Investor breakfast meeting

Transcription

1 Annika Falkengren President & CEO Jan Erik Back CFO Investor breakfast meeting 17 August 20 1

2 Priorities for 20 Maintain flexibility & resilience Exploit core strengths Corporates in Nordics & Germany Universal bank in Sweden & Baltics 2

3 SEB s financial position 2008 vs H1 20 Core Tier 1* Matched funding Jun % 7 months.7% 12.8% 17 months 18 months 13.5% 26 months Leverage ratio (FDIC) 23x 18x 17x 16x Bond inv portfolio NPLs SEK 133bn SEK 15bn SEK 90bn SEK 29bn SEK 48bn SEK 24bn SEK 34bn SEK 22bn * Basel II without transitional floor; 20 pro forma for disposal of German retail 3

4 A strong capital situation Core Tier 1 ratio (%) Equity to assets/leverage ratio (%) Basel II 15% % 13% 8% % 6% US FDIC 9% 4% Equity to assets 7% 2% 5% Q Q2 0% Q Q2 Capital ratios well above European average support strong funding access 4

5 Extended match-funding in Q2 ahead of potential summer break-down SEB s matched funding horizon (number of months) SEK 78bn LT funding raised in H1 20 vs FY maturity of SEK 98bn Q Q2 Matched funding. Note this is a cash flow based model where assets and liabilities are mapped to contractual maturities. SEB will manage more than 2 years without any new funding if the loans and liabilities mature without prolongation. 5

6 Upgraded, smaller bond portfolio Key characteristics Bond portfolio has decreased by SEK 80bn since mid 2008 Structural shift from unsecured financials and structured bonds into sovereign and covered bonds Investment portfolio reduced from SEK 126bn mid 2008 to SEK 34bn in mid 20 Bond portfolio, SEK bn (incl. Treasury and Trading portfolios) GIIPS exposure limited to 5% - majority in Spanish covered bonds 0 Q2 08 Q2 Gov't and public sector Covered bonds Financials Corporates ABS 6

7 Active downsizing of bond exposure to GIIPS countries GIIPS Bond portfolio holdings, SEK bn Majority in Spanish covered bonds ABS 28% Bank bonds 2% Sovereign bonds % Covered bonds 59% Limited in relation to total Bond portfolio Other 95% GIIPS 5% Jun 20 Sep 20 Dec 20 Mar 20 Jun 20 Jul 20* * 8 July 7

8 Continued improvement of asset quality without reducing the reserve ratio too fast Level of impaired loans net (%) Reserve ratio individually assessed (%) Individually assessed, i.e. excl portfolio assessed loans Q1 Q Q1 Q SEB s impaired loans peaked two years ago and have been falling since. SEB s reserve ratio at 65% remains the highest among peers. Reserve ratio is total reserves (specific & collective) in relation to total gross individually assessed impaired loans 8

9 Q2 financial wrap-up Profit and loss development Q2-09 Q2- (SEK bn) Q2- Q2- Q2- Operating income Operating expenses Netcreditlosses Operating profit (SEK bn) Q2-09 Q3-09 Q4-09 Q1- Q2- Q3- Q4- Q1- Q2- Highlights from results: Divisional pre-provision profit Q2 vs. Q1 +7% Group total income H1- vs. H1- +7% Customer-driven NII Q2 vs. Q1 +7% Negative result effects in Q2: NII: SEK 50m German hedge, SEK 70m investment portfolio, SEK 0m funding & liquidity NFI: SEK 200m portfolio valuations directly related to GIIPS exposures 9

10 NII dynamics Customer driven NII, SEK bn Funding and Other, SEK m Q Q2-0.5 Q Q2 Lending Deposits Funding & other Sale GRB Customer driven NII shows positive trend while sale of German Retail materially impacted overall NII

11 Growth in corporate lending SEB Group, corporate credit portfolio (SEKbn) Nordic & Other Germany Baltics % YoY 0% YoY -2% YoY +12% YoY Dec '09 Jun ' Dec ' Jun ' Lending Cont. liab's Derivatives Total Geography based on SEB's operations NB: Jun FX rates applied historically Changed dynamics Committed facilities +22 per cent in 20 Lending at a trough in the summer of 20, now +% YoY

12 Large corporates Nordic and German expansion* continues Large cap clients: +136 Mandated lead arranger EUR 2,000m MLA/bookrunner EUR 750m Client executives: +94 Loans and commitments: +91bn Mandated lead arranger EUR 1,300m MLA/bookrunner EUR 2,000m Best Bank Best M&A House Best Cash Management House Top FX-provider Best supplier of Trading and Capital Markets Operations Best Sub-custodian Bank Best Supply Chain Finance Provider * Statistics since launch of expansion 1 Jan 20 12

13 SMEs and private customers Meeting customers advisory needs* Private SMEs No. SME customers** 120,000 0,000 80,000 60,000 40,000 20, Q2 20 ** Cash management SME customers Mutual fund sales Sweden*** SEB *** Cumulative incl PPM (Svensk Fondstatistik) +14bn +0.1% 5,000 +7bn market share gain per month new SME customers** private deposits 48% fixed-rate mortgages +17bn new lending volume Private Banking AuM inflow * Statistics for H

14 Outlook 20 Elevated short-term macroeconomic risks SEB maintains its strategic direction and growth plans are on track Balance sheet strength ensures SEB can continue to support customers 14