Swedbank Ab Class A · OMXSTO:SWED_A
Swedbank Ab Class A — Q1 2006 Earnings Presentation
23 slides from Swedbank Ab Class A's earnings presentation, 2006
Slide 1: Swedbank Q1 2006
Swedbank Q1 2006 Jan Lidén, President and CEO
Slide 2: Group results Q1
2 Group results Q1 SEK M Q1 2006 Q1 2005 Change, % Net interest income 3,777 3,939 –4 Net commissions 2,098 1,530 37 Net gains and losses on financial items at fair value 260 377 – 31 Other income 408 428 –5 Total income 6,543 6,274 4 Staff costs – 1,812 – 1,697 7 Profit-based staff costs – 292 – 18
Slide 3: Net Interest Income – items affecting comparability
3 Net Interest Income – items affecting comparability SEK M • Changes Q1 2006, – IFRS accrual of Baltic loan commissions -75 – Accrual of Baltic loan book revaluation -96 • Q1 2005 (if restated) – KIAB -39 – EnterCard -71
Slide 4: Business area results Q1
4 Business area results Q1 Asset Swedish Baltic Swedbank Mgmt. & SEK M Banking Banking Markets Insurance Net interest income 2,752 822 185 8 Net commissions 1,040 352 326 382 Other income 332 185 287 30 Total income 4,124 – 5% 1,359 32% 798 51% 420 23% Staff costs – 998 – 352 – 290 – 73 Other expens
Slide 5: Swedish Banking results Q1
5 Swedish Banking results Q1 SEK M Q1 2006 Q1 2005 Change, % Net interest income 2,752 3,163 – 13 Net commissions 1,040 881 18 Other income 332 284 17 Total income 4,124 4,328 –5 Staff costs – 998 – 1,041 –4 Other expenses – 1,154 – 1,297 – 11 Total expenses – 2,152 – 2,338 –8 Profit before loan los
Slide 6: Swedish market shares
6 Swedish market shares Change in percentage points Q1 06 Q1 05 New selling, Market Market Change March, 2006 share share yoy Retail deposits 31% 23% +8% Asset Management 10% 18% -8% Individual Pension Savings* 54% 53% +1% Equity linked bonds 23% 25% -2% Corporate loans 19% 12% +7% Private mortgages
Slide 7: Swedish mortgage margin pressure
7 Swedish mortgage margin pressure 1.20 1.10 1.00 0.90 0.80 * 7 bps 0.70 ** 7 bps 0.60 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 * Spintab investment margins (See Spintab Q1 2006) ** Spintab new contractual margins (total front book)
Slide 8: Swedish volume growth
8 Swedish volume growth (SEK billion) Growth yoy Lending to private Fund management individuals +10% +31% 400 350 300 Deposits 5% 250 200 150 100 50 0 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006
Slide 9: Baltic Banking (Operations) results Q1
9 Baltic Banking (Operations) results Q1 SEK M Q1 2006 Q1 2005 Change, % Net interest income 822 652 26 Net commissions 352 234 50 Other income 185 142 30 Total income 1,359 1,028 32 Staff costs – 352 – 255 38 Other expenses – 299 – 213 40 Total expenses – 651 – 468 39 Profit before loan losses 708
Slide 10: Baltic Banking growth Q1
10 Baltic Banking growth Q1 EUR in 31.03.06 31.03.05 yoy yoy millions change % Deposits Baltic 7,612 5,368 2,244 42% Estonia 3,356 2,329 1,027 44% Latvia 1,748 1,170 578 49% Lithuania 2,418 1,749 669 38% Russia 95 121 -26 -22% EUR in 31.03.06 31.03.05 yoy yoy% millions change Lending Baltic 10,464 6
Slide 11: Baltic market shares
11 Baltic market shares Estonia Latvia Lithuania Stock Market Change Market Change Market Change March 2006 share yoy share yoy share yoy Retail deposits 63%* --1% 29%* +4% 39% -1% Corporate +1% +2% +2% 51%* 13%* 22% deposits Lending 51% 0% 25% +1% 23% 0% Pension II 54%* +2% 36%* +5% 44% -1% * As of
Slide 12: Baltic Banking margins
12 Baltic Banking margins Lending Deposits 4.0% 2.5% 3.5% 3.22% 2.81% 2.0% 3.0% 1.74% 3.15% 2.58% 1.53% 2.5% 1.5% 2.06% 1.96% 1.15% 2.0% 1.0% 0.93% 1.11% 1.5% 1.0% 0.84% 0.5% 0.5% 0.0% 0.0% Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Estonia Latvia Lithuania Estonia Latvia Lithuania
Slide 13: Baltic Banking profit growth
13 Baltic Banking profit growth Operating profit (SEK M) + 25% yoy 700 600 500 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 2004 2004 2005 2005 2005 2005 2006
Slide 14: Profit growth in the four Baltic business units and in Swedish Banking
14 Profit growth in the four Baltic business units and in Swedish Banking Q1, 2006 vs. Q1, 2005, SEK M Operating profit and profit growth yoy 28% 85% 35% -73% 12% 2,245 319 195 115 9 Estonia Latvia Lithuania Russia Swedish Banking incl Asset Management
Slide 15: Group net commissions
15 Group net commissions SEK M Q1 2006 Q1 2005 Change, % Payment processing 602 587 3 Lending commissions 129 89 45 Brokerage 301 111 Asset management 914 702 30 Insurance commissions 118 96 23 Other commissions 34 – 55 Total commissions, net 2,098 1,530
Slide 16: Group net profit on financial items at fair value
16 Group net profit on financial items at fair value SEK M Q1 2006 Q1 2005 Change Financial instruments classified as trading and derivatives 238 246 –8 Prepayment fees, loans and receivables 22 27 –5 Exchange rates effects 0 104 – 104 Total 260 377 – 117
Slide 17: Group expenses
17 Group expenses Change SEK M Q1 2006 Q1 2005 SEK M % Group 3,650 3,333 317 10 Staff costs 2,104 1,880 224 12 Adminstrative expenses 1,391 1,317 74 5 Depreciation/amortization 155 136 19 14 Staff costs 2,104 1,880 224 12 Of which Baltic Banking 351 255 96 38 First Securities 125 125
Slide 18: Baltic Banking expenses
18 Baltic Banking expenses Expenses +39% yoy Employees + 19% yoy and staff costs +38% (Cost/employee +16%) 180 170 8000 160 150 7500 140 7000 130 6500 120 110 6000 100 5500 90 80 5000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2004 2004 2005 2005 2005 2005 2006 2004 2004 2005 2005 2005 2005 2006
Slide 19: Tier 1 ratio
19 Tier 1 ratio - 0.2% points yoy 9% 8% 6.7% 6.5% 7% target 6% 5% 4% 3% 2% 1% 0% 00 01 02 03 04 05 05 05 05 06 20 20 20 20 20 20 20 20 20 20 1- 2- 3- 4- 1- Q Q Q Q Q
Slide 20: Key figures
20 Key figures Q1 2006 Q1 2005 Return on equity, % 16.6 18.5 Earnings per share, SEK 4.41 4.07 Equity per share, SEK 108.66 90.31 C/I ratio before loan losses 0.56 0.53 Loan loss ratio, net % 0.02 0.05 Share of doubtful claims, % 0.09 0.18 Provision ratio for doubtful claims, % 188 151 Capital adequ
Slide 21: Recent developments
21 Recent developments • AGM decided change of name • Mikael Inglander appointed CFO and Bengt- Erik Lindgren appointed Head of Stockholm Region, as of May 1, 2006 • Office in Shanghai being upgraded to branch • St Petersburg opened on March 24, 2006
Slide 22: Calendar of events 2006
22 Calendar of events 2006 • Q2 – August 10th • Capital Markets Day – September 6th (in Stockholm) • Q3 – October 26th
Slide 23: Thank you!
23 Thank you!