Dnb Bank Asa · OSL:DNB
Dnb Bank Asa — UBS Conference 2013
21 slides from Dnb Bank Asa's conference presentation, Sep 12, 2013
Slide 1: Six good reasons for choosing DNB in the new banking environment
Six good reasons for choosing DNB in the new banking environment UBS Conference 12 September, Stockholm Rune Bjerke, CEO of DNB 1
Slide 2: Reason 1: DNB’s Norwegian platform
Reason 1: DNB’s Norwegian platform 2
Slide 3: Norway - one of the strongest home markets globally
Norway- one of the strongest home markets globally Average real GDP growth General government net financial liabilities 1990 - 2012 (As percentage of nominal GDP 2012) 2.8 -200 -150 2.1 1.8 -100 1.5 -50 0 50 100 150 Norway* Sweden Finland Denmark 3 * Mainland Source: DNB Markets and OECD Economic Ou
Slide 4: A strong position
A strong position - Market leader in Norway and leading within selected global industries Significant market share Global leader within selected industries #1 shipping and offshore bank globally One of the world’s leading seafood banks A leading international energy bank DNB Other 4 Source: DNB Mark
Slide 5: Reason 2: DNB’s strong track record of competitive returns
Reason 2: DNB’s strong track record of competitive returns 5
Slide 6: We have delivered on our promises
Sustainable achievements – We have delivered on our promises Development in pre-tax operating profit before impairment (NOK billion) CAGR: 7.5 % 21.1 21.8 20.8 18.7 7.7 15.6 3.5 3 3.4 3.2 11.2 1.7 2008 2009 2010 2011 2012 H113 Pre-tax operating profit before impairment Impairment 6
Slide 7: Stable returns in spite of an increasing capital base
Stable returns in spite of an increasing capital base 140 20,0 % 116 118 18,0 % 120 104 16,0 % 100 94.9 89.6 14,0 % 13.6% 80 12.4% 12,0 % 70.1 11.6% 11.4% 11.2% 10.6% 10,0 % 60 8,0 % 40 6,0 % 4,0 % 20 2,0 % 0 0,0 % 2008 2009 2010 2011 2012 2Q 2013 CET1 capital (NOK billion) Return on equity (%) 7
Slide 8: Reason 3: DNB’s favourable funding position
Reason 3: DNB’s favourable funding position 8
Slide 9: Highest deposit-to-loan ratio
Highest deposit-to-loan ratio Deposit-to-loan ratio: DNB Deposit-to-loan ratio: Nordic banks (Per cent) (Per cent, 2Q13) 75 75 70 68 63 58 58 54 53 55 50 48 39 DNB Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 9 Source: 2Q 2013 from the financial institutions
Slide 10: Stable access to long-term funding and decreasing funding costs
Stable access to long-term funding and decreasing funding costs 5-year senior and covered bonds Indicative Trading Level Spreads NOK 200 150 100 50 0 -50 2007 2008 2009 2010 2011 2012 2013 DNB 5Y senior unsecured DNB 5Y covered bonds 10 Source: DNB Markets
Slide 11: Reason 4: DNB’s potential for growth in quality earnings
Reason 4: DNB’s potential for growth in quality earnings 11
Slide 12: Stable growth in net interest income
Stable growth in net interest income 28 266 + 6.8 per cent 27 419 27 216 + 5.9 per cent + 7.8 per cent 26 907 + 9.3 per cent 26 473 + 9.4 per cent 25 887 + 8.3 per cent 25 252 24 613 24 197 30 June 30 Sept. 31 Dec. 31 March 30 June 30 Sept. 31 Dec. 31 March 30 June 2011 2012 2013 12 All numbers are
Slide 13: Still high potential in non-capital-intensive areas
Still high potential in non-capital-intensive areas 44 60 56 56 63 72 56 40 44 44 37 28 Bank1 DNB Bank2 Bank3 Bank4 Bank5 Net interest income as a percentage of total income (%) Net other operating income as a percentage of total income (%) Source: Second quarter report 2013 from the financial insti
Slide 14: Several areas with high expected growth
Several areas with high expected growth Norway has the world’s Issuance of non-financial Growth potential in the bonds in Norway at all-time highest growth in USD non-life insurance market high in 2012 millionaires Non-life insurance market Development in number Issuance of non-financial bonds of US
Slide 15: Reason 5: DNB’s firm actions for cost reductions
Reason 5: DNB’s firm actions for cost reductions 15
Slide 16: Firm actions for cost reductions ensures competitive cost efficiency
Firm actions for cost reductions ensures competitive cost efficiency Cost/income ratio* – Nordic banks 2013 61% 52% 50% 50% 48% 46% Bank 1 DNB Bank 2 Bank 3 Bank 4 Bank 5 16 Source: Company Reports Q213 * Ratios ‘as reported’
Slide 17: Reason 6: DNB’s solid capital base
Reason 6: DNB’s solid capital base 17
Slide 18: Perceived solidity is not best in class
Perceived solidity is not best in class – different risk weights due to local regulatory requirements Equity Tier 1 ratio Basel III Per cent 17.8 17.2 14.2 14.0 12.1 DNB Bank 1 Bank 2 Bank 3 Bank 4 18 Source: Second quarter report 2013 from the financial institutions
Slide 19: Risk-adjusted capital places us among the most solid banks
Risk-adjusted capital places us among the most solid banks DNB’s risk-adjusted capital versus peers 2013 9.42% 8.86% 8.25% 8.22% 8.21% 7.78% Bank 1 DNB Bank 2 Bank 3 Bank 4 Bank 5 19 Standard and Poor’s 2013
Slide 20: Six good reasons for choosing DNB in the new banking environment
Six good reasons for choosing DNB in the new banking environment 1 Our “Norwegian” platform 2 Our strong track record of competitive returns 3 Our favourable funding position 4 Our potential for growth in quality earnings 5 Our firm actions for cost reductions 6 Our solid capital base 20 |
Slide 21: Some kind of sum up
Some kind of sum up- that confirmes that we are creating values in spite of a low growth environment 21 |