockport Scarborough Tunbridge Stockport Wells Tunbridge Wells 2009 Derby 2009 Huddersfield Derby Warrington Huddersfield Harrow Warrington Glasgow Harrow Edinburgh Glasgow Edinburgh

30 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 Q4 08 Q1 09 Q2 09 Branch offices outside Sweden Number of branch offices within regional banks outside Sweden 30 * Lokalbanken s 14 branch offices are included from October

31 Continued issuance of bonds in a turbulent market SEKm 30,000 25,000 20,000 LEH files for Chapter 11 Fed takes 80% stake in AIG in exchange for a $85bn loan Global fall in order intake SHB opens the Hybrid T1 market EUR 1.25bn 5 y First Nordic unguaranteed issue since Lehman s collapse Economic problems in the Baltics GBP 550 mn 7 y First unguaranteed, non- UK financial bond issue in 2009 Private placements in SEK and NOK USD 1.25bn 5 y 144A/Reg S offering Private placements in SEK and NOK 15,000 10,000 5,000 0 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Covered bonds, net Senior bonds Hybrid bonds 31 Source: Bloomberg, Handelsbanken.

32 Net lending in SEK in the Swedish interbank market 28 January June 2008, weekly At quarter-end, liquidity reserves of over SEK 450 bn Handelsbankens nettoutlåning i SEK på den svenska interbankmarknaden SEKm Mnkr V1 V4 V8 V12 V16 V20 V24 V28 V32 V36 V40 V44 V48 V52 V1 V4 V8 V12 V16 V20 V24 V

33 Summary second quarter 2009 Branch operations Active customers Private customers, thousands Corporate customers, thousands All values as of June 30 in the respective year.

34 Summary During April and May, Handelsbanken s lending to Swedish companies increased by SEK 2.3bn, while the total market decreased by SEK 28.5bn The Bank had 39% of new lending to Swedish companies during the period June 2008 to May 2009 The Bank took one-third of new Swedish household deposits from January to May Great Britain: Net interest income increasing, new branches opening, loan loss ratio 0.13% in the second quarter During the second quarter, SEK 91bn was issued in new long-term bond funding, without a government guarantee The liquidity reserve is sufficient to fund the Bank for more than 2 years without access to the capital markets The loan loss ratio outside Sweden was 0.13% during the second quarter Swedish branch operations have increased the time spent with customers by 51% since The number of active customers is increasing

35 35 Appendix

36 - Regional banks in Denmark, Finland, Norway and Great Britain Income and expenses trend 153 branches opened SEK, m Average per branch* Number of branch offices Income Expenses Number of branch offices, June ** 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 12 Y * Refers to figures for ** Refers to the period January June 2009

37 Income statement, five quarters Q2 Q1 Q4 Q3 Q2 SEK m Net interest income 5,638 5,393 5,474 4,856 4,494 Net fee and commission income 1,856 1,739 1,694 1,656 1,706 Net gains/losses on financial items at fair value 541 1,141 2, Risk result - insurance Other income Total income 8,220 8,386 9,512 7,124 7,199 Staff costs -2,539-2,442-2,170-2,015-1,946 Other expenses -1,297-1,242-1,430-1,118-1,249 Total expenses -3,836-3,684-3,600-3,133-3,195 Profit before loan losses 4,384 4,702 5,912 3,991 4,004 Loan losses, net Disposal prop. equipmt./ intang. assets Operating profit, continuing operations 3,445 3,806 5,216 3,758 3,433 Operating profit, discontinued operations Operating profit, incl. discont. op. 3,445 3,821 5,277 3,828 3,501 37

38 Fee to the Stabilisation fund, January June SEK bn 2009 Total liabilities and equity reduction for total equity, untaxed reserves and subordinated loans -145 reduction for intercompany liabilities -201 Base for calculation of fee* SEK m Fee 0.036% 705 reduction 50% during 2009 and Total fee Accrued fee Jan-Jun * Applies to credit institutions within the Group affected by the new Stabilisation fund law

39 39 Handelsbanken Group Oktogonen quarterly Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q SEK m Expense Adjust for previous yr

40 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-June 2009 was 27.1% and Q %, Q % and Q % 40

41 Balance sheet, June 30 Change SEK bn % Loans to the public 1,499 1,369 9 Loans to credit institutions Interest-bearing securities Other assets Total assets 2,155 1, Deposits and borrowing from the public Due to credit institutions Issued securities 1, Other liabilities Shareholders equity Total liabilities and equity 2,155 1,

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

43 Lending outside Sweden, January - June Average volumes Change % *Denmark, DKK bn Finland, EUR m 10,463 9, Norway, NOK bn Great Britain, GBP m 5,392 4, Rest of the world, SEK bn * Lokalbanken included from October

44 Deposits from the public, quarterly Average volumes Q2 Q1 Q4 Q3 Q21 SEK bn Branch offices in Sweden Private Corporate Branch offices outside Sweden Private Corporate Other operations Total Private Corporate

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

46 Conditional bonus* in relation to total insurance assets SEK m 2009:Q Conditional bonus 1,757 3,327 4,824 5,713 4,874 3,552 % of total insurance assets * Refers to conditional bonus from a customer perspective