Second Quarter Results 2014 Investor presentation

Transcription

1 Second Quarter Results 2014 Investor presentation Fourth Quarter and Full Investor Year presentation Results 2014 Casper von Koskull, Head of Wholesale Banking Investor presentation Christian Clausen, President and Group CEO

2 Highlights of first quarter 2015 First quarter 2015 vs first quarter 2014* Revenues are up 11% Negative interest rates put pressure on Net interest income Record high Assets under Management Increased activity in the capital markets Costs are down 2%, delivering according to plan Loan losses are down 21% to 14 bps Operating profit is up 29% Improved common equity tier 1 ratio 100 bps to 15.6% *All P&L items in local currencies 2

3 Q financial results highlights 14

4 Financial results EURm Q1/15 Q4/14 Chg % Q1/14 Chg % Local currencies Chg % Net interest income Net fee & commission income Net fair value result Total income* Total expenses Profit before loan losses Net loan losses Operating profit Net profit from cont. op Return on equity (%) bps bps - CET1 capital ratio (%) bps bps - Cost/income ratio (%) bps bps - *Includes other income 4

5 Higher income lifts return RETURN DEVELOPMENT YTD, GROUP AND BUSINESS AREAS GROUP RETAIL BANKING WHOLESALE BANKING WEALTH MANAGEMENT RaRoCaR RaRoCaR RaRoCaR RaRoCaR 38.8% 15.0% 18.0% 13.9% 15.6% 15.0% 17.0% 28.5% Q1 14 Q1 15 Q1 14 Q1 15 Q1 14 Q1 15 Q1 14 Q1 15 IMPACT FROM IMPACT FROM IMPACT FROM IMPACT FROM INCOME 2.8% INCOME 0.8% INCOME 1.8% INCOME 10.9% COSTS 0.7% COSTS 1.3% COSTS 0.1% COSTS 0.9% ECONOMIC CAPITAL -0.5% ECONOMIC CAPITAL -0.8% ECONOMIC CAPITAL 0.3% ECONOMIC CAPITAL -1.9% OTHER 0.0% OTHER 0.4% OTHER -0.2% OTHER 0.3% 5

6 Wholesale Banking highlights 14

7 Wholesale Banking financial results EURm Q1/15 Q4/14 Chg % Q1/14 Chg % Local currencies Chg % Net interest income Net fee & commission income Net result from items at fair value Equity method & other income Total income incl. allocations Staff costs Other exp. excl. depreciations Total expenses incl. allocations Profit before loan losses Net loan losses Operating profit Cost/income ratio, % RAROCAR, % Economic capital (EC) Risk exposure amount (REA) Number of employees (FTEs)

8 Product dimension: Relevance (Size and competencies) The leading wholesale bank in the Nordics STRATEGIC POSITIONING COMMENTS International competition A leading position built on local presence and global scale, resulting in deep customer understanding and competitive solutions Local competition Transformation driver by change in: Strategy Structure Management Operating model Culture Customer dimension: Intensity (Multi-local presence) 8

9 Taking the lead in increased capital markets activity SELECTED LEAGUE TABLES Nordic corporate bonds EURm Nordea Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer Nordic syndicated loans EURm Nordic EQ trading* EURm Nordea Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer *Nordic brokers on NasdaqOMX Global syndicated marine finance loans USDm COMMENTS Nordea has taken a leading role as Nordic corporates increasingly make use of the capital markets #1 in corporate bonds #1 in EQ trading #1 in syndicated loans #1 in syndicated marine finance loans Nordea Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer Nordea Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer

10 Important relationships Reinforced position as leading bank for large corporates GREENWICH NORDIC LARGE CORPORATE SURVEY 100% Nordea 90% 80% 70% 60% 50% Peer 2 Peer 3 Peer 4 40% 30% Peer 1 Peer 5 20% 10% 0% (40) (20) Greenwich Quality Index Score COMMENTS Wholesale Banking continues to leverage its core capabilities, scale and strong local presence Supporting 95% of large corporates and financial institutions in the Nordics Ranked as the leading Nordic bank for large corporates by Greenwich 10

11 The Wholesale Banking journey continues Leveraging the Platform Business & Culture & Cultural Transformation transformation WB Formation Value chain alignment New management One Nordic operating model Return as the only target Business Repositioning Customer-centric and returndriven culture Strengthened market position Customer Service Model Business selection & repricing Cost reductions and capital optimisation Regulatory adaptation Intensity & Relevance New governance teaming up for success Further investments in WB platform Reposition FICC Simplification & digitalisation Talent management 11

12 Second Quarter Results 2014 Investor presentation Fourth Quarter and Full Investor Year presentation Results 2014 Casper von Koskull, Head of Wholesale Banking Investor presentation Christian Clausen, President and Group CEO