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© Swedbank
Swedbank’s first quarter 2015 results
Michael Wolf (CEO), Göran Bronner (CFO), Anders Karlsson (CRO)
Resilient result in low interest rate environment
2
Swedish Banking
Ratios Q1 15 Q4 14
ROE, % 17.9 20.0
C/I ratio 0.46 0.4...
Stable result
• Lower deposit margins
• Lower commission income – euro
adoption
• High cost efficiency
• Solid asset quali...
Solid result
• Lower deposit margins
• Stable lending margins
• Lower activity in corporate finance
• High market activity...
Strong result in low interest rate environment
5
Group results
SEKm Q1 15 Q4 14 ▲QoQ
Net interest income 5 719 5 809 -90
N...
21.2%
20.5%
19.2%
Q4 2014 Q1 2015 CET1 capital ratio
requirement
Strong capitalisation
Capital
6
• CET1 capital negatively...
Strong asset quality in challenging environment
7
Asset quality
Credit impairments, SEKm Q1 15 Q4 14
Swedish Banking 52 14...
Q&A
Michael Wolf (CEO), Göran Bronner (CFO), Anders Karlsson (CRO)
Appendix
9
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
Loans net, SEKm
Shipping and Offshore
• Total lending of SE...
10 951
9 934
7 077
4 429 4 047 3 570 2 818 2 514 2 343 2549 2 197 2 090
2 040
1 774
1 545
1 420 1 398
1 325
1 256 1 238 1 ...
0
10
20
30
40
50
60
70
80
90
100
Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116
Cove...
0
50
100
150
200
2015 2016 2017 2018 2019 2020 2021-
Senior unsecured
debt
Covered bonds
13
Long-term funding maturity pro...
Real estate prices – Sweden 12 months development
14
Swedish housing and mortgage market
Single-family homes1 Tenant-owner...
Baltic countries
Real estate prices
15
EUR/m2 /No. of deals EUR/m2 /No. of deals
0
200
400
600
800
1 000
1 200
1 400
1 600...
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Swedbank’s first quarter 2015 results - CEO presentation

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Swedbank’s first quarter 2015 results - CEO presentation

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Swedbank’s first quarter 2015 results - CEO presentation

  1. 1. © Swedbank Swedbank’s first quarter 2015 results Michael Wolf (CEO), Göran Bronner (CFO), Anders Karlsson (CRO)
  2. 2. Resilient result in low interest rate environment 2 Swedish Banking Ratios Q1 15 Q4 14 ROE, % 17.9 20.0 C/I ratio 0.46 0.48 • Lower deposit margins • Higher mortgage margins • Loan volume growth • Stable commission income – Lowered fund fees • Higher allocated capital Volumes, SEKbn Q1 15 Q4 14 ▲ QoQ Loans 1 039 1 024 15 Deposits 400 412 -12 SEKm Q1 15 Q4 14 ▲ QoQ Net interest income 3 190 3 301 -111 Net commission income 1 781 1 790 -9 Other income 558 417 141 Total income 5 529 5 508 21 Total expenses 2 559 2 620 -61 Profit before impairments 2 970 2 888 82 Credit impairments 52 147 -95
  3. 3. Stable result • Lower deposit margins • Lower commission income – euro adoption • High cost efficiency • Solid asset quality 3 Baltic Banking Ratios Q1 15 Q4 14 ROE, % 15.0 13.9 ROTE, % 28.1 25.7 C/I ratio 0.41 0.44 Volumes, SEKbn Q1 15 Q4 14 ▲ QoQ Loans 125 126 -1 Deposits 135 138 -3 SEKm Q1 15 Q4 14 ▲ QoQ Net interest income 831 863 -32 Net commission income 469 505 -36 Other income 199 166 33 Total income 1 499 1 534 -35 Total expenses 612 673 -61 Profit before impairments 887 861 26 Credit impairments -9 -10 1
  4. 4. Solid result • Lower deposit margins • Stable lending margins • Lower activity in corporate finance • High market activity 4 Large Corporates & Institutions Ratios Q1 15 Q4 14 ROE, % 16.9 15.1 C/I ratio 0.44 0.46 Volumes, SEKbn Q1 15 Q4 14 ▲ QoQ Loans 178 175 3 Deposits 117 106 11 SEKm Q1 15 Q4 14 ▲ QoQ Net interest income 862 890 -28 Net commission income 496 534 -38 Net gains and losses 587 434 153 Other income 35 20 15 Total income 1 980 1 878 102 Total expenses 877 857 20 Profit before impairments 1 103 1 021 82 Credit impairments 16 120 -104
  5. 5. Strong result in low interest rate environment 5 Group results SEKm Q1 15 Q4 14 ▲QoQ Net interest income 5 719 5 809 -90 Net commission income 2 744 2 882 -138 Net gains and losses 320 69 251 Other income 835 619 216 Total income 9 618 9 379 239 Total expenses 4 168 4 293 -125 Profit before impairments 5 450 5 086 364 Credit impairments 59 254 -195 Other impairments 15 33 -18 Tax 1 101 1 000 101 Profit from continuing operations 4 271 3 798 473 • Mixed margins • Loan growth • Stable commission income • Improved trading result • One-offs in other income • Good cost efficiency • Solid asset quality • Lower CET1 capital ratio Ratios Q1 15 Q4 14 ROE, % 14.9 13.3 ROTE, % 16.7 14.9 Cost/income ratio 0.43 0.46 CET1 capital ratio, % 20.5 21.2
  6. 6. 21.2% 20.5% 19.2% Q4 2014 Q1 2015 CET1 capital ratio requirement Strong capitalisation Capital 6 • CET1 capital negatively impacted − IAS 19 (SEK 2bn) − Prudent valuation (SEK 0.4bn) • REA net increase of SEK 8bn − Loan growth − Operational risk − Market risk • Capital regulatory uncertainty • No regulatory excess capital CET1 capital ratio, %
  7. 7. Strong asset quality in challenging environment 7 Asset quality Credit impairments, SEKm Q1 15 Q4 14 Swedish Banking 52 147 Baltic Banking -9 -10 Large Corporates & Institutions 16 120 Group Functions & Other 0 -3 Swedbank Group 59 254 Ratios Q1 15 Q4 14 Credit impairment ratio, % 0.02 0.07 Share of impaired loans, gross % 0.39 0.41 Total provision ratio for impaired loans, % 54 53
  8. 8. Q&A Michael Wolf (CEO), Göran Bronner (CFO), Anders Karlsson (CRO)
  9. 9. Appendix 9
  10. 10. 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000 Loans net, SEKm Shipping and Offshore • Total lending of SEK 30bn – Reduced in currency of loan origination (USD) – Flat in SEK due to USD appreciation • Individual client action plans in place • Clients now adapting to the lower oil price by cutting cost, postponing orders and setting up new financial structures. 10 Asset quality Shipping and Offshore Negatively impacted by lower oil prices Source: Swedbank 31 Mar 2015
  11. 11. 10 951 9 934 7 077 4 429 4 047 3 570 2 818 2 514 2 343 2549 2 197 2 090 2 040 1 774 1 545 1 420 1 398 1 325 1 256 1 238 1 211 1 145 1 133 1 107 64% 65% 62% 57% 54% 53% 54% 60% 56% 55% 53% 54% 0 5 000 10 000 15 000 20 000 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Individual provisions Portfolio provisions Provision ratio Conservative provision ratio 11 Asset quality Since Q1 2013 Russia and Ukraine are reported as discontinued operations SEKm Source: Swedbank, 31 Mar 2015 Provision ratio, % Q1 15 Swedish Banking 60 LC&I 72 Baltic Banking 49 Group 54
  12. 12. 0 10 20 30 40 50 60 70 80 90 100 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Covered bonds Senior unsecured debt 0 50 100 150 200 250 300 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 365 Conservative funding position • LCR 140% (Swedish FSA definition FFFS 2012:6) • NSFR 101% (Basel committee) • Issued SEK 65bn of term-funding YTD 2015 • Increased funding need to support loan growth 12 Liquidity and funding Term funding issuance – completed and planned SEKbn Source: Swedbank, Dec 31 2014, nominal amounts SEKbn Days forward Prefunded in excess of 12 months Survival horizon
  13. 13. 0 50 100 150 200 2015 2016 2017 2018 2019 2020 2021- Senior unsecured debt Covered bonds 13 Long-term funding maturity profile Long-term funding maturity profile, by funding source Source: Swedbank 31 Mar 2015 Liquidity and funding SEKbn SEKbn Long-term funding maturity profile, by currency 0 50 100 150 200 2015 2016 2017 2018 2019 2020 2021- Other CHF USD EUR SEK Benchmark transactions YTD 2015 ● USD 750m, Perp. NC5 (2020), AT1, 5.50% - equity conversion ● USD 1bn 144a Senior, 5Y (2020), T+77bps (+ 3Y (2018) USD 400m T+65bps) ● EUR 1bn CB, 7Y (2022), MS-5bps ● GBP 500m CB, 3Y (2018 FRN, 3m£+20bps ● GBP 300m Senior, 4Y (2019), G+80bps (issued, beginning of April)
  14. 14. Real estate prices – Sweden 12 months development 14 Swedish housing and mortgage market Single-family homes1 Tenant-owner rights2 Combined3 12M Δ 12M Δ 12M Δ Apr/14 8% 12% 9% May/14 8% 12% 9% Jun/14 8% 11% 9% Jul/14 9% 14% 11% Aug/14 9% 14% 11% Sep/14 9% 15% 11% Oct/14 8% 15% 11% Nov/14 13% 15% 14% Dec/14 15% 15% 15% Jan/15 11% 15% 12% Feb/15 12% 17% 14% Mar/15 13% 19% 15% Source: Valuegard www.valuegard.se (Based on data from Mäklarstatistik), 1 HOXHOUSESWE, 2 HOXFLATSWE, 3 HOXSWE
  15. 15. Baltic countries Real estate prices 15 EUR/m2 /No. of deals EUR/m2 /No. of deals 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Tallinn No. of deals EUR/m2 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Vilnius No. of deals EUR/m2 EUR/m2 /No. of deals 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Riga No. of deals EUR/m2

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