Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Shareholder Meeting (March 2009)
23 slides from Nordea Bank Abp's shareholder meeting presentation, Mar 12, 2009
Slide 1: Extraordinary General Meeting 12 March 2009
Christian Clausen, President and Group CEO Extraordinary General Meeting 12 March 2009
Slide 2: Disclaimers
Disclaimers This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward looking statements are reasonable no assurance
Slide 3: Despite the worst crisis since the 1930s…
Despite the worst crisis since the 1930s… 9 Reconsider business models 9 Capital squeeze 9 “Never again” 9 Loan losses and 9 Funding problems credit migration 9 Loan losses All banks and write- downs All banks and Commercial many banks customers Investment banks Responses Rescue packages Funding
Slide 4: …Nordea retains a very solid position
…Nordea retains a very solid position A large, diversified Income split customer base No market Other 19% represents more 11% 21% than 22% 22% NEM Allowing Nordea 22% 5% A full-range product offering to split invest- 9m Nordic personal A• scalable business and ments against customers – 1/3 of op
Slide 5: The EUR 3bn capital increase as a pro-active step
The EUR 3bn capital increase as a pro- active step Maintain position as one of the stronger banks in Europe – with AA rating Establish an additional capital cushion in light of reduced visibility in the market and economic outlook Provide flexibility to capture high credit quality business opportuni
Slide 6: Full year result 2008
Full year result 2008 EURm FY 2007 FY 2008 Chg % Net interest income 4,282 5,093 19 Net fee and commission income 2,140 1,883 -12 Net gains/losses on items at fair value 1,209 1,028 -15 Equity method 41 24 -41 Other income 214 172 -20 Total operating income 7,886 8,200 4 Staff costs -2,388 -2,568 8
Slide 7: Support to corporate customers - strengthened market position
Support to corporate customers - strengthened market position Total income corporate customers, EURm Income from corporate customers up 22% compared to last year 3,973 Income from CMB and Large 3,249 corporate customers increased 26% - 35% in the fourth quarter adjusted for currency depreciation
Slide 8: High activity among household customers
High activity among household customers Total income household customers, EURm Income growth 1% - continued volume growth 3,406 3,428 Income growth dampened by: Lower margins on savings and transaction accounts Lower assets under management in the savings area 870 844 Improved margins on m
Slide 9: Increased loan losses following economic slowdown in all markets
Increased loan losses following economic slowdown in all markets Loan losses, EURm Net loan losses EUR 466m full year 2008 476 Loan loss ratio of 19bps - excluding Danish state 320 guarantee scheme 17bps (EUR 44m) 151 140 152 Q4 52bps – 45 bps excluding Danish scheme 121 89 21 36 Shift betwe
Slide 10: Outlook for 2009
Outlook for 2009 Sharp macroeconomic slowdown in the Nordic countries during the latter part of the autumn – GDP expected to be negative in 2009 Nordea is preparing for a challenging year – firm attention on cost, risk and capital Focus on doing more business with existing customers and on sel
Slide 11: By applying the “middle of the road” we aim to maintain momentum
By applying the “middle of the road” we aim to maintain the high business momentum Not reacting Over-reacting Middle of the road to the downturn to the situation 9 Unchanged 9 Focus on core customers – selected 9 Closing down growth lending growth new business opportunities initiatives 9 Unchanged 9
Slide 12: Cost, risk and capital management takes the lead
Cost, risk and capital management takes the lead Costs 9 Accelerate ongoing efficiency programmes – not least in branch offices Profit orientation 9 General right-sizing of staff – staff reduction during 2009 Risk Ambitious vision and targets 9 Step up risk management – emphasising pro-activity 9 Ad
Slide 13: Nordea’s Extraordinary General Meeting
Nordea’s Extraordinary General Meeting
Slide 14: CFO Fredrik Rystedt
CFO Fredrik Rystedt Extraordinary General Meeting 12 March 2009
Slide 15: A fair, transparent market solution to existing shareholders
A fair, transparent market solution to existing shareholders Capital strengthening will be executed through; Underwritten rights offering to raise approximately EUR 2.5bn - representing ~20% of market capitalisation Proposal to halve the dividend payment to 19% of net profit which will increas
Slide 16: Improved capital position following capital measures of EUR 3bn
Improved capital position following capital measures of EUR 3bn Capital ratios pro forma end-2008 excl. Sizeable improvement in transition rules, % core capital 13.5 New targets Tier 1 above new capital 10.8 11.5 10.0 targets to create financial 9.0 flexibility Nordea’s capital position 11.7 w
Slide 17: Reported capital position - revised capital targets
Reported capital position - revised capital targets Tier 1 ratios Tier 1 ratio excl transition rules 9.3% 9.3 8.3 7.4 As part of entering the new Basel II 7.0 regime new targets for Tier 1 and total capital have been established The new policy is that the Tier 1 ratio and the total capital rat
Slide 18: Main rationale - keep position as one of the strongest banks in Europe
Main rationale - keep position as one of the strongest banks in Europe Core Tier 1 capital ratio excluding transition rules - Nordea compared with its European peer group, % 10.4 10.0 9.2 8.9 8.7 8.2 8.0 7.8 7.8 7.4 7.8 7.2 7.2 6.9 6.8 6.5 6.5 6.4 6.2 Nordea Tier 1 capital ratio excluding transition
Slide 19: Rights offering in brief
Rights offering in brief Subscription price: EUR 1.81, SEK 20.75, DKK 13.49 Discount: 44% relative to theoretical ex-rights price Number of subscription rights per existing ordinary share: 11 Number of rights entitling to subscription of one new ordinary share: 20 13 March 2009 First trading day ex
Slide 20: Nordea’s Extraordinary General Meeting
Nordea’s Extraordinary General Meeting
Slide 21: Board of directors’ resolution: Amendment of Articles of Association
Board of directors’ resolution Amendment of Articles of Association z §5 The company’s share capital is not less than 2,700,000,000 euro and not more than 10,800,000,000 euro z §6 The number of shares is not less than 2,700,000,000 and not more than 10,800,000,000 Ordinary shares may be issued up to
Slide 22: Board of directors’ resolution: new issue of ordinary shares
Board of directors’ resolution Approval of the Board of Directors’ resolution for new issue of ordinary shares z The new issue will be with preferential rights for existing shareholders and all shareholders will be entitled to subscribe for new ordinary shares in proportion to their holdings at 17 M
Slide 23: Board of directors’ resolution: subscription terms
Board of directors’ resolution z Subscription on the basis of subscription rights is made against cash payment z Subscription without subscription rights is made on a separate subscription list z The new ordinary shares do not entitle to the dividend to be approved by the Annual General Meeting on 2