Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea — Q1 2001 Earnings Presentation
32 slides from Nordea Bank Abp's earnings presentation, Apr 25, 2001
Slide 1: Strong core earnings, integration continues according to plan
Strong core earnings, integration continues according to plan Interim Results January - March 2001 25.04.2001
Slide 2: Thorleif Krarup, CEO
Nordea” Thorleif Krarup, CEO
Slide 3: Repurchase of own shares
Repurchase of own shares l Equivalent to approximately 1% of total shares of the company l Purpose: hedging for the company’s incentive program
Slide 4: The overall legal structure is simplified and aligned to the business structure
The overall legal structure is simplified and aligned to the business structure Nordea Insurance Holding Asset Investment General Life Insurance Merita Bank Management Banking Insurance Chistiania Bank og Kreditkasse Nordbanken Unibank
Slide 5: Subgroups
Subgroups l Banking l Asset Management l Investment Banking l Life Insurance and Pensions l General Insurance
Slide 6: Strong core earnings
Strong core earnings l Operating profit EUR 555m, up 17% from the 4th quarter 2000 l Return on equity excluding goodwill 19.7% l Highest profit ever excluding investment earnings l Continuous growth in net interest income l Net commission income only slightly lower despite turbulent equity market l
Slide 7: Operating profit
Operating profit EURm 800 l An increase of 15 % 700 compared with 4th quarter 600 including CBK 500 l The acquisition of CBK 400 contributed positively to 300 the result already from the 1st quarter 200 100 0 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01
Slide 8: Key figures
Key figures Earnings per share Return on equity EUR % 0,15 24 20 0,10 16 12 0,05 8 4 0,00 0 Q4/00 Q1/01 Q4/00 Q1/01 ROE Excl. Goodwill
Slide 9: Profit excluding investment earnings
Profit excluding investment earnings EURm 600 l Continuous increase in net 500 interest income 400 l Higher profit from trading activities 300 l Volatile equity market 200 100 0 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Investment earnings Profit excluding investment earnings
Slide 10: Key figures - costs
Key figures - costs Cost-income-ratio, banking Combined ratio, general insurance % % 60 120 110 55 100 90 50 80 70 45 60 Q4/00 Q1/01 Q4/00 Q1/01
Slide 11: Loan losses
Loan losses EURm 300 l Loan loss level 0.14% 200 l Lower recoveries 100 l A couple of larger 0 provisions -100 l An increase in country risk -200 reserves -300 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Gross Reversals Net
Slide 12: Integration milestones
Integration milestones l Nordea’s Solo Market introduced in Denmark l Corporate cash management services improved l Common CRM system for large corporate customers l Shipping, Offshore & Oil Services division established l Marketing of Nordea’s branches in Germany started also in Norway l Corporate
Slide 13: Integration milestones
Integration milestones l The international branches of Nordea and CBK in the process of integration l The merger of Nordea’s Norwegian life insurance operations started l The merger process of Nordea’s two Polish banks started l ArosMaizels to be renamed Nordea Securities
Slide 14: Business highlights
Business highlights l 2.3 million e-customers - more than 7 million Internet bill payments per month, up 13% since December l Retail Banking: Operating profit up to EUR 458m l Corporate and Institutional Banking: Operating profit up to EUR 140m l Asset Management: Positive net inflow, but negative m
Slide 15: Arne Liljedahl, CFO
Nordea” Arne Liljedahl, CFO
Slide 16: Operating profit
Operating profit EURm 800 l An increase of 15 % 700 compared with 4th quarter 600 including CBK 500 l The acquisition of CBK 400 contributed positively to 300 the result already from the 1st quarter 200 100 0 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01
Slide 17: Net interest income
Net interest income EURm 1000 l Stable development 900 800 l Up 2% compared with 4th 700 quarter including CBK 600 l Stable margins 500 400 l Slightly increased lending 300 volume 200 100 0 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01
Slide 18: Commission income
Commission income EURm 400 l Weak equity markets 350 l Commissions down 12% 300 compared with 4th quarter 250 including CBK 200 l Lower commission income 150 from fund management 100 and corporate finance 50 l Somewhat higher payment 0 commissions Q1/00 Q2/00 Q3/00 Q4/00 Q1/01
Slide 19: Expenses
Expenses EURm 1000 l A reduction of 10% from the fourth quarter including 800 CBK 600 l Slightly below average for the previous year 400 200 0 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Personnel expenses Other expenses
Slide 20: Results by business area
Results by business area EURm 500 Product 400 result Operating 300 profit 200 100 0 -100 -200 Retail Corporate Asset Investment Life In- General Treasury Other & Institu- Mana- Banking surance & Insurance tional gement Pensions
Slide 21: Retail Banking
Retail Banking Operating profit EURm l Operating profit EUR 458m 500 l ROE 25% 450 l C/I-ratio improved to 56% 400 l Profit increased 33% 350 300 • 20% comparable 250 l 10% increase of lending 200 during last twelve months 150 l 2.3 million signed up e- 100 customers 50 0 Q1/00 Q2/00 Q3/00 Q4/00 Q1/
Slide 22: The leading net bank
The leading net bank Net banking customers Bill payments in the net Millions Millions per month 2,5 8 7 2 6 1,5 5 4 1 3 2 0,5 1 0 0 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 Finland Sweden Denmark Norway
Slide 23: Corporate and Institutional Banking
Corporate and Institutional Banking EURm Operating profit l Operating profit EUR 140m 160 - up EUR 66m 140 l ROE 15% 120 l C/I-ratio improved to 43% 100 l Good trading result in 80 Markets 60 l Loan losses EUR 30m, Q1/01 40 20 0 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 of which CIB Norway
Slide 24: Asset Management
Asset Management Product result EURm l Operating profit EUR 28m 100 90 l Product result EUR 75m 80 l Lower commission income 70 due to falling equity market 60 l Despite drop in the market 50 earnings were maintained by 40 transaction based income 30 and contribution from CBK 20 10 0 Q1/00 Q2/00 Q3/
Slide 25: Assets under management
Assets under management EURbn l Assets under management 120 down 8% to EUR 97bn 100 l Negative trend in equity 80 markets during Q1 l Net inflow in mutual funds in 60 all four countries 40 l Increased sales of Nordea 20 funds in the European markets 0 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Private banking Mu
Slide 26: Investment Banking
Investment Banking EURm Operating profit l Operating profit EUR 5m 30 l Difficult market conditions 25 l Highest market share on the Helsinki stock exchange and 20 second highest in Copenhagen 15 l Modest corporate finance 10 income • improvement expected in 5 Q2/01 0 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01
Slide 27: Life Insurance and Pensions
Life Insurance and Pensions EURm 50 l Operating profit EUR -14m due to negative investment 40 income 30 l Premium income 20 • Denmark +38% • Norway +18% 10 0 -10 -20 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Technical result Investment income
Slide 28: General Insurance
General Insurance EURm 80 l Operating profit EUR -31m due to negative investment 60 income 40 l Improved underlying technical result 20 l Combined ratio 106% 0 l Hurricane 2000 -20 • Q1 EUR 50m • Q2 EUR 13m -40 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 • Q3 EUR 10m Technical result excl. hurricane Investment in
Slide 29: Treasury
Treasury EURm Operating profit l Operating profit EUR 80m 120 despite turbulent market 100 l Positively influenced by reclassification, EUR 68m 80 l Equity earnings negative 60 • balanced by fixed income 40 position 20 0 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Single capital gain Q2, Q4/00; reclassification Q
Slide 30: Balance sheet - key items
Balance sheet - key items 31 Dec 31 March EURbn 2000 2001 Lending 129 131 Deposits 79 77 Shareholders’ equity 11 11 Total assets 224 233 Risk weighted assets 132 136
Slide 31: Capital adequacy
Capital adequacy % Tier 1 ratio Total capital ratio 10 8 6 4 2 0 December 2000 March 2001
Slide 32: Top 25 European Banks by Market Cap
Top 25 European Banks by Market Cap HSBC ING Royal Bank of Scotland UBS LloydsTSB Credit Suisse Barclays Deutsche Bank BBVA BSCH BNP Paribas Fortis HypoVereinsbank ABN Amro Société Général Abbey National Halifax Dresdner Bank Intensa Unicredito San Paulo-IMI Nordea Commerzbank Standard Chartered Dex