Investor Presentation

Transcription

1 Investor Presentation Perspectives on the Polish market and Nordea operations Włodzimierz Kiciński CEO Nordea Bank Polska

2 Agenda Macroeconomic environment Banking market trends Nordea operations Strategic direction Growth plan Poland 2

3 Bright economic outlook Polish economy picks up speed Domestic demand Private consumption Inflow of EU funds Labour market improving Rising inflation driven by food and energy prices Increasing interest rates PLN - long-term appreciation trend 3

4 GDP growth worldwide generally negative in Departament Marketingu i Komunikacji Source: Eurostat, IMF

5 Polish economy picks up speed 5

6 Labour market continues to improve 6

7 Rising inflation driven by food and energy prices 7

8 Higher interest rates WIBOR and LIBOR 3M rates PLN exchange rates 7% WIBOR and LIBOR 3M rates 5.0 PLN exchange rates (quarterly averages) 6% 5% 4% 3% % 3.0 1% 2.5 0% PLN USD EUR CHF PLN/EURO PLN/EUR (Group) PLN/CHF PLN/USD 8

9 State budget deficit growing 2% 1% 0% -1% -2% -3% -4% -5% -6% -7% -8% State budget deficit as % of GDP Public debt as % of GDP State Treasury Local govt Social sec. 55% 50% 45% 40% 35% 30% Expected budget deficit 2010, 52 BPLN or 3.8% of GDP (Maastricht limit 3%) Public debt 52.4% of GDP (>55% requires a special recovery procedure with drastic cut of expenditure) 9

10 Polish banking market 10

11 Poland has the largest banking market in the CEE15* CEE15* banking markets - Size vs. growth matrix, * Major 15 CEE countries. Russia, Ukraine and Belarus not included Source: Banks, press, Intelace Research

12 Market concentration still moderate in a EU perspective Assets of 5 biggest banks in total market assets (%) Assets of 10 biggest banks in total market assets (%) Source: Bank situation report 2008, 2009, KNF 12

13 Business volumes Polish commercial banks MEUR change Q2 10/Q change 2010/2009 Loans 167, , % % % GDP 51.1% 52.3% 52.5% Household (inc. mortgage) 86,185 94, % 97, % Mortgage 52,327 59, % 59, % Corporate (Large, Medium, Small, Nordic) 74,388 74, % 77, % Municipalities 6,891 6, % 7, % Deposits 151, % % % GDP 46.3% 46.5% 47.1% Household 84,562 89, % 93,611 10,7% Corporate (Large, Medium, Small, Nordic) 60,166 59, % 62, % Municipalities , % 7, % Total Assets 242, , % 265, % Total Capital 20,491 22, % 25, % Deposits/Loan ratio 90.6% 89.0% 89.7% 13

14 Nordea operations 14

15 Nordea - the leading bank in the Nordic and Baltic Sea region Sweden Nordea home markets Estonia Poland Branches 329 Customers 4.0 million Employees, FTEs 4,357 Total lending EUR 75bn Market ranking 2-3 Branches Customers 119,000 Employees, FTEs 386 Total lending EUR 2.8bn Market ranking 3 Branches 162 Customers 640,000* Employees, FTEs 1,781 Total lending EUR 4.9bn Market ranking Norway Branches 124 Customers 0.9 million Employees, FTEs 1,807 Total lending EUR 47bn Market ranking 2 Latvia Branches Customers 99,000 Employees, FTEs 440 Total lending EUR 2.8bn Market ranking 3 Russia Branches Customers 56,000 Employees, FTEs 1,679 Total lending EUR 4.4bn Market ranking Denmark Branches 297 Customers 1.8 million Employees, FTEs 5,154 Total lending EUR 74bn Market ranking 2 Lithuania Branches Customers 133,000 Employees, FTEs 325 Total lending EUR 2.2bn Market ranking 4 Finland Branches 313 Customers 3.4 million Employees, FTEs 5,090 Total lending EUR 53bn Market ranking 1 15 Incl. Polish Life customers

16 Nordea ranked no. 13 among largest commercial banks in Poland by total assets 16 MEUR Source: Rzeczpospolita,

17 Nordea Poland a highly integrated and well diversified part of Nordea Universal bank: Individual customers Small and medium entrepreneurs Nordic companies Selected local key companies Standardised customer concepts Aligned with rest of the group Income split Poland Household customers 55% Corporate customers 45% Full product range Attractive position within Life & Pensions ~4% market share Multichannel distribution Part of the unified Nordea group risk process and rating system 17

18 Solid track record of profitable growth Ytd 3Q 2010 Number of branches Departament Marketingu i Komunikacji

19 Low impaired loans and insignificant loan losses Impaired loans 19

20 Return on assets in Nordea Bank Polska compared with selected banks Return on assets 20 Departament Marketingu i Komunikacji

21 Clear direction for Polish operations 21

22 The journey towards Great Nordea continues - New European Markets a growth area Great Nordea framework Profit orientation and prudence Household Corporate New European Markets Ambitious vision and targets Efficiency initiatives Strong customeroriented values and culture Clear growth strategy 22

23 New European Markets strategy Growth strategy Rationale Group initiative High potential New European Markets Continue the successful organic growth Proven track record Nordic model Growth Plan Poland Low risk Customer benefits: Nordic business model and concepts. Relationship and advice in focus. Prudent banking 23

24 Solid basis for twin-headed expansion Nordea brand strengthened increased awareness in Polish market Award winning value proposition and service Significant revenue potential in developing the customer base 4 times higher income per customer in Gold compared to Silver Network expansion x6 x4 Private banking Mass-affluent Gold Silver Bronze Check-in Strengthening offering to local top tier customers House bank concept CMB capabilities strengthened Corporate Merchant Bank Large Corporate target list in place selection of customers with full business potential Medium Small 24

25 Both long and short-term potential is attractive Solid GDP growth Low banking penetration Bank assets only 82% of GDP Large domestic market 38m inhabitants Growing middle-class in financially strong urban regions Bank product penetration Banking assets in relation to GDP, % PL EU Average GDP/Capita, EUR

26 Growth Plan 2010 branch network expansion on track to open 45 branches branches opened All 45 planned locations have been signed and scheduled for opening 10 advisory centres and 35 sales points 342 employees recruited More than 13,000 new Gold customers welcomed in Poland during 2010 Corporate initiative exceeding expectations 26

27 Solid track record in expanding branch network Q3 203 branches end

28 Branch factory established A dedicated management task force to: Identify and attract highly skilled branch managers Employ staff with previous banking experience Attract and train new employees Educational programmes in place Identify branch locations and sign up premises Partly expanding network to noncovered smaller cities ( inhabitants) with high potential Key figures Turbo Plan Location Leads Contract Recruitment Database Recruitment meetings Hired 1, Managers 1, Employees 12,630 2,

29 Location selection Success depends on 5 key elements Achieving adequate financial results Interface to old organisation (i.e. IT, B/O) Constructing branches Selecting and training people Revamping branch operational model Preparing marketing/sales plan 1 Choosing right locations macro and micro level decisions 29

30 Average break-even after 12 months Number of new branches reached break-even end Q Average break-even 12 months M 5M 6M 7M 8M 9M 10M 11M 12M 13M 14M 15M 16M 17M 18M 19M 20M 21M 22M 23M 24M 25M 26M 27M 28M 29M 30M 65 branches out of 115 reached break-even first year 30

31 Branch office established January 2008 in Gdansk EURt M EURt M Break-even 4M 7M 10M 13M 16M 19M 22M 25M 28M 31M 34M Total income Total expense Payback C/I 35% 4M 7M 10M 13M 16M 19M 22M 25M 28M 31M 34M A non-cash office located in a commercial centre of Gdansk 1,100 active clients of which 390 are Gold customers and 104 SMEs 5 employees 1 Branch manager 2 Credit advisors 2 Customer Service Officers Break-even in 10 months Payback after 22 months Accumulalted operating profit Cash investment 31

32 Growth initiative continues in 2011 Branch network expansion Evaluating branch openings in 2011 Top-tier Corporate project Launch new offerings CMB concept Corporate finance services Further strengthening of organisation 32

33 Concluding remarks Bright economic outlook Nordea Poland a highly integrated and well diversified part of the group Solid track record of profitable growth Low impaired loans and insignificant loan losses Nordea Poland an important part of the Nordea growth strategy Twin-headed expansion on track 45 branches to be opened during 2010 Growth initiative continues in

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