Svenska Handelsbanken Third quarter 2002

Transcription

1 Svenska Handelsbanken Third quarter October 2002

2 Profit and loss account, January - September Handelsbanken Group Change SEKm % Net interest income Commission, net Trading, net Other income Total income Staff costs Other expenses Total expenses Profit before loan losses and writedown Loan losses Write-down of financial fixed assets Operating profit

3 Profit and loss account, Five quarters Handelsbanken Group Q3 Q2 Q1 Q4 Q3 SEKm Net interest income Commission, net Trading, net Other income Total income Staff costs, excl bonuses Bonuses Other expenses Total expenses Profit before loan losses and write-down Loan losses Write-down of financial F.A Operating profit

4 Operating profit, quarterly Handelsbanken Group SEKm Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q

5 Lending to the general public, Sweden Handelsbanken Group, January - September Average volumes SEK bn Change % Mortgage loans Private Corporate Bank loans Private Corporte Total Sweden Private Corporate

6 Lending to the general public Handelsbanken Group Average volumes SEK bn Q Q Q Q Q Sweden Other Nordic Private Corporate Rest of world Private Corporate Total Private Corporate

7 Deposits from the general public Handelsbanken Group, January - September Average volumes SEK bn Change % Sweden Private Corporate Outside Sweden Private Corporate Total Private Corporate

8 Net interest margin, quarterly Deposits, SEK 160 Average volumes, SEK bn Margins 2,80% 155 2,60% 2,40% ,94% 2,00% 1,97% 1,94% 1,97% 2,04% 1,92% 2,20% 2,00% 140 1,80% 1,60% 135 1,40% 130 Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 1,20%

9 Net interest margin, quarterly Mortgage loans 370 Average volumes, SEK bn Margins 1,00% 360 0,95% ,85% 0,85% 0,85% 0,86% 0,87% 0,88% 0,90% 0,90% 0,85% ,80% 300 Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 0,75%

10 Commission January September Handelsbanken Group SEKm Change % Brokerage Mutual funds & custody Insurance Payments Lending and deposits Other Commission expenses Total

11 Net trading income, quarterly Handelsbanken Group SEKm Equity related Currency & interest rate related Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q

12 Number of employees Handelsbanken Group 30 sep Jan -02 Change No of employees From SPP +50 Swedish branch offices -129 Handelsbanken Liv, excl. SPP -11 IT and development, Sweden excl. SPP -9 Other Nordic countries -41 Rest of world +21 Other -22 No of employees comparable units

13 Change in expenses, Jan - Sep 2002 Handelsbanken Group Comparable expenses Midtbank, SPP and HL 2.7 % -units 5,7 % -units Exchange rate effects 0,4 % -units Total expenses 8,8 % -units

14 Comparable expenses, Jan - Sep 2002 Handelsbanken Group Salary increases 1.3 % -units Performance-related staff costs Decreased number of employees -2.6 % -units -0.1 % -units Higher IT costs 1.5 % -units Expansion outside Sweden 0.8 % -units Other expenses 1.8 % -units Total comparable expenses 2.7 % -units

15 Operating profit by business area January-September SEKm /- RoE Jan Sep 2002 Branch operations % 19,4% Markets % 12,4% Securities % 9,8% Asset Management % 21,8% Handelsbanken Finans % 30,2% Pension & Insurance Stadshypotek Bank ,3% Treasury % 6,0% Handelsbanken Group % 14,3%

16 Results in other Nordic countries and Great Britain January - September SEKm Change % Norway % Denmark % Finland % Great Britain % Total %

17 New branches outside Sweden No. of branches each year No. of branches

18 New branches outside Sweden No. of months to break-even 9 8 Average: 17 months 7 No. of branches No. of months to break-even * Branches opened outside Sweden since 1997 and which as at 30 Sept 02 had achieved break-even.

19 Key ratios, January - September Handelsbanken Group Return on equity after full tax 14,3 % 19,1 % Cost / income, excl. write down before loan losses 50,9 % 46,9 % after loan losses 52,3 % 46,6 % Net earnings per share, SEK 7:66 9:18 moving 12 mth total 10:47 12:43

20 Bad debts as a percentage of lending Handelsbanken Group % 1,2 1,0 0,8 0,6 0,4 0,2 0, sept

21 Bad debts as a percentage of lending SHB and other Swedish banks % SHB net / gross Other Swedish banks net /gross* * As at 30 June 2002

22 Loan losses as a percentage of lending SHB and other Swedish banks % 0,5 0,4 0,3 Other Swedish Banks* Handelsbanken 0,2 0,1 0, * As at 30 June 2002

23 Balance sheet Handelsbanken Group 30 Sep 30 Sep Change SEKm % Lending to the general public Lending to credit institutions Interest-bearing securities Other assets Total assets Deposits & funding from general public Liabilities to credit institutions Issued securities Other liabilities Shareholders equity Total liabilities and equity

24 Capital base and capital ratio Handelsbanken Group SEK bn ,2 % 12,2 % 10,4 % 9,8 % 9,4 % 9,5 % 9,9 % 9,4 % Tier II capital ,3 % 10,0 % 6,2 % 6,3 % 6,5 % 6,4 % 6,1 % 6,3 % Tier 1 capital

25 Return on equity after standard tax 30 September 2002 % Handelsbanken Other listed banks Q1 97 Q2 97 Q3 97 Q4 97 Q1 98 Q2 98 Q3 98 Q4 98 Q1 99 Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02

26 Household deposits, SEK Market share Jun Dec Change % % point Handelsbanken FöreningsSparbanken Nordea SEB Nordea incl. Postgirot Bank AB Handelsbanken incl. Stadshypotek Bank Source: SCB ( )

27 Swedish savings market Handelsbanken s market share Change % % point SEK deposits, households * Mutual fund savings, volume * Mutual fund savings, new sales ** Capital-guaranteed products *** Still highest return on equity of the Nordic banks * Market share for 2002 as at 30 June. ** Market share for 2002 as at 30 Sept. *** Newly-issued volumes on Stockholm Stock Exchange. Market share for 2002 as at 30 Sept. Source: Statistics Sweden, Svensk Fondstatistik

28 The Swedish mutual fund market Net sales Jan - Sep 2002 Proportion of total 31 Dec 2001 Handelsbanken 27,9 % 11,4 % Robur 15,7 % 30,3 % SEB 11,5 % 18,4 % Nordea 10,0 % 18,6 % Source: Svensk Fondstatistik/Sparöversikt and SHB Fonder

29 Customer satisfaction index, corporate Svenskt Kvalitetsindex Index 75 Handelsbanken Sector average (excl. SHB) / - 99 Source: Svenskt Kvalitetsindex

30 Customer satisfaction index, private Svenskt Kvalitetsindex Index 75 Handelsbanken Sector average (excl. SHB) / - 99 Source: Svenskt Kvalitetsindex

31 The Swedish pensions market - a growth market Premium income SEK bn Premium pension Private sector occupational pensions Private pension schemes Total Index, 1997=

32 Private pension schemes - no. of people with deductions for private pension schemes No of people ( 000) Proportion % % 31% 33% 35% 38% 40% 30% % % No of private individuals Proportion with tax deductions 0%

33 Handelsbanken Liv... Demutualised and consolidated in Handelsbanken s accounts Gives policyholders guaranteed return - on average 4.4% Preliminary calculation every month, final calculation at year-end

34 Impact on Group results Handelsbanken Liv Jan-sep Jan-sep Change % Income, SEK m Expenses, SEK m Operating profit, SEK m C/I ratio, % points

35 Key ratios Handelsbanken Liv Available solvency capital, SEK m Required solvency capital, SEK m 30 Sep Jun Solvency ratio In demutualised companies, the capital base only consists of equity

36 Investment assets, % distribution Handelsbanken Liv Exposure % 30 Sep Jun 2002 Equities Fixed income Property 3 3 Other 3 1 Total Total return -1.7%* -7.7%** * Jul-Sep 2002 ** Jan-Jun 2002

37 Total return and results Handelsbanken Liv Results SEK m 400 Portfolio return Jan-Sep 2002 = -9.3% % -10% -5% 0% 5% 10% 15% Portfolio return Time horizon 1 year.

38 SPP Run according to mutual principles implying that: - Policy-holders bear the risk - The whole result accrues to policy-holders (both profit and loss) All transactions between Handelsbanken and SPP are on a business basis SPP is not consolidated into Handelsbanken s accounts

39 Investment assets, % distribution SPP Exposure % 30 Sep Jun 2002 Equities Fixed income Property Other 4 0 Total Total return -2.7%* -8.9%** * Jul-Sep 2002 ** Jan-Jun 2002

40 Key figures SPP Available solvency capital, SEK m 30 Sep Jun Required solvency capital, SEK m Solvency ratio Collective consolidation, % 95 97

41 Measures taken SPP Reallocation of investment assets Issued subordinated loans SEK 1.6bn Market valuation of unlisted assets Changes in certain actuarial assumptions Freeze on payments of client company funds

42 Life insurance operations should be demutualised! More transparent - good for customers - good for staff - good for the company - good for the owner Greater efficiency Increased customer benefit - freedom - security - justice Clearer responsibility

43 Share price performance up to 30 September 2002 Index SHB AFV Generalindex Nordix Bank exkl SHB