Ready to accelerate becoming the Nordic integrator

Transcription

1 Ready to accelerate becoming the Nordic integrator SEB Large Corporate Seminar Stockholm Jakob Groot Member of the Executive Board Head of Corporates & Institutions 5 May 08

2 Executive summary: Stable results for Q 08 Stable macroeconomic environment supported continued lending growth of % y/y Lending growth driven primarily by good business momentum and local partnership agreements Financial results, Q 08 Net profit of DKK 4.9 bn, down % from Q 07, which saw strong customer activity ROE of.6% Strong capital position, with a CET capital ratio of 6.4% net of full share buy-back Full-year outlook is unchanged Fee income remained strong despite volatile markets and subdued client activity, which had an adverse effect on trading income Expenses down % y/y; continued net reversal of impairments in most markets Net profit (DKK bn) Q 08 ROE (%) Q 07

3 New strategy: Becoming the Nordic Integrator to increase value creation Integrate further with our customers and become integral to their lives Increase internal collaboration so that customers experience one Danske Bank Integrate more with society by stepping up our commitment to making a positive impact

4 Our new organisation Executive Board CEO Thomas F. Borgen Internal Audit Dorthe Tolborg Chief of Staff Morten Mosegaard New Business Models To be appointed Group Compliance Anders Meinert Banking DK Banking Nordic Corporates & Institutions Wealth Management Jesper Nielsen Glenn Söderholm Jakob Groot Jacob Aarup-Andersen Group Development COO area CFO area* Group Risk Management Group HR Frederik Gjessing Vinten Jim Ditmore Christian Baltzer (fr ) Carsten Rasch Egeriis Henriette Fenger Ellekrog * Morten Mosegaard will be interim head of CFO area

5 Outlook for full-year 08 unchanged: We expect net profit in the range of DKK 8-0 bn Net interest income We expect net interest income to be higher than in 07, as we will benefit mainly from volume growth Net fee income Net fee income is expected to remain strong, subject to customer activity Expenses Expenses are expected to be slightly higher than in 07 Impairments Loan impairments are expected to be higher, but still at a low level. Loan impairments will be based on the new expected credit loss impairment model in IFRS 9 Net profit We expect net profit for 08 to be in the range of DKK 8-0 bn New financial target Our longer-term ambition is to rank in the top three among major Nordic peers* in terms of ROE Note: This guidance is subject to uncertainty and depends on economic conditions, including developments in monetary policy at central banks. * DnB, Handelsbanken, Nordea, SEB, Swedbank 4

6 C&I at a glance Lending DKK 75 bn 0% of Group total lending (Q 08) Total income DKK. bn % of Group total income (07) Income breakdown at C&I (DKK millions) FI&C Capital Markets General Banking,47 Trading income DKK 4.8 bn 68% of Group trading income (07),900 customers &,700 FTEs,69,40,68,585 FI&C: Fixed income and currencies TxB & Investor Services: Transaction banking products such as cash management, trade finance, export finance and solutions to investors Capital Markets: DCM, ECM, Equities, Corporate Finance, Loan Capital Markets CIB: Corporate and Institutional Banking Q 07 Q 07 Q 07 Q4 07 Q 08 TxB is reported in General Banking 5

7 Financial SEB Large results Corporate for Q Seminar 0 Stockholm C&I an integrated part of the bank C&I an integrated part of the bank Competitive edge in the Nordic markets C&I Banking Wealth Mgmt Capital Markets Strong and long-term customer relationships Fixed income Trade Finance Cash Mgmt Three local currencies and large Fixed Income markets FX Guarantees Strong cross border IT platform and competitive product solutions Custody/Settlement Investment services Large institutional (pension) sector with constant need to invest and hedge obligations in local currency Advisory/Research. Includes pricing and trading of bonds, equities and the required infrastructure 6

8 The C&I Strategy has served us well 5 forces of change Macroeconomics Strategic response 5 priorities Customer Centricity Regulation Changing customer needs Competitive forces Technology & digitalization Cultural transformation Tech. development & digitalisation Calibration of the business model Geographical footprint # in customer experience # in return 7

9 Financial SEB Large results Corporate for Q Seminar 0 Stockholm Strategy has yielded measurable results Allocated Capital (DKK bn) ROAC before tax (%) % 7.7%. 4.8%.7% 0.9% Q Q 08 8

10 Financial SEB Large results Corporate for Q Seminar 0 Stockholm and strategy has also delivered on key metrics Customer Satisfaction; Prospera Other Measurements Capital Markets income, primarily fee based, increased approx. 7% from 05 to 07 Balance sheet consumption improved in the period driven by reduction of market risk and counterparty risk C&I cost/income ratio improved from 45% in 05 to 4% in Continued development of coverage model has improved customer experience and is also expected to continue to improve offering Investments in IT and digital solutions, however regulatory share of total IT spend remains significant Source: Prospera Summary Large Corporates & Institutions DK, FI, NO, SE & Nordic

11 Excellent starting point for launching our new strategy 0

12 Integrating C&I: selected snapshots Integrating with customers using advanced data and analytics The Financial Dashboard ( District ) is Danske Bank s future digital interface for C&I customers FinDash is being co-created together with pilot customers Internal integration focus on agile collaboration using for instance tools like CRM Improving and expanding C&I s customer coverage model by for instance moving closer to each other and breaking down potential silos to organise around our customers and work together as one Danske Bank Continue to grow fee based income in primarily DCM and TxB & Investor Services by delivering superior customer solutions in a changing regulatory environment

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14 Disclaimer Important Notice This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Danske Bank A/S in any jurisdiction, including the United States, or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The securities referred to herein have not been, and will not be, registered under the Securities Act of 9, as amended ( Securities Act ), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This presentation contains forward-looking statements that reflect management s current views with respect to certain future events and potential financial performance. Although Danske Bank believes that the expectations reflected in such forwardlooking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors many of which are beyond Danske Bank s control. This presentation does not imply that Danske Bank has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.