Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea — Q2 2017 Earnings Presentation
18 slides from Nordea Bank Abp's earnings presentation, 2017
Slide 1: Second Quarter Results 2017
Second Quarter Results 2017 Casper von Koskull, President and Group CEO
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance
Slide 3: Executive summary
Executive summary Stable revenues and high activity in our transformation programme • Overall economic situation remains solid • Although increasingly unstable geopolitical environment • Stable operating environment in our home markets • Margins improved from very low levels in recent quarters • Sta
Slide 4: Q2 2017 Group financial highlights
Q2 2017 Group financial highlights Stable environment and low growth Q2/17 vs. Q2/16* Q2/17 vs. Q1/17* • Total revenues • +1% • -1% Income • Net Interest Income • +1% • Flat • Fee and commission • +7% • -1% income • Total costs • +8% • +5% Costs • 2017 vs. 2016 • + 3 to 5% • 2018 vs. 2016 • Unchange
Slide 5: Nordea Group financial result
Nordea Group Financial result EURm Q217 Q216 Chg Loc. Q117 Chg Loc. Q217 vs. Q216 curr. Q217 vs. Q117 curr. Chg YoY Chg QoQ Net interest income 1,175 1,172 0% 1% 1,197 -2% 0% Net fee & commission income 850 804 6% 7% 866 -2% -1% Net fair value result 361 405 -11% -10% 375 -4% -5% Total income 2,407
Slide 6: Net Interest Income
Net Interest Income 6 Quarters Development QoQ Trend 1,209 1,197 1,168 1,172 1,178 1,175 • Largely unchanged margins • Largely unchanged NII in Business Areas • Low volume growth • Negative impact of FX (EUR 20m) • Negative impact in Treasury from basis spread development Q116 Q216 Q316 Q416 Q117 Q2
Slide 7: Net Fee and Commission Income
Net Fee and Commission Income 6 Quarters Development QoQ Trend 867 866 850 804 772 795 • Continued strong trend in Asset Management • Lower fees from corporate advisory services but still high activity Q116 Q216 Q316 Q416 Q117 Q217 7
Slide 8: Net Fair Value
Net Fair Value 6 Quarters Development QoQ Trend 480 498 405 332 • Positive impact of Fair Value 400 375 242 289 361 adjustment of EUR 36m 300 281 277 207 • Lower income in customer-driven 257 capital markets activities due to lower 136 56 26 volatility 135 99 129 91 127 96 19 • Lower revenues in Shi
Slide 9: Wealth Management reaches all-time high AuM
Wealth Management reaches all-time high AuM AuM development, EURbn QoQ Trend 317.4 322.7 330.1 332.1 • Increase in AuM (+0.6%) in Q2, 300.2 reaching a new all-time-high • largely due to positive net flow • Continued strong flows from international institutional clients (+39% Q216 Q316 Q416 Q117 Q217
Slide 10: Costs
Costs Total expenses, EURm Comments 6.7% 26 2,544 2,537 • YtD Q2 +6.7% in local currencies 21 45 6 67 • High activity in our simplification and transformation projects 2,384 • Number of employees up by 2%, YTD Q216 IT & Compl. Staff & Deprec. Adj. Q2 17 FX YTD Q217 mainly driven by IT and compliance
Slide 11: Improved asset quality
Improved asset quality Total net loan losses, EURm Comments 142 135 122 127 129 113 • Loan loss ratio Q2 at 13 bps (Q1 14 bps) 112 111 103 106 • Loan losses in Q2 are diversified between business areas • Largest individual loan loss related to offshore portfolio Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q4
Slide 12: Common Equity Tier 1 ratio development Q217 vs. Q117
Common Equity Tier 1 ratio development Q217 vs. Q117 0.02% 0.09% 0.15% 0.06% 0.00% 0.14% 19.2% 18.8% CET1 Ratio Q1 FX Effect Credit Quality Volumes, including Market Risk and Profit net dividend Other CET1 Ratio Q2 2017 derivatives CVA 2017 12
Slide 13: Key Milestone in the Core Banking Programme
Key Milestone in the Core Banking Programme A common, Nordic Core Banking Platform supporting the core functions of banking Completed the upload of Finnish household customers (approx 3.8 million) Key software release to the product environment Will enable Nordea to launch the new deposits and savin
Slide 14: Ensuring a thorough risk and compliance culture
Ensuring a thorough risk and compliance culture Ongoing work and investments • New Compliance Risk Policy in place • Competence training for 13,000 customer facing people • More personal accountability in ensuring compliance • Continued development in processes and capabilities to prevent financial
Slide 15: Launch of a new mobile bank
Launch of a new mobile bank Daily banking – anywhere, anytime • Making personal relationships easier and more efficient • Instant advisor meetings • Direct loan applications • Finland in 2017, other countries 2018 15
Slide 16: Strategic partnerships with FinTech incubators
Strategic partnerships with FinTech incubators We take customer service to Active engagement in the the next level through artificial wider financial ecosystem intelligence (AI) Collaborations that speed up Great market reception to our time to market Using AI, we can analyse Open Banking pilot with
Slide 17: Issuing Nordea's first Green Bond
Issuing Nordea’s first Green Bond Manifests Nordea’s increased ambition level in the sustainability area • On the back of solid demand, Nordea issued a EUR 500m 5-year bond at an attractive price • An important step in Nordea’s enhanced sustainability focus based on our purpose to work for a greater
Slide 18: Second Quarter Results 2017 Q&A
Second Quarter Results 2017 Q&A