Pohjola February 2009

Transcription

1 Pohjola February 2009

2 OP-Pohjola Group & Pohjola Bank in brief 2 The leading financial services company in Finland - with a strong diversified presence in Retail and corporate banking Insurance Mutual Funds and Asset Management Market position 1. or 2. in all key areas One of the highest rated banks in Europe (AA-/Aa1/AA-; all stable) Characterised by a strong capital position stable earnings strong liquidity low loan loss provisions no SIV exposure, low risk exposure in bond portfolios

3 Finnish Economy 3

4 4 Change in GDP volume 8 % 6 4 United States Finland Eurozone Source: Reuters EcoWin

5 Trade balance and current account in Finland 12-month moving total 5 20 EUR billion 15 Trade balance 10 5 Current account Source: Bank of Finland

6 6 % Harmonized index* of consumer prices annual change * except United States United States Eurozone Finland Source: Reuters EcoWin

7 7 25 % Unemployment rate in Finland Source: Statistics Finland

8 8 Average House Prices Average house prices Average house prices Index 1996=100 Sweden Index 1996=100 Ireland Finland Netherlands France United States Great Britain Spain Finland Sources: Reuters EcoWin, Statistics Sweden n Source: Reuters EcoWin

9 Finnish Financial Industry 9

10 37 % OP-Pohjola Group's market share of households' housing loans /05 9/05 3/06 9/06 3/07 9/07 3/08 9/08

11 11 Market Shares 31 December % Market Share in Deposits 31 December 2008 NordeaOP-PohjolaDanske Handelsbanken Savings Group Bank banks Figures are estimates Sources: Bank of Finland, banks Aktia % NordeaOP-PohjolaDanske Group Bank Figures are estimates Sources: Bank of Finland, banks Market Share in Loans 31 December 2008 Savings banks Aktia Local Ålands- cooperativebanken banks Handelsbanken Local Ålands- cooperativebanken banks

12 35 % Mutual fund companies market shares Nordea OP- Pohjola Group Source: Finnish Association of Mutual Funds Danske Bank SEB Gyllenberg Evli FIM Others

13 13 Market shares in life insurance Gross premiums written % 30 29, ,6 21, , ,5 7,9 0 OP-Pohjola Group Nordea Mandatum Life* Skandia Tapiola Others * Mandatum Life and Kaleva

14 14 35 % Market shares of non-life insurance premiums written 2007 Domestic direct insurance 30 27,3 26, , ,5 8,6 6,3 0 OP-Pohjola Group* If Tapiola** Fennia Local Insurance*** * Pohjola Non-Life, A-Insurance, Eurooppalainen and OVY ** incl. Turva *** incl. Palonvara Other Source: Federation of Finnish Financial Services

15 15 OP-Pohjola Group Structure, strategies and financial performance

16 16 Joint responsibility of OP-Pohjola Group Helsinki OP Bank Funds Life insurance OP-Pohjola Group Central Cooperative 221 Group member banks Banking Asset Management Pohjola Bank plc OP Mortgage Bank Non-life Insurance Companies within OP-Pohjola Group are liable for each other's debts and commitments.

17 17 Joint Responsibility for Liability Joint responsibility within the OP-Pohjola Group is based on the Cooperative Bank Act and the Member Credit Institutions are committed to the joint responsibility in their articles of association (commercial banks) or statutes (Member Cooperative Banks) In the event that a Member Credit Institution or the Central Cooperative is unable to pay any debts owed the other Member Credit Institutions/ Central Cooperative are jointly and severally responsible for paying that debt The outstanding debt is apportioned among the Central Cooperative and the Member Credit Institutions in proportion to their assets as a percentage of the total group assets from the most recently adopted balance sheets The joint responsibility under the cooperative system includes the Central Cooperative and its Member Credit Institutions The Member Cooperative Banks of the OP-Pohjola Group, Pohjola Bank plc Helsinki OP Bank Plc, OP-Kotipankki Oyj and OP Mortgage Bank Insurance companies within the OP-Pohjola Group are not included in the cooperative joint responsibility

18 18 40 % OP-Pohjola Group on the deposit and lending markets* Market share of lending Latest value 12/ Market share of deposits * Up until 12/2002 deposit banks' loans to and deposits placed by Finnish non-mfi's; since 1/2003 MFI's loans to and deposits placed by euro area non-mfi's

19 1,200 million OP-Pohjola Group Earnings before tax, 12 month moving total FAS 19 1,

20 20 OP-Pohjola Group Income statement million Change 1 January to 31 December million % Net interest income 1,189 1, Other income 634 1, Total income 1,823 2, Personnel costs Other expenses Total expenses 1,238 1, Impairments of receivables Returns to owner-members and OP bonus customers Earnings before tax 372 1,

21 21 OP-Pohjola Group Balance sheet items million 12/ /2007 Total assets Receivables from customers Non-performing and zero-interest claims Deposits Equity capital

22 22 OP-Pohjola Group Ratios 12/ /2007 Net interest margin, % * Cost/ income ratio, Banking and Investment Services, % Return on equity (ROE), % Return on equity at fair value, % Return on assets (ROA), % Non-performing and zero-interest bearing receivables of loans and guarantees, % Tier 1 ratio, % Capital adequacy ratio, % * Net interest income as a % of average total assets

23 23 The amalgamation of the cooperative banks Capital resources and capital adequacy 6,000 million % 24 Other capital resources 5, Tier 2 capital resources 4,000 3,000 2, Subordinated loans Tier 1 capital resources excl. subordinated loans Capital adequacy ratio, % 1,000 0 Dec June 2007 Dec June 2008 Dec Tier 1 funds/ Riskweighted items, total, % Deductions of own funds are not included

24 Nordic banks: Total capital ratio 24 Danske Bank Nordea SEB Handelsbanken DnB NOR Swedbank OP-Pohjola Group %

25 Asset Mix OP-Pohjola Group Loans and leasing assets by sector 25 December 31, 2008 Households: other loans 22% Corporates 30% Telecommunications and electronics 2% Services 9% Others 8% Construction 6% Communication and publishing 2% Housing associations 10% Energy 3% Food industry 3% Wholesale and retail trade 13% Households: housing loans 48% Other industry 5% Forest industry 4% Metal industry 5% Transports and traffics 5% Real-estate activities 25%

26 26 OP-Pohjola Group Loan portfolio by sector Change Non-performing and zero-interest loans million 31 Dec Dec million % 31 Dec Of loans Non-banking corporate sector and housing associations 15,457 30% 12,822 29% 2,635 21% % Industry 2,944 6% 2,310 5% % % Construction 856 2% 803 2% 53 7% % Trade and catering 2,181 4% 1,936 4% % % Property investment 4,086 8% 3,287 7% % % Other companies 3,831 8% 3,057 7% % % Housing associations 1,560 3% 1,429 3% 131 9% 1 0.1% Finance and insurance 16 0% 12 0% 4 35% 0 0.7% Public corporations and non-profit organisations 864 2% 854 2% 11 1% 3 0.3% Households 33,842 66% 30,560 68% 3,283 11% % Home mortgages 24,156 47% 21,547 48% 2,610 12% % Foreign 884 2% 589 1% % % Other items, net -97 0% Total 50, % 44, % 6,193 14% %

27 27 OP-Pohjola Group Non-performing and zero-interest loans million 31 Dec Dec Change, % Households Companies Housing associations and others 19 3 Total Non-performing loans of loan and guarantee portfolio, % * * Percentage points

28 Pohjola Bank plc 28

29 Earnings before Tax by Business Segment million 200 January December Banking Asset Management Non-life Insurance Group Functions

30 Own Funds and Capital Adequacy 30 million % ,8 12,9 11,2 11, ,6 8,2 10,7 9, Tier 1 Tier 2 Tier 3 Capital adequacy ratio, % Tier 1 ratio, % * For capital adequacy measurement, treatment of insurance company holdings changed as of 2007

31 Income Statement 31 million 10-12/ / / /07 Net interest income Impairments Net interest income after impairments Net income from non-life insurance Net commissions and fees Net trading income Net investment income Other operating income Total income Total expenses Earnings before tax Earnings per share, 0,03 0,24 0,44 1,04

32 Funding Profile 32

33 Long-term Credit Ratings*) 33 Moody's Investors Standard Fitch Service & Poor s Ratings Pohjola Bank Aa1 AA- AA- Handelsbanken Aa1 AA- AA- Nordea Aa1 AA- AA- DnB NOR Aa1 AA- - Danske Bank Aa3 A A+ SEB A1 A+ A+ Swedbank A1 A A+ Pohjola Insurance Ltd**) A1 A+ - If **) A2 A - Finnish sovereign Aaa AAA AAA *) Long-term debt **) Insurer financial strength

34 34 OP-Pohjola Group Funding Profile 80 billion Non-life insurance liabilities Life insurance liabilities Liabilities to financial institutions Liabilities to customers Dec Dec Debt securities issued to the public Other liabilities Equity capital

35 35 LT2, UT2 and Tier 1 by Call Date Tier1 Upper tier2 Lower tier

36 36 Issued Senior Debt by Maturity Other USD EUR

37 37 Issued Senior Debt by Maturity Pohjola OP-Mortgage Bank

38 38 Contact Information Jouko Pölönen CFO, Pohjola Group tel mobile Hanno Hirvinen Executive Vice President Head of Group Treasury tel mobile

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