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Annika Falkengren President and CEO
UBS Global Financial Services Conference New York, 20 May 2014
A Nordic bank with a global reach
2
London
S:t Petersburg
Geneva
Hong Kong Shanghai New Delhi Beijing
Kiev
Dublin
Moscow Denmark
Norway Finland
Sweden
New York
São Paulo
Singapore
Lithuania
Latvia Estonia
Germany Warsaw
Luxembourg
2 900 Corporates & Institutions 400 000 SME:s 4 million private individuals
SEB’s Core Markets
Economic fundamentals remain relatively robust
Lithuania
Denmark
Norway Finland
Sweden Latvia
Estonia
Germany
-10-8-6-4-202468
2008 2009 2010 2011 2012 2013 2014E 2015E
Sweden Norway Finland DenmarkNordic GDP development *
-4.5
-2.5
-0.5
1.5
3.5
2008 2009 2010 2011 2012 2013 2014E 2015E
Eurozone GDP development *
-20
-15
-10
-5
0
5
10
2008 2009 2010 2011 2012 2013 2014E 2015E
Germany Estonia Latvia Lithuania
German and Baltic GDP development *
* Source: SEB Nordic Outlook, February 2014
%
%
Lithuania
%
3
SEB’s Core Markets
Strong sovereign finances % of GDP
Sovereign Debt
0% 50% 100% 150% 200%
GreeceItaly
PortugalIrelandCyprus
BelgiumSpain
FranceUK
GermanyHungary
AustriaNetherlands
MaltaSlovenia
FinlandPoland
DenmarkSweden
LatviaLithuania
NorwayLuxemburg
Estonia
Source: IMF WEO Prognosis for 2013
Budget Deficit Current Account Balance
-10% 0% 10% 20%
IrelandSlovenia
SpainCyprus
UKPortugal
PolandGreeceFrance
MaltaItaly
NetherlandsLithuania
BelgiumFinland
HungaryAustria
DenmarkLatvia
SwedenLuxemburg
GermanyEstoniaNorway
-5% 0% 5% 10% 15%
PolandUK
CyprusFinlandFranceLatvia
GreeceBelgiumEstonia
LithuaniaItaly
PortugalMaltaSpain
HungaryIrelandAustria
DenmarkSloveniaSweden
GermanyLuxemburg
NetherlandsNorway
4
Strategy has remained the same
Build business platform for growth 1 Enhance customer satisfaction 2
Create strong asset quality and balance sheet 4
Achieve operating leverage 3
5
6
Share-of-wallet in customer segments Number of clients
Large corporates
2010 2013
2,200
+400
Sweden
SME/MidCorp
2010 2013
140,000
+41,000
Sweden
Private
2010 2013
466,000
+60,000
Built business platform for growth…
SME NPS *
Sweden
+19
+24
2012 2013
Private NPS *
Sweden
+19
+28
2012 2013
Improved customer satisfaction
7
Customer loyalty/satisfaction Targeted measures
Financial Institutions
Willingness to recommend
#1 Nordic
Willingness to recommend
#1 Nordic
Large corporates
* Net Promoter Score
Achieved operating leverage
8
Average quarterly income (SEK bn)
9.2 9.4 9.8 10.4 10.4
Avg 2010 Avg 2011 Avg 2012 Avg 2013 Jan-Mar2014
Average quarterly expenses (SEK bn)
5.8 5.9 5.7 5.6 5.3
Avg 2010 Avg 2011 Avg 2012 Avg 2013 Jan-Mar2014
Average quarterly profit before credit losses (SEK bn)
Notes: Excluding one-offs (restructuring in 2010, and bond buy-back and IT impairment in 2012) Estimated IAS 19 costs in 2010
3.4 3.5 4.1 4.8 5.1
Avg 2010 Avg 2011 Avg 2012 Avg 2013 Jan-Mar2014
Flat cost target 2012-2015
15% income growth target
2012-2015
Organic growth strategy has created earnings stability
9
2 000
4 000
6 000
8 000
10 000
12 000
2008 2009 2010 2011 2012 2013 Q1 2014
Retail Banking Corporate and Transaction Banking Life and Wealth Markets Baltic
21%
21%
23%
23%
12%
8%
13%
21%
30%
28%
Percent depicts Business Area in percent of total income
Average quarterly income 2008-2013 and Q1 2014
SEK m
Successful implementation of retail strategy in Sweden
10
Substantially increased operating Profit Strong development of key ratios
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2010 2011 2012 2013 Q1 2014
C/I Business Equity RoBE
Q1 2014 44% SEK 24.4bn 20.6%
2013 49% SEK 20.2bn 21.9%
2012 57% SEK 14.4bn 22.3%
2011 65% SEK 10.8bn 21.4%
2010 71% SEK 9.7bn 14.5%
SEK m Average quarterly operating profit
Focus on full service customers – Residential mortgage lending growth is a consequence of the strategy
11
350
370
390
410
430
450
470
2008 2009 2010 2011 2012 2013
466
375
50
150
250
350
450
2008 2009 2010 2011 2012 2013
+60
>80% conversion to full-service customers
Number of full service customers (thousands)
Household mortgage lending growth (SEK bn)
Strong credit characteristics and strict underwriting standards underpin SEB’s mortgage lending
12
SEB’s portfolio – Low LTVs
0-50%
51-70% 16.8%
>85% 0.4%
Loan-to-value Share of portfolio
77.8%
5.0% 71-85%
Corporate & Institution strategy focused on main client segments in the Nordic region and Germany
RoBE 11.5%
Bus. Equity 15.5bn
RoBE 13.6%
Bus. Equity 3.8bn
Financial institutions
Op. Profit SEK 8.2bn
Real Estate
28%
Share of MB profit* Share of MB profit*
8%
13
0.50 C/I
RoBE 13.5%
Bus. Equity 29.5bn
Corporate
RoBE 12.9%
Share of MB profit*
63%
Broadened corporate platform outside Sweden
14
0.4
0.4
1.0
0.5
0.9
0.9
1.6
1
Operating profit, rolling 12 months (SEK bn, FX-adj)
CAGR 2010 - Q1 2014
+31%
+23%
+16%
+27% 2010
Q1 2014
Denmark
Finland
Norway
Germany
2010
Q1 2014
2010
Q1 2014
2010
Q1 2014
2010 2011 2012 2013
Large Corporates and Financial Institutions New client income contribution (%)
2%
5%
7%
10%
171
49
93
100
84
209
305
413
Average product penetration 2010 – 2012
cash management trade finance
foreign exchange
relationship lending
leasing
corporate finance
fixed income commodities
structured finance
corporate cards life
custody
fund services
equities
asset management
debt capital markets
2010 Now 2011 2012
5
4
3
2
1
0
New clients 2010 2011 2012
# of new clients, cumulative
Capturing the disintermediation trend
15
Significant deals in Q1 2014
9,436
16,168
17,551
20,183
29,992 SEB
12 month rolling (SEK m)
56 Issues
55 Issues
65 Issues
50 Issues
34 Issues
SEK League Tables – Corporate Bonds
Nordic market lending and bond financing
73% 82%
46%60% 59%
27% 18%
54%40% 41%
2010 2011 2012 2013 Q1 2014
Bonds
Loans
Source: Dealogic on Nordic markets
SEK 1.0bn/500m FRN/Fixed Sole Bookrunner
SEK 850m FRN Sole Bookrunner
SEK 1.0bn/500m FRN/Fixed Joint Bookrunner
SEK 2.3bn FRN Joint Bookrunner
EUR 1.250bn Fixed Joint Bookrunner
EUR 225m Fixed Joint Bookrunner
SEK 1.25bn/350m Fixed/FRN Sole Bookrunner
EUR 500m Fixed Joint Bookrunner
Green Bonds
Capturing the more positive business conditions
16
Deloitte/SEB Swedish CFO Survey
30
40
50
60
70
2006 2007 2008 2009 2010 2011 2012 2013 2014
0%
20%
40%
60%
80%
100%
120%
Nordic Europe Global
1Q14 vs 1Q13 1Q14 vs 1Q 09-13 Average
Q1 ECM volume trends Q1 M&A announced volume trends
0%
50%
100%
150%
200%
Nordic Europe Global
1Q14 vs 1Q13 1Q14 vs 1Q 09-13 Average
Source: Dealogic Source: Dealogic
17
Household non-
mortgage5%
Residential Mortgages
35%
Public Sector5%
Corporates45%
Commercial Real Estate10%
Total Nordics 60% -> 75%
Organic growth strategy protects high asset quality
Credit portfolio growth from 2007 SEK bn)
Credit portfolio, non-bank, Mar 2014 SEK 1,756bn
-8
-91
-37
-24
-10
-9
40
59
85
193
203
Other
German retail
Baltics
German commercial real estate
German residential real estate
Public administration
Shipping & Private Equity Finance
Nordic commercial real estate
Swedish retail corporate
Swedish household mortgage
Large corporates
Nordics continue to support high asset quality
18
0.11 0.30
0.92
0.15
-0.08
0.08 0.09 0.07
2007 2008 2009 2010 2011 2012 2013 Q1 2014
(negative = reversals)
SEB Group
0.05 0.18 0.17
0.06 0.07 0.05 0.06 0.07
2007 2008 2009 2010 2011 2012 2013 Q1 2014
Nordic countries
Net credit losses in % Net credit losses in %
Credit quality Loan loss ratio, Group
SEK bn
40%
60%
80%
100%
0
10
20
30
40
Q1-03
Q1-04
Q1-05
Q1-06
Q1-07
Q1-08
Q1-09
Q1-10
Q1-11
Q1-12
Q1-13
Q1-14
Non-performing loansImpaired loans netTotal bad debt coverage ratio
-0.4%
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
Q1-03
Q1-04
Q1-05
Q1-06
Q1-07
Q1-08
Q1-09
Q1-10
Q1-11
Q1-12
Q1-13
Q1-14
New capital requirements published 8 May Major Swedish banks Basel III indicative capital
16.5%
20.4%
15.4%
19.0%
15.6%
17.4%
14.5%
19.3%
0%
5%
10%
15%
20%
25%
SEB SHB Nordea Swedbank0%
5%
10%
15%
20%
25%
Forecasted profit 2014, after expected dividend Capital requirements CET 1 Q1-14
19
Source: SFSA 8 May 2014
SEB
SEB’s capital requirement According to SFSA 8 May 2014
4.5%
1.5% 0.7% 0.9%
2.0%
3.0%
0.6%
2.5%
15.7%
0.8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
CET1 required CET1 available
Expected profit after dividend paid 15.6
16.5
CET1 ratio Q1 2014
• Strong capital formation
• Significantly more capital attributed to divisions to support capital rationalisation and pricing dynamics
• Revised capital target to be communicated when details clarified
20
Capital conservation bufferCountercyclical capital bufferSystemic risk bufferSystemic risks in Pillar 215 -> 25% risk weight floor on Swedish mortgagesCurrent risk weight floor on Swedish mortgagesPillar 2 excl. risk-weight floor on Swedish mortgages and systemic risksMinimum common equity Tier 1
Financial targets
Profitability Return on Equity
Competitive with peers - long-term aspiration of 15%
Capital Common Equity Tier 1 ratio Total capital ratio
13% 16%
TBD, alw ays compliant w ith
regulation
Dividend Pay-out ratio 40% or above of EPS
Ratings Funding access and
credibility as counterpart
Maintain credit ratings in support of competitive funding access and costs and as a viable counterpart in financial markets
Liquidity
Liquidity Coverage Ratio > 100% according to Swedish
requirements Efficiency
Nominal cost cap < SEK 22.5bn 2013 and 2014 …and 2015
2013 2014
21
Going forward
Long-term customer relationships
Disciplined execution of business plan
Finalization of regulatory Swedish finish
22
The relationship bank in our part of the world
23