Swedbank Ab Class A · OMXSTO:SWED_A
Swedbank Ab Class A — Q1 2022 Earnings Presentation
27 slides from Swedbank Ab Class A's earnings presentation, 2022
Slide 1: "Skånska rapsfält längs en cykeltur mellan Hjärup, Lomma, Lund, Staffanstorp, Vinninge och Bara" by
1 "Skånska rapsfält längs en cykeltur mellan Hjärup, Lomma, Lund, Staffanstorp, Vinninge och Bara" by Kullez is marked with CC BY 2.0. To view the terms, visit https://creativecommons.org/licenses/by/2.0/?ref=openverse
Slide 2: Swedbank Economic Outlook April 2022
Swedbank Economic Outlook April 2022 (Jan.) ● Geopolitics. Climate change. 2021 2022 2023 Pandemic. Inflation. Sweden 4.8 2.8 (3.3) 2.1 (2.0) ● Positive growth in all home markets. Estonia 8.3 1.5 (3.5) 2.0 (3.0) Latvia 4.7 1.4 (4.1) 2.6 (3.5) ● Central banks respond with higher rates. Lithuania 4.9
Slide 3: Net profit of SEK 4.6bn
SEKm Q1 22 Q4 21 ▲% Net interest income 6 762 6 746 0% Net commission income 3 581 4 020 -11% ● Net profit of SEK 4.6bn Net gains and losses 122 265 -54% ● Earning per share SEK 4.10 Other income 990 910 9% Total income 11 455 11 941 -4% ● NII slightly higher Total expenses 5 087 5 842 -13% Profit b
Slide 4: Continued strong capital and liquidity position
Continued strong capital and liquidity position Dividend proposal to the AGM of SEK 11.25 per share for 2021 (including special dividend of SEK 2.00) Buffer to SFSA requirement of 4.6% Credit quality remains good AGM determined 2021 dividend of SEK 11.25 per share Improved availability in digital ch
Slide 5: Economies have re-oriented from Russia
Economies have re-oriented from Russia Stable business, representing 20% of Swedbank revenues Leading retail bank and growing corporate business Direct Russian exposure less than 10 MSEK at the end of Q1 © Swedbank Information class Restricted access "File:Vilnius Skyline.jpg" by Adbar is marked wit
Slide 6: Accelerated transformation due to war in Ukraine
Accelerated transformation due to war in Ukraine We empower the transformation Disclosed financed emissions for real estate © Swedbank Information class Restricted access "File:Kashima oil refinery , Kamisu - panoramio (1).jpg" by Kaz Ish is marked with CC BY-SA 3.0. To view the terms, visit Confide
Slide 7: Market Share Position
Market Share Position 25 1 20 2 3 15 4 10 5 5 6 0 Jan-21 Feb-21 © Swedbank Information Mar-21 Confidential class Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Restricted access 7
Slide 8: Focus on advice to improve Financial Health
Focus on advice to improve Financial Health Direct customers to the app for daily banking errands Provide advice to corporates on their financing mix Support farmers with liquidity © Swedbank Information class Restricted access Confidential 8
Slide 9: Most loved brand in Estonia, Latvia and Lithuania
Most loved brand in Estonia, Latvia and Lithuania Sweden’s Star Brand of the Year 2022 9
Slide 10: Loan growth by business area, SEKbn
Loan growth by business area, SEKbn Loan growth of 6% YoY, SEKbn 30 1 721 4 1 725 Private loans Corporate loans 10 2 1 679 1 146 579 +6% +8% +42bn 1 086 535 Q4 2021 Swedish Baltic LC&I Q1 excl. FX FX Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 banking banking 10
Slide 11: Deposit growth by business area, SEKbn
Deposit growth by business area, SEKbn Deposit growth of 6% YoY, SEKbn 5 1 284 Private deposits Corporate deposits 25 1 1 279 1 261 4 666 618 -12 +10% +1% +18bn 604 612 Q4 2021* Swedish Baltic LC&I Group Q1 Excl. FX Q1 2022* Q1 2021 Q1 2022 Q1 2021 Q1 2022 banking banking functions* FX *Excluding Gr
Slide 12: NII distribution, SEKm
● NII – increased slightly NII distribution, SEKm* 99 – Underlying NII, SEK +30m 86 6 746 6 762 – Higher average loan volumes -154 -14 – Lower lending margins 30 – Neutral deposit margins on group level ● Other includes: Q4 2021 Volumes Margins Group Other Q1 2022 – Day effect (-70m) Treasury – FX (
Slide 13: Lower Net Commission Income
● Lower Net Commission Income NCI distribution by income source, SEKm ● Cards income seasonally lower 4 020 ● Market development negatively impacted -141 3 581 Asset Management income -176 -122 – Day count effect SEK -40m – Performance fees, SEK +34m in Q4 ● Corporate advisory declined from a strong
Slide 14: Low NGL
NGL distribution by type, SEKm ● Low NGL 556 – Fixed Income trading and higher client activity impacted positively – Negative derivatives valuation effects in -228 Treasury – Liquidity portfolio and bond inventories -151 122 negatively impacted by higher credit -55 spreads Client Funding Bond Other
Slide 15: Higher Other Income
● Higher Other Income Distribution by quarter and type, SEKm – Higher income in Net insurance and 916 979 927 910 990 EnterCard 326 459 – Provisions release in net insurance – Reversal of tax provision related to Visa 253 165 Sweden in Q4 (Associates) 331 366 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Slide 16: Seasonally lower expenses in Q1
● Seasonally lower expenses in Q1 Total expenses by quarter, SEKm 5 842 – Decreased expenses for staff, IT and 92 5 087 marketing 4 974 4 989 5 042 55 77 90 96 ● Underlying expenses at SEK 5 032m 5 750 – AML investigation costs at SEK 55m 4 897 4 899 4 946 5 032 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 20
Slide 17: Credit quality remains strong
● Credit quality remains strong Distribution by business area, SEKm 158 ● Credit impairments in Swedish banking and LC&I 85 77 ● Recoveries in Baltic banking 7 -11 Swedish Balic LC&I Group Group banking banking functions Distribution by quarter, SEKm 2 151 1 235 425 523 246 158 18 -27 -67 Q1 Q2 Q3 Q
Slide 18: IFRS9 distribution Q1, SEKm
● Macro economic outlook adjusted IFRS9 distribution Q1, SEKm for lower growth expectations 250 ● Expert adjustments released and 45 reallocated 28 158 ● Accumulated expert portfolio -58 adjustment reserves of SEK 1.7bn -107 ● Rating and stage migrations – Stage migrations – Limited rating migration
Slide 19: Direct exposures to Russia, Ukraine and Belarus
● Direct exposures to Russia, Ukraine and Belarus, Export of goods to Russia % of total export of goods, 12 months moving average less than SEK 10m 21 18 ● Indirect exposures to customers with business* 15 to these countries, less than SEK 8bn 12 9 6 – Of which customers with elevated risk, SEK 1.5b
Slide 20: Strong capitalisation
Target CET1 capital ratio distribution by quarter,% 18.5% 18.5% 18.3% 18.3% range of 18.0% +460bps ● Strong capitalisation 100-300bps 13.7% ● CET1 capital ratio buffer of around 460bps above requirements ● SEK 11.25 dividend paid in April 2022 ● REA increased by SEK 16.7bn to SEK 724bn Q1 2021 Q2 20
Slide 21: Focus on governance and control
● Focus on governance and control. ● Improved brand trust. ● Empower the transformation. ● Strong credit quality and capital position. ● The future of our customer is our focus. 21
Slide 22: © Swedbank Information class Confidential
© Swedbank Information class Restricted access Confidential
Slide 23: Financial targets: ROE, cost efficiency, CET1, dividend policy
ROE target of 15% Market leading cost efficiency 17.3 18.9 17.6 18.6 0.54 0.43 0.44 11.5 0.39 0.38 15.1 16.1 14.7 13.2 8.9 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Earnings per share, SEK Return on equity, % Cost to income ratio CET1 capital ratio buffer target of 100-300bps above requireme
Slide 24: The Strategic Direction
The Strategic Direction is directional and guiding for our identity, aspirations, and overarching target position Our vision We empower the many = people and businesses Our purpose to create a better future Our customer promise A financially sound Ours and sustainable society »/ Together we make you
Slide 25: Climate commitments and targets
• By 2050, Swedbank has committed to carbon neutrality and interim target setting • By 2040, The aggregate fund capital managed by Swedbank Robur will be placed in carbon neutral investments • By 2030, Reduce Swedbank’s direct greenhouse gas emission by 60% (base year 2019) • By 2025, Reduce energy
Slide 26: Liquidity and funding
Liquidity and funding SEKbn Strong funding profile Liquidity reserve ● LCR 166% (EU 2015/61) 1 400 Outstanding volumes Q4 2021 Q1 2022 SEKbn 605 Level 1 assets ● NSFR 122% (CRD2) 1 200 1 000 175 ● Issued SEK 49bn of long-term 800 of which cash and balances funding in Q1 2022 600 400 with central ban
Slide 27: Swedish housing and mortgage market
Swedish housing and mortgage market Single-family homes1 Tenant-owner rights2 Combined3 12M Δ 12M Δ 12M Δ Apr 21 23% 12% 19% May 21 21% 12% 18% Jun 21 20% 11% 17% Jul 21 17% 9% 14% House price index, Sweden 2005=100 (Data as per March 2022) Aug 21 16% 9% 13% 350 Sep 21 15% 8% 12% Total 300 Tenant-ow