FöreningsSparbanken Q Jan Lidén, CEO

Transcription

1 FöreningsSparbanken Q Jan Lidén, CEO

2 Highlights The market share for total new savings from Swedish households rose to 19 percent (17) For new household deposits, the Swedish market share rose to 31 procent (10) Funds under management in Robur rose to SEK 355 bn (280) a new all-time high Group lending increased by 14 percent to SEK 796 bn (701) Proposed 15 percent increase in dividend to SEK 7.50 (6.50)

3 Result highlights 3 SEK M Q Q /-, % Operating profit 15,010 10, excluding items affecting comparability 13,548 11, Total income 29,460 24, Net interest income 15,539 15,199 2 Net commissions 7,170 6, Net gains and losses on financial items at fair value 2,957 1, Expenses 14,156 13,611 4 Loan losses RoE, % * RoE, %, excluding capital gain Earnings per share, SEK * * based on profit and equity allocated to the Parent bank s shareholders.

4 Highlights Q4 4 Continued high profitability High revenue and business volume growth Market shares top priority in Sweden Hansabank s growth accelerated Basel II calculations confirm considerably lower risk-weighted amount

5 Basel II and capital adequacy 5 The Group s aggregated risk-weighted amount for credit risks, operational risks and market risks in FSB calculated in QIS5 study Group risk-weighted amount estimated to fall by slightly less than 30 percent Minimum future capital requirement compared to current level 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

6 Results, Q Operating profit rose by 12 percent to SEK 3,279 M (2,922) Net profit rose by 25 percent to SEK 2,570 M (2,063) RoE increased to 19.7 percent (19.0) Total income increased by 9 percent to SEK 6,997 M (6,397) Costs increased by 10 percent to SEK 3,717 M (3,376) Hansabank s reported operating profit rose by 26 percent to SEK 596 M (473)

7 Group P&L 7 SEK M Q4, 2005 Q3, /-, % Net interest income 3,712 3,860 4 Net commissions 1,896 1,910 1 Net gains and losses on financial items at fair value 1, Other income 383 1, Total income 6,997 8, Staff expenses 1,731 1,700 2 Profit-based staff expenses Other expenses 1,608 1, Total expenses 3,717 3, Profit before loan losses 3,280 5, Loan losses Operating profit 3,279 4,937 34

8 EnterCard 8 Re-classified as a joint venture and consolidated according to equity method, leaving only associate income in Group P&L from Q3, 2005 and onwards Negative impact on NII in Swedish Banking of SEK -98 M in Q4 and -91 M in Q3 Negative impact on net commission income in Swedish Banking of SEK -90 M in Q4 and -64 M in Q3

9 Items affecting comparability SEK M Q4 Q3 Q2 Q1 Q1-4 Capital gain on sale of shares in EnterCard Capital gain on sale of shares in KIAB 1,421 1,421 Profit-based staff expenses ,354 of which allocation to Kopparmyntet Expenses for personnel changes Profit effect IAS Total 279 1, , SEK M Q4 Q3 Q2 Q1 Q1-4 Profit-based staff expenses ,022 of which allocation to Kopparmyntet Expenses for personnel changes Total ,296

10 Profit effect from IAS SEK M, compared to 2004 Q4 Q3 Q2 Q1 Q1-4 Net interest income Change in net interest income in Spintab repurchase differences interest income compensation Total Net profit on financial items at fair value Inefficiency in hedging package Valuation of assets at fair value shares lending, derivatives, borrowing deposits Interest income compensation Total Total

11 Application of fair value option 11 Reduces accounting volatility that does not reflect underlying economic conditions Applies to portfolios of fixed-rate loans and related liabilities where the aggregate interest rate exposure is hedged with derivatives In total, SEK 368 bn of the Group s lending, SEK 4 bn of deposits and SEK 398 bn of securities in issue are valued at fair value at December 31, 2005 Shareholders opening equity increased by SEK 775 M compared to previously restated amount

12 Lending 12 Annualized growth,% SEK bn Q Jan 1, 2005 Q4 * Q1-4 Group lending Spintab s household lending Corporate lending incl. Hansabank Hansabank total lending * *) after restatement to fair value according to IAS 39

13 Savings 13 annualized growth, % SEK bn Q4, 2005 Q4, 2004 Q4 Q1-4 Funds under management Household deposits Market share, % Q Q1-4, 04 Total new savings, Sweden New household deposits, Sweden Index-linked bonds 36 27

14 Change in net interest income 14 SEK M Q4, 2005 Q3, 2005 Change Swedish banking operations 2,908 3, Baltic banking operations Swedbank Markets Asset management and insurance Shared services and new operations Eliminations Total 3,712 3,

15 Change in net interest income Swedish banking operations Q4, 2005 vs. Q3, 2005, SEK M 15 Increased lending volumes + 21 Increased deposit volumes + 4 Increased deposit margins + 3 Decreased lending margins 129 KIAB 45 Shareholders equity and other balance sheet items 39 Total 185

16 Change in net interest income Baltic banking operations Q vs. Q3 2005, SEK M 16 Increased lending volume + 66 Increased lending margin + 2 Increased deposit volume + 7 Increased deposit margin + 5 Maturity missmatch and other 10 Change according to Hansabank s reported figures + 70

17 Change in net interest income 17 SEK M Q1-4, 2005 Q1-4, /- Swedish banking operations 12,266 12, Baltic banking operations 2,752 2, Swedbank Markets Asset management and insurance Shared services and new operations Eliminations * Total 15,539 15, *) effect of change of accounting principles in the reporting of net interest income from trading operations

18 Net commission income 18 SEK M Q4, 2005 Q3, 2005 Q2, 2005 Q1, 2005 Q4, 2004 Payment processing Lending commissions Brokerage Asset management Insurance commissions Other commissions Total commissions, net 1,896 1,910 1,834 1,530 1,554

19 Change in net commission income Q1-4, 2005 vs. Q1-4, 2004, SEK M 19 Payment processing First Securities Asset management Brokerage + 95 Lending commissions 19 Other commissions 154 Total 1,048

20 Net profit on financial items 20 Q4, Q3, Q2, Q1, Q4, SEK M Financial instruments classified as trading and derivatives 1, Other financial instruments Change in exchange rates Total 1, of which attributable to IAS

21 Costs 21 SEK M Q Q Q Q Q Group excl. Baltic banking operations - Underlying costs 2,631 2,499 2,704 2,678 2,681 - Costs for personnel changes Profit based staff costs Baltic banking operations - Underlying costs Profit-based staff costs Total costs 3,717 3,364 3,742 3,333 3,376

22 Number of full-time positions Baltic banking operations Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05

23 C/I ratio adjusted according to IFRS from Q1, ,80 0,69 0,60 0,61 0,63 0,63 0,59 0,62 0,59 0,56 0,55 0,58 0,57 0,56 0,56 0,53 0,53 0,49 0,53 target 0,40 0,39 0,20 0,00 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05

24 Credit quality 24 Q1-4, 2005 Doubtful claims gross decreased by 14 percent to SEK 2,219 M (2,579) The provision ratio rose to 171 percent (151) Loan losses fell by 41 percent to SEK 294 M (494) The loan loss level dropped to 0.04 percent (0.07)

25 Swedish banking Q4, Healthy growth in business volumes lending increased by 9 % deposits increased by 8 % (full year) Increased product sales in branch network Erosion of regional differences in margins Unchanged costs Swedbank named Bank of the Year

26 New staff incentive program 26 Swedish retail banking operations Targets for branches, local banks and regions Maximum bonus one month s pay per employee Kopparmyntet profit sharing program reduced, maximum payout 1/3 lower Unchanged cost ceiling for employee incentive programs in Swedish operations

27 Swedbank Markets Q4, Strong quarter for stock trading Another strong quarter for First Securities Net commission income increased by 13 percent to SEK 283 M in Q4 (250 in Q3) Net profit on financial items increased to SEK 262 M in Q4 (143 in Q3)

28 Asset management and insurance Q4, Assets under management (AuM), increased 27 percent to SEK 355 bn (280) a new all-time high 79 percent of Robur s equity funds beat their comparative indices Robur s funds average Morningstar rating increased to 3.33 (3.28)

29 Key figures 29 Q1-4, 2005 Q1-4, 2004 Return on equity, % excluding capital gains Earnings per share, SEK Equity per share, SEK C/I ratio before loan losses C/I ratio before loan losses excl capital gains Loan loss ratio, net, % Share of doubtful claims, % Provision ratio for doubtful claims, % Capital adequacy ratio, % Tier 1 ratio, %

30 Q4,

31 Full-year highlights 31 Rapid market growth Decrease in client margins, overall margins supported by increase in base-rate and change in product mix Expansion of Russian operations Investments in distribution and increase in personnel Increasing weight of Latvian and Lithuanian business units

32 Full-year highlights 32 EUR M /- Loans 9,371 5,924 58% Deposits 7,241 4,972 46% Net profit % Revenues % Expenses* %* Return on equity 25.0% 25.6% Net interest margin 2.97% 3.33% Cost-income 46.0% 45.8% * 2004 expenses also include goodwill amortisation. According to new IFRS regulations, banks no longer amortise goodwill on a monthly basis. Without goodwill amortisation cost in 2004, annual cost growth would have been 25%

33 Q4 highlights 33 Accelerating growth in all business units due to low interest rates and strong credit demand. Estonian result decreased by 3.6 million euro operating risk provision and Lithuanian result by higher credit cost (6.6 million euros in Q4 05 vs 2.9 million euros in Q4 04) Lending yield and net interest margin supported by a rise in base rates (6-month Euribor rose from 2.19% on Sep 30th to 2.64% at year-end) EBRD and Hansabank signed an agreement for EBRD to take a 15% stake in Hansabank s Russian operations Hansabank s Baltic Growth Fund and Russian Fund both received the highest grade from Morningstar

34 Q4 highlights 34 EUR M Q4 05 Q4 04 +/- Loans 9,371 5,924 58% Deposits 7,241 4,972 46% Net profit % Revenues % Expenses % Return on equity 22.6% 25.3% Net interest margin 2.80% 3.22% Cost-income 51.3% 50.3%

35 Market shares 35 Estonia Latvia Lithuania December 2005 Market share Change Market share Change Market share Change Retail deposits 63% -1% 29% +4% 39% - Corporate deposits 48% +1% 15% +3% 20% -1% Retail loans 52% -1% 24% +3% 30% +1% Corporate loans 45% +1% 25% +2% 20% - Pension II 55% +2% 33% +4% 44% - Cards 68% -1% 36% - 34% +2%

36 Regional distribution 36 EUR in millions Q4 05 Est Lat Lit Rus Deposits 7,241 43% 24% 32% 1% Loans 9,371 43% 26% 26% 5% Total revenues % 27% 23% 6% Operating expenses % 26% 26% 6% Operating profit % 28% 20% 6% Net credit losses % 9% 105% 15% Net profit % 27% 12% 4% ROE* 22.6% 41% 36% 15% 22% Cost-income ratio 51.3% 48% 49% 58% 49% * For business units ROE is calculated based on allocated equity - the Group is allocating equity capital to the business units based on 9% capital adequacy. Group ROE is calculated based on actual equity. Group capital adequacy was 11.0% in December 2005.

37 Revenues 37 YoY QoQ % +5% Q4 05 Q4 04 +/- EUR in millions Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Net interest income Net fee income Trading income Other income Total revenues % 38% -1% 6% 28% Net interest income growth driven by strong lending growth (YoY 58%) in all countries Major growth drivers are lending fees, +42% to EUR 18 M, and securities fees, +76% to 6.2 M

38 Expenses 38 EUR in millions YoY QoQ 26% 27% Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Personnel Administrative Data network Depreciation Other Total expenses Q Q /- 28% 14% 18% 18% 50% 26% No of employees increased by 363 in Q4. Annual increase is 1,006: +350 in Latvia, +279 in Lithuania, +270 in Estonia and +106 in Russia. Performance related bonus reserve forms EUR 8.4 mil of Q4 personnel cost Other expenses in Q4 05 include 3.6 million operating risk provision

39 39 Lending growth EUR in millions Business units 122% 79% 57% 44% Est Lat Lit Rus 140% 120% 100% 80% 60% 40% 20% 0% EUR in millions Growth by loan type, Q4 05 Est Lat Lit Rus Dec 2004 Dec 2005 Growth YoY Other ABF Business Mortgage

40 40 Net interest margin Group 3,45% 2,80% 2,0% 2,5% 3,0% 3,5% 4,0% 4,5% Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 By business units 2,50% 3,85% 3,13% 3,48% 2,39% 2,41% 2,0% 2,5% 3,0% 3,5% 4,0% 4,5% 5,0% Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Estonia Latvia Lithuania

41 - Building a Leading Nordic-Baltic bank 41