Anders Ek Executive Vice President, Head of Strategic and International Banking. Tokyo March 14, 2007

Transcription

1 Anders Ek Executive Vice President, Head of Strategic and International Banking Tokyo March 14, 2007

2 Swedbank - an introduction (2)

3 A leading Nordic-Baltic bank Other markets, niche banking Denmark - Swedbank branch Finland - Swedbank branch Norway First Securities Denmark Sweden Finland Estonia Latvia Lithuania Russia Norway - Russia - US - Swedbank branch, investment banking through First Securities (51% owned) Corporate banking and leasing in Moscow, Kaliningrad and St Petersburg Merchant/investment banking in New York / Broker dealer Luxembourg - Banking for Swedish expatriates Ukraine China - Japan - Spain - Representative office in Shanghai Representative office in Tokyo Representative office in Marbella (3)

4 Our vision Our vision We want to be the leading financial institution in the Nordic and Baltic region What we mean by leading The highest level of customer satisfaction The best profitability The most attractive employer (4)

5 Geographical reach Sweden Population 9.0 M Emplo yees 8,957 Private customers 4.1 M Of which Internet customers 2.2 M Corporate customers 262,000 B ranches 477 ATM s 863 Cards 3.3 M Russia Population 143 M Emplo yees 233 Branches* 3 Estonia Population 1.3 M Emplo yees 2,941 Private customers 1.2 M Of which Internet customers 0.8 M Corporate customers 81,000 Branches 96 ATM s 578 Cards1.1 M Latvia Population 2.3 M Emplo yees 2,241 Private customers 0.7 M Of which Internet customers 0.6 M Corporate customers 44,000 Branches 76 ATM s 242 Cards 0.8 M Lithuania Population 3.6 M Emplo yees 3,027 Private customers 2.9 M Of which Internet customers 0.7 M Corporate customers 72,000 B ranches 123 ATM s 338 Cards1.2 M (5)

6 Swedbank Net profit Lending Baltic Banking 27% Baltic Banking 15% Swedish Banking and other 73% Swedish Banking and other 85% Baltic Banking 54% Customers, private Baltic Banking 38% Branches Swedish Banking and other 46% Swedish Banking and other 62% (6)

7 Investment proposition High ROE / low risk Swedish retail business Retain high market share Target growing segments Maintain excellent asset quality Manage cost base Long-term growth in Baltic business Moderate diversification in selected businesses Capture market growth opportunity Realise cross-border synergies Four home markets today Key product areas Range of options for future expansion Capital management Expected beneficiary from Basel II (7)

8 Swedbank Mortgage in summary December 31, 2006 (compared with 2005) Name change from Spintab Sweden s leading supplier of mortgages Lending increased by nominal SEK 43,074 million (39,944) Increased market shares for new lending Recoveries exceeded new loan losses (8)

9 Household mortgages, Sweden Market shares restored % 35 % New pricing strategy Increased sales: - metropolitan and other growth areas - internet - distributors Tighter cooperation with Group real estate broker Mar Jun Aug Dec 10 Improved efficiency: - faster handling of loan applications - decreased costs Balance, market share New sales, market share (9)

10 Operating profit and loan portfolio 1996 December 31, 2006 Operating profit, SEK m Lending, SEK bn Operating profit, Dec 31 Loan portfolio, Dec 31 0 (10)

11 Swedbank Summary of Group results 2006 (11)

12 Summary 2006 Strong underlying profit trend Swedish Banking, continued good profitability - Higher business volumes and increased market shares Baltic Banking, another record year - Strong volume growth, coupled with increased market shares in important segments - Continuous investments to capture the market potential Swedbank Markets, best year so far - Strong quarter for customer-driven trading in currencies, equities and fixed income - Establishment of broker-dealer in New York Rating upgrades by Moody s and S&P Long-term growth investments Updated financial objectives reflect long-term growth targets. (12)

13 Strong underlying development SEKm, Jan - Dec % Net interest income 15,504 15,539 0 Net commission income 8,869 7, Net gains/losses on financial items at fair value 3,211 2,957 9 Other income 1,613 1,573 3 Capital gains 2,221 Total income 29,197 29,460 1 Staff costs 7,253 6,837 6 Profit-based staff costs 1,307 1,354 3 Other expenses 6,579 5, Total expenses 15,139 14,156 7 Profit before loan losses 14,058 15,304 8 Loan losses Operating profit 14,263 15,010 5 Tax 3,211 2, Profit for the period 11,052 12, Attributable to Swedbank's shareholders 10,880 11,879 8 Excl. capital gains, income increased 7 percent Excl. capital gains, profit increased 13 percent (13)

14 Continued growth, lending % Growth 2006 SEKbn Volume, Dec , Lending, Group Mortgage, private, Sweden Corporate, Sweden Mortgage, private, Baltics Corporate, Baltics Lending, Group Mortgage, private, Sweden Corporate, Sweden 42 Mortgage, private, Baltics 80 Corporate, Baltics (14)

15 Strong momentum in savings % Growth 2006 SEKbn Volume, Dec Deposits, Sweden Deposits, Baltics AM funds, Group Structured products, Group 0 Deposits, Sweden Deposits, Baltics AM funds, Group Structured products, Group (15)

16 Margins 3.5 % Lending % 3.5 Deposits Mix effect continued margin pressure in most product lines Latvian shortterm rate RIGIBOR decreased in Q4 0.0 Q4-05 Q1-06 Q2-06 Q3-06 Q Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Estonia Lithuania Latvia Sweden Estonia Lithuania Latvia Sweden (16)

17 Loan losses, Group SEKm % Q4-02 Q2-03 Q4-03 Q2-04 Q4-04 Q2-05 Q4-05 Q2-06 Q4-06 Loan losses Loan loss level (17)

18 Key figures Dec 31, 2006 Dec 31, 2005 Return on equity, % Return on equity excluding capital gains, % Earnings per share, SEK Equity per share, SEK C/I ratio before loan losses Loan loss ratio, net, % Share of impaired loans, % Provision ratio for impaired loans, % Tier 1 capital ratio, % Capital adequacy ratio, % (18)

19 Rating upgrades S&P Moodys Fitch Short Long Short Long BFSR* Short Long A-1+ AAA P-1 Aaa A F 1+ AAA A-1 AA+ P-2 Aa1 B+ F 1 AA+ A-2 AA P-3 Aa2 B F 2 AA A-3 AA- No prime Aa3 C+ F 3 AA - B A+ A1 C B A+ C A A2 D+ C A D A- A3 D D A- BBB+ Baa1 E+ BBB+ BBB Baa2 E BBB BBB- Baa3 BBB- Swedbank Hansabank Swedbank Mortgage Upgrades in * Bank financial strength rating (19)

20 Swedbank Recent actions to sustain long-term growth (20)

21 Updated financial objectives reflect long-term growth targets Return on equity should exceed the average of peers* (unchanged) Return on equity FY2006: 19.3 percent The Cost/income ratio should be below 0.5 long-term (unchanged) Cost/income ratio FY2006: 0.52 percent Tier 1 capital ratio should be around 6.5 percent (previous objective: 7%) Tier 1 ratio stood at 6.5 percent year-end 2006 Dividend pay-out ratio should be around 40 percent of net profit, excluding nonrecurring items (previously: nonrecurring items were included) Proposed dividend for 2006 equals pay-out ratio of 39 percent Growth in sustainable earnings per share shall exceed the average of peers* (new financial objective). * SEB, Handelsbanken, Nordea, Danske Bank and DnB NOR (21)

22 Acquisition of TAS-Kommerzbank Another step to enhance growth Leverage Swedbank s experience and expertise from the Baltics Ukraine is one of the best growth opportunities in Europe TAS has a good fit with its focus on the retail and SME segments Norway First Securities Denmark Sweden Finland Estonia Latvia Lithuania Russia Highly experienced management team. Ukraine (22)

23 Excellent long-term growth potential Ukraine is expected to have a continued high GDP growth Under penetrated banking market Retail loans/gdp, cards, current accounts TAS will continue to gain market share Clear strategy focusing on retail- and SME segments TAS has climbed from number 22 to number 13 in terms of total loans in the last 3 years. Source: EIU, Global Insights World Overview, broker reports Retail Loans / GDP (%) 30% 25% 20% 15% 10% 5% 0% Ukraine Estonia Latvia Lithuania 10% 8% 6% 4% 2% 0% Real GDP Growth E High Growth Potential 2000 Czech R. Slovakia Poland 7.9% 7.7% Hungary Poland Lithuania Slovakia Hungary Es tonia Czech R GDP / Capita Latvia 6.4% % 5.0% % 2.3% Estonia Latvia Lithuania Ukraine Russia Sweden EU 25 (23)

24 Expansion to Russian retail market The Russian retail market has a substantial growth potential Strong GDP growth Increased demand for traditional retail banking products such as mortgages, cards and savings products Leverage on our experience in fast growing markets through Hansabank Initially 6-7 new bank branches in prime locations in Moscow and St. Petersburg ATMs, telephone and Internet banks Profitable organic growth. (24)

25 Thank you (25)