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
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
Q1 2015 financial results highlights 14
Financial results EURm Q1/15 Q4/14 Chg % Q1/14 Chg % Local currencies Chg % Net interest income 1 288 1 356-5 1 362-5 -3 Net fee & commission income 757 763-1 704 8 9 Net fair value result 644 367 75 411 57 58 Total income* 2 714 2 513 8 2 501 9 11 Total expenses -1 184-1 227-4 -1 237-4 -2 Profit before loan losses 1 530 1 286 19 1 264 21 23 Net loan losses -122-129 -5-158 -23-21 Operating profit 1 408 1 157 22 1 106 27 29 Net profit from cont. op 1 082 877 23 840 29 31 Return on equity (%) 14.3 11.8 250 bps 11.4 290 bps - CET1 capital ratio (%) 15.6 15.7-10 bps 14.6 100 bps - Cost/income ratio (%) 43.6 48.8-520 bps 49.5-590 bps - *Includes other income 4
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
Wholesale Banking highlights 14
Wholesale Banking financial results EURm Q1/15 Q4/14 Chg % Q1/14 Chg % Local currencies Chg % Net interest income 254 294-14 271-6 0 Net fee & commission income 143 172-17 173-17 -16 Net result from items at fair value 312 120 160 215 45 45 Equity method & other income 1 1 0 1 0 0 Total income incl. allocations 710 587 21 660 8 11 Staff costs -203-197 3-196 4 7 Other exp. excl. depreciations -20-27 -26-13 54 72 Total expenses incl. allocations -226-227 0-217 4 9 Profit before loan losses 484 360 34 443 9 12 Net loan losses -30-26 15-34 -12 0 Operating profit 454 334 36 409 11 13 Cost/income ratio, % 32 39-33 - - RAROCAR, % 17 13-15 - - Economic capital (EC) 8 379 7 926 6 8 542-2 - Risk exposure amount (REA) 56 330 53 415 5 59 307-5 - Number of employees (FTEs) 5 924 5 985-1 6 007-1 - 7
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
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 9 2 511 2 479 1 885 1 873 1 535 1 207 1 015 3 902 3 860 Nordic syndicated loans EURm 5 744 Nordic EQ trading* EURm Nordea Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 63 783 50 621 48 390 32 928 31 481 31 200 31 197 25 320 94 161 113 794 *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 9 11 943 8 054 6 695 4 975 3 520 3 508 2 868 2 645 2 604 2 350 Nordea Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 3 309 3 286 2 850 2 617 2 503 2 446 8 152 7 626 6 314 5 918 9
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) 0 20 40 60 80 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
The Wholesale Banking journey continues Leveraging the Platform Business & Culture & Cultural Transformation transformation 2015- WB Formation 2011-2012 Value chain alignment New management One Nordic operating model Return as the only target Business Repositioning 2013-2014 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
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