Annika Falkengren. President & CEO. Results 2009

Transcription

1 Annika Falkengren President & CEO Results 29 1

2 Highlights Q1 29 Strong underlying business SEK 4.8bn before provisions for credit losses and impairment charges Stable cost development Doubled collective provisions in the Baltic countries Full goodwill write-off in Ukraine Strong capital position after successful rights issue Participation in Swedish Funding Guarantee Programme Operating profit (SEKbn) Q1 7 Q2 Q3 Q4 Q1 8 Q2 Q3 Q4 Profit before gains and credit losses Credit losses Goodwill impairment Q1 9 2

3 Continued high operating income Strong net interest income Lower commission income Robust net financial income; M-t-M valuation losses of SEK.4bn Re-bounce of life insurance income FX translation effects SEK +.7bn Q1 9 vs. Q1 8 Operating income SEK bn Income Excluding one-offs and portfolio losses Q1 7 Q2 Q3 Q4 Q1 8 Q2 Q3 Q4 Q1 9 3

4 Income well diversified Net interest income +4% Net fee and Net financial income commission income -15% (excl MTM portfolios) SEKm and change +112% Q1 9 vs. Q1 8 Q1 8 Q4 8 Q1 9 Total NII growth 1,68 +12% % Volume Growth 551-2% % Margin Development Other 1,11 Advisory and brokerage Value based Base services Other FX Capital markets, equities, portfolios, etc. 4

5 Lower interest rates boost Net interest income Net interest income +4% Big impact from falling short-term interest rates Total NII growth 1,68 Drop in quarterly average +12% overnight interest rates SEK EUR USD -25% Volume Growth % -2.8% -3.2% Margin Development Other 2 1,11 Q1 9 vs Q1 8 Q1 9 vs Q4 8 Portfolios etc +1, Book equity Net 1,

6 Income well diversified Net interest income +4% Net fee and Net financial income commission income -15% (excl MTM portfolios) SEKm and change +112% Q1 9 vs. Q1 8 Q1 8 Q4 8 Q1 9 Total NII growth 1,68 +12% % Volume Growth 551-2% % Margin Development Other 1,11 Advisory and brokerage Value based Base services Other FX Capital markets, equities, portfolios, etc. 6

7 Underlying costs levels under control Cost management program Achieved by Q1 29 Target by Q4 29 * SEK 1,34m SEK 1,5 2,m 5 net FTE reduction FTEs by Q1 Unchanged operating expenses on comparable basis SEKm Change Q1 29 vs. Q1 28 Q1 28 6,27 Business related Market related ,67 6, Q1 29 7,244 Cost efficiency Inflation, Redundancies Pensions FX translation Goodwill acquisitions impairment etc. 7

8 Merchant Banking strengthening its position GTS Corporate Banking TCM SEKm 6, 3, Nordic target market 1 Core banking relationships % Large corporates Nordics Large corporates Sweden Q1 8 Q1 9 Q1 8 Q1 9 Income Profit before credit losses NB. MTM portfolio losses SEK.4bn lower in Q1 9 1 Perceived quality

9 Strengthened franchise in Merchant Banking Market shares, Nordic stock markets Jan March, 29, per cent SEB Enskilda 9,5% Supporting clients exports Trade finance portfolio volumes, indexed % SHB 5.7% Morgan Stanley 4.5% 1 8 Deutsche Bank 4.3% 6 4 Credit Suisse 4.2% 2 Q1-7 Q1-9 9

10 Merchant Banking Investment portfolio Volume reduction partly offset by FX Volume Q1 8 Q1 9 FX adjusted* FX Q1 9 Reported Structured credits Financial institutions Covered bonds etc Mark-to-market loss SEK m Q1 8 Q4 8 Q1 9 P/L Equity -1, , The unrealised valuation loss on 28 reclassified securities in the quarter was SEK 3,75m. Rating status of Structured credits 1% 8% 6% 4% 2% % 88.5% Q1-8 Q2-8 Q3-8 Q4-8 Q % 3.8% 3.% 2.1% AAA AA/A BBB BB/B CCC/CC Rating actions on 31 out of 615 positions during this quarter No impaired assets No level 3 assets * Using FX rates as of 31 March 28 1

11 Germany potential and challenges Operating profit (SEKm) Operating profit Q1 29 (SEKm) M B 165 Q1 8 Q % Treasury Customer Business R E T A I L Q1 8 Q Further steps to separate Retail from Merchant Banking and Asset Management have been formalised Attractive corporate growth segment for SEB Stable asset quality 11

12 Retail Banking income holding up SEK m 5, Germany Lithuania Latvia Estonia Card Sweden Lending volumes in local currency % change, Q1 29 vs Q % Since yearend -5% Swedish Retail +9% 5 % 2, Swedish Retail +2% -1, Q1 8 Q1 9 Q1 8 Q1 9 Income Profit before credit losses -5 % -3 % -3 % Sweden Estonia Latvia Lithuania Germany 12

13 Swedish Retail High customer interaction Q1 8 Q1 9 1,425, individual customer offerings SEK 5.7bn in deposits SEK 1.4bn in SME lending SEK 18.5bn in mortgage lending 1, new SME customers Deposits Outstanding volume, SEK bn Margin, % 2.% 1.8% 1.5% 1.3% 1.%.8%.5%.3%.% Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q Mortgages Outstanding volume, SEK bn Margin, % 1.5% Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q % 1.%.8%.5%.3%.% 13

14 SEB in Sweden Positive volume development Corporate lending * Sweden, SEK bn Mortgage lending Sweden, SEK bn Deposits from public Sweden, SEK bn Q1 7 Q2 7 Q3 7 Q4 7 Q1 8 Net Sales 12 months Sweden: Q2 8 Q3 8 Q4 8 + SEK 84bn Q1 9 Q1 7 Q2 7 Q3 7 Q4 7 Q1 8 Q2 8 Q3 8 Q4 8 + SEK 23bn Wealth management SEK 4bn Q1 9 Q1 7 Q2 7 Q3 7 Q4 7 Life SEK 29bn Q1 8 Q2 8 Q3 8 Q4 8 + SEK 25bn Q1 9 * Excluding reclassified bonds 14

15 A successful rights issue Trading performance since announcement Key themes Indexed Price 15% 14% 13% 12% 11% 1% 9% 8% 7% 6% 4- Feb 1- Feb 16- Feb 22- Feb 28- Feb 6- Mar 12- Mar 18- Mar 24- Mar 3- Mar 28.% Strong Outperformance.9% (1.8%) (12.4%) SEB Euro Stoxx Banks Nordic Banks Composite OMX SEK 15,7m added Strong primary take-up 98.6% Secondary rights oversubscription Broad Institutional Support Very significant retail participation Strong liquidity in shares and rights Source: Bloomberg as of 3-Mar-29 Note: Nordic Banks Composite consists of Swedbank, Nordea, Danske Bank, DNB Nor and SHB 15

16 Strong capital situation Capital ratios, Basel II without floors Per cent Core Tier 1 ratio Tier 1 ratio 15% Risk-weighted assets SEK bn Q % Long-term Basel II Tier 1 target Migration FX % 12 8 Required minimum Tier 1 in order to qualify for Swedish stabilisation measures is 4% Q Other Extended IRB rollouts % 16

17 Buffering up for Baltic challenges Provisions for Net Credit Losses % of Q1 29, SEB Group SEK 2,386m Q4 28* Q1 29* Estonia,76 1,73 Latvia 2,86 6,41 Lithuania 3,33 3,59 Baltics 2,59 3,7 Baltic countries Impaired loans, gross % of credit exposure excl. banks 4.% 3.5% 3.% 2.5% 2.% 1.5% 1.%.5%.% Estonia Latvia Lithuania Dec '7 Mar '8 Jun '8 Sep '8 Dec '8 Mar '9 *Annualised figures 71% 29% Nordics, Germany, etc. Provisioning to build-up reserves SEK m 1,2 1, Specific Collective Q4-7 Q1-8 Q2-8 Q3-8 Q4-8 Q1-9 17

18 Conservative provisioning policy Gross level of Impaired loans Individually assessed, per cent of lending Group Baltics Q1 8 Q4 8 Q1 9 Reserve ratios* % Q1 8 Q4 8 Q1 9 Group 76.9% 68.5% 71.6% Baltics 139.9% 59.6% 69.3% excluding homogeneous groups 18

19 Sharp economic deterioration in Ukraine Dramatically changed economic environment since acquisition in 24 and 27 No expansion plan Full goodwill write-off SEK 594m GDP forecast 12 Initial and revised GDP forecast Lending SEK 2.7bn Customers 15, # of branches 1 Employees 1,331 Q1 9 op profit SEK -153m 19

20 Merchant Banking Private equity and Shipping/Offshore Private Equity (Acquisition Finance) Outstanding volumes, SEKbn Equity & mezzanine Senior debt ,1 17, ,7 24, FY 26 FY 27 FY 28 Q1 29 * Effect of weaker Swedish krona FX effect.6bn* Shipping and Offshore Finance Credit exposure, SEKbn FX effect 7.5bn* FY 26 FY 27 FY 28 Q1 29 * * Guaranteed by Export Credit Agencies Other Ferries RoRo Cruise Container Bulk LNG Gas Carrier Car Carriers Tanker Cruise** Yard (Cruise) Offshore 2

21 Property management SEK bn Lending SEKbn Commercial Multi-family FY FY FY * By obligor s domicile 'Mar 29 Other 4 Germany 29 Sweden 52 SWEDEN GERMANY BALTICS Commercial property sector SEK 44bn Offices Retail Hotels Logistics/warehouse and other Residential SEK 47bn Offices Retail Hotels Logistics/warehouse and other Residential SEK 28bn Offices Retail Warehouse & Industrial Residential Land plots Other 16% 3% 23% 17% 22% 29% 9% 7% 15% 2% 11% 49% 26% 28% 18% Other Nordic amounts to SEK 16bn, Other SEK 8bn 25% 21

22 Stable asset quality outside CEE Level of Impaired Loans* Level of net credit losses* 3,% SEB Group Nordic Germany Baltic 4, Germany Nordics Baltics SEB Group 2,5% 2,% 3,5 3, 2,5 1,5% 2, 1,% 1,5,5% 1,,5,% Dec '6 Mar '7 Jun '7 Sep '7 Dec '7 Mar '8 Jun '8 Sep '8 Dec '8 Mar '9, Mar '29 * % of Credit Exposure excluding Banks *Annualised figures 22

23 Resilient income generation first line of defence 12-month rolling earnings generation excluding one-off effects SEKm Operating income Profit before credit losses and goodwill Operating profit Q1-5 Q2-5 Q3-5 Q4-5 Q1-6 Q2-6 Q3-6 Q4-6 Q1-7 Q2-7 Q3-7 Q4-7 Q1-8 Q2-8 Q3-8 Q4-8 Q1-9 Profit before credit losses Merchant SEK bn 3,3 Retail SEK bn Wealth SEK bn Life SEK bn 1, 1,6 1,3,5,2,3,5 Q1 28 Q1 29 Q1 28 Q1 29 Q1 28 Q1 29 Q1 28 Q

24 Support revenue generation focus on core clients key competitive advantages Prompt addressing of problem credits Maintain adequate buffer of capital and reserves 24

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