Skandinaviska Enskilda Banken AB Class A · OMXSTO:SEB_A
Skandinaviska Enskilda Banken AB Class A — Q1 2007 Earnings Presentation
24 slides from Skandinaviska Enskilda Banken AB Class A's earnings presentation, 2007
Slide 1: Annika Falkengren, CEO
Annika Falkengren CEO 2007
Slide 2: Highlights Q1 2007
Highlights Q1 2007 Operating profit SEK 4.2bn z Revenues exceeded SEK 10bn z Continued high customer activity but more volatile capital markets z Organic growth RWA: + 7% z Stable costs Total income Total cost Operating profit +6% +1% +13% Note: Q1 2007 vs. Q1 2006
Slide 3: Continued profitable growth
Continued profitable growth If normalised tax rate applied, Operating profit Return on equity ROE 19.5% SEKbn SEB Group, per cent 23.2 4.2 4.1 19.6 19.0 3.7 15.5 2.7 Q1-05 Q1-06 Q1-07 Q4-06 Q1- 05 Q1- 06 Q1- 07 Q4- 06
Slide 4: Key figures
Key figures Q1 Change SEKm 2007 Q1 06 Q4 06 Operating Income 10,193 6% 2% Operating Expenses 5,802 1% 2% Operating Profit 4,157 13% 1% Net Profit 3,262 15% -14% Cost / income ratio 0.57 0.60 0.57 Return on Equity, % 19.0 19.6 23.2 Credit loss level, % 0.10 0.09 0.10 Core capital ratio, Basel II, % 8
Slide 5: Net Interest Income, customer driven
Net Interest Income, customer driven SEB Group, SEKm Lending to the public SEKbn 1,200 1,000 +5% 3,767 800 +11% 3,596 600 400 3,369 Q1 Q3 Q1 Q3 Q1 Q3 Q1 2004 2004 2005 2005 2006 2006 2007 2,921 +15% Deposits from the public SEKbn 700 600 +7% 500 400 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q1 2006 Q1 2007 2004 2004 200
Slide 6: Fee and commission income, +7 %
Fee and commission income, +7 % Gross development Q1 2006 – Q1 2007, SEKm +6% +14% Q1-06 1,692 1,742 1,647 Q1-07 +3% 1,487 1,134 1,164 +19% 531 445 New issues & Secondary market Custody & mutual Payment, cards, advisory & derivatives funds structured lending, deposits, guarantees
Slide 7: Cost management
Cost management Total expenses 46 16 100 34 28 136 5,770 5,802 5,904 Q1 2006 Cost inflation Organic Depreciation Variable Cost before Cost Redundancy Q1 2007 growth salaries efficiency efficiency costs gains gains
Slide 8: Retail Banking
Retail Banking Highlights Operating profit SEK 1.5bn z High customer activity Q1 2007; per cent of total across all areas z Income growth largely Cards Sweden driven by strong net Lithuania 12% interest development 20% 39% z Higher costs in Estonia, Latvia and Lithuania; lower in Sweden and Card 12%
Slide 9: Activity level – Retail
Activity level – Retail Germany: insurance Sweden: equity linked bonds Sales; EUR mn Sales; SEK bn +46% 3.8 2004 2005 +70% 2006 97 2.6 57 18% Q1 06 Q1 07 Q1 06 Q1 07 Sweden: SME customers + 14% Cash management customers (thousands) Revenue growth 90 Q1 2007 vs. Q1 2006 80 70 60 50 2004 2005 2006 200
Slide 10: Latvian development
Latvian development SEB Per cent; Dec 2004 – Mar 2007 Hansabank DnB Nord Parex Banka Sampo Approach Lending market shares 50% ● Focus on quality and risk- adjusted returns ahead of 40% market share and volume since mid 2006 30% ● Ensure controlled slow- down of credit growth 20% during 2007 10% ● Cl
Slide 11: SEB in Germany
SEB in Germany SEKm SEB AG 2006: 200 Operating profit SEK 1,488m Increased credit RoE 9.5 % losses – SEK 80m 150 100 50 0 Q1 2006 Q1 2007 -50 MB CRE Retail Treasury AM ‘Old’ GRMB
Slide 12: Merchant Banking
Merchant Banking Highlights Operating profit SEK 1.9bn z Income stable at a high Q1 2007; per cent of total level z Strong organic growth Global Transaction Corporate Services Banking z Record turnover on Nordic stock exchanges 17% z Custody transactions 34% increased by 60% y-o-y z Stable underlyin
Slide 13: Activity level – Merchant
Activity level – Merchant Nordic Mergers and Acquisitions Market Shares Nordic Stock Exchanges USDbn, Jan – Mar 2007 (No. of made deals) Jan – Mar 2007 Deutsche Bank AG (7) SEB Enskilda 7.5% Goldman Sachs & Co (6) Morgan Stanley (3) Carnegie 6.3% SEB Enskilda (10) Credit Suisse (1) Morgan Stanley 6.
Slide 14: Wealth
Wealth Highlights Operating profit SEK 0.6bn z High business volumes Q1 2007; per cent of total z Lower net sales in the Asset Private market – but SEB Management Banking captured volumes and market shares z Customer activities 30% included several new products – SEB capturing 70% shift to alternati
Slide 15: Activity level – Wealth
Activity level – Wealth Mutual Funds Net Sales Sweden Distribution per type of fund Cumulative Jan 2005 – Mar 2007, including PPM Jan-Mar 2007 80,000 SEB 100% 70,000 80% 60% 60,000 40% 20% 50,000 0% SHB 40,000 -20% -40% 30,000 -60% 20,000 Robur SEB Total Equity funds Mixed funds 10,000 Short bond fu
Slide 16: Life
Life Highlights Operating profit SEK 0.7bn z Operating profit up 56 per Q1 2007; per cent of total cent z Strong unit-linked income International supported by strong stock markets 14% Denmark z Sales down in Sweden due to legislative actions 30% 56% z AuM SEK 408bn (+3% YTD) Sweden
Slide 17: Direction
Direction z Operational excellence z Customer satisfaction z Profitable growth
Slide 18: SIEB
SIEB
Slide 19: Financial performance
Per-Arne Blomquist CFO Financial performance
Slide 20: Net interest income, analysis
Net interest income, analysis SEB Group Q1 2006 – Q1 2007, SEKm 53 184 121 90 277 3,767 3,596 Q1 2006 Lending Lending Deposit Deposit Funding & Q1 2007 margin volume margin volume other
Slide 21: Net interest income analysis
Net interest income analysis SEB Group Q4 2006 – Q1 2007 46 201 3,767 21 84 3,604 14 203 Q4 2006 Lending Lending Deposit Deposit Funding & Effect from Q1 2007 margin volume margin volume other structured products
Slide 22: Cost management
Cost management Total expenses 46 16 100 34 28 136 5,770 5,802 5,904 Q1 2006 Cost inflation Organic Depreciation Variable Cost before Cost Redundancy Q1 2007 growth salaries efficiency efficiency costs gains gains
Slide 23: Capital position
Capital position Core capital ratio (%) Total capital ratio (%) 8.2 8.3 11.0 7.9 11.5 11.6 * Basel I Basel I Basel II Basel I Basel I Basel II Q4 2006 Q1 2007 Q4 2006 Q1 2007 z Q1 organic growth +7 per cent (RWA) z Transitional rules (95 per cent floor)
Slide 24: SIEB
SIEB
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