MeritaNordbanken. January - March 1999

Transcription

1 MeritaNordbanken January - March 1999

2 1st quarter 1999 Growth in income and reduction in expenses Strong performance continues Operating profit EUR 489 million (FIM 2.9 billion, SEK 4.4 billion) Excluding items affecting comparability EUR 375 million, an increase of 23 % ROE 28.6%; 22.4% excluding one item affecting comparability Vigorous growth in mutual funds and unit linked insurance Synergies materializing Customer concepts for selected key customer groups Concentration on banking Aleksia will be listed and sold out during 1999 Strategic focus New regional bank for Poland and the Baltic states

3 A leading banking group in the Nordic and Baltic region Customer base 6.5 million private individuals 4 small and midmarket companies 4 corporates Average market shares Finland 4% + Sweden 15% - 25% Distribution network 766 branch offices 1 Swedish post offices Telephone bank Internet Lending EUR 64 bn Deposits and customer funds EUR 73 bn Total assets EUR 98 bn Employees 18,2 (within banking operations)

4 The largest banking group in the Nordic region Market capitalisation of selected Nordic banking groups, April 1999 (bneur) MeritaNordbanken Swedbank Handelsbanken SEB Den Danske Bank Unidanmark Den norske Bank Christiania

5 Combined ownership structure, December 31, 1998 Finnish government 3% Swedish institutions 15% Finnish institutions 1% Swedish government 26% Outside Finland and Sweden 31% Finnish public 12% Swedish public 3%

6 Share price development Nordbanken Holding Merita 1 Dec 1995 Dec 1996 Dec 1997 Dec 1998

7 Detailed income statement Q1/1999 Q1/1999 meur Change, % mfim msek Net interest income ,664 4,41 Net commission income ,76 1,633 Net result from financial operations ,335 Other operating income Total operating income ,167 7,838 Personnel expenses ,165 1,768 Other expenses ,231 1,867 Total expenses , Profit before loan losses ,771 4,23 Loan losses, net Profit from companies accounted for under the equity method Operating profit ,97 4,411 Taxes ,128 Minority interest - 1 Net profit for the period ,164 3,283

8 Income statement Q1/1999 Excluding items affecting comparability Q1/1999 meur Q1/1999 Q1/1998 Change, % mfim msek Net interest income ,664 4,41 Net commission income ,76 1,633 Net result from financial operations Other operating income Total operating income ,489 6,81 Personnel expenses ,165-1,768 Other expenses ,231-1,867 Total expenses ,396-3,635 Profit before loan losses ,93 3,175 Loan losses, net Profit from companies accounted for under the equity method Operating profit ,229 3,383

9 Net interest and commission income meur Net interest income Net commission income 1 Q Q2 Q3 Q4 Q Q2 Q3 Q3 Q1 1999

10 Net result from financial operations meur Equity-related Currency-related Interest-rate-related -5-1 Q Q2 Q3 Q4 Q Q2 Q3 Q3 Q1 1999

11 Expenses meur Restructuring expenses Other expenses 1) Personnel expenses 1) 1 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q ) Excluding restructuring expenses.

12 Loan losses, net meur Loan loss level, % 1,2 1,,8,6,4,2 Loan losses Provision for Asia Loan loss level, % Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 1999

13 Non-performing loans, net/lending % 2,5 2 1,5 1,5 Q Q2 Q3 Q4 Q1 1999

14 Operating profit by business area Q1/1999 meur Regional banks Corporate Markets Real Estate Treasury Other

15 Asset management bneur Assets under management Product earnings meur Q Q2 Q3 Q4 Q Portfolio management Insurance Mutual funds Administrative expenses Sales and distribution expenses Product earnings

16 Household savings bneur Share-index-linked bonds Retail bonds Insurance Mutual funds National public savings Deposits Q1/ 99 Finland Q1/ 99 Sweden *Excluding the exchange rate effect (EUR/SEK), the volume increased by 8% in 1998.

17 Net savings in mutual funds mfim msek Q Q2 Q3 Q4 Q Q Q2 Q3 Q4 Q Finland Sweden

18 Premiums paid, life insurance mfim msek Q Q2 Q3 Q4 Q Q Q2 Q3 Q4 Q Finland Sweden 4th quarter, 1998, excluding transfer of pension liabilities of Merita Plc. (FIM 71 million)

19 Market shares, households Finland Sweden Insurance (-2.1)* Insurance** (+1.6) Mutual funds (+5.7) Mutual funds** (-.3) Deposits (-.6) Deposits (+.4) Housing loans (-1.9) Housing loans (+1.2) Total lending (-1.5) % Total lending (+.8) % (± XX) = compared with Q1/1998. *Influenced by a change in statistical definitions. ** As per December 31, 1998.

20 Market shares, corporate Deposits Finland (-3,2) Deposits Sweden (+,7) Lending Finland (+,2) Lending Sweden (+2,1) % (± XX) = compared with Q1/1998.

21 Customer structure of loan portfolio EUR 63.8 bn (March 31, 1999) Public sector 3% Households 37% Companies 6%

22 Lending to companies by industry EUR 38 bn (March 31, 1999) Other companies 23% Real estate management 27% Renting, consulting and other company services 11% Financial operations 2% Manufacturing 15% Construction 6% Transport 7% Trade & services 9%

23 Real estate divestment strategy in Finland 1% Aleksia Real estate holdings 5% 4% Hotel properties Shopping malls Specialized companies to be sold Real estate shares Other properties e.g. foreign offices warehouses Holdings to be sold separately Banking premises To be retained

24 Real estate divestment process in Finland bnfim Write-down in 1998 FIM 3.7 billion Equity portfolio* Domestic properties Land and development projects Foreign properties Banking premises * Incl. Aleksia, hotels and shopping malls and Aleksia debt.

25 Personnel Thousand Q Q4 Q Q2 Q3 Q4 Q Employees Positions

26 Profitability Return on equity % % 35 3 Return on assets 3 2, , ,5 Q1-98 Q1-99 Q1-98 Q1-99 Including items affecting comparability Excluding items affecting comparability Including items affecting comparability Excluding items affecting comparability

27 Key ratios Income-to-cost ratio 1) % % Overall interest margin 2,5 2 1,8 2 1,6 1,4 1,5 1,2 1 1,8,6,5,4,2 Q1-98 Q1-99 Q1-98 Q1-99 Excluding items affecting comparability Including items affecting comparability 1) Before loan losses.

28 Regional banks Helsinki & Central & East. & North. South. Western Stock- Central North. Regional Banks Uusimaa West. Finland Finland Sweden Sweden holm Sweden Sweden Total Number of branches Lending & guarantees Customer savings Data as per December 31,1998.

29 Balance sheet March 31 March 31 March 31, 1999 bneur Change, % bnfim bnsek Loans to the public Loans to financial institutions and central banks Interest-bearing securities Financial current assets Financial fixed assets Other assets Total assets Deposits from the public Due to financial institutions and central banks Debt instruments outstanding Other liabilities Subordinated debt Shareholders equity Total liabilities and shareholders equity

30 Balance sheet bneur Total assets Loans to the public Deposits from the public March 31, 1997 March 31, 1998 March 31, 1999

31 Capital adequacy March 31, 1999 March 31, 1998 Tier 1 ratio, % Merita Bank Nordbanken Total capital ratio, % Merita Bank Nordbanken

32 Per-share data Q1/1999 Q1/1998 Earnings per share - Merita EUR.17 (.13) EUR.19 (.11) - Nordbanken Holding SEK 1.55 (1.2) SEK 1.67 (.96) Equity per share 1) - Merita EUR 2.36 EUR Nordbanken Holding SEK 2.53 SEK (Excluding items affecting comparability.) 1) At the end of the period.

33 Merger synergies Plan Income and cost synergies of almost EUR 12 million by the year 2 Implementation Synergies materialize as planned Staff reductions continue net 76 since October 1997 incl. expansion in key strategic areas, appr. 275 employees

34 New products every month Medica Life Science-fund Customer concept for retail customers to Finland Internet services to Sweden Private Banking concept to Sweden Joint Euroland Fund Customer concept for large and medium-sized companies Monthly mutual fund savings to Finland Unit-linked insurance products to Sweden Joint Nordic Small Cap Fund Long-term housing loans to Finland East European Fund to Finland One-day payment transmission between Finland, Sweden and Baltic states Free Visa-card withdrawals from ATMs

35 New business generated Unit-linked insurance products in Sweden EUR => EUR 24 million (March 31) Long-term housing loans in Finland EUR euro => EUR 118 million (March 31) New cross-boarder mutual funds (Nordic Small Cap, Euroland, Medica Life Science) EUR euro => EUR 154 million (April 24) Monthly savings into mutual funds in Finland EUR euro => EUR million 1 (March 31)

36 Stronger presence in the Baltic Sea region New regional bank for the Baltic states and Poland Second branch opened in Tallinn MeritaNordbanken Finance Latvia Ltd - wholly owned finance company MeritaNordbanken Latvia

37 Appendices

38 Group structure Shareholders Shareholders Merita Plc Listed on the Helsinki Stock Exchange Cooperation Agreement Identical Boards Unified Management Nordbanken Holding AB (publ) Listed on the Stockholm Stock Exchange 4% of capital ordinary shares MeritaNordbanken Plc 4% of capital ordinary shares 2% of capital non-voting preference shares 1% Other operations incl. real estate Merita Bank Plc Nordbanken AB (publ) MeritaNordbanken Group

39 Agency ratings, April 1999 Moody s S &P Fitch IBCA Thomson Bankwatch Short- Long- Short- Long- Short- Long- Short- Longterm term term term term term term term Merita Bank P-1 A2 A-1 A F1 A TBW-1 AA- Nordbanken P-1 A1 A-1 A F1 A+ TBW-1 AA- Nordbanken Hypotek Aa3

40 Reporting 1999 Financial reporting: January - June August 25 January - September October 26

41 Contact information MeritaNordbanken Investor Relations SE STOCKHOLM FIN-2 MERITA Telephone Telefax investor.relations@nb.se merita.investorrelations@merita.mailnet.fi Investor information on the Internet: