UBS Global Financial Services conference New York, May 16, Jan Lidén CEO

Transcription

1 UBS Global Financial Services conference New York, May 16, 27 Jan Lidén CEO

2 The leading bank in four small countries Sweden Total population: 9.m Private customers: 4.1m Corp. customers: 262, Organisations: 12, Branches: 472 Typical market share: 25% GDP growth 26: 4.4% Estonia Total population: 1.3m Private customers: 1.2m Corp. customers: 84, Branches: 96 Typical market share: 5% GDP growth 26: 11.2% Share of group lending Latvia Total population: 2.3m Private customers:.7m Corp. customers: 47, Branches: 76 Typical market share: 3% GDP growth 26: 11.5% Lithuania Total population: 3.4m Private customers: 2.9m Corp. customers: 73, Branches: 127 Typical market share: 3% GDP growth 26: 7,4% 84% 6% 5% 4% 1% Supporting markets: Denmark, Finland, Norway, Russia, Ukraine, USA, Luxemburg, China, Japan and Spain Sweden Estonia Latvia Lithuania Others (2)

3 Key figures Mar 31, 27 Mar 31, 26 Return on equity, % Earnings per share, EUR Equity per share, EUR C/I ratio before loan losses Loan loss ratio, net, %.2.2 Share of impaired loans, %.7.9 Provision ratio for impaired loans, % Tier 1 capital ratio, % Capital adequacy ratio, % EUR/SEK=9.2 (3)

4 Strong position for profitability and growth Sweden Swedbank is the leading bank in Sweden. Profitability is high and stable and the bank is gaining market share in important segments such as retail mortgages and deposits. Stable base Baltics The Baltic economies are experiencing strong economic growth that is expected to remain for many years. As the largest bank in the region, growing with the market ensures Swedbank an attractive earnings growth. Growth and experience Russia and Ukraine Swedbank has a small but growing presence in Russia and Ukraine. Long-term, a significant share of Swedbank s growth will be generated in these markets. Future growth and profitability (4)

5 Strong position for sustainable improvement Values Results-oriented Open Innovative Committed Service Leadership Customer perception Accessible Uncomplicated Proactive (5)

6 Highlights Q1 27 Strong and stable results intact EUR 414m (39 Q1, 26) +34% Strong and stable results from all major business areas; Swedish- and Baltic Banking and Swedbank Markets Group net interest income increased for the fourth consecutive quarter Swedish Banking EUR 247m (217) +14% High level of customer activity, increased volumes in savings, lending and payments Net interest income was stable Baltic Banking EUR 119m (71) +68% Continued healthy development Some signs of lending growth slowdown Swedbank Markets EUR 54m (36) +49% Continued strong profit development in all product areas Fixed income and FX showed exceptionally good results Swedbank s leading position on the Swedish savings market was reinforced by co-operation agreement with Folksam Moody s upgraded Swedbank s long term rating to Aa1. Operating profit, EUR/SEK=9.2 (6)

7 Swedish Banking % Continued positive volume- and market share development in: Household mortgages Household deposits Corporate lending Net interest income was stable Swedbank was named Sweden s most attractive work-place in banking and the fourth most attractive employer over-all. Q1 6 Q2 6 Q3 6 Q4 6 Q1 7. Income Costs C/I-ratio (7)

8 Swedbank Markets 4 Continued strong development in all product areas 3 Net profit increased 16 percent vs. Q4 26 and 49 percent vs. Q1 26 C/I-ratio improved to.51 2 Fixed income and foreign exchange reported best improvements 1 Issue of structured products increased 24 percent compared to Q1 26 Q1 5 Q2 5 Q3 5 Q4 5 Q1 6 Q2 6 Q3 6 Q4 6 Q1 7 Swedbank was largest issuer of equity linked bonds in Sweden during Q1 27 First Securities profit increased 4 percent vs. Q4 26 and 4 percent vs. Q1 26. Net profit (8)

9 Baltic Banking % Continued good earnings trend Operating profit for the period increased by 9 per cent vs. Q4 26 C/I-ratio improved to.4 Some slowing down in the lending increase Strong increase in saving volumes New employments to meet demand for service Continued good credit quality. Q1 6 Q2 6 Q3 6 Q4 6 Q1 7. Income Costs C/I-ratio (9)

10 Capturing the market growth in the Baltic States Net profit Net Interest Income , 9, 8, 7, 6, 5, 4, 3, 2, 1, Deposits ,6 14, 12, 1, 8, 6, 4, 2, Lending Charts are based on Hansabank Group statutory reports (1)

11 Baltic macro economic challenges GDP-growth, inflation, credit growth, wage inflation, current account deficit on non-sustainable levels Soft landing scenario likely Credit growth will decrease Anti-inflation plan in Latvia All market participants banks agree actions need to be taken Small, open, highly flexible economies determined to enter the euro-zone Regulators and financial sector need to work together It will take some time for macro-indicators to reach normalised levels. (11)

12 Decreasing lending growth in the Baltics Baltic Banking Estonia 1,8 14% 6 14% 1,6 1,4 1,2 1, % 12.8% 12.8% 12.% 12% 1% 8.5% 8% 6% % 11.9% 1.4% 1.4% 12% 1% 8% 7.% 6% % 2% 2 1 4% 2% Q1 6 Q2 6 Q3 6 Q4 6 Q1 7 Q1 6 Q2 6 Q3 6 Q4 6 Q % Latvia 18.2% 17.5% 14.9% 9.8% 2% 4 18% 35 16% 3 14% 12% % 1% 2 8% 15 6% 1 4% 2% 5 % Lithuania 14% 12% 1.4% 11.4% 1.3% 1% 9.2% 8% 6% 4% 2% Q1 6 Q2 6 Q3 6 Q4 6 Q1 7 Q1 6 Q2 6 Q3 6 Q4 6 Q1 7 Lending growth per quarter (12)

13 Acquisition of TAS-Kommerzbank in Ukraine Acquisition process is running according to plan, closing is expected during Q3 Preparations in several areas, e.g. treasury, credit, risk management, accounting and internal audit Norway Sweden Finland Estonia Russia TAS will continue to gain market share Denmark Latvia Lithuania Clear strategy focusing on retail- and SME segments Ukraine TAS has climbed from number 22 to number 13 in terms of total loans in the last 3 years. Adding 6 new branches to the existing 17 during 27. (13)

14 Ukraine provides excellent long-term growth potential Expected continued high GDP-growth Under penetrated banking market Some political turmoil but agreement in long-term direction. High Growth Potential 1% 8% 6% 4% 2% % Real GDP Growth 25-21E 7,9% 7,7% 6,4% 5,3% 5,% 2,6% 2,3% Estonia Latvia Lithuania Ukraine Russia Sweden EU 25 Retail Loans / GDP (%) 3% 25% 2% 15% 1% 5% % Ukraine Lithuania Estonia Latvia 2 Czech R. Slovakia Poland Hungary Poland Lithuania Slovakia GDP / Capita Latvia Source: EIU, Global Insights World Overview, broker reports Hungary Estonia Czech R. (14)

15 Swedbank Russia Concentrated to expansive North-Eastern regions, e.g. Moscow and St. Petersburg Continued successful expansion of corporate market Entering the Russian retail market Substantial growth potential Strong GDP growth Increased demand for traditional retail banking products Leverage experience in fast growing markets through Hansabank About 5 new bank branches in prime locations in 27 Profitable organic growth SEKm Q1-5 Q2-5 Q3-5 Q4-5 Q1-6 Q2-6 Q3-6 Q4-6 Q1-7 Profit (right scale) Income Costs Provisions for VAT dispute SEK (15)

16 Summary The leading bank in Sweden, Estonia, Latvia and Lithuania Strong and stable earnings in Sweden set to continue with continued strong macro development Substantial growth in the Baltics set to continue although at slower pace Long-term growth potential in Russia and Ukraine. (16)