Handelsbanken January - June July 2010

Transcription

1 Handelsbanken January - June 21 2 July 21

2 Accumulated dividends since 26 SEK Adjusted equity per share Kv2 6 Kv3 6 Kv4 6 Kv1 7 Kv2 7 Kv3 7 Kv4 7 Kv1 8 Kv2 8 Kv3 8 Kv4 8 Kv1 9 Kv2 9 Kv3 9 Kv4 9 Kv1 1 Kv2 1 Handelsbanken Group Annual growth in equity including dividends CAGR: 15.1% CAGR, compound annual growth rate

3 Summary first 6 months 21 Earnings per share increased by 3 percent to SEK 8:73 Annual growth in adjusted equity per share in the past four years 15.1% (including dividends) Operating profit increased by 1 percent to SEK 7,331 million Loan loss ratio halved to.12% Return on equity was 12.8% Tier 1 ratio according to Basel II increased by 2.2 percentage points to 14.8% Refinancing of all bonds maturing up to February 211 brought forward 2 new branches established in Great Britain 3

4 Income statement, January June SEK m Change % Net interest income 1,398 11,31-6 Net fee and commission income 3,971 3,595 1 Net gains/losses on financial items at fair value 924 1, Other income Total income 15,662 16,66-6 Staff costs -4,78-4,981-5 Other expenses -2,73-2,539 6 Total expenses -7,411-7,52-1 Profit before loan losses 8,251 9,86-9 Loan losses -92-1,835-5 Disposal prop. equipmt./ intang. Assets Operating profit 7,331 7,

5 Business situation in Q2 Gradually increasing credit demand Strong increase in credit commitments, up 11% or SEK 1bn in Sweden since the first quarter Continued financial turbulence, ITRAXX Financials back to Lehman levels In the first half of the year, the Bank issued SEK 17bn in bonds with up to 1-year maturities and with an average maturity of 4.4 years. Strong, stable financial situation: Tier 1 ratio increased to 14.8% 5

6 Loans to the public, quarterly increase average volumes SEK bn Q1-4 Q2-4 Q3-4 Q4-4 Q1-5 Q2-5 Q3-5 Q4-5 Q1-6 Q2-6 Q3-6 Q4-6 Q1-7 Q2-7 Q3-7 Q4-7 Q1-8 Q2-8 Q3-8 Q4-8 Q1-9 Q2-9 Q3-9 Q4-9 Q1-1 Q2-1

7 Itraxx Senior Financial* (CDS index) Q Index SHB 73 5 jun-8 aug-8 oct okt-8 dec-8 feb-9 apr-9 jun-9 aug-9 oct okt-9 dec-9 feb-1 apr-1 jun-1 Source: Bloomberg 7

8 Loan commitments to the public mdkr SEK bn % during Q March, mars31 April,3 april 31 May, maj 31 3 June, juni

9 Financial strength Assets Liabilities Key ratios, Capital situation 21 June 29 June Change Capital ratio, Basel II, % Lending etc. Senior funding, deposits etc. Tier I ratio, Basel II, % Tier I capital, SEK bn Equity, SEK bn Liquidity reserve SEK >55 bn Rating Shortterm Longterm Moody s Aa2 P-2 S&P AA- A-1+ Capital base 19.9% Fitch DBRS AA- AA (low) F1+ 9

10 Funding with original maturity in excess of 1 year Market SEK bn H1 21 In the first six months, bonds for SEK 17bn were issued: - Maturities up to 1 years Senior funding Euro market Sweden/Nordics yrs in average maturity USA 26 Bond issues H1 21 Covered bonds Stadshypotek Covered bonds Sweden Covered bonds Euro market Total % SEK 61bn SEK 19bn 64% Covered bonds Senior bonds 1

11 Income statement, quarterly change SEK m Q2 21 Q1 21 Change % Net interest income 5,82 5,316-4 Net fee and commission income 1,988 1,983 Net gains/losses on financial items at fair value Risk result - insurance Other income Total income 7,653 8,9-4 Staff costs -2,352-2,356 Other expenses -1,393-1,31 6 Total expenses -3,745-3,666 2 Profit before loan losses 3,98 4,343-1 Net loan losses Disposal prop. equipmt./ intang. assets Operating profit 3,539 3,

12 Q3 6 Q4 6 Q1 7 Q2 7 Q3 7 Q4 7 Q1 8 Q2 8 Q3 8 Q4 8 Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Handelsbanken Group Sum of interest income and loan losses SEK m

13 Earning capacity Deposits and loans for Swedish branch operations SEK m 3 % Q1 6 Q2 6 Q3 6 Q4 6 Q1 7 Q2 7 Q3 7 Q4 7 Q1 8 Q2 8 Q3 8 Q4 8 Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 Q3 11 Q4 11 kv1 12. Deposits Loans 1M STIBOR Forecast 1M STIBOR * Reference rate until 3 June 28, 1M STIBOR and subsequently 3M STIBOR for variable deposits and loans. * Source: Bloomberg 13

14 Fees and commissions SEK m 21 Jan-Jun 29 Jan-Jun Change % Q2 Q1 Change % Brokerage, mutual funds & custody 1,91 1,656 15% % Advisory services % % Insurance % % Payments 1,177 1,169 1% % Guarantees, lending & deposits % % Other % % Commission expenses % % Total 3,971 3,595 1% 1,988 1,983 % 14

15 Net gains/losses on financial items at fair value SEK m 3 Trading* Polka Available for sale, realised Other Liquidity portfolio , , Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Q4 29 Q1 21 Q * Including fair value option.

16 Expense trend, January - June Change SEK m Change Change % Q2 / Q1% Staff costs -4,78-4, Other expenses -2,471-2, Depreciation Total expenses -7,411-7,

17 Branch office operations in Sweden January June 21 Handelsbanken has a branch in Kungsbacka Operating profit SEK 5,199m RoE 18.4% C/I ratio before loan losses 39.9% Number of branch offices 461 Average number of employees 4,327 Average volumes, SEK bn Loans 997 Deposits 327 and in another 459 locations in Sweden 17

18 Branch office operations in Sweden Continues customer inflow Market shares in Sweden, May 31, 21 Household deposits 18.7% Household loans 22.8% Corporate deposits 21.6% Corporate loans 26.7% Almost half (47%) of all new household deposits in Sweden during the period May 29 to May 21 went to Handelsbanken 18

19 Branch office operations outside Sweden January June 21 Operating profit SEK 1,418m RoE 7.8% C/I ratio before loan losses 49.6% Number of branch offices 25 Average number of employees 2,89 Handelsbanken has a branch in Plymouth Average volumes, SEK bn Loans 468 Deposits 142 and in 71 other locations in Great Britain 19

20 Average lending - Branch office operations outside Sweden Corporate Private Q2 21 comp Q1 Q2 21 comp Q1 Great Britain, GBP m 4, % 1, % Norway, NOK m 11, % 54, % Finland, EUR m 6, % 3, % Denmark, DKK m 2,27 +.2% 19, % 2

21 Annual growth in equity including dividends Accumulated dividends since 26 Adjusted equity per share SEK Inflation adjusted CAGR: 13.3% CAGR: 15.1% SEK + 48bn Q2 6 Q3 6 Q4 6 Q1 7 Q2 7 Q3 7 Q4 7 Q1 8 Q2 8 Q3 8 Q4 8 Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Organic growth CAGR, compounded annual growth rate 21

22 Branch office operations outside Sweden Profit before loan losses SEK m * 22 * Adjusted to full year According to IFRS 8 from 28 inclusive.

23 Branch office operations outside Sweden Handelsbanken grows in Great Britain Handelsbanken in Great Britain 72 branches (+1 managers in readiness for new branches) SEK m 21 Full year 29 Change Operating profit 544* % Established branches** * January June 21 adjusted on full-year basis ** Number of branches June,

24 Branch office operations in Great Britain Income and expenses trend, new branches SEK m, per branch* Number of branches Number of branches 21 Income Expenses Number of branches H yr yr 1 yr 2 yr 3 yr 4 yr 5 yr 6 yr 7 * Refers to the results for 2 21:H1 (Jan-Jun 21 adjusted on full-year basis Year of operations

25 Branch office operations in Great Britain example of a newly-opened branch Profile of a newly-opened branch (Scarborough): Four employees with a total of 145 years of banking experience, 85 of them in the town Each of them has only had one previous employer All the employees live locally Area: Small and medium business town with a population of 14, The branch broke even after 17 months Number of active customers, ex branch opened in Corporate Private Q1 27 Q1 28 Q1 29 Q

26 Branch office operations outside Sweden Income and expenses trend, new branches SEK m, per branch H1-1 Number of branches (Nordic countries) Income Number of branches (UK) Expenses yr yr 1 yr 2 yr 3 yr 4 yr 5 yr 6 yr 7 yr 8 yr 9 yr 1yr 11yr 12yr 13 yr14 Number of branches

27 Branch office operations outside Sweden Branch managers being continually recruited Support from regional head office Central financial management systems Business support from central business areas Joint credit policy for the Group Customer and profit responsibility Funding Capital Corporate culture 27

28 Appendix

29 Income statement, five quarters SEK m Q2 Q1 Q4 Q3 Q Net interest income 5,82 5,316 5,359 5,61 5,638 Net fee and commission income 1,988 1,983 1,995 1,83 1,856 Net gains/losses on financial items at fair value Risk result insurance Other income Total income 7,653 8,9 7,967 7,762 8,22 Staff costs -2,352-2,356-2,586-2,451-2,539 Other expenses -1,393-1,31-1,472-1,191-1,297 Total expenses -3,745-3,666-4,58-3,642-3,836 Profit before loan losses 3,98 4,343 3,99 4,12 4,384 Loan losses, net Disposal prop. equipmt./ intang. assets 3 1 Operating profit, continuing operations 3,539 3,792 3,221 3,255 3,445 Operating profit, discontinued operations Operating profit, incl. discont. op. 3,594 3,834 3,233 3,267 3,445 29

30 Performance for the Group, five quarters SEK m Q2 Q1 Q4 Q3 Q Total income 7,653 8,9 7,967 7,762 8,22 Total expenses -3,745-3,666-4,58-3,642-3,836 Profit before loan losses 3,98 4,343 3,99 4,12 4,384 Loan losses, net Operating profit, incl. discont. op. 3,594 3,834 3,233 3,267 3,445 Earnings per share 4:14 4:59 4:4 3:91 4:6 3

31 Key ratios, January - June Return on equity C/I-ratio Earnings per share total operations, SEK % 47.3% 8: % 45.3% 8:49 31

32 Fee to the Stabilisation fund, January June SEK bn Total liabilities and equity Reduction for total equity, untaxed reserves and subordinated loans Reduction for intercompany liabilities Basis for calculation of fee* 21 2, ,114 SEK m Fee.36% Reduction 5% during 29 and 21 Total fee 21 Accrued fee, Jan-Jun * Applies to credit institutions within the Group affected by the new Stabilisation fund law 32

33 Change in net interest income SEK m Net interest income Q1 21 Deposits, branch offices in Sweden margins - volumes Lending, branch offices in Sweden margins - volumes Deposits & lending, branch offices outside Sweden Mandatory fees (deposit insurance, stability fund etc) Exchange rate movements Other, refinancing brought forward, liquidity reserve Benchmark effect Change in net interest income Net interest income Q2 21 5, ,82-4% 3M STIBOR reference.rate 33

34 Oktogonen quarterly SEK m Q2 29 Q3 29 Q4 29 Q1 21 Q2 21 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Q3 26 Q1 27 Q2 27 Q3 27 Q4 27 Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Expense Adjust. for previous yr 34

35 Impaired loans and loan losses as a percentage of lending Proportion of impaired loans, net 1, Loan loss ratio % % 1,,8,8,6,6,4,4,2,2,, -, ,2 35

36 Effective tax burden Corporation tax on the profit for banking operations No tax on the administration result and the risk result in the insurance operations, except for outright risk insurance The yield split has already been taxed Corporation tax on yield on shareholders equity in the insurance operations Effective tax burden January-June 21: 27.1% (January-June 29: 27.1%, Q2 21: 28.8%, Q1 21: 25.5% and Q2 29: 26.6%) 36

37 Balance sheet, 3 June SEK bn Change % Loans to the public 1,484 1,499-1 Loans to credit institutions Interest-bearing securities Other assets Total assets 2,326 2,155 8 Deposits and borrowing from the public Due to credit institutions Issued securities 1,66 1,6 6 Other liabilities Shareholders equity Total liabilities and equity 2,326 2,

38 Loans to the public, quarterly Average volumes Q2 Q1 Q4 Q3 Q2 SEK bn Branch offices in Sweden Private Corporate Branch offices outside Sweden Private Corporate Other operations Total ,463 1,476 1,478 1,51 Private Corporate

39 Deposits from the public, quarterly Average volumes Q2 Q1 Q4 Q3 Q2 SEK bn Branch offices in Sweden Private Corporate Branch offices outside Sweden Private Corporate Other operations Total Private Corporate

40 Average volumes Deposits, Regional banks outside Sweden Private, local currency reported in SEK m Q1 21 Q2 21 Change % Denmark 8,385 8, Finland 1,267 1,272.4 Norway 9,22 9, Great Britain Corporate, local currency reported in SEK m Denmark 12,77 12, Finland 2,64 2, Norway 35,72 3, Great Britain 1,35 1, Average for Q1 21 is estimated on average exchange rates for Q2 21 4

41 Average volumes Deposits, Regional banks outside Sweden Corporate % Private % Q2 21 comp Q1 Q2 21 comp Q1 Great Britain, GBP m 1, Norway, NOK m 3, , Finland, EUR m 2, , Denmark, DKR m 12, ,