Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Investor Day (2011)
21 slides from Nordea Bank Abp's investor day presentation, Jan 1, 2011
Slide 1: Retail Banking presentation
Retail Banking presentation Michael Rasmussen, Head of Retail Banking
Slide 2: Retail Banking: Overview
• Retail Banking: Overview • The foundation for steady growth • Strategic direction 2•
Slide 3: The starting point for Retail Banking – a fully diversified Retail Bank
The starting point for Retail Banking – a fully diversified Retail Bank Total Branches 1 351 Customers 10.9m Employees, FTEs 19 856 Total revenue EUR 4 111m Sweden Finland Branches 333 Branches 392 Customers 3.9m Customers 3.2m Employees, FTEs 3 590 Employees, FTEs 4 304 Total revenue EUR 1 148m Tot
Slide 4: Retail Banking in Nordea
Retail Banking in Nordea The majority of Nordea’s income comes from Retail Banking Low risk and capital usage 4•
Slide 5: Retail Banking – strong performance before entering into the New Normal
Retail Banking – strong performance before entering into the New Normal Income Q3 Corporate Household (43 pct) (57 pct) Large 23% Gold 40% Medium 12% Pol&Bal Silver (incl. corp HH Small Pol&Bal BronzeCheck-in) 5% 3% 4% 7% 6% 5•
Slide 6: Retail Banking: Overview
• Retail Banking: Overview • The foundation for steady growth • Strategic direction 6•
Slide 7: The Relationship Banking Strategy – a strong foundation
The Relationship Banking Strategy – a strong foundation A resilient business model Satisfying customer needs… …while focusing on the most •Safety and stability attractive customers •”Someone who cares” • Most profitable •Full range of advice • Highest potential •Customer needs driven innovation • Mo
Slide 8: Optimizing corporate customer relationships to ensure income growth and capital efficiency
Optimizing corporate customer relationships to ensure income growth and capital efficiency • Increasing the size and share of the wallet of corporate customers Segment Customers Income EUR Large 28,000 336m • Targeted effort to increase share of non lending products and income to Medium 76,000 167m
Slide 9: Harvesting all business potential in our customer base through differentiated household relationship banking
Harvesting all business potential in our customer base through differentiated household relationship banking… • Relationship banking for Gold and Premium Segment Customers Income Premium 3,047,000 EUR including named adviser & Gold 600m • Customer program to drive cross selling, Seg- Custo- Inco- cu
Slide 10: … applying a proven sales model…
… applying a proven sales model… Number of products per customer (all) Number of products per FTE Nordea Western Europe Nordea Western Europe 355 355 4,8 4,8 316 275 3,8 237 3,2 3,2 3 198 1,4 52 Number of products per gold customer is >6 Nordea average is 296 Source: McKinsey Branch insight survey 2
Slide 11: …resulting in the strongest income performance among local peers in all four Nordic countries
…resulting in the strongest income performance among local peers in all four Nordic countries Benchmark towards peers (HH and corporate); H1 2011 vs. H1 2010 income growth; % Denmark* Finland 13 -1 9 -5 3 -6 -11 Nordea Peer 1 Peer 2 Peer 3 Nordea Peer 1 Peer 2 Norway Sweden 0 0 18 16 14 10 -6 -8 Nor
Slide 12: Retail Banking: Overview
• Retail Banking: Overview • The foundation for steady growth • Strategic direction 12 •
Slide 13: Retail Banking in the New Normal is leveraging on strong deliveries
Retail Banking in the New Normal is leveraging on strong deliveries New Normal Growth initiatives and execution in 2011- the financial crisis (middle of the road) Taking Retail Banking to the next level of cost and capital 2008-2011 efficiency while continuing income growth Creating the Nordic relat
Slide 14: Increasing sales efficiency and enforcing a radical approach for cost containment
Increasing sales efficiency and enforcing a radical approach for cost containment… • Next version of Banking Operation Gold customers per FTE Model (BOM) fully aligned towards most profitable segments • Service and customer initiated 167 sales will gradually move from 153 147 150 branches to online
Slide 15: … delivering upon our economic capital will impact all levels of our retail franchise
… delivering upon our economic capital will impact all levels of our retail franchise… Michael Rasmussen Ensuring capital efficiency by: Units Banking DK Banking SE Banking NO Banking FI Segments Service units • Implementing transparent management tools and supporting guidelines • Creating a stronge
Slide 16: …and continuing income growth with low volatility
…and continuing income growth with low volatility • Continued strong focus on Income high business momentum 13,6% and customer relationships CAGR • More focused, quality and precision in sales meetings to capture organic growth Q310 Q410 Q111 Q211 Q311 • Continued targeting the most profitable segme
Slide 17: We will deliver upon our strategy via a unique operating model
We will deliver upon our strategy via a unique operating model Universal “one operating model” development Translating Banking Distribu- Local universal model into IT tion & Segments Products local agility Quarterly Business Reviews One operating model Follow up on execution Local adaptation 17 •
Slide 18: A set of short term initiatives that will allow Retail Banking to deliver in the New Normal
A set of short term initiatives that will allow Retail Banking to deliver in the New Normal and beyond Cost Capital Income Streamlining product service deliveries Profitability in mortgage business Branch network efficiency Risk weighted asset efficiency Poland & Baltic’s transformation Mobile banki
Slide 19: A set of short term initiatives that will allow Retail Banking to deliver in the New Normal
A set of short term initiatives that will allow Retail Banking to deliver in the New Normal and beyond Cost Capital Income Streamlining product • Cost containment in Cards, Cash and Deposits service deliveries • Centralising in Poland • Streamline end-to-end • Secure RWA and liquidity • Adjusting ma
Slide 20: Key messages - Building on our solid platform the Retail Bank will deliver an ambitious ROE
Key messages - Building on our solid platform the Retail Bank will deliver an ambitious ROE in a low interest environment Generating full cost containment and increasing sales efficiency Increasing capital efficiency Capturing organic growth potential by more quality and precision in our sales
Slide 21: Retail Banking presentation
Retail Banking presentation Michael Rasmussen, Head of Retail Banking