Banking Activities Norway

Transcription

1 Banking Activities Norway Growth and profitability Copenhagen, January 2006 Thomas F. Borgen, Managing Director

2 From consolidation to expansion, growth and profitability Growth and profitability New branches, recruitment and product development Consolidation and credit clean up Fokus Bank acquired by Danske Bank 2

3 Banking Activities Norway building blocks Ownership Profitability Growth Infrastructure Competence Customer Satisfaction/ Loyalty Branding 3

4 Being part of DB means competitive advantages Demanding core values Integrated IT template Services Products Processes Strong risk management Credit policy & processes Market risks Administrative support Standardizing Scale advantages Solid capital base Credit power Funding stability & ability 4

5 Expansion new Branches and Business Areas 5

6 Distribution 70 branches 21 new branches since 2002 Fokus Dialog call centre Internet banking Telephone banking Real estate agency 2,650 km... multi-channel accessibility and branch network almost complete 6

7 Start-ups new branches - finished in Break even Cost of capital y1 y2 y3 y4 y5 y6 (Only private customers - time to breakeven shortens with corporates included) 7

8 Investment in new branches - substantial gearing effect in 2007 onwards Financial status - new branches 25 Number of branches Minus Break-even Positive 8

9 Banking is people The right people on the buss 500 new employees (>50%) Training Fokus Ambassador 9

10 Customer centric organisation Group Finance CEO Thomas F. Borgen Danske Markets Group Support CFO Leif J Laugen Fokus Markets Anders Eide Credit - Jens Jørgen Jensen Legal - Thorbjørn Gjerde Support Jan-Frode Janson Region North Trondheim Trond Mellingsæter Region West Bergen Jan Hjellestad Region South Stavanger Torill Nag Region East Skien Øyvind Hurlen Region Oslo-area Oslo Morten Bjørnsen 10

11 Branding in a holistic perspective - Brand creation in every single contact with the customer Products Leadership Marketing/ Sponsoring Media/ press Core values Systems Distribution Personal interaction 11

12 Positioning -On our way to a clear and visible position the challenger 2001 Modernism 20 Modernism Pragmatism Idealism Pragmatism Idealism Traditionalism Traditionalism 12

13 Growth - Gaining Momentum, especially from 20 Credit Volume (NOK bill) Market in general made comparable by indexing to BA Norway (NOK bill) CAGR BA Norway*) (18,3%) Q Q 03 4Q *) Includes loans booked in London, Oslo Branch and Nordania Leasing as well as in Fokus Bank. Creates comparability to other Norwegian financial institutions **) 74 All banks**) (10,6 %) Includes credit from private financial institutions except credit to other financial institutions, government bodies, municipalities and customers operating and domiciled outside Norway 13

14 Customer Satisfaction - Corporate customers DnB NOR 4,01 Nordea Sp.b. 1/SR 4,09 4,1 Fokus bank 4,29 3,8 4 4,2 4,4 Research International companies; turnover above NOK 25 mill; Equity > 20% 14

15 Market share - Corporate customers Turnover per year April mill 4,7% 5,9% 6,6% 7,1% mill 5,6% 6,9% 8,1% 8,3% mill 5,8% 7,9% 10,2% 10,5% Over mill 9,2% 11,3% 14,6% 13,4% (Corporate customers with Fokus Bank as main bank) 15

16 Customer Satisfaction - Private customers Nordea DnB Nor Postbanken SpareBank 1 69,6 69,7 70,1 70,4 Fokus Bank 73, Oslo Business School/The Norwegian Customer Survey services companies 16

17 Market share - Private customers 6 5 Income groups Under Over (Private customers with Fokus Bank as main bank) 17

18 Private customer loans market shares DnBNOR 4 savings banks Nordea 38 % 15 % 13 % 6 % 14 % 12 % 5 % 37 % 13 % 11 % 4 % 36 % 12 % 10 % 3 % 35 % 4Q 11 % 4Q 9 % 4Q 2 % 4Q 18

19 Corporate customer loans market shares DnBNOR 4 savings banks Nordea 44 % 11 % 22 % 8 % 43,1 % 43 % 10 % 21 % 7 % 42 % 41,7 % 9 % 9,1 % 9,0 % 9,0 % 9,1 % 9,0 % 8,9 % 8,7 % 20 % 20,1 % 20,0 % 19,7 % 19,8 % 19,6 % 20,0 % 6 % 5,8 % 5,8 % 6,1 % 6,2 % 6,3 % 41,3 % 41,2 % 41,2 % 41,4 % 5,3 % 5,4 % 41 % 40,7 % 8 % 19 % 19,0 % 5 % 40 % 4Q 7 % 4Q 18 % 4Q 4 % 4Q 19

20 Profit before losses - Develops according to plan NOK mill Q 20

21 ROE before tax and value creation 120 Quarterly AVA and ROE before tax 30 % % AVA mill nok < 20 % 15 % 10 % ROE in pct 20 5 % - Q1- Q2- Q3- Q4- Q1- Q2- Q3-0 % AVA ROE before tax 21

22 P/L Jan 1st Sept 30th 20 NOK mill Change NOK Change percent Net interest income % Other income % Top line % Expenses % Profit before losses % Loan losses Profit after losses % 22

23 Macro economic development - expectations Inflation : 1,6% i 2,2% i 06 GDP : 3,7% i 2,9% i 06 Interest rate : (3 months) 2,5% p.t to 4% in 12 months (10 year) 3,8% p.t to 4,40 in 12 months Credit growth : Households still rising, but more moderate : Corporate sector stabilizing around 10% 23

24 Banking Activities Norway