Capital Market Days 2008 - Mikael Inglander

416 views

Published on

Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
416
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Capital Market Days 2008 - Mikael Inglander

  1. 1. 1 High quality funding Mr Mikael Inglander CFO Capital Markets Day Kiev, 5 March 2008 © Swedbank 2 Strong profit development -1,000 1,000 3,000 5,000 7,000 9,000 11,000 13,000 15,000 17,000 2000 2001 2002 2003 2004 2005 2006 2007 -1,000 1,000 3,000 5,000 7,000 9,000 11,000 13,000 15,000 17,000 Profit before loan losses Capital gains EnterCard and KIAB Loan losses, net* Operating profit (excl. capital gains) SEKm SEKm *Loan losses, net = write-offs + provisions – recoveries + change in property taken over
  2. 2. 2 © Swedbank 3 Swedbank funding structure Funding 95% Equity 5% Deposits 84%Equity 8% Funding 8% Swedbank Treasury (excl. Swedbank Mortgage) • Large deposits • Liquidity reserves • Net lender in the interbank market • Liquidity limits – conservative view Swedbank Mortgage constitutes a larger part of Swedbank Group’s balance sheet compared to other financial institutions Distribution of net funding need Swedbank Mortgage Lending to the public – SEK 1,103bn 51%49% Swedbank Group excl. Swedbank Mortgage SEK 542bn Swedbank Mortgage SEK 561bn © Swedbank 4 Municipalities 3% (4)Commercial buildings 1% (1) Agriculture 6% (6) Multi-family housing incl. condominium associations 16% (17) Individual condominiums 13% (11) Single-family homes 61% (61) Swedbank Mortgage – credit risk Net 0 500 1,000 1,500 2,000 2,500 3,000 2000 2001 2002 2003 2004 2005 2006 2007 SEKm = 90% Residential loans Average LTV of 44% “80% percent of the portfolio has an LTV of 50% or lower” Credit losses -net recoveries during 2007 Impaired, restructured and past due loans – at historically low levels 31 Dec -100 0 100 200 300 400 500 600 700 2000 2001 2002 2003 2004 2005 2006 2007 SEKm 0% 10% 20% 30% 40% 50% 60% <30% 30-60% 60-75% 75-85% >85% Distribution of loan to value
  3. 3. 3 © Swedbank 5 Converting to covered bonds, Q2 2008 • Possibility to meet a broader investor base • Larger investor base ensures even more stable liquidity • AAA rating – funding at lower cost • Increased liquidity reserve through Swedbank’s possibility to pledge subsidiary covered bonds in the Swedish Central Bank • Funding strategy to prolong maturity structure with covered bonds © Swedbank 6 Swedbank Mortgage – long-term funding Action plan: • Conversion to covered bonds during Q2 2008 and covered bond issues, approx. EUR 6.0bn • Continuous activities in the market for private placements, approx. EUR 1.5bn • Continuous issues on tap in the Swedish mortgage bond market under existing mortgage bond programme, approx. EUR 7.5bn • The issue of a new 5-year Swedish benchmark bond Swedbank Mortgage 177 • The maturity of SPI173 in June 2008 is smaller than the average yearly maturing domestic benchmark bond Swedbank Mortgage - maturity of long-term funding 0 50,000 100,000 150,000 200,000 250,000 <1y 1-2y 2-3y 3-4y 4-5y >5y SEKm
  4. 4. 4 © Swedbank 7 Additional material © Swedbank 8 Swedbank Mortgage Maturity profile 2008, long-term funding Total: SEK 158,467m 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SEKm

×