MeritaNordbanken Unidanmark January March 2000
Merger progress report Merger accepted by 97.1 per cent of Unidanmark shareholders Strong first quarter pro forma results for new group 2
Merger effected Shareholders representing 97.1 per cent of the Unidanmark A/S shares have accepted the share exchange offer from Nordic Baltic Holding (NBH) AB (publ) All other conditions fulfilled New Board of Directors and New Group Management operative Over 50 key management positions filled All major integration projects started NBH listed in Stockholm, Helsinki and Copenhagen 3
The largest financial group in the Nordic region Market capitalisation of Nordic banking groups, April 2000 NBH Handelsbanken SEB FöreningsSparbanken Danske Bank Den norske Bank Christiania Bank RealDanmark 0 5 10 15 20 bneur 4
Strong first quarter 2000 for the new group Operating profit EUR 729 million (DKK 5.4 billion/sek 6.2 billion) Return on equity 19.2 % Strong growth within Retail and Asset Management 5
Pro forma financial information Jan March 2000 Jan-March Full year 2000 1999 Earnings per share, EUR 0.17 0.55 Shareholders equity per share, EUR 3.45 3.43 Shares outstanding after full conversion 2 984.1 2 987.2 6
Legal structure Shareholders Nordic Baltic Holding * (NBH) AB (publ) MeritaNordbanken Abp * Tryg-Baltica A/S * Unibank Merita Bank Nordbanken Tryg-Baltica Insurance Vesta * Preparing to adopt a new name. 7
Group structure Group Staffs & Service Units Group Management Corporate & Institutional Banking Investment Banking Asset Management Retail Banking Life Insurance & Pensions Non-life Insurance Retail Banking Denmark Retail Banking Finland Retail Banking Sweden Retail Banking Baltic & Poland 8
Share price development 160 Dec 31, 1997=100 150 140 130 120 110 100 90 80 1998 1999 2000 DJ Euro Stoxx Bank Nordic Baltic Holding 9
10 January March 2000
Unidanmark Including Vesta in 1Q00 1Q99 1Q00 Profit before tax, EURm 143 274 ROE, % 11,9 20,2 Earnings per share, DKK 12 19
Unidanmark Including Vesta in 1Q00 EURm 1Q99 2Q99 3Q99 4Q99 1Q00 Core earnings, bank 333 338 323 332 402 Core earnings, insurance 98 97 94 89 83 Core earnings, Unidanmark A/S 1 1 0 9 2 Core earnings 432 435 417 431 487 Expenses and depreciation (329) (344) (324) (339) (374) Profit on core activities 103 92 92 92 113 Investment portfolio income 17 37 (9) 240 161 Associated and group undertakings 24 6 3 (1) (0) Profit on ordinary activities 143 135 86 331 274
Banking Operating profit before tax EURm 1Q99 2Q99 3Q99 4Q99 1Q00 Excluding investment portfolio income: Net interest income 228 224 216 228 236 Other income 135 118 121 124 180 Provisions for bad and doubtful debts (30) (4) (14) (20) (14) Core earnings 333 338 323 332 402 Expenses and depreciation (250) 1 (269) (253) (265) (258) Profit on core banking activities 83 69 70 67 144 Return on investment portfolio 19 9 (6) 86 58 Revaluation of shares in ass. and affiliates 24 5 2 14 (0) Operating profit before tax 126 84 67 168 201 1) Excluding restructuring costs
Insurance Operating profit before tax EURm 1Q99 2Q99 3Q99 4Q99 1Q00 1Q00 1 Premium income, non-life 201 201 198 200 324 203 Regular premiums, life 78 76 74 158 158 88 Single premiums, life 42 29 33 53 46 38 Premium income, total 320 306 305 411 528 329 Profit on investment activities 132 298 148 868 687 643 Claims incurred (140) (134) (136) (176) (305) (156) Benefits paid (103) (94) (93) (135) (133) (118) Change in other provisions (110) (278) (131) (878) (694) (604) Core earnings 98 97 94 89 83 93 Expenses and depreciation (69) (72) (71) (72) (112) (70) Profit on core activities 30 25 23 17 (30) 23 Investment portfolio income (2) 28 (4) 154 103 80 Operating profit before tax 28 52 20 172 74 103 1) Excluding Vesta and extra provisions for the December 1999 hurricane
Insurance Premium income, including Vesta 600 500 EURm 400 300 200 100-1Q99 2Q99 3Q99 4Q99 1Q00 Premium, non life Regular premiums, life Single premiums, life
Unidanmark Expenses and depreciation EURm 400 350 300 250 200 150 100 50-1Q99 2Q99 3Q99 4Q99 1Q00 Expenses and dep. excl. Vesta Vesta
Unidanmark Return on investment portfolio 280 230 180 EURm 130 80 30 (20) 1Q99 2Q99 3Q99 4Q99 1Q00
Business areas Core earnings before provisions for bad and doubtful debt 250 200 150 100 EURm 50 0 Life Insurance Non-Life Insurance Investment Banking Asset Management Markets Corporate Banking Retail Banking 1Q99 1Q00
Capital under administration Breakdown by asset class Investment Management 60 4Q98 4Q99 1Q00 EURbn 50 40 30 20 10 0 4Q94 4Q95 4Q96 4Q97 4Q98 4Q99 1Q00 Danish bonds 57% 40% 33% International bonds 2% 2% 9% Danish equities 12% 18% 11% International equities 26% 39% 43% Cash and cash equivalents 3% 1% 4%
Online investment 50000 40000 30000 20000 10000 0 Number Antal kunder of customers Share of retail Andel customer s af retail-aktiehandler stock trading 40 35 30 25 20 15 10 5 0 Periode Periode
MeritaNordbanken January March 2000
Steps towards a leading Nordic banking group Merger with Unidanmark Extension and adjustment of cash offer for Christiania Bank og Kreditkasse shares Completion of the new structure a single-owner company Acquisitions and expansion continue in Baltic countries and Poland Concentration on core business; sale of Aleksia shares 22
Result Jan March, 2000 2000 1999 Q1 Q1 Operating profit, meur 472 375 (489*) Return on equity, % 23.1 22.4 Earnings per share, EUR 0.16 0.13 23 * Including capital gain from sale of Pohjola shares, 114 meur.
Income statement Quarterly 2000 1999 meur Q1 Q 4 Q 3 Q 2 Q1 Net interest income 487 457 439 454 448 Net commission income 267 257 190 194 181 Net result from financial operations 34 17-7 -53 34 * Other operating income 94 57 60 91 92 Total operating income 882 788 682 686 755 Personnel expenses -202-200 -195-196 -196 Other expenses -220-281 -210-229 -207 Total expenses -422-481 -405-425 -403 Profit before loan losses 460 307 277 261 352 Loan losses, net -3-2 0 0-20 Profit from companies accounted for under the equity method 15 30 5 19 43 Operating profit 472 335 282 280 375 * 24 * Excluding capital gain from sale of Pohjola shares, 114 meur.
Net interest and commission income meur 500 400 300 Net interest income Net commission income 200 100 0 Q1 Q2 Q3 Q4 Q1 1999 2000 25
Expenses meur 500 400 300 Other expenses Personnel expenses 200 100 0 Q1 Q2 Q3 Q4 Q1 1999 2000 26
Loan loss level % 0.3 0.2 0.1 0.0 Full year 1998 Q1 Q2 Q3 Q4 Full year Q1 1999 1999 2000 27
Operating profit by business area meur 350 300 250 200 150 100 Q 1 1999 Q2 Q3 Q4 Q 1 2000 50 0-50 R etail C orporate Markets A sset Management and Life Insurance 28
Asset Management and Life Insurance Assets under management bneur 40 35 30 Unit-linked life insurance 25 20 Life insurance (excl. unit-linked) 15 10 Institutional portfolio management 5 0 Q1 1998 Q2 Q3 Q4 Q1 1999 Q2 Q3 Q4 Q1 2000 Mutual funds (excl. unit-linked) 29
Key figures result Return on equity Cost/income ratio * % % 25 52 20 51 50 15 49 10 48 47 5 46 0 Q1 2000 Q1 1999 0 Q1 2000 Q1 1999 30 * Before loan losses.
Internet bank Number of customers 1996 2000 Million customers 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Dec Dec Dec Dec March 1996 1997 1998 1999 2000 31
MeritaNordbanken Unidanmark The largest financial banking group in the Nordic region