Swedbank Year-end report 2014

Transcription

1 Swedbank Year-end report 214 Michael Wolf, CEO Göran Bronner, CFO Anders Karlsson, CRO Swedbank

2 Swedish Banking Strong customer activity SEKm Q4 14 Q3 14 QoQ YoY Net interest income Net commission income Other income Total income Total expenses Profit before impairments Improved market position Lower deposit margins Flat mortgage margins Good commission income Credit impairments Ratios Q4 14 Q3 14 FY 214 ROE, % C/I ratio Volumes, SEKbn Q4 14 Q3 14 QoQ FY 214 Loans Deposits

3 Baltic Banking Stable result SEKm Q4 14 Q3 14 QoQ YoY Net interest income Net commission income Other income Total income Total expenses Profit before impairments Credit impairments Stable income despite low interest rate environment Solid asset quality No impact from the situation in Russia All countries part of EMU Lithuania joined 1 Jan 215 Ratios Q4 14 Q3 14 FY 214 ROE, % C/I ratio Volumes, SEKbn Q4 14 Q3 14 QoQ YoY Loans Deposits

4 Large Corporates & Institutions Solid result in volatile market SEKm Q4 14 Q3 14 QoQ YoY Net interest income Net commission income Net gains and losses Other income Total income Total expenses Profit before impairments Credit impairments Increased market volatility Good corporate activity Strong real estate market Falling oil prices Increased risk Changed client needs Ratios Q4 14 Q3 14 FY 214 ROE, % C/I ratio Volumes, SEKbn Q4 14 Q3 14 QoQ FY 214 Loans Deposits

5 Group results Improved market position SEKm Q4 14 Q3 14 QoQ FY 14 YoY Net interest income Net commission income Net gains and losses Other income Total income Total expenses Profit before impairments Credit impairments Strong customer activity Mixed margins Treasury result effects Good cost efficiency Solid asset quality Other impairments Tax Profit from continuing operations Ratios Q4 14 Q3 14 FY 14 ROE continuing operations, % Cost/income ratio CET1 capital ratio, %

6 Capital Strong capitalisation regulatory uncertainty remains 2.7% CET1 capital ratio, % 21.2% 19.3% CET1 capital positively impacted IAS 19 (SEK 1.1bn) Dividend from insurance company (SEK 1.3bn) REA net increase of SEK 4.6bn Loan volume growth Q3 214 Q4 214 CET1 Capital ratio requirement LGD and PD effects Capital regulatory uncertainty No regulatory excess capital 6

7 Asset quality Strong asset quality in challenging environment Credit impairments, SEKm Q4 14 Q3 14 FY 14 Swedish Banking Baltic Banking Continued low loan losses Limited impact from Russia Large Corporates & Institutions Group Functions & Other Swedbank Group Ratios Q4 14 Q3 14 FY 14 Credit impairments, ratio % Share of impaired loans, gross % Total provision ratio for impaired loans, %

8 Asset quality Shipping and Offshore Total portfolio of SEK 3bn Moderate volume increase over time USD based SEK 19bn negatively impacted by lower oil prices Stress tests performed Listed, well-capitalised companies Long-dated contracts Collateralised lending Shipping and Offshore Loans net, SEKm Negatively impacted by lower oil prices 8

9 Swedbank Year-end report 214 Q&A

10 Appendix 1

11 Asset quality Conservative provision ratio SEKm % 65% 62% 57% 54% 53% 54% 6% 56% 55% 53% Provision ratio, % Q4 14 Swedish Banking 61 LC&I 62 Baltic Banking 48 Group Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Individual provisions Portfolio provisions Provision ratio Since Q1 213 Russia and Ukraine are reported as discontinued operations Source: Swedbank, Dec 31,

12 Liquidity and funding Lower funding needs LCR 12% (Swedish FSA definition FFFS 212:6) NSFR 98% (Basel committee) Issued SEK 115bn of term funding in 214 FY 215 funding plan of around SEK 16bn Term funding issuance completed and planned Prefunded in excess of 12 months SEKbn Covered bonds Senior unsecured debt SEKbn Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Source: Swedbank, Dec 31, 214, nominal amounts Days forward 12

13 Liquidity and funding Long-term funding maturity profile Funding plan of around SEK 16bn to meet volume growth and next 12 months nominal SEK 11bn maturities Long-term funding maturity profile, by funding source Long-term funding maturity profile, by currency SEKbn SEKbn 2 Senior unsecured debt 2 15 Covered bonds 15 Other 1 1 CHF USD EUR 5 5 SEK Source: Swedbank Dec 31,

14 Swedish housing and mortgage market Real estate prices Sweden 12 months performance Single-family homes 1 Tenant-owner rights 2 Combined 3 12M Δ 12M Δ 12M Δ Jan/14 7% 13% 9% Feb/14 7% 13% 9% Mar/14 7% 13% 9% Apr/14 8% 12% 9% May/14 8% 12% 9% Jun/14 8% 11% 9% Jul/14 9% 14% 11% Aug/14 9% 14% 11% Sep/14 9% 15% 11% Oct/14 8% 15% 11% Nov/14 13% 15% 14% Dec/14 15% 15% 15% Source: Valuegard (Based on data from Mäklarstatistik), 1 HOXHOUSESWE, 2 HOXFLATSWE, 3 HOXSWE 14

15 Real estate prices Baltic countries EUR/m 2 /No. of deals 1 8 Tallinn Dec-5 Jun-6 Dec-6 Jun-7 Dec-7 Jun-8 Dec-8 Jun-9 Dec-9 Jun-1 Dec-1 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 EUR/m 2 /No. of deals Riga Dec-5 Jun-6 Dec-6 Jun-7 Dec-7 Jun-8 Dec-8 Jun-9 Dec-9 Jun-1 Dec-1 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 No. of deals EUR/m2 No. of deals EUR/m2 EUR/m 2 /No. of deals 1 8 Vilnius Dec-5 Jun-6 Dec-6 Jun-7 Dec-7 Jun-8 Dec-8 Jun-9 Dec-9 Jun-1 Dec-1 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 No. of deals EUR/m2 15