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Swedbank cmd Håkan Berg

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From product-centric to customer-centric, Håkan Berg, Head of Baltic Banking

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Swedbank cmd Håkan Berg

  1. 1. From product-centric to customer-centricHåkan Berg, Head of Baltic Banking
  2. 2. Baltic BankingLong-term potential as the economies matures g p 3 Savings • Asset managementAdvisory content • Pension • Relatively underdeveloped due 2 Credits to low current income and • Mortgages accumulated welfare/savings • Consumer finance • A key future growth driver 1 Basic services • Strong expansion since 2000 due • Transfers to increased supply from banks • Internet bank and rising standard of li i d i i t d d f living • Cards • Mostly automated and highly y g y efficient since mid 90s. • Used very actively 2
  3. 3. Baltic BankingEfficiency maintained yLoan/deposit ratio • Net loans from peak down250% SEK 100bn200%150% • Cost/income ratio FY 2008100% was 0 44 0.44 50% 0% • Cost/income ratio FY 2010 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 was 0 44 0.44Cost/income ratio 0.6 0.5 0.4 0.3 0.2 0.1 0.0 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 3
  4. 4. Baltic BankingSolid base for long-term sustainable growth g gProfit before impairments • Profit before impairments EURm 120 – FY 2010 EUR 363m 100 80 – Q4 2010 EUR 102m 60 40 20 • Net profit 0 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 – FY 2010 EUR 10m – Q4 2010 EUR 108mNet profit EURm EUR 150 100 50 0 -50 -100 -150 -200 -250 -300 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 4
  5. 5. Baltic BankingSwedbank position p2010 Estonia Latvia Lithuania TotalPopulation, million 1.3 2.2 3.3 6.8Private customers, million 1.2 1.0 3.2 5.4Corporate customers, thousand 106 65 98 269Active customers, million 0.7 0.6 0.9 2.2Cards in the market, million 1.8 2.4 4.3 8.5Cards, million 1.1 0.9 1.7 3.7Internet customers, million 0.5 0.5 0.5 1.5Branches 64 59 97 220ATMs 554 372 452 1 378Employees 1 728 1 407 1 870 5 416 5
  6. 6. Baltic BankingFrom product-centric to customer-centric business model p 1. Maturing economy is leading to new customer needs 2. Increased competence and front line empowerment will support building long-term relationships with customers pp g g p 3. Enhanced channel functionality supports more tailored value adding services 6
  7. 7. Baltic BankingDifferent country-specific opportunities y p ppEstonia• Defend the strong market position and franchise• Maintain strong profitability• Capture potential from improved macro economic environmentLatvia• Manage deleveraging and move towards a more balanced portfolio• Capture potential of restored market competitiveness• Increase the share of wallet in all segmentsLithuania• Increase product penetration and decrease cash in circulation• Promote usage of e-channels to increase efficiency and lower distribution costs• Capture opportunities from low leverage 7
  8. 8. Baltic BankingSteering for improved profitability g p p y Baltic Banking Targets g g Returns Profit before impairments Efficiency Cost/income ratio Balance Loan to deposit ratio sheet Risk RAROC Customer satisfaction (TRIM) Franchise strength Employee satisfaction ( p y (VOICE) ) 8
  9. 9. Baltic BankingSustainable growth – maintained efficiency g y• Economic recovery and maturing market give growth opportunities• Customer-centric business model and a good starting position create business opportunities t b i t iti• Maintaining efficiency levels supported by Group integration g y pp y p g• New governance in place 9

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