Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

SEB Ubs Conference May 2008

4,900 views

Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

SEB Ubs Conference May 2008

  1. 1. Annika Falkengren CEO UBS Global Financials Conference New York May 13, 2008
  2. 2. SEB of today – an attractive platform 2
  3. 3. SEB – different already from the start Merchant Banking ● #1 Nordic stock broker ● #1 Nordic and Baltic investment bank ● #1 Nordic and Baltic cash manager ● #1 Custody Nordic and Baltic markets ● #1 Scandinavian currencies Wealth Management ● #1 Nordic and Baltic private bank ● #2 Nordic asset manager Life and pension ● #1 Nordic unit-linked business Retail ● #2 Baltic region 3
  4. 4. SEB’s market franchise Customer segmentation, 2007 Customer survey Distribution of income 100 100% Important relation- 80% ships/ customers % 60% Large Institutional corporates clients and 40% Sweden banks – Nordic region 20% 0% 0 DnB NORDanske Nordea SHB Swedbank SEB Bank 100 Retail- Nordic Retail Germany 0 Retail-Baltic Retail GB/Ireland Difference from Merchant B AM 100 the average, % Life 4
  5. 5. Global leader in cash management - the glue product The Cash Management Value ChainTM by SEB “ A lean & efficient financial supply chain is a competitive advantage!” ”No. 1 Overall Customer satisfaction in Europe” Euromoney Cash Management Poll, 2005, 2006 & 2007 Poll of 4,500 ”No. 1 globally Industry Expertise & Knowledge” treasurers globally Euromoney Cash Management Poll, 2007 (11 of 23 categories) 5
  6. 6. Global foreign exchange position International ranking Leadership through: Corporate foreign exchange ● Advisory services ● Electronic trading 2007 2006 solutions 1 1 Citi ● Research 2 2 Deutsche Bank 3 4 HSBC 11 10 BNP Paribas 12 12 SEB 13 13 Mitsubishi UFJ Fin Grp “Best FX forecaster globallyquot; quot;Best FX customer satisfaction and market sharequot; 6
  7. 7. Nordic capital markets leadership Assets under Custody Equity trading market shares Nordic & Baltic Stock Exchanges Q1 2008* EUR bn SEB 8.5% Nordea AuC SEB AuC Enskilda 600 500 6.0% Glitnir 400 4.4% Carnegie 300 200 3.1% Evli 100 0 2.5% Danske 2002 2007 Best Equities House in the Custodian of the Year, Nordic and Baltic regions Nordic Region Best Equity Research in the Best sub-custody bank Nordic countries in Denmark, Finland, Latvia, Best Stock broker in Lithuania, Norway and Sweden Nordic region *Source: The Nordic Stock exchanges 7
  8. 8. A leading Nordic asset manager Attractive hedge fund offering Assets under Management Net inflows in the Swedish mutual funds March 31, 2008, SEKbn Cumulative FY 2007 and Q1 2008, SEKbn 15.2 Nordea 1,368 -8.6 SEB 1,331 -13.6 -18.5 Robur SHB Nordea SEB Danske Bank 726 AuM hedge funds, SEKbn DnB NOR 648 50 40 Swedbank 30 629 20 10 Handelsbanken 263 0 2004 2005 2006 2007 8
  9. 9. Our strategy – The Road to Excellence Expand and Co-ordinate accelerate Focus universal offering growth in areas of strength Sustainable profit growth Focused growth in areas of strength Installing operational 2,500 large corporates 5 million private 400,000 SME’s & institutions individuals excellence Streamlining Merchant Retail Wealth Life Group Group IT and integration Operations Group Staff Norway Finland Germany Latvia Ukraine Russia Estonia Sweden Denmark Poland Lithuania From To Productivity 1 1 2 3 2 3 OK 4 5 OK 2006 2007 2008 2009 2010 Proactivity 9
  10. 10. Cost-management commitment 2007 – 2009: Commitment SEK 1.5 – 2bn Realised since start SEK 625m 10
  11. 11. Capturing structural growth trends SEB is: Capital markets Creating demand for: Exploiting Trading, investment being the #1 banking, new asset Nordic classes Merchant Bank Demography Expanding the asset manage- Asset management, ment and life pension products insurance franchise Emerging markets Continued Local financial growth in services, int’l support Eastern for our clients Europe 11
  12. 12. Examples from Merchant Banking Income growth, SEKbn Corporate Banking Foreign Exchange Global Transaction Services Excl. CRE and CRM Custody, Cash management etc 3.6 3.5 3.2 2.7 2.5 2.4 2.2 2.1 2.1 2.0 1.9 1.8 1.7 0.8 0.8 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 12
  13. 13. Example: life insurance Assets under Management International sales SEKbn Outside Sweden and Denmark, SEKbn Traditional and Risk Unit-linked 1.7 408 395 384 368 311 215 0.8 2003 2004 2005 2006 2007 2008 Jan – Mar 2006 Jan – Mar 2008 Q1 SEB Market share Competitors SEB Rank Market shares 22 1 Sweden* Gross premium income, unit-linked 2 17 Denmark insurance 2 28 Estonia (%, 2007) 1 43 Latvia 37 2 Lithuania 13
  14. 14. Go East: A continued growth case Operating result country level; SEK millions 4,000 Lithuania Latvia 3,114 Estonia 3,000 +34% 2,320 +62% 2,000 1,428 250,000 new customers 1,000 during 2007 0 2005 2206 2007 14
  15. 15. SEB’s entry to Ukraine A step-wise approach to nation-wide coverage Participation in consolidation of an under-penetrated banking market with long- term growth potential Manageable size of operations The combination of local knowledge and international competences will differentiate SEB in the market 2004 2005 2006 2007 SEB Life Acquisition of Restructuring Rebranding Acquisition of registration Factorial Bank Bank Agio 15
  16. 16. Strong balance sheet Net liquidity position across maturities Core capital ratio 31 March, SEKbn Basel II including transitional rules, % 300 8.9 SEB is match- funded approx. 7.2 one year 200 7.0 100 6.8 6.5 0 1 week 2 weeks 4 weeks 2 months 3 months 4 months 5 months 6 months 9 months 12 months * 6.4 (2007) * Danske has during 2008 started to report the full Basel II effect 16
  17. 17. Long-term objectives Sustainable profit Customer growth satisfaction: No 1 in chosen markets AA-rating Highest Return on Equity The leading bank in Northern Europe 17
  18. 18. 18
  19. 19. Additional Financial Information 19
  20. 20. Highlights Q1 2008 Operating profit SEK 2.4bn More cautious customer sentiment Operating profit SEKbn Growing net interest income 4.6 4.6 4.2 despite higher funding costs 3.7 Fee income down 3.8 – Retail and Private Banking 2.4 – Capital markets MtM valuation losses SEK 0.9bn Cost control Increased credit losses in Estonia Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 20
  21. 21. Key figures Change Excluding Q1 Q1 Q4 portfolios SEKm 2008 2007 2007 Q1 – Q1 Operating income 8,802 -14% -12% -5% Operating expenses -6,027 4% 2% -20% Operating profit 2,410 -42% -47% Net profit 1,848 -43% -51% Return on Equity, % 9.6 19.0 20.2 13.2 Cost / income ratio 0.69 0.57 0.59 0.62 Credit loss level, % 0.13 0.10 0.13 RWA, Basel I, SEKbn 909 796 892 Core capital ratio, Basel II 8.85 8.33 8.63 21
  22. 22. Operating profit per division Q1 2008 vs. Q1 2007 SEKm Excl. ROE Change portfolio Q1 2008 vs. Q1 2007 losses Merchant -50% (-5%) 10.8% (20.4%) Banking GTS +1% TCM excl portfolios -12% Corp.Banking - 2% Retail Banking 15.3% -11% Sweden -5% Estonia -96% Latvia +3% Wealth Lithuania +28% 22.2% -17% Germany -44% Management Cards +6% 17.3% -20% Q1 2008 Life Q1 2007 -42% 9.6% 0 1,000 2,000 22

×