Swedbank Ab Class A · OMXSTO:SWED_A
Swedbank Ab Class A — Q3 2014 Earnings Presentation
16 slides from Swedbank Ab Class A's earnings presentation, 2014
Slide 1: Swedbank's third quarter 2014 results
Swedbank’s third quarter 2014 results Michael Wolf, CEO Göran Bronner, CFO Anders Karlsson, CRO © Swedbank
Slide 2: Swedish Banking: Strong loan volumes
Swedish Banking Strong loan volumes SEKm Q3 14 Q2 14 ▲ Q/Q ▲ Y/Y • Lower deposit margins Net interest income 3 372 3 362 10 -124 Net commission income 1 746 1 790 -44 470 • Expanding mortgage margins Other income 449 1 077 -628 687 • Loan volume growth both in private Total income 5 567 6 229 -662 1
Slide 3: Large Corporates & Institutions: Good underlying development
Large Corporates & Institutions Good underlying development SEKm Q3 14 Q2 14 ▲ Q/Q ▲ Y/Y • Volume growth Net interest income 876 846 30 91 Net commission income 561 496 65 277 • Mixed corporate activity Net gains and losses 354 575 -221 25 – Corporate finance and DCM Other income 36 28 8 -18 – Lendi
Slide 4: Baltic Banking: Stable result
Baltic Banking Stable result SEKm Q3 14 Q2 14 ▲ Q/Q ▲ Y/Y • No financial impact from the Net interest income 865 894 -29 321 geopolitical situation in Russia and Net commission income 500 522 -22 172 Ukraine Other income 148 180 -32 -32 -83 461 • Lower market rates Total income 1 513 1 596 Total exp
Slide 5: Group results: Strong result
Group results Strong result SEKm Q3 14 Q2 14 ▲Q/Q ▲Y/Y • Volume growth Net interest income 5 829 5 521 308 430 Net commission 2 816 2 813 3 889 • Mixed margins income Net gains and losses 799 773 26 894 • Strong commission income Other income 706 1 348 -642 426 Total income 10 150 10 455 -305 2 639
Slide 6: Capital: Increased REA following credit growth
Capital Increased REA following credit growth • REA net increase of SEK 2.9bn during the quarter • CET1 capital negatively impacted by SEK 0.9bn (IAS19) • No regulatory excess capital SEKbn 430 Swedbank REA development CET1 capital ratio 420 12 -0.1 409.6 410 -6.0 24% 406.7 -3.0 22% 20.9% 400 20.7%
Slide 7: Asset quality: Strong asset quality
Asset quality Strong asset quality Credit impairments, Q3 14 Q2 14 • Continued low loan losses in all SEKm business segments Swedish Banking 43 25 Large Corporates & 270 21 • No asset quality impact from the Institutions geopolitical situation in Russia and Baltic Banking -59 -16 Ukraine Group Funct
Slide 8: Swedbank's third quarter 2014 results: Q&A
Swedbank’s third quarter 2014 results Q&A
Slide 9: Appendix
Appendix Swedbank @
Slide 10: Long-term financial impact of Sparbanken Öresund
Sparbanken Öresund Long-term financial impact of Sparbanken Öresund • P&L impact 2016-2017 – Estimated net profit contribution of SEK 350-450m – Incremental RoE to reach group target 2016 • Long term – Estimated net profit contribution of at least SEK 500m – Incremental RoE >25 per cent 10
Slide 11: Asset quality: Conservative provision ratio
Asset quality Conservative provision ratio SEKm Provision ratio, % Q3 14 20 000 Swedish Banking 62 64% 65% 62% LC&I 65 60% Baltic Banking 50 57% 56% 54% 54% 55% Group 55 53% 15 000 2 040 1 774 10 000 1 545 10 951 1 420 5 000 9 934 1 398 1 325 7 077 1 256 1 238 1145 1 211 4 429 4 047 3 570 2 818 2 51
Slide 12: Liquidity and funding: Lower funding needs
Liquidity and funding Lower funding needs • LCR 132% (Swedish FSA definition FFFS 2012:6) • NSFR 102% (Basel committee) • Issued SEK 89bn of term-funding YTD 2014, of which SEK 21bn in Q2. • FY 2014 funding plan of SEK 120bn Term funding issuance – completed and planned Covered bonds Senior unsecure
Slide 13: Long-term funding maturity profile
Liquidity and funding Long-term funding maturity profile • Funding plan of SEK 120bn to meet next 12 months’ nominal SEK 126bn maturities Long-term funding maturity profile, by funding source Long-term funding maturity profile, by currency SEKbn SEKbn 200 200 Senior unsecured debt 150 150 Other Cove
Slide 14: Prefunded in excess of 12 months
Liquidity and funding Prefunded in excess of 12 months SEKbn Days forward 1 As defined by the Swedish Bankers’ Association Source: Swedbank, Sep 30, 2014 14
Slide 15: Real estate prices – Sweden 12 months development
Swedish housing and mortgage market Real estate prices – Sweden 12 months development Single-family homes1 Tenant-owner rights2 Combined3 12M Δ 12M Δ 12M Δ Oct/13 6% 11% 8% Nov/13 4% 13% 7% Dec/13 4% 13% 7% Jan/14 7% 13% 9% Feb/14 7% 13% 9% Mar/14 7% 13% 9% Apr/14 8% 12% 9% May/14 8% 12% 9% Jun/14 8
Slide 16: Real estate prices – Baltic countries
1 000 1 200 1 800 1 400 1 600 0 200 400 600 800 1 000 1 200 1 800 1 400 1 600 0 200 400 600 800 Jan-05 Jan-05 Jul-05 Jul-05 Jan-06 Jan-06 EUR/m2 /No. of deals EUR/m2 /No. of deals Jul-06 Jul-06 Jan-07 Jan-07 Jul-07 Jul-07 Jan-08 Jan-08 Jul-08 Jul-08 Real estate prices Jan-09 Jan-09 No. of deals No.