Svenska Handelsbanken Third Quarter 2000

Transcription

1 Svenska Handelsbanken Third Quarter 2000 A presentation by Arne Mårtensson President and Group Chief Executive 24 October 2000

2 Anticipated nine-month profit: SEK 8 600m Handelsbanken Group SEK m 9 mths Profit Profit Average Lowest Highest Median Std-deviation 2 % 3 % 5 % Net interest income Net comm. income Loan losses +28 Source: SIX Market Estimates

3 Profit and Loss account, January - September Handelsbanken Group SEK m Change % Net interest income Commission, net Trading, net Other income Total income Staff costs, excl performance-related Performance-related staff costs Other expenses Total expenses Profit before loan losses Net recoveries Operating profit

4 Operating profit, quarterly Handelsbanken Group SEK m 3,500 3,000 2,500 2,000 1,500 1, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q

5 Average volumes, Deposits from the general public, January September Handelsbanken Group Change SEK bn % Deposits Swedish kronor Households Companies Deposits foreign currency Sweden Other Nordic countries Other

6 Market share SEK deposits - Households Handelsbanken Group % September

7 Average volumes, Lending to the general public, January September Handelsbanken Group Change SEK bn % Lending Swedish kronor Mortgage loans Bank loans Lending foreign currency Sweden Other Nordic countries Other

8 Average volumes, Lending Stadshypotek December 1999 September 2000 SEK bn Dec-99 Mar-00 Jun-00 Sep-00

9 Interest spread - branch office operations, SEK Handelsbanken Group % Handelsbanken Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Total Mortgage Group

10 Commission, January September Handelsbanken Group Change SEK m % Brokerage Mutual funds and custody Payments Lending and deposits Other Commission expenses Total

11 Expenses, January - September 2000 Handelsbanken Group Change Expenses comparable units excl performance-related staff costs < 1 % Bergensbanken + 2 % points Performance-related staff costs, mainly Investment Banking + 5 % points Total expenses 8 %

12 Number of employees Handelsbanken Group Change Average no. of employees Jan - Sep of which Swedish regional banks IT and development, Sweden + 43 Bergensbanken Other outside Sweden - 14 Other - 5 Change in no. of employees - 9

13 Average no. of employees Swedish branch office operations Decrease of 5% Jan-Sept 1999 Jan-Sept 2000

14 Handelsbanken customers who are connected to Internet banking Approx. 40 % of corporate customers A quarter of private customers Approx Internet customers five websites

15 Percentage of various services via the Internet Handelsbanken, Sweden 40% 35% 30% 36% 25% 20% 15% 18% 27% 1998 (Dec) 2000 (Sept) 10% 5% 0% 8% 7% 11% Equities trading Mutual funds Payments

16 Number of custody accounts and proportion of Internet customers Number % dec-98 mar-99 jun-99 sep-99 dec-99 mar-00 jun-00 sep No of custody accts Proportion of Internet customers Four out of five new custody accounts in 2000 are linked to the Internet More than twice as many Internet-linked custody accounts during 2000

17 What proportion of the Bank s Internet users use the service regularly? (Private individuals) SHB SEB FSpB NB 0% 10% 20% 30% 40% 50% 60% 70% Source: SIFO and SHB

18 Bad debts as a percentage of total lending Handelsbanken Group % September

19 Loan losses as a percentage of lending Handelsbanken Group % Handelsbanken Other Swedish Banks * * As at 30 June 2000 September

20 Appropriations, Jan - Sept Handelsbanken Group SEK m Operating profit Settlement of pensions Taxes Minority interests Net profit for the period

21 Balance Sheet Handelsbanken Group 30 Sept 30 Sept Change SEK m % Lending to the general public Lending to credit institutions Interest bearing securities Financial fixed assets Financial current assets Other assets Total assets Deposits and funding from the general public Liabilities to credit institutions Issued securities etc Subordinated liabilities Other liabilities Shareholders equity Total liabilities and shareholders equity

22 Capital base and capital ratio Handelsbanken Group SEK bn % 9.8 % 9.4 % 9.8 % Tier II capital % 12.6 % 13.7 % 14.2 % 12.2 % % 8.4 % 9.3 % 10.3 % 10.0 % 6.2 % 6.3 % 6.5 % 6.6 % Tier I capital

23 Key figures Handelsbanken Group January September Return on equity 22.6 % 16.9 % Cost / income ratio before loan losses 43.7 % 50.3 % after loan losses 43.0 % 49.7 % Net earnings per share, SEK mth moving total

24 Return on shareholders equity after standard tax 30 September 2000 % Handelsbanken Other listed commercial banks * * As at June 2000

25 C/I ratio of leading Nordic banks Costs/income after loan losses January - September 2000 % Weighted average excl. Handelsbanken SHB 44 MNB * DB * Kreditkassen * DNB * FSpB * S E B * 74 * As at June 2000 Adjusted for items affecting comparability 63

26 Cost effectiveness of leading Nordic banks Expenses expressed as a percentage of total assets excl. loan losses 30 September 2000 % Weighted average excl. Handelsbanken SHB DB * FSpB * Kreditkassen * MNB * SEB * DNB * * As at June

27 Moody s rating of European universal banks Lloyds TSB Aaa UBS Aa1 Handelsbanken Aa2 ABN AMRO Aa2 Banco Bilbao Vizcaya Argentaria Aa2 Barclays Aa2 ING Bank Aa2 HSBC Aa2 NatWest Aa2 Royal Bank of Scotland Aa2 Bank of Scotland Aa3 BNP Aa3 Banco Santander Central HispanoAa3 Commerzbank Aa3 Credit Suisse Group Aa3 Deutsche Bank Aa3 Dresdner Bank Aa3 Fortis Banque Aa3 HypoVereinsbank Aa3 San Paolo-IMI Aa3 Société Generale Aa3 Unicredito Italiano Aa3 Den Danske Bank Aa3 FöreningsSparbanken Aa3 MeritaNordbanken Aa3 Unibank Aa3 Banca Intesa A1 Den norske Bank A1 Banca Nazionale del Lavoro A2 Banca di Roma A2 Credit Lyonnais A2 Standard Chartered A2 Christiania Bank A2 SEB A2 1 Lloyds TSB TSB Aaa Aaa 2 UBS UBS Aa1 Aa1 3 Handelsbanken Aa2 Long-term rating. The 30 largest listed European universal banks and other Nordic universal banks. Up-dated: 11 October 2000

28 Operating profit per business area January - September SEK m /-% Return on equity 2000 Branch offices % 22.6 % Handelsbanken Markets % 17.1 % Investment Banking % 84.3 % Asset Management % 40.3 % Handelsbanken Finans % 24.5 % Handelsbanken Liv % 26.4 % Stadshypotek Bank % 17.5 % Central Treasury % 11.5 % Group % 22.6 %

29 Operating profit, January September Branch office operations SEK m Change % Excl. Bergensbanken Net interest income Commission, net Net result on financial operations Other income Total income of which internal commission Total expenses Result before loan losses Loan losses Operating profit Return on equity 22.6 % 19.8 %

30 Handelsbanken Mutual Funds - Market share Proportion of net inflow to funds 13.2 % 14.1 % 1999 Jan-Sept 2000 Source: Swedish Mutual Fund Association

31 Market share of active choice in PPM (premium pension system) as at 20 October 2000 Robur 21.0 % AMF 11.6 % SPP 9.9 % Folksam 9.7 % Handelsbanken 8.1 % Länsförsäkringar 6.1 % Nordbanken 4.9 % Skandia/Carlsson 4.9 % SEB 3.4 % Others 20.4 %

32 Result in the other Nordic countries January - September SEK m Norway Denmark 25 8 Finland Total

33 Result in the other Nordic countries September 2000 SEK m , Jan - Sep

34 Expanding branch office operations in the Nordic countries Our domestic market Norway 23 branches Sweden 461 branches Denmark 7 branches September 2000 Finland 18 branches

35 Handelsbanken s retail banking in the UK for individual and corporate customers Business established today Edinburgh Establishment planned within a 1-3 year period Leeds Manchester Nottingham Birmingham Cambridge Bristol Reading London

36 Handelsbanken Finans acquires Spartacus A/S Founded 1983 Profitable company in retail financial services 20 % market share for caravan financing Also vehicles and agricultural machinery Platform for expanding into new sectors Credit volume, approx SEK 500m

37 The Nordic countries our domestic market - Spartacus A/S completes the picture Leasing/ Conditional sales Collaboration with vendors Factoring and invoice services Debt collection Retail financing X X X X X X X Kronos A/S Bergen Kronos A/S Bergen X X X X X X X X X X Spartacus Nykøbing

38 Demutualisation of Handelsbanken Liv Good response from customers, the press and other interested parties As the first company SHB will be introducing the right to to transfer Customers decide - last day 15 December 2000

39 E-bid - a new mortgage service from Stadshypotek - to be launched in November Major drive in collaboration with estate agents Using the Internet, solves the problem of bidding for houses, apartments and second homes Includes branch offices at an early stage in the process where the customer decides mortgage loans and choice of bank

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43 10 Why e-bid? Real-time bidding Immediate information Transparent bidding process - reduces uncertainty Simplifies administration 10 Why Stadshypotek? Established mortgage company in Sweden - confidence Largest player Neutral vis-a-vis estate agents Local presence via the Bank s branches

44 Share price performance- Jan-Sept European banks 1 Julius Julius Baer Baer % 2 Handelsbanken % 3 Royal Royal Bank Bank of of Scotland Scotland % 4 BHW BHW Holding Holding % 5 Nordic Nordic Baltic Baltic Holding Holding % 7 SEB SEB % 8 Den Den Danske Danske Bank Bank % Christiania Christiania Bank Bank % Den Den Norske Norske Bank Bank % FöreningsSparbanken % Real Real Danmark Danmark % Source: SchroderSalomonSmithBarney - European Banks in Q3

45 Share price performance until 30 September 2000 Index SHB AFV General index Bank index excl. SHB Sep -00

46 10.8 % Average annual earnings growth per share

47 Annual growth - profit per share % SHB NBH ** FSpB SEB SEB * For EUR/SEK conversion the same rate has been used for all measurements In accordance with the banks interim reports, adjusted for items affecting comparability

48 Continuity in management, long standing tradition Group Group Chief Chief Executive Jan Wallander Tom Hedelius (employed 1967) 1967) Arne Mårtensson (employed 1972) 1972) Lars O Grönstedt (employed 1983) 1983) Chairman Tore Browaldh Jan Wallander Tom Hedelius Arne Mårtensson

49 Lars O Grönstedt - new Chief Executive Education - BA Stockholm University - MBA Stockholm School of Economics Svenska Handelsbanken - Product development cash management - Equity Sales - Branch office - Regional Bank Stockholm City, head of Administration - Handelsbanken Markets, head of Equity and Custody - Executive Vice President, CIO and head of Business Development