Handelsbanken Capital Markets

Transcription

1 FAct sheet Handelsbanken Capital Markets Handelsbanken Capital Markets comprises Handelsbanken s investment banking operations, asset management, and pension and insurance operations. We offer product-neutral advisory services, innovative total solutions and efficient implementation of transactions for customers with interests in the Nordic region. Operations consist of equities, fixed income, commodities and foreign exchange trading, structured products, cash management, corporate finance, debt capital markets, mutual funds, discretionary management, Nordic custody services, private banking, pensions and insurance, as well as macroeconomic, equity, and financial research. Operations are run in seven countries and with just over 1,500 employees. Handelsbanken s branch network, with over 750 branches worldwide, gives Handelsbanken Capital Markets a unique competitive edge. Our branches in the Nordic region give us a proximity to our customers and the Nordic market, while Capital Markets offices in London and New York allow contact with major global investors. Since Capital Markets is an integral part of Handelsbanken, it has access to the Bank s strong balance sheet. This is vital, since transactions are becoming more complex, and market volatility is increasing. It is also vital to be able to compete effectively with international players. Investment bank Market research shows that customers will increasingly turn to a few major, well-known investment banks to meet their Nordic requirements. In addition, customers ability to compare products and services will set high demands for client-oriented product development and reduced costs, including for end-customers. Also, investment banks ability to combine specialist competence with general know-how, as well as maintaining high theoretical and technical expertise, will be crucial for customers with Nordic requirements. The future belongs to the investment banks which can offer complete financial solutions, in parallel with individual products and services. The new drive at Handelsbanken Capital Markets focuses on building two levels: the specialist level, where each function must be of the absolute highest quality, and the overall level, this being the ability to meet the overall needs of customers.

2 Research Research at Handelsbanken Capital Markets encompasses traditional equity and credit research, as well as macroeconomic research and quantitative analysis. The Nordic economies and markets are largely driven by international events. Therefore Handelsbanken Capital Markets has focused on global macroeconomic research which measures up well in the international marketplace. Handelsbanken Capital Markets macroeconomic research is top-ranked in the Nordic region. A broad range of in-depth research The various departments of Handelsbanken Capital Markets collaborate closely. Macroeconomic research takes a broad view, describing and projecting the major trends, while equity and credit research perform in-depth analysis of sectors and companies. Handelsbanken Capital Markets has top-ranked active coverage of around 300 listed companies in the Nordic region. Corporate Finance Operations include advisory services in conjunction with mergers and acquisitions, divestments, IPOs and raising equity in public companies. Competitive Handelsbanken s financial strength and extensive branch network are significant competitive advantages when managing financial risk and being close to the customer. Equity Trading Equity Trading is focused on Nordic stockbroking - both private and institutional customers - with value-added in terms of in-depth analysis and knowledge of the Nordic markets. The broadest coverage The Bank s expertise in the Nordic business world is based on the knowledge of local conditions which only daily contact can provide. Around 60 research analysts daily cover around 300 Nordic companies at our offices in Stockholm, Oslo, Copenhagen and Helsinki. Nordic and international distribution Handelsbanken Capital Markets has a very broad customer base for equity products, via our branches, as well as our sales offices in London and New York. This provides valuable information, and at the same time the Bank can offer high-quality distribution of equity products. Around 40% of brokerage income is generated by business with customers from outside the Nordic region. Integrated organisation Equity Trading works closely with other parts of Handelsbanken Capital Markets. This means that the Bank can customise solutions according to the client s needs. An equity transaction, for example, can include currency transactions, short selling, hedging the currency risk of an equity purchase or other financial building blocks that combine to given the customer the best solution. Fixed income, FX and commodities Handelsbanken Capital Markets has pooled its entire treasury business under the same roof to be able to offer better solutions to large corporates and institutions. Fixed income, foreign exchange, credit and commodity products are all included. A local presence, achieved by delegating the responsibility for customers and credits to Handelsbanken s local 2

3 branch offices, has been combined with global resources and specialist expertise to create worldclass solutions for risk management and financing. Trade around the clock Handelsbanken Capital Markets has a wide range of products and services for trading in fixed income, foreign exchange and commodities. Traders in Stockholm, London and New York can provide 24-hour information and prices from global markets. Foreign currencies are traded 24 hours a day from Stockholm, and the Hong Kong branch is the first Nordic bank to offer the Chinese currency, the yuan, to international customers. Handelsbanken Capital Markets has a large number of specialists who can provide you with individual, customised solutions. These solutions cover a series of products ranging from pure foreign exchange trading to non-sovereign bonds and different types of derivative instruments. Our analysts deal with questions ranging from macroeconomic issues to quantitative problems. The credit market analysts closely follow market developments and individual issuers. Global solutions for Nordic business Handelsbanken Capital Markets is one of the leading Nordic players in fixed income, foreign exchange, commodities and credit products, as well as derivatives of these. Institutional investors and companies turn to Handelsbanken Capital Markets for the products used to manage their risk exposure and develop their business. Since Nordic businesses are so international, the range and quality of these products must be global. Handelsbanken Capital Markets can provide its customers with all the currencies they need, and offer investors a comprehensive range of products. Debt Capital Markets Debt Capital Markets offers advisory services in connection with, and implementation of, loan financing on capital markets as well as syndication of loans, acquisition financing and related activities such as bond programmes, commercial paper programmes, securitisation, etc. Handelsbanken s financial strength and extensive branch network are significant competitive advantages when managing financial risk and being close to the customer. Cash Management A company s financial flows are a process that requires careful observation and monitoring. Handelsbanken Capital Markets helps corporate customers to improve the efficiency of their liquid funds and reduce expensive credits. Handelsbanken Capital Markets offers a comprehensive range of cash management solutions, ranging from basic services to the most sophisticated analytical tools available. More than 70 employees across three continents, together with a global branch network, supply tailor-made solutions designed to meet each customer s specific requirements. Structured Products Structured Products operations cover all classes of asset and risk. By combining different types of financial instruments, efficient solutions can be offered with different risk profiles. These include everything from tailor-made solutions for the institutional market to listed savings products targeted at the general public. To maintain our market-leading position, the business area focuses on forward-oriented product development, and on having the most efficient pricing on both the primary and secondary markets. Product range This includes equity-linked bonds, multi-asset bonds, hedge fund-linked notes, convertible debenture loans, credit-linked notes, reverse convertibles, index-linked notes, FX-linked notes, certificates, turbos and warrants. 3

4 Asset Management Handelsbanken Asset Management holds a leading position in asset management. Asset management solutions are offered to both private individuals and institutions in all asset classes and most geographical markets. Handelsbanken manages assets of over SEK 200 billion in more than 100 different funds. The offering consists of everything from mutual fund portfolios that offer an easy way of spreading risks between different asset classes, to the commodities fund that gives exposures to a wide number of commodity indices. There are also equity funds that invest globally, as well as those focusing more on local markets. For example, Handelsbanken has a wide range of funds that invest in emerging markets around the world. Nordic and international customers. At present, Handelsbanken s custody service is the highest ranked custodian service in the Nordic region. These operations are also responsible for the network of correspondent banks across the world that is used for the Bank s securities transactions. Private Banking Handelsbanken s highly rated Private Banking department offers asset management to private individuals taking into account all legal, taxation and insurance aspects. Branches in Stockholm, Copenhagen, Helsinki and Luxembourg can also offer help with mergers and acquisitions, asset management and finding the best pension solution for a customer. Market-leading position Handelsbanken Fonder has a very strong position in the market in Sweden and had the highest new savings in mutual funds in Sweden in the first half of the year, representing a market share of 71 per cent. XACT Fonder is the largest player on the Nordic market for exchange-traded funds (ETFs). Handelsbanken is also the largest and most experienced index fund manager in the Nordic region, with a track record of strong results. Nordic Custody Services From offices in Stockholm, Copenhagen, Helsinki and Oslo, Nordic Custody Services provides all types of custody management products, connectivity solutions and services for securities services to institutional customers investing in various securities. The products and services are offered to both Insurance savings Handelsbanken s pension and life insurance company is called Handelsbanken Liv and is a wholly owned subsidiary of the Bank. It offers customised pension and insurance solutions to employees, senior management and CEOs. The solutions can also be adapted to the company s development as the focus is on the requirements of the individual and not on static products. A complete range of products and services is offered, including occupational pension solutions, endowment insurance and various savings products. For several years, Handelsbanken Liv has been highlighted as being the company with the most satisfied pension and life insurance customers by the Swedish Quality Index (SKI). 4

5 Performance and business development 2011 Financial performance Operating profit decreased by 31 per cent to SEK 1,051 million (1,519). Of the total operating profit, the investment bank represented SEK 201 million (1,003) and asset management operations accounted for SEK 850 million (516). Net fee and commission income rose by 4 per cent to SEK 2,611 million (2,510). The increase was due to a higher yield split in the insurance company and to increased mutual fund commissions from increasing management volumes. Net gains/losses on financial items decreased to SEK 628 million (1,280). The turbulence created by the European debt crisis had a negative impact on market activity and income fell in equity-related operations as well as in fixed income and foreign exchange trading. The risk result in Handelsbanken Liv increased to SEK 209 million (205), and the financial result rose to SEK 80 million (-52). The total return increased to 6.21 per cent (2.55). Income decreased by 10 per cent to SEK 4,177 million (4,639). However, income from asset management operations increased by 17 per cent, while income from investment bank operations decreased by 22 per cent. Expenses increased marginally to SEK -3,126 million (-3,116). The average number of employees totalled 1,626 (1,604). Business development Equity trading maintained a strong position and the Bank was ranked as best in the US for Nordic equities according to Greenwich Associates. Handelsbanken continued to have a strong market position for structured products in Sweden with a market share of 16 per cent during the year for new sales of capital-protected investments and certificates to the retail market. The Bank s share of the market on the warrants and ETN markets amounted to 44 per cent in Sweden and 41 per cent in the Nordic region. The turbulence on the capital market created a more difficult climate for IPOs and new issues, while corporate mergers and acquisitions increased. The Bank carried out a number of significant transactions in all of the Nordic countries. Activity on the credit market continued to be brisk. During the year, the Bank carried out 99 bond issues with a value totalling EUR 12.1 billion and syndicated loans totalling EUR 2.5 billion. Payments and cash management business performed well and the number of transactions at the Bank in Sweden increased by 4 per cent, despite the increasing financial uncertainty. Asset management operations performed well and the Bank was the largest player in new savings in mutual funds in Sweden with a market share of 90 per cent. New savings in the Bank s mutual funds resulted in a net inflow of SEK 3.7 billion during the fourth quarter. The net flow for the year totalled SEK 14.4 billion, while other mutual fund management companies had an inflow of SEK 1.6 billion. In its three-year performance reviews, the Morningstar rating agency has ranked Handelsbanken s mutual funds as best among the major Swedish banks funds. Net savings in the Bank s mutual funds globally totalled SEK 17.5 billion during the year. The total volume of assets under management increased in the fourth quarter by 5 per cent to SEK 529 billion (506), but decreased during the year by 11 per cent due to falling stock market values. XACT Fonder is the largest player on the Nordic market for exchange-traded funds with a Nordic market share of 90 per cent of turnover and 85 per cent of assets under management. Four new funds were listed during the year and XACT now has 25 funds in the Nordic countries. Handelsbanken s total fund volume, including assets managed in the XACT funds, totalled SEK 189 billion (193). 5