Swedbank Ab Class A · OMXSTO:SWED_A
Swedbank Ab Class A — Q1 2015 Earnings Presentation
15 slides from Swedbank Ab Class A's earnings presentation, 2015
Slide 1: Swedbank's first quarter 2015 results
Swedbank’s first quarter 2015 results Michael Wolf (CEO), Göran Bronner (CFO), Anders Karlsson (CRO) © Swedbank
Slide 2: Swedish Banking: Resilient result in low interest rate environment
Swedish Banking Resilient result in low interest rate environment SEKm Q1 15 Q4 14 ▲ QoQ • Lower deposit margins Net interest income 3 190 3 301 -111 Net commission income 1 781 1 790 -9 • Higher mortgage margins Other income 558 417 141 Total income 5 529 5 508 21 • Loan volume growth Total expense
Slide 3: Baltic Banking: Stable result
Baltic Banking Stable result SEKm Q1 15 Q4 14 ▲ QoQ • Lower deposit margins Net interest income 831 863 -32 Net commission income 469 505 -36 • Lower commission income – euro Other income 199 166 33 adoption Total income 1 499 1 534 -35 Total expenses 612 673 -61 • High cost efficiency Profit before
Slide 4: Large Corporates & Institutions: Solid result
Large Corporates & Institutions Solid result SEKm Q1 15 Q4 14 ▲ QoQ • Lower deposit margins Net interest income 862 890 -28 Net commission income 496 534 -38 • Stable lending margins Net gains and losses 587 434 153 Other income 35 20 15 • Lower activity in corporate finance Total income 1 980 1 878
Slide 5: Group results: Strong result in low interest rate environment
Group results Strong result in low interest rate environment SEKm Q1 15 Q4 14 ▲QoQ • Mixed margins Net interest income 5 719 5 809 -90 Net commission 2 744 2 882 -138 • Loan growth income Net gains and losses 320 69 251 • Stable commission income Other income 835 619 216 Total income 9 618 9 379 239
Slide 6: Capital: Strong capitalisation
Capital Strong capitalisation CET1 capital ratio, % • CET1 capital negatively impacted 21.2% 20.5% − IAS 19 (SEK 2bn) 19.2% − Prudent valuation (SEK 0.4bn) • REA net increase of SEK 8bn − Loan growth − Operational risk Q4 2014 Q1 2015 CET1 capital ratio − Market risk requirement • Capital regulatory
Slide 7: Asset quality: Strong asset quality in challenging environment
Asset quality Strong asset quality in challenging environment Credit impairments, SEKm Q1 15 Q4 14 Swedish Banking 52 147 Baltic Banking -9 -10 Large Corporates & 16 120 Institutions Group Functions & Other 0 -3 Swedbank Group 59 254 Ratios Q1 15 Q4 14 Credit impairment ratio, % 0.02 0.07 Share of i
Slide 8: Q&A
Q&A Michael Wolf (CEO), Göran Bronner (CFO), Anders Karlsson (CRO)
Slide 9: Appendix
Appendix Swedbank @
Slide 10: Asset quality: Shipping and Offshore
Asset quality Shipping and Offshore • Total lending of SEK 30bn Shipping and Offshore Loans net, SEKm – Reduced in currency of loan origination 10 000 (USD) 9 000 – Flat in SEK due to USD appreciation 8 000 7 000 6 000 • Individual client action plans in place 5 000 4 000 • Clients now adapting to t
Slide 11: Asset quality: Conservative provision ratio
Asset quality Conservative provision ratio SEKm 20 000 65% 64% Provision ratio, % Q1 15 62% 60% 57% Swedish Banking 60 56% 55% 54% 53% 54% 53% 54% LC&I 72 Baltic Banking 49 15 000 Group 54 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 1 145 1 211 1 133 1 107 4 429 4
Slide 12: Liquidity and funding: Conservative funding position
Liquidity and funding 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 Term funding issuance – completed and planned Prefunded in excess of 12 months
Slide 13: Long-term funding maturity profile
Liquidity and funding Long-term funding maturity profile 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
Slide 14: 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 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% De
Slide 15: Real estate prices – Baltic countries
1 000 1 200 1 400 1 600 1 800 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 0 200 400 600 800 Mar-05 Mar-05 Sep-05 Sep-05 Mar-06 Mar-06 EUR/m2 /No. of deals EUR/m2 /No. of deals Sep-06 Sep-06 Mar-07 Mar-07 Sep-07 Sep-07 Mar-08 Mar-08 Sep-08 Sep-08 Real estate prices Mar-09 Mar-09 No. of deals No.