Annika Falkengren CEO

Transcription

1 Annika Falkengren CEO 2007

2 Highlights Q Operating profit SEK 4.2bn Revenues exceeded SEK 10bn Continued high customer activity but more volatile capital markets Organic growth RWA: + 7% Stable costs Total income Total cost Operating profit +6% +1% +13% Note: Q vs. Q1 2006

3 Continued profitable growth Operating profit SEKbn Return on equity SEB Group, per cent If normalised tax rate applied, ROE 19.5% Q1-05 Q1-06 Q1-07 Q4-06 Q1-05 Q1-06 Q1-07 Q4-06

4 Key figures Q1 Change SEKm 2007 Q1 06 Q4 06 Operating Income 10,193 6% 2% Operating Expenses 5,802 1% 2% Operating Profit 4,157 13% 1% Net Profit 3,262 15% -14% Cost / income ratio Return on Equity, % Credit loss level, % Core capital ratio, Basel II, % 8.33* Core capital ratio, Basel I, % RWA, Basel I, SEKbn * Basel II including transitional rules

5 Net Interest Income, customer driven SEB Group, SEKm 3,596 2,921 3, % +11% +15% 3,369 Lending to the public SEKbn 1,200 1, Q Q Q Q Deposits from the public SEKbn 700 Q Q Q % Q Q Q Q Q Q Q Q Q1 2007

6 Fee and commission income, +7 % Gross development Q Q1 2007, SEKm +14% +6% Q1-06 Q % 1,487 1,692 1,647 1,742 1,134 1, % New issues & advisory Secondary market & derivatives Custody & mutual funds Payment, cards, structured lending, deposits, guarantees

7 Cost management Total expenses ,770 5,802 5,904 Q Cost inflation Organic growth Depreciation Variable salaries Cost before efficiency gains Cost efficiency gains Redundancy costs Q1 2007

8 Retail Banking Highlights High customer activity across all areas Income growth largely driven by strong net interest development Higher costs in Estonia, Latvia and Lithuania; lower in Sweden and Card All business areas increased profit >10% vs Q Operating profit SEK 1.5bn Q1 2007; per cent of total Cards Sweden Lithuania 12% 20% 12% 13% 39% 4% Latvia Estonia Germany

9 Activity level Retail Germany: insurance Sales; EUR mn % Sweden: equity linked bonds Sales; SEK bn % % Q1 06 Q1 07 Sweden: SME customers Cash management customers (thousands) Q1 06 Q1 07 Revenue growth Q vs. Q %

10 Latvian development Per cent; Dec 2004 Mar 2007 Approach Focus on quality and riskadjusted returns ahead of market share and volume since mid 2006 Ensure controlled slowdown of credit growth during 2007 Closely monitor general economic development Increased capitalisation 50% 40% 30% 20% 10% 0% SEB Hansabank DnB Nord Parex Banka Sampo Lending market shares

11 SEB in Germany SEKm SEB AG 2006: Increased credit losses SEK 80m Operating profit SEK 1,488m RoE 9.5 % Q Q MB CRE Retail Treasury AM Old GRMB

12 Merchant Banking Highlights Income stable at a high level Strong organic growth Record turnover on Nordic stock exchanges Custody transactions increased by 60% y-o-y Stable underlying costs Sony Ericsson outsourced cash management to SEB Operating profit SEK 1.9bn Q1 2007; per cent of total Global Transaction Services 17% 49% Corporate Banking 34% Trading and Capital Markets

13 Activity level Merchant Nordic Mergers and Acquisitions USDbn, Jan Mar 2007 (No. of made deals) Market Shares Nordic Stock Exchanges Jan Mar 2007 Deutsche Bank AG Goldman Sachs & Co Morgan Stanley SEB Enskilda Credit Suisse Lehman Brothers CIBC World Markets Inc SHB (10) (1) (1) (2) (2) (6) (3) (7) SEB Enskilda Carnegie Morgan Stanley SHB Glitnir 7.5% 6.3% 6.0% 4.7% 4.6% Custody transactions per day Thousands Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Revenue growth Q vs. Q %

14 Wealth Highlights High business volumes Lower net sales in the market but SEB captured volumes and market shares Customer activities included several new products SEB capturing shift to alternatives AuM SEK 1,266bn (+6% YTD) Operating profit SEK 0.6bn Q1 2007; per cent of total Asset Management 70% Private Banking 30%

15 Activity level Wealth Mutual Funds Net Sales Sweden Cumulative Jan 2005 Mar 2007, including PPM 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Jan- 05 Mar Maj Jul Sep Nov Jan- 06 Mar May Jul Sep Nov Jan- 07 SEB SHB Robur Nordea Mar Distribution per type of fund Jan-Mar % 80% 60% 40% 20% 0% -20% -40% -60% SEB Equity funds Short bond funds Fund in fund Total Mixed funds Long bond funds Alternative funds Revenue growth Q vs. Q %

16 Life Highlights Operating profit up 56 per cent Strong unit-linked income supported by strong stock markets Sales down in Sweden due to legislative actions AuM SEK 408bn (+3% YTD) Operating profit SEK 0.7bn Q1 2007; per cent of total International 14% Denmark 30% 56% Sweden

17 Direction Operational excellence Customer satisfaction Profitable growth

18

19 Per-Arne Blomquist CFO Financial performance

20 Net interest income, analysis SEB Group Q Q1 2007, SEKm ,767 3,596 Q Lending margin Lending volume Deposit margin Deposit volume Funding & other Q1 2007

21 Net interest income analysis SEB Group Q Q , , Q Lending margin Lending volume Deposit margin Deposit volume Funding & other Effect from structured products Q1 2007

22 Cost management Total expenses ,770 5,802 5,904 Q Cost inflation Organic growth Depreciation Variable salaries Cost before efficiency gains Cost efficiency gains Redundancy costs Q1 2007

23 Capital position Core capital ratio (%) Total capital ratio (%) 8.2 * Basel I Basel I Basel II Basel I Basel I Basel II Q Q Q Q Q1 organic growth +7 per cent (RWA) Transitional rules (95 per cent floor)

24