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Steering towards a sound andsustainable businessErkki Raasuke, Chief Financial Officer
Direction and boundariesTowards a sound and sustainable business• Strategy                 – Customers                    ...
Financial targetsNew financial targets as of 2011                 g• R t  Return on equity               it     15%• Divid...
Financial targetsInternal business steering and follow-up                         g             p                         ...
Financial targetsInternal business steering and follow-up                         g             p                         ...
Financial targetsInternal business steering and follow-up                         g             p                         ...
EfficiencySignificant potential in performance management  g         p            p               gTop 25%            Midd...
Financial targetsInternal business steering and follow-up                         g             p                         ...
Financial targetsInternal business steering and follow-up                         g             p                         ...
Balance sheetActual matched funding cost shows different profitability                     g                      p       ...
Balance sheetActual matched funding cost shows different profitability                     g                      p       ...
Financial targetsInternal business steering and follow-up                         g             p                         ...
Financial targetsInternal business steering and follow-up                         g             p                         ...
Financial targetsInternal business steering and follow-up                         g             p                         ...
Summary      y• Steering in place• Large room for improvements• Focused execution                                15
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Swedbank CMD Erkki Raasuke

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Swedbank CMD 23 Feb 2011, Steering towards a sound and sustainable business, Errki Raasuke, CFO

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Swedbank CMD Erkki Raasuke

  1. 1. Steering towards a sound andsustainable businessErkki Raasuke, Chief Financial Officer
  2. 2. Direction and boundariesTowards a sound and sustainable business• Strategy – Customers – Offerings – Operating model• Risk appetite – Credit risk – Liquidity risk –OOperational risk i l i k – Market risk• Financial targets – Return on equity – Dividend policy p y – Capitalisation 2
  3. 3. Financial targetsNew financial targets as of 2011 g• R t Return on equity it 15%• Dividend policy The dividend will correspond to 50% of after-tax profit, provided that the bank meets its capitalisation goals• Capitalisation The core Tier 1 capital ratio will remain above 13% until 2013 L b til 2013. Long-term, t the core Tier 1 capital ratio will not be below 10% 3
  4. 4. Financial targetsInternal business steering and follow-up g p Returns 1. Return on equity Efficiency 2. Dividend li 2 Di id d policy Balance sheet B l h t Risk 3. Capitalisation Franchise 4
  5. 5. Financial targetsInternal business steering and follow-up g p Returns 1. Return on equity Efficiency 2. Dividend li 2 Di id d policy Balance sheet B l h t Risk 3. Capitalisation Franchise 5
  6. 6. Financial targetsInternal business steering and follow-up g p Returns 1. Return on equity Efficiency 2. Dividend li 2 Di id d policy Balance sheet B l h t Risk 3. Capitalisation Franchise 6
  7. 7. EfficiencySignificant potential in performance management g p p gTop 25% Middle 25-75% Bottom 25% • Over 5-fold differences in sales performance betweenMeetings 4.2 Meetings 3.6 Meetings 2.7 best and lowest performersSales per Sales per Sales permeeting ti 1.9 1 9 meeting ti 1.2 1 2 meeting ti 0.6 06Sales 8.4 Sales 4.3 Sales 1.6 5.3xSignificant potential if bottom performance is improved 7
  8. 8. Financial targetsInternal business steering and follow-up g p Returns 1. Return on equity Efficiency 2. Dividend li 2 Di id d policy Balance sheet B l h t Risk 3. Capitalisation Franchise 8
  9. 9. Financial targetsInternal business steering and follow-up g p Returns 1. Return on equity Efficiency 2. Dividend li 2 Di id d policy Balance sheet B l h t Risk 3. Capitalisation Franchise 9
  10. 10. Balance sheetActual matched funding cost shows different profitability g p yEconomic valueadded Blended funding Lending/funding volume 10
  11. 11. Balance sheetActual matched funding cost shows different profitability g p yEconomic valueadded Actual funding Blended funding Lending/funding volume 11
  12. 12. Financial targetsInternal business steering and follow-up g p Returns 1. Return on equity Efficiency 2. Dividend li 2 Di id d policy Balance sheet B l h t Risk 3. Capitalisation Franchise 12
  13. 13. Financial targetsInternal business steering and follow-up g p Returns 1. Return on equity Efficiency 2. Dividend li 2 Di id d policy Balance sheet B l h t Risk 3. Capitalisation Franchise 13
  14. 14. Financial targetsInternal business steering and follow-up g p Returns 1. Return on equity Efficiency 2. Dividend li 2 Di id d policy Balance sheet B l h t Risk 3. Capitalisation Franchise 14
  15. 15. Summary y• Steering in place• Large room for improvements• Focused execution 15

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