Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — MeritaNordbanken — Q1 1999 Earnings Presentation
41 slides from Nordea Bank Abp's earnings presentation, Mar 31, 1999
Slide 1: MeritaNordbanken January - March 1999
MeritaNordbanken January - March 1999
Slide 2: 1st quarter 1999
1st quarter 1999 Growth in income and reduction in expenses ● Strong performance continues – Operating profit EUR 489 million (FIM 2.9 billion, SEK 4.4 billion) – Excluding items affecting comparability EUR 375 million, an increase of 23 % – ROE 28.6%; 22.4% excluding one item affecting comparabilit
Slide 3: A leading banking group in the Nordic and Baltic region
A leading banking group in the Nordic and Baltic region ● Customer base 6.5 million private individuals 400 000 small and midmarket companies 400 corporates ● Average market shares Finland 40% + Sweden 15% - 25% ● Distribution network 766 branch offices 1000 Swedish post offices Telephone bank Inter
Slide 4: The largest banking group in the Nordic region
The largest banking group in the Nordic region Market capitalisation of selected Nordic banking groups, April 1999 (bnEUR) MeritaNordbanken Swedbank Handelsbanken SEB Den Danske Bank Unidanmark Den norske Bank Christiania 0 2 4 6 8 10 12 14
Slide 5: Combined ownership structure, December 31, 1998
Combined ownership structure, December 31, 1998 Finnish Swedish Finnish government institutions institutions 3% 15% 10% Outside Swedish Finland and government Sweden 26% 31% Finnish public 12% Swedish public 3%
Slide 6: Share price development
Share price development 400 300 Nordbanken Holding 200 Merita 100 0 Dec Dec Dec Dec 1995 1996 1997 1998
Slide 7: Detailed income statement Q1/1999
Detailed income statement Q1/1999 Q1/1999 mEUR Change, % mFIM mSEK Net interest income 448 -2 2,664 4,041 Net commission income 181 7 1,076 1,633 Net result from financial operations 148 -42 880 1,335 Other operating income 92 -30 574 829 Total operating income 869 -14 5,167 7,838 Personnel expenses
Slide 8: Income statement Q1/1999
Income statement Q1/1999 Excluding items affecting comparability Q1/1999 mEUR Q1/1999 Q1/1998 Change, % mFIM mSEK Net interest income 448 455 -2 2,664 4,041 Net commission income 181 169 7 1,076 1,633 Net result from financial operations 34 60 -43 202 307 Other operating income 92 63 -46 547 829 Tot
Slide 9: Net interest and commission income
Net interest and commission income mEUR 500 400 300 Net interest income 200 Net commission income 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q1 1997 1998 1999
Slide 10: Net result from financial operations
Net result from financial operations mEUR 300 250 200 150 100 Equity-related 50 Currency-related Interest-rate-related 0 -50 -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q1 1997 1998 1999
Slide 11: Expenses
Expenses mEUR 600 500 400 Restructuring expenses 300 Other expenses 1) Personnel expenses 1) 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1997 1998 1999 1) Excluding restructuring expenses.
Slide 12: Loan losses, net
Loan losses, net Loan loss level, % mEUR 1,2 180 1,0 150 0,8 120 0,6 Loan losses 90 Provision for Asia Loan loss level, % 0,4 60 30 0,2 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1997 1998 1999
Slide 13: Non-performing loans, net/lending
Non-performing loans, net/lending % 2,5 2 1,5 1 0,5 0 Q1 Q2 Q3 Q4 Q1 1998 1999
Slide 14: Operating profit by business area Q1/1999
Operating profit by business area Q1/1999 mEUR 250 200 150 100 50 0 Regional banks Corporate Markets Real Estate Treasury Other
Slide 15: Asset management
Asset management Assets under management Product earnings bnEUR mEUR 30 70 25 60 50 20 40 15 30 10 20 5 10 0 0 Q1 Q2 Q3 Q4 Q1 1998 1999 Portfolio management Administrative expenses Insurance Sales and distribution expenses Mutual funds Product earnings
Slide 16: Household savings
Household savings bnEUR 30 Share-index-linked 25 bonds Retail bonds 20 Insurance 15 Mutual funds 10 National public savings 5 Deposits 0 95 96 97 98 Q1/ 99 95 96 97 98 Q1/ 99 Finland Sweden *Excluding the exchange rate effect (EUR/SEK), the volume increased by 8% in 1998.
Slide 17: Net savings in mutual funds
Net savings in mutual funds mFIM mSEK 1800 4000 1600 3500 1400 3000 1200 2500 1000 800 2000 600 1500 400 1000 200 500 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 1998 1999 1998 1999 Finland Sweden
Slide 18: Premiums paid, life insurance
Premiums paid, life insurance mFIM mSEK 1200 1200 1000 1000 800 800 600 600 400 400 200 200 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 1998 1999 1998 1999 Finland Sweden 4th quarter, 1998, excluding transfer of pension liabilities of Merita Plc. (FIM 710 million)
Slide 19: Market shares, households
Market shares, households Finland Sweden Insurance (-2.1)* Insurance** (+1.6) Mutual funds (+5.7) Mutual funds** (-0.3) Deposits (-0.6) Deposits (+0.4) Housing loans (-1.9) Housing loans (+1.2) Total Total (-1.5) (+0.8) lending lending 0 10 20 30 40 50 % 0 10 20 30 % (± XX) = compared with Q1/1998.
Slide 20: Market shares, corporate
Market shares, corporate Deposits (-3,2) Finland Deposits (+0,7) Sweden Lending (+0,2) Finland Lending (+2,1) Sweden 0 10 20 30 40 50 60 % (± XX) = compared with Q1/1998.
Slide 21: Customer structure of loan portfolio
Customer structure of loan portfolio EUR 63.8 bn (March 31, 1999) Public sector 3% Households 37% Companies 60%
Slide 22: Lending to companies by industry
Lending to companies by industry EUR 38 bn (March 31, 1999) Real estate Other companies management 23% 27% Renting, consulting and other company services Construction 11% 6% Financial Transport operations 7% 2% Trade & services Manufacturing 9% 15%
Slide 23: Real estate divestment strategy in Finland
Real estate divestment strategy in Finland 100% Aleksia 50% Hotel properties Specialized companies to be sold 40% Shopping malls Real estate holdings Real estate shares Holdings to be Other properties e.g. sold separately – foreign – offices – warehouses Banking premises To be retained
Slide 24: Real estate divestment process in Finland
Real estate divestment process in Finland bnFIM 25 Write-down in 1998 FIM 3.7 billion 20 Equity portfolio* Domestic properties 15 Land and development projects Foreign properties 10 Banking premises 5 0 1998 1999 2000 2001 2002 2003 * Incl. Aleksia, hotels and shopping malls and Aleksia debt.
Slide 25: Personnel
Personnel Thousand 22 20 18 16 14 12 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1997 1998 1999 Employees Positions
Slide 26: Profitability
Profitability % Return on equity % Return on assets 35 3 30 2,5 25 2 20 1,5 15 1 10 0,5 5 0 0 Q1-98 Q1-99 Q1-98 Q1-99 Including items affecting comparability Including items affecting comparability Excluding items affecting comparability Excluding items affecting comparability
Slide 27: Key ratios
Key ratios % Income-to-cost ratio 1) % Overall interest margin 2,5 2 1,8 2 1,6 1,4 1,5 1,2 1 1 0,8 0,6 0,5 0,4 0,2 0 0 Q1-98 Q1-99 Q1-98 Q1-99 Excluding items affecting comparability Including items affecting comparability 1) Before loan losses.
Slide 28: Regional banks
Regional banks Helsinki & Central & East. & North. South. Western Stock- Central North. Regional Banks Uusimaa West. Finland Finland Sweden Sweden holm Sweden Sweden Total Number of branches 135 163 206 53 56 50 71 32 766 Lending & guarantees 5.9 5.1 5.9 5.3 5.5 3.8 5.9 4.0 42.4 Customer savings 8.7
Slide 29: Balance sheet
Balance sheet March 31 March 31 March 31, 1999 bnEUR 1999 1998 Change, % bnFIM bnSEK Loans to the public 63.8 58.8 9 379 567 Loans to financial institutions and central banks 11.1 11.1 0 66 99 Interest-bearing securities Financial current assets 10.1 9.6 5 60 90 Financial fixed assets 3.8 5.0 -24 23
Slide 30: Balance sheet
Balance sheet bnEUR 120 100 80 60 40 20 0 Total assets Loans to the public Deposits from the public March 31, 1997 March 31, 1998 March 31, 1999
Slide 31: Capital adequacy
Capital adequacy March 31, 1999 March 31, 1998 Tier 1 ratio, % 7.3 7.3 - Merita Bank 6.0 5.7 - Nordbanken 6.1 6.3 Total capital ratio, % 10.7 9.9 - Merita Bank 10.8 9.8 - Nordbanken 9.7 10.0
Slide 32: Per-share data
Per-share data Q1/1999 Q1/1998 Earnings per share - Merita EUR 0.17 (0.13) EUR 0.19 (0.11) - Nordbanken Holding SEK 1.55 (1.20) SEK 1.67 (0.96) Equity per share 1) - Merita EUR 2.36 EUR 2.29 - Nordbanken Holding SEK 20.53 SEK 18.96 (Excluding items affecting comparability.) 1) At the end of the peri
Slide 33: Merger synergies
Merger synergies ● Plan – Income and cost synergies of almost EUR 120 million by the year 2000 ● Implementation – Synergies materialize as planned – Staff reductions continue – net 760 since October 1997 incl. expansion in key strategic areas, appr. 275 employees
Slide 34: New products every month
New products every month Medica Life Science-fund Customer concept for retail customers to Finland Internet services to Sweden 1.1.1999 Private Banking concept to Sweden Joint Euroland Fund Customer concept for large and medium-sized companies Monthly mutual fund savings to Finland Unit-linked insur
Slide 35: New business generated
New business generated ● Unit-linked insurance products in Sweden EUR 0 => EUR 240 million (March 31) ● Long-term housing loans in Finland EUR 0 euro => EUR 118 million (March 31) ● New cross-boarder mutual funds (Nordic Small Cap, Euroland, Medica Life Science) EUR 0 euro => EUR 154 million (April
Slide 36: Stronger presence in the Baltic Sea region
Stronger presence in the Baltic Sea region ● New regional bank for the Baltic states and Poland ● Second branch opened in Tallinn ● MeritaNordbanken Finance Latvia Ltd - wholly owned finance company ● MeritaNordbanken Latvia
Slide 37: Appendices
Appendices MeritaNordbanken Group
Slide 38: Group structure
Group structure Shareholders Shareholders Cooperation Agreement Merita Plc Nordbanken Holding AB (publ) Identical Boards Listed on the Helsinki Unified Listed on the Stockholm Stock Exchange Stock Exchange Management 20% of capital 40% of capital 40% of capital non-voting ordinary shares MeritaNordb
Slide 39: Agency ratings, April 1999
Agency ratings, April 1999 Moody´s S &P Fitch IBCA Thomson Bankwatch Short- Long- Short- Long- Short- Long- Short- Long- term term term term term term term term Merita Bank P-1 A2 A-1 A F1 A TBW-1 AA- Nordbanken P-1 A1 A-1 A F1 A+ TBW-1 AA- Nordbanken Aa3 Hypotek
Slide 40: Reporting 1999
Reporting 1999 ● Financial reporting: January - June August 25 January - September October 26
Slide 41: Contact information
Contact information MeritaNordbanken Investor Relations SE-105 71 STOCKHOLM FIN-00020 MERITA Telephone + 46 8 614 7850 + 358 9 165 43041 Telefax + 46 8 614 8710 + 358 9 612 1264 E-mail: investor.relations@nb.se merita.investorrelations@merita.mailnet.fi Investor information on the Internet: www.meri