Slide 1: Presentation for Investors August 2001
Presentation for Investors 22 August 2001 Nordea ™
Slide 2: Contents
Contents l Nordea l Key figures and trends l Group P&L l Business areas l Balance sheet l Asset quality l Appendix
Slide 3: Nordea
Nordea™ Nordea
Slide 4: Nordea statement - vision
Nordea statement - vision We shall be valued as the leading financial services group in the Nordic and Baltic financial markets with a substantial growth potential
Slide 5: Nordea statement - ambition
Nordea statement - ambition We shall be number one or number two or show superior and profitable growth in every market and product area in which we choose to compete. We shall have the leading multichannel distribution with a top world ranking in e-based financial solutions
Slide 6: Strategic focus
Strategic focus Nordea is dedicated to deliver financial solutions in partnership with customers. The broader the product portfolio, the competence and the investment base are, the better products and services we can develop.
Slide 7: Nordea shall create value for shareholders in line with the best
Nordea shall create value for shareholders in line with the best among European listed financial services companies Realised Targets Value drivers Performance indicators H1/01 2000 2003 ü Profitability Total shareholder return…… 46.5 % Return on equity……………. 15.6 % 16.1 % >Euro rfr+8% ü Cost control
Slide 8: Strong distribution network throughout the Nordic and Baltic Sea region
Strong distribution network throughout the Nordic and Baltic Sea region Finland Branch offices 464 Personnel 11,339 Sweden Branch offices 273 Helsinki Personnel 6,707 Bergen Stockholm Norway St Petersburg Branch offices 155 Oslo I-service centres 40 Tallinn Tartu Personnel 5,500 Copenhagen Gdynia Ri
Slide 9: Large customer base with high penetration in net banking
Large customer base with high penetration in net banking Baltic Sea DK FI NO SE Region Total Retail banking customers (1,000) Household customers 1,700 3,000 500 3,600 40 8,900 Corporate customers 60 330 60 130 10 590 Large Nordic corporate customers² 140 149 202 102 - 593 Insurance customers (1,000
Slide 10: Business structure
Business structure Nordea Group Corporate Centre Group Staffs Corporate and Investment Asset Life Insurance General Institutional Retail Banking Banking Management and Pensions Insurance Banking
Slide 11: The merger process to date - establishing the pan-Nordic platform
The merger process to date - establishing the pan-Nordic platform 1995-1996 1997 1998 1999 2000 Sweden Finland Denmark Norway CHRISTIANIA BANK OG KREDITKASSE
Slide 12: Top European banks by market cap
Top 25 European banks by market cap HSBC ING RBS UBS Lloyds Barclays CS Deutsche BSCH BBVA BNP Paribas Fortis ABN Halifax HypoV Abbey Soc Gen Dresdner Unicredito Banca Intesa San-Paulo-IMI Nordea Bank of Scotland Dexia Std Chartered 0 10 20 30 40 50 60 70 80 90 100 110 120 130 Source: Nordea Securit
Slide 13: Key figures and trends Q2 2001
Nordea™ Key figures and trends Q2 2001
Slide 14: Profit and volume growth
Profit and volume growth l Highest profit ever excluding investment earnings, EUR 604m l Operating profit EUR 677m, up 22% compared to the first quarter 2001 l Return on equity excluding goodwill 23.4% l Net interest income continued to show stable progress l Net loan losses 0.18% (0.14% in the firs
Slide 15: Strategic progress
Strategic progress l Acquisition of Postgirot strengthens market position l E-banking shows all time high in number off log-ons (18.4m) and payments (21.0m) l Ratings – several upgradings l All banks in the Group to be branded Nordea from December
Slide 16: Operating profit
Operating profit EURm 800 l An increase of 22 % 700 compared with first 677 quarter 600 630 603 500 555 l Operating profit for the 400 473 first 6 months totalled EUR 1,232m 300 200 100 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01
Slide 17: Strong core earnings
Strong core earnings EURm 800 l Strong financial 700 growth 677 600 630 603 570 555 604 l Maintained customer 500 524 495 454 473 focus 400 300 l Realisation of merger 200 synergies 100 162 100 42 21 110 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Profit excluding investment earnings Investment earnings Operati
Slide 18: Loan losses net
Loan losses net EURm 70 l Loan losses 18 bp in Q2 59 60 l Mainly related to previously troubled commitments 50 45 l Overall credit quality in essence 40 unchanged 30 20 20 22 20 10 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01
Slide 19: Key figures
Key figures C/I Ratio, banking* Combined ratio, general % % insurance** 70 120 60 100 106 100 50 55 55 80 40 60 30 40 20 10 20 0 0 Q1/01 Q2/01 Q1/01 Q2/01 * Operating expenses excluding goodwill as a ** Claims and expenses as a percentage of net percentage of operating income and share of P/L from p
Slide 20: Key figures
Key figures Earnings per share Return on Equity EUR % 0,2 25 23.4 20 0,15 0.16 19.7 15 17.0 0.13 0,1 14.1 10 0,05 5 0 0 Q1/01 Q2/01 Q1/01 Q2/01 Return on equity Excl. goodwill
Slide 21: Acquisition of Postgirot Bank
Acquisition of Postgirot Bank l Strengthened competitiveness in domestic payments in Sweden - better and more efficient solutions for the customers l Increased business volumes through cross-selling to the large customer base of Postgirot Bank l Strengthened competitiveness in international payments
Slide 22: The transaction
The transaction l Nordea agreement with the Swedish Post to acquire 100 percent of Postgirot Bank AB (31 August 2001) l The purchase price is SEK 4.1bn (EUR 440m) in cash, plus accrued profits from 1 January 2001 up until completion l The acquisition is conditional upon approval by • Swedish Financi
Slide 23: Cross-selling opportunities
Cross-selling opportunities l Postgirot Bank has a large customer base • 425,000 corporate customers • 850,000 personal customers • Includes all major corporate and public sector customers • About 70% of the customers is not currently Nordea customers l Significant opportunities for cross-selling of
Slide 24: Integration progress - branding
Integration progress - branding l All retail banking operations will change branding to Nordea in December • Decision is based on careful commercial analyses • Integration is progressing ahead of schedule l Asset Management and Corporate and Institutional Banking adopted the Nordea brand early this
Slide 25: Integration progress – synergies
Integration progress – synergies Announced total synergies 360 Expected by the end of 2001 145 Achieved by Q2 2001 75
Slide 26: Group P & L Q2 2001
Nordea™ Group P & L Q2 2001
Slide 27: Income statement summary
Income statement summary EURm Q2/01 Q1/01 Change, % Income 1,620 1,559 4 Expenses 977 955 2 Loan losses 59 45 31 Equity method 20 11 82 Profit excl. investment earnings 604 570 6 Investment earnings 110 21 Goodwill 37 36 Operating profit 677 555 22
Slide 28: Income statement summary
Income statement summary Change, Adj. for EURm H1/01 H1/00 % CBK, % Income 3,179 2,610 22 9 Expenses 1,932 1,628 19 3 Loan losses 104 37 181 Equity method 31 32 Profit excl. investment earnings 1,174 977 20 14 Investment earnings 131 431 Goodwill 73 49 Operating profit 1,232 1,359 -9 -10
Slide 29: Income
Income EURm 1800 1600 1400 687 735 1200 627 1000 625 565 800 600 872 885 400 707 733 757 200 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Net interest income Non-interest income
Slide 30: Net interest income
Net interest income EURm 1000 l Stable progress 900 800 872 885 l Growth in lending and 700 733 757 deposits 707 600 l Overall stable margins 500 400 300 200 100 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01
Slide 31: Commission income
Commission income EURm 450 l Maintained 400 commissions despite 386 350 368 361 370 turbulent markets 300 320 l Sustained 250 commissions from 200 Asset Management 150 l Increased payment 100 and lending 50 commissions 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01
Slide 32: Commission income
Commission income EURm 500 56 48 42 55 400 68 44 81 75 91 73 300 87 68 79 60 55 200 111 117 103 129 127 100 128 122 130 113 116 0 -66 -64 -74 -73 -73 -100 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Asset management Payments & deposits Brokerage Lending Other Expenses
Slide 33: Trading
Trading EURm 180 l Good income level 160 156 l High quality earnings 140 120 128 - customer driven 100 108 revenue stream 80 94 l Extraordinary strong 60 72 Q1/01 40 20 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01
Slide 34: Income, insurance
Income, insurance EURm 200 l Up almost 40% 180 185 160 l Premium growth 140 l Lower claims 138 134 120 129 100 l Increased efficiency 102 80 60 40 20 0 Q2/00* Q3/00* Q4/00 Q1/01 Q2/01 *Negative hurricane impact Q2/00 EUR 13m and Q3/00 EUR 10m
Slide 35: Expenses
Expenses EURm 1000 410 417 l High activity in Q2 425 800 380 - customer-related 326 - integration process 600 l H1/01 up 3% on H1/00 560 545 adjusted for CBK 482 460 459 400 l Profit-related personnel expenses in 200 the first half EUR 70m 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Personnel Other
Slide 36: Total IT-related expenses
Total IT-related expenses* EURm 800 As % of total expenses 700 670 2000 22.7% 600 H1/01 20.4% 500 400 395 300 200 100 0 2000 H1/01 *Computer operations, service expenses, consultants and personnel
Slide 37: Loan losses
Loan losses EURm 400 l Loan losses 18 bp in 303 300 Q2 183 193 l Mainly related to 200 145 135 previously troubled 100 45 59 commitments 20 20 22 0 l Increase in country risk reserve -100 -125 -115 -138 -134 l Overall credit quality -200 in essence unchanged -300 -281 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 G
Slide 38: Investment earnings
Investment earnings EURm Q2/01 Q1/01 Q4/00 Q3/00 Q2/00 Treasury 25 68 34 30 105 Life insurance 19 -17 -2 15 3 General insurance 11 -32 -10 38 -17 Other 55 2 20 17 71 Investment earnings 110 21 42 100 162
Slide 39: Business areas
Nordea™ Business areas
Slide 40: Results by business area
Results by business area EURm 500 479 458 400 300 200 140 93 75 65 100 80 36 35 5 1 0 42 -14 -31 -100 Retail CIB Asset IB Life* General Treasury Mgmt* *Product result for Asset Management and Life Q1/01 Q2/01
Slide 41: Retail Banking
Nordea™ Retail Banking
Slide 42: Retail Banking operating profit
Retail Banking operating profit EURm 500 l Operating profit up 5% 450 479 458 400 423 l C/I-ratio improved to 54% 350 351 345 l ROE 26% 300 250 l Volume increase for lending 200 and deposits 150 100 50 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01
Slide 43: Retail Banking operating profit by market Q2
Retail Banking operating profit by market Q2 Retail Retail Retail Retail Retail Retail EURm Banking DK FI NO SE P&B Net interest income 798 235 250 94 212 6 Non-interest income 303 84 74 39 102 4 Total income 1,101 319 324 133 314 10 Total expenses -599 -178 -157 -77 -180 -7 Profit before loan losse
Slide 44: Retail Banking lending
Retail Banking lending EURbn 35 33.9 34.4 30 25 25.7 26.2 20 20.9 20.4 15 14.8 15.5 10 5 0 Denmark Finland Norway Sweden 31-03-01 30-06-01
Slide 45: Retail Banking deposits
Retail Banking deposits EURbn 25 20 20.0 19.1 15 16.0 15.7 12.8 13.5 10 8.4 8.6 5 0 Denmark Finland Norway Sweden 31-03-01 30-06-01
Slide 46: Corporate and Institutional Banking (CIB)
Nordea Corporate and Institutional Banking (CIB)
Slide 47: CIB operating profit
CIB operating profit EURm 160 l Stable underlying development 140 l Income from Markets lower 120 compared with exceptional Q1 100 l Increased provisions for 80 140 certain previously recognised 60 114 119 93 troubled commitments 40 74 20 l ROE 12% 0 l C/I-ratio 46% Q2/00 Q3/00 Q4/00 Q1/01 Q2/01
Slide 48: CIB, Q2 2001
CIB, Q2 2001 Shipping Corporate and Inter- EURm CIB Division Offshore national Markets* Total income 275 146 47 52 96 Total expenses -126 -55 -7 -22 -47 Profit before loan losses 149 91 40 30 49 Loan losses -50 -2 -12 -11 - Country risk -10 -10 Equity method 4 4 Operating profit 93 89 28 13 49 Cost/
Slide 49: CIB lending volume
CIB lending volume EURbn 35 30 31.6 30.2 25 20 15 17.5 18.8 10 5 7.5 7.3 5.1 4.5 0 Corporate Division Shipping and International Total offshore 31-03-01 30-06-01
Slide 50: CIB net loan losses
CIB net loan losses EURm Q2/01 Q1/01 Corporate division 2 -8 Shipping division 12 -16 International division 11 0 Acquisition finance 25 48 50 24 Country risk 10 6 Total 60 30
Slide 51: Asset Management
Nordea™ Asset Management
Slide 52: Asset Management, product result
Asset Management, product result EURm 80 l Continued voltility in financial 70 75 75 markets affected AuM and 69 68 60 65 result 50 l AuM up 4% to EUR 101bn in 40 Q2 30 l Net inflow limited and 29 27 28 20 25 dominated by fixed income 20 10 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 -of which operating profit
Slide 53: Assets under management, volumes
Assets under management, volumes EURbn 120 100 42 80 41.6 42,2 60 26.8 21.7 22.3 40 36 33.2 36 20 0 Q4/00 Q1/01 Q2/01 Mutual funds Private banking Investment management
Slide 54: Asset structure – mutual funds
Asset structure – mutual funds* EUR 31.7bn EUR 33.9bn March 2001 June 2001 Equity funds Equity funds 36% Fixed 36% Fixed income income funds funds 46% 47% Balanced Balanced funds funds 18% 17% * Excl. EUR 2.1bn and EUR 1.5bn outside Nordic countries
Slide 55: Mutual funds volumes and margins
Mutual funds volumes and margins 30-06-01 Volumes, EURbn Margins Q2, % 20 1,4 18 18.2 1.33 16 1,2 1.14 14 1,0 1.08 12 0,8 10 9.8 8 0,6 6 0,4 4 0.40 * 4.2 2 0,2 1.7 0 0,0 DK FI NO SE DK FI NO SE * Net margin
Slide 56: Investment Banking
Nordea™ Investment Banking
Slide 57: Investment Banking operating profit
Investment Banking operating profit EURm 25 l Equities commission income reduced 20 l High level of activity in Nordic M&A business 15 l Leading positions by market 22 shares on the Helsinki and 10 Copenhagen stock exchanges 12 5 5 2 1 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01
Slide 58: Nordea Securities
Nordea Securities EURm Q2/01 Q1/01 Equities 19 31 Corporate Finance 21 9 Other 2 -1 Total revenues 42 39 Total expenses -41 -34 Operating profit 1 5
Slide 59: Life Insurance and Pensions
Nordea™ Life Insurance and Pensions
Slide 60: Life Insurance and Pensions, product result
Life Insurance and Pensions, product result EURm 25 l Product result improved to 20 23 19 EUR 42m 15 15 10 l Increase in premium income in 5 5 3 0 3 Denmark 0 -2 -5 l Favourable development in profit -10 -17 on investment activities -15 -20 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Technical result Investment e
Slide 61: Life insurance and Pensions Q2
Life insurance and Pensions Q2 EURm Denmark Finland Norway Sweden Other Total Premiums gross 345 205 81 107 8 746 Of which traditional life insurance 323 175 56 42 4 600 unit link 22 30 25 65 4 146 Investment return 226 61 59 78 -4 420 Benefits -555 -236 -131 -175 -3 -1,100 Expenses -15 -5 -11 -10 -
Slide 62: Life and Pensions - investments
Life and Pensions - investments EURbn 25 20 3,4 2,6 3,1 2,4 3,1 1,5 1,2 1,5 15 1,2 1,2 8,4 9 8,8 10,5 10,6 10 5 6 6,4 5,9 5 5,5 0 30-06-00 30-09-00 31-12-00 31-03-01 30-06-01 Shares Bonds Property Unit linked
Slide 63: General Insurance
Nordea™ General Insurance
Slide 64: General Insurance, operating profit
General Insurance, operating profit EURm 50 l Growth in gross premiums 40 30 38 l Lower claims 20 25 22 l Increased efficiency 10 7 1 11 0 l Combined ratio improved to -13-10 100% -10 -17 -20 -32 -30 -40 Q2/00* Q3/00* Q4/00 Q1/01 Q2/01 Technical result Investment earnings * Negative hurricane impact
Slide 65: Combined ratio by market
Combined ratio by market % 120 115 100 107 106 107 103 101 100 101 96 92 80 60 40 20 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Denmark Norway
Slide 66: General insurance
General insurance EURm Q2/01 Q1/01 Premiums gross 453 428 Premiums net 375 358 Technical interest 31 27 Claims -285 -287 Expenses -96 -97 Technical result 25 1 Investment earnings 11 -32 Operating profit 36 -31
Slide 67: General Insurance Q2
General Insurance Q2 EURm Denmark Norway Other Total Premiums gross 219 165 69 453 Premiums, net 197 125 53 375 Technical interest 14 14 3 31 Claims -152 -99 -34 -285 Expenses -50 -23 -23 -96 Technical result 9 17 -1 25 Investment earnings 14 -1 -2 11 Operating profit 23 16 -3 36
Slide 68: General Insurance - investments
General Insurance - investments EURbn 3 2,5 0.404 0.407 0.409 0.407 1.713 1.711 1.754 0.412 2 1.518 1.438 1,5 1 0,5 0.514 0.498 0.444 0.427 0.412 0 30-06-00 30-09-00 31-12-00 31-03-01 30-06-01 Shares Bonds Property
Slide 69: Treasury
Nordea™ Treasury
Slide 70: Treasury operating profit
Treasury operating profit EURm 120 l Volatile financial markets 100 l Fixed income earnings negative 99 80 - partly balanced by equity 68 gains 60 l Gain on Atle shares EUR 57m 40 l Reduced risk exposure 34 34 35 20 12 0 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Reclassification effect Q1/01
Slide 71: Treasury investment portfolio
Treasury investment portfolio EURbn 13,5 0.4 0.4 13 0.4 12.9 12.9 0.4 12,5 12.6 12.4 12 0.4 11,5 11.7 11 10,5 30-06-00 30-09-00 31-12-00 31-03-01 30-06-01 Fixed income Equities
Slide 72: Balance Sheet
Nordea™ Balance Sheet
Slide 73: Balance sheet - key items
Balance sheet - key items EURbn, end of period June 01 March 01 Dec 00 Lending 135 131 129 Deposits 81 77 79 Shareholders’ equity 11 11 11 Total assets 233 233 224 Risk-weighted assets 135 136 132
Slide 74: Balance sheet structure - assets
Balance sheet structure - assets EURbn 140 135 120 129 100 80 60 40 20 28 28 23 23 21 22 21 15 7 5 0 Lending Interest Loans and Assets, Other assets, Other bearing advances to insurance banking securities credit inst. 31-12-00 30-06-01
Slide 75: Real estate holdings
Real estate holdings Book value, EURbn 30-06-01 31-03-01 31-12-00 Owner occupied properties* 1.4 1.4 1.4 Shares in real estate holding companies 0.4 0.4 0.4 Other property investments 0.5 0.5 0.6 Investments of the insurance companies 1.8 1.8 1.6 Total 4.1 4.1 4.0 *30.06.01: Finnish companies 0.42,
Slide 76: Balance sheet structure – liabilities and equity
Balance sheet structure – liabilities and equity EURbn 90 80 79 81 70 60 50 56 56 40 30 34 29 20 19 20 21 22 10 11 11 9 9 0 Deposits Debt securities Deposits by Other liabilities, Liabilities, Shareholder´s Other in issue credit inst. banking insurance equity 31-12-00 30-06-01
Slide 77: Lending and deposits
Lending and deposits EURbn Lending EURbn Deposits 100 140 131 135 120 129 80 79 81 110 77 100 109 60 65 67 80 60 40 40 20 20 0 0 0 0 0 1 1 00 00 00 01 01 -0 -0 -0 -0 -0 0 6- 0 9- 1 2- 0 3- 0 6- 0 6 0 9 1 2 0 3 0 6 0- 0- 1- 1- 0- 3 0- 3 0- 3 1- 3 1- 3 0- 3 3 3 3 3
Slide 78: Capital adequacy
Capital adequacy % Tier1 ratio % Total capital ratio 10 10 9 9 9.6 9.2 8 8 7 7 7.0 6 6.6 6 5 5 4 4 3 3 2 2 1 1 0 0 31-03-01 30-06-01 31-03-01 30-06-01
Slide 79: Capital base
Capital base EURm 30-06 -01 Shareholder´s equity 11,136 Calculated dividend (40% of net profit) -352 Companies not included in the financial group -23 Shareholder´s equity in the capital base 10,761 Hybrid capital 811 Minority interests 311 Group goodwill -2,065 Other deductions -92 TIER 1 CAPITAL 9
Slide 80: Asset quality
Nordea™ Asset quality
Slide 81: Loan portfolio by customer group
Loan portfolio by customer group (30-06-01) EUR 135bn Public sector 2% Households 37% Companies 61%
Slide 82: Lending to companies by industry
Lending to companies by industry (30-06-01) EUR 83bn Other companies Construction 10% 4% Real estate Agriculture 22% 4% Transport, communication 5% Business service 6% Manufacturing Shipping 19% 8% Commerce and Finance services 11% 11%
Slide 83: Lending to households
Lending to households (30-06-01) EUR 50bn Other loans 25% Mortgages 75%
Slide 84: Loan portfolio
Loan portfolio EUR bn 30-06-01 31-03-01 31-12-00 Chg Y/Y, % Households 50 49 49 2 Real estate 19 19 19 0 Construction 3 3 3 0 Transport, communication 4 4 4 0 Commerce and services 9 9 8 13 Manufacturing 16 15 15 7 Finance 9 6 5 80 Business service 5 5 4 25 Other companies 10 10 12 -17 Agriculture 3
Slide 85: Problem loans
Problem loans EURm 30-06-01 31-03-01 31-12-00 Doubtful loans, gross 3,040 3,059 3,053 Provisions -2,122 -2,218 -2,256 Doubtful loans, net 918 841 797 Loans with interest deferments 35 35 29 Problem loans, total 953 876 826 Provisions/doubtful loans, gross (%) 70 73 74 Doubtful loans,net/lending (%)
Slide 86: Appendix contents
l Market shares l Financials l Nordea share l Netbanking l Other l Macro statistics
Slide 87: Appendix: Market shares
Nordea™ Appendix e Market shares
Slide 88: Market shares, household deposits
Market shares, household deposits % 40 35 34.9 34 30 25 20 23.4 23.0 21 20.5 15 10 9.0 8.9 5 0 Denmark Finland Norway Sweden Dec 2000 June 2001
Slide 89: Household deposits - market volume & share
Household deposits - market volume & share DKKb Denmark EURb Finland 400 28% 40% 50 26% 38% 300 40 24% 36% 200 30 22% 20 34% 100 20% 10 32% 0 18% 0 30% 00 -0 0 -0 0 -0 1 ne 99 00 01 0 1 n- 99 99 00 00 ar ju -0 -0 p c 1- n- n- n- ju e e p- c- p- c- ar ar s d m 0 ju ju ju de de se se m m NOKb Norway S
Slide 90: Market shares, corporate deposits
Market shares, corporate deposits % 60 50 50 48.1 40 30 25.4 20 23.7 17.8 16.9 10 14.5 14.7 0 Denmark Finland Norway Sweden Dec 2000 June 2001
Slide 91: Corporate deposits - market volume & share
Corporate deposits - market volume & share DKKbn Denmark EURbn Finland 300 29% 20 55% 27% 52% 15 200 25% 49% 10 23% 46% 100 21% 5 43% 0 19% 0 40% 0 0 0 1 ne -0 -0 -0 -0 99 00 01 0 1 ju 9 99 0 00 jun p c ar -0 -0 1- -9 -0 se e n- n- n- c- c- ar ar d p p m 0 ju ju ju de de se se m m NOKbn Norway SEKbn
Slide 92: Market shares, household lending
Market shares, household lending % 35 30 32 31.6 25 20 15 18.4 18.1 14.6 14.3 10 9.8 9.9 5 0 Denmark Finland Norway Sweden Dec 2000 June 2001
Slide 93: Household lending - market volume & share
Household lending - market volume & share Denmark EURbn Finland DKKbn 40 37% 240 21% 35% 30 220 19% 33% 20 200 17% 31% 10 29% 180 15% 0 27% 1- -00 1- -00 1- 0 0 1- 00 1- 00 1- 00 1- -00 1- 01 1- 01 1- 01 1- 01 1- 01 01 99 99 99 00 -00 00 00 01 -01 - 6- 7- 8- 1- 2- 3- 4- 5- 6- 6- 9- 12- 3- 9- 12- 3-
Slide 94: Market shares, corporate lending
Market shares, corporate lending % 50 45 40 45.3 42.9 35 30 25 26.8 28,2 20 15 17.2 16.5 17.2 16.5 10 5 0 Denmark Finland Norway Sweden Dec 2000 June 2001
Slide 95: Corporate lending - market volume & share
Corporate lending - market volume & share Denmark EURbn Finland DKKbn 300 32% 52% 250 30% 30 50% 200 28% 48% 20 46% 150 26% 100 10 44% 50 24% 42% 0 22% 0 40% -99 -9-99 2-99 -3-00 -6-00 -9-00 2-00 -3-01 -6-01 -99 -9-99 2-99 -3-00 -6-00 -9-00 2-00 -3-01 -6-01 1-6 1 1-1 1 1 1 1-1 1 1 1-6 1 1-1 1 1 1 1-
Slide 96: Mutual funds - market volume & Nordea's market share
Mutual funds - market volume & Nordea´s market share DKKbn Denmark EURbn Finland 300 30% 16 34% 250 14 28% 32% 12 200 10 26% 30% 150 8 24% 6 28% 100 4 50 22% 26% 2 0 20% 0 24% 8 9 0 8 9 0 99 99 99 00 00 00 01 01 99 99 99 00 00 00 01 01 -9 -9 -0 -9 -9 -0 3- 6- 9- 3- 6- 9- 3- 6- 3- 6- 9- 3- 6- 9- 3- 6
Slide 97: Mutual funds, Nordic region
Mutual funds, Nordic region Market volume and Nordea's market share 180 25% 160 140 23% 120 21% 100 80 19% 60 40 17% 20 0 15% 8 9 0 99 99 99 00 00 00 01 01 -9 -9 -0 3- 6- 9- 3- 6- 9- 3- 6- 12 12 12 1- 1- 1- 1- 1- 1- 1- 1- 1- 1- 1- Market volume Market share, Nordea
Slide 98: Mutual funds, net inflow, Norway
Mutual funds, net inflow, Norway Market volume, Nordea volume, and accumulated market share ytd NOKm % 3500 70 3000 60 2500 50 2000 40 1500 30 1000 20 500 10 0 0 -500 -10 -1000 -20 -1500 -30 9 9 0 0 99 99 00 00 00 00 01 01 01 -9 -9 -0 -0 6- 8- 2- 4- 6- 8- 2- 4- 6- 10 12 10 12 1- 1- 1- 1- 1- 1- 1- 1-
Slide 99: Mutual funds, net inflow, Finland
Mutual funds, net inflow, Finland Market volume, Nordea volume, and accumulated market share ytd EURm % 1000 40 800 32 600 24 400 16 200 8 0 0 -200 -8 -400 -16 9 9 0 0 99 99 00 00 00 00 01 01 01 -9 -9 -0 -0 6- 8- 2- 4- 6- 8- 2- 4- 6- 10 12 10 12 1- 1- 1- 1- 1- 1- 1- 1- 1- 1- 1- 1- 1- Market net infl
Slide 100: Mutual funds, net inflow, Sweden
Mutual funds, net inflow, Sweden Market volume, Nordea volume, and accumulated market share ytd SEKm % 29bn 18bn 14 000 28 12 000 24 10 000 20 8 000 16 6 000 12 4 000 8 2 000 4 0 0 -2 000 -4 9 0 0 9 99 99 00 00 00 00 01 01 01 t-9 -9 -0 -0 6- 8- 2- 4- 6- 8- 2- 4- 6- 12 10 12 oc 1- 1- 1- 1- 1- 1- 1- 1
Slide 101: Market share equity trading - Nordea Securities
Market share equity trading - Nordea Securities % 18 Equity market, volume Q2/01 EURbn 16 17.0 17.1 15.7 Denmark 23 14 Norway 20 12 13.1 Finland 51 10 Sweden 116 8 8.1 6 5.7 4 4.4 2 3.3 0 en m i o nk sl ol ag si O kh el nh oc H e St op C Jan-Dec 2000 Jan-June 2001
Slide 102: Appendix: Financials
Nordea™ Appendix e Financials
Slide 103: Operational income statement
Operational income statement EURm Q2/01 Q1/01 Q4/00 Q3/00 Q2/00 Net interest income 885 872 757 733 707 Commission income 370 361 368 320 386 Trading 128 156 94 108 72 Net income from insurance 185 134 129 102 138 Other 52 36 36 35 29 Income 1,620 1,559 1,384 1,298 1,332 Personnel expenses 556 541 4
Slide 104: Investment earnings - non-recurring items
Investment earnings - non-recurring items EURm Q2/01 Q1/01 Q4/00 Q3/00 Q2/00 Aleksia/Ilmarinen (Other) 40 Atle (Treasury) 57 Reclassification of securities (Treasury) 68 Radiolinja (Treasury) 46 Svensk Exportkredit (Other) 60 Total 97 68 - - 106
Slide 105: Synergies under delivery
Synergies under delivery 2000 2001 Target 2003 EURm Actual Target Cost Revenue Total CIB 20 91 92 32 124 Retail banking - 5 10 30 40 + 50 Other business areas 3 15 20 37 57 IT - 12 55 - 55 Group treasury - 21 - 21 21 Other group functions - 1 13 - 13 Total 23 145 190 120 310 + 50 Realised end Q2 75
Slide 106: Bank ratings
Bank ratings Moody’s S&P Fitch IBCA BFSR Short Long Short Long Short Long Individ. Merita Bank B P-1 Aa3 A-1 A+ F1+ AA- B Nordbanken B P-1 Aa3 A-1 A+ F1+ AA- B Unibank B P-1 Aa3 A-1 A+ F1+ AA- B Christiania B- P-1 Aa3 A-1 A+ F1+ AA- B NB Hypotek P-1 Aa3 A-1 Unikreditt Aa1 Norgeskreditt P-1 A1
Slide 107: Insurance ratings
Insurance ratings Moody’s S&P A.M.Best Dansk Kautionsforsikrings-Aktieselskab A* A- (excellent) Tryg-Baltica Forsikring, internationalt A- A- (excellent) Forsikringsselskab A/S Tryg-Baltica Forsikring A/S A1 *positive outlook
Slide 108: Appendix: Nordea share
Nordea™ Appendix e Nordea share
Slide 109: Nordea vs DJ Stoxx European banks
Nordea vs DJ Stoxx European banks 6 March 2000* - 20 August 2001 180 160 140 120 100 80 60 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01 * MNB/Unidanmark merger Nordea DJ Stoxx European Banks
Slide 110: Nordic bank shares, liquidity H1 2001
Nordic bank shares, liquidity H1 2001 EURm 2500 2000 1500 1000 500 0 January February March April May June Danske Bank SEB FSPB Handelsbanken Nordea
Slide 111: Ownership structure, June 30, 2001
Ownership structure, June 30, 2001 4.0% 1.8% 6.0% 27.3% 9.5% International investors Swedish institutions Swedish government Danish institutions Finnish institutions 13.2% Finnish public Danish public Swedish public 18.2% 20.0% Total number of shareholders 515,000
Slide 112: Largest registered shareholders
Largest registered shareholders June 30, 2001 Shareholder Number of shares Percent Swedish state 542,015,102 18.29 % Tryg Baltica smba 185,609,801 6.26 % Unidanmark Trust 102,529,423 3.46 % Alecta 81,507,579 2.75 % Robur fonder 57,467,100 1.94 % Nordea fonder 41,949,114 1.42 % SHB fonder 30,802,560
Slide 113: Number of shares
Number of shares Date Type of Subject Number of Outstanding transaction shares issued shares Jan, 2000 New issue Merita 815,800,287 2,091,067,728 April, 2000 New issue Unidanmark 869,776,488 2,960,844,216 June, 2000 New issue Unidanmark 18,348,501 2,979,192,717 2000 -2001 New issues Conversion* 3,07
Slide 114: Data per share
Data per share H1/01 2000 1999* 1998 Dividend, SEK - 2.00 1.75 1.64 Shareholders equity per share, EUR 3.76 3.74 3.43 2.68 Earnings per share, EUR 0.29 0.58 0.55 0.53 P/E ratio 11.6 14.0 10.6 11.0 * Pro forma incl. Unidanmark
Slide 115: Appendix: Netbanking
Nordea™ Appendix e Netbanking
Slide 116: Netbanking
0 0,5 1 1,5 2 2,5 3 12 Mill. -9 03 8 -9 9 06 -9 09 9 -9 12 9 -9 9 03 -0 06 0 -0 Netbanking Denmark 09 0 -0 12 0 -0 0 03 Netbank customers -0 Finland 06 1 -0 1 0 1 2 3 4 5 6 7 12 -9 Norway Mill. 03 8 -9 06 9 -9 09 9 Sweden -9 12 9 -9 03 9 -0 06 0 -0 09 0 Netbank log-ons -0 12 0 -0 Baltic and Poland 0
Slide 117: Netbanking, bill-payments
Netbanking, bill-payments Mill. 8 7 6 5 4 3 2 1 0 98 99 99 99 99 00 00 00 00 01 01 12- 03- 06- 09- 12- 03- 06- 09- 12- 03- 06- Denmark Finland Norway Sweden
Slide 118: Solo penetration in payments H1 2001
Solo penetration in payments H1 2001 Private customers Manual 3% Internet 28% Giro (envelope) 32% Other electronic (ATM's etc) 13% Direct debit 24%
Slide 119: Solo penetration in equity trading, executed trades
Solo penetration in equity trading, executed trades % 60 58 58.6 58.2 56 55.3 55.0 54 52 50 50.2 48 46 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Net equity trading penetration rate
Slide 120: Appendix: Other
Nordea™ Appendix e Other
Slide 121: Strategic choices
Strategic choices l Universal multi-channel bank with bancassurance l Nordic and local • The Nordic countries are Nordeas home market • Growth by share of wallet • The Baltic countries and Poland are Nordeas emerging home market • Growth by share of market l Electronic and personal l Partnership l E
Slide 122: Retail Banking
Retail Banking Vision Leading retail bank in the Nordic and Baltic financial markets with substantial growth potential Strategic initiatives • Nordic household customer strategy • Streamlining corporate customer concepts • Establishing long-term savings and life and private banking organisations • I
Slide 123: Corporate and Institutional Banking
Corporate and Institutional Banking Vision Leading bank for large corporate customers and financial institutions in Nordic and Baltic markets - with improved profitability Strategic initiatives • Integrated Nordic financial product offering produced with high cost- efficiency through common IT-solut
Slide 124: Asset Management
Asset Management Vision Leading Nordic asset manager with the strongest non-acquisitive growth Strategic initiatives • Close co-operation (joint unit) with Retail Banking • Continued build-up of Nordic private banking operations • Leverage leading position of Private Banking in Luxembourg • Multi-ch
Slide 125: Investment Banking
Investment Banking Vision Leading advisory investment bank Strategic initiatives • Independent pan Nordic investment bank concept • Consolidating and further building an integrated Nordic business operation • Implementing UK and US operations with strong Nordic business focus • Focus on pan-Nordic t
Slide 126: Life Insurance and Pensions
Life Insurance and Pensions Vision Major supplier of life insurance, pension plans and unit-linked in the Nordic region Strategic initiatives • Sales of unit-linked life and pensions products • Development and sales of defined contribution pensions products in Sweden, Norway and Finland • Starting u
Slide 127: General Insurance
General Insurance Vision Major supplier of general insurance in the Nordic region - aiming at profit before volumes Strategic initiatives • Bancassurance in Finland • Bancassurance in Norway • Combined ratio target 100 for all activities by use of TB’s experience from Danish market • Continue strict
Slide 128: Legal structure
Legal structure Nordea Plc Nordea Companies Finland (NCF) Nordea Companies Denmark (NCD) Merita Bank Nordbanken CBK Tryg-Baltica Unibank Finland Sweden Norway Denmark Denmark Vesta Forsikring Norway
Slide 129: Future legal structure
Future legal structure Nordea Insurance Holding Asset Investment General Merita Bank Management Banking Insurance Life Insurance Christiania Bank og Kreditkasse Nordbanken Unibank
Slide 130: Appendix: Macro statistics
Nordea Appendix e Macro statistics
Slide 131: Gross domestic product
Gross domestic product Change in % YoY 10 8 6 4 2 0 -2 0 3 6 9 2 /9 /9 /9 /9 /0 Q1 Q1 Q1 Q1 Q1 -4 -6 -8 Denmark Finland Norway Sweden
Slide 132: Inflation
Inflation % 14 12 10 8 6 4 2 0 -2 90 93 96 99 02 19 19 19 19 20 Denmark Finland Norway Sweden
Slide 133: Private consumption
Private consumption Change in % YoY 10 8 6 4 2 0 -2 90 93 96 9 2 /9 /0 1/ 1/ 1/ Q1 Q1 Q Q Q -4 -6 -8 Denmark Finland Norway Sweden
Slide 134: Household savings ratio
Household savings ratio % 12 10 8 6 4 2 0 1993 1994 1995 1996 1997 1998 1999 2000 Denmark Finland Norway Sweden
Slide 135: Unemployment
Unemployment % of labour force 20 18 16 14 12 10 8 6 4 2 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ Q Q Q Q Q Q Q Q Q Q Q Q Q Q Denmark Finland Norway Sweden
Slide 136: Bankruptcies
Bankruptcies Number of bankruptcies per month 1800 1600 1400 1200 1000 800 600 400 200 0 4 95 96 7 8 9 0 01 /9 /9 /9 /9 /0 1/ 1/ 1/ Q1 Q1 Q1 Q1 Q1 Q Q Q Denmark Finland Norway Sweden
Slide 137: Exchange rate, Euro/USD
2- 1 0,8 0,85 0,9 0,95 1 1,05 1,1 1,15 1,2 -9 2- 8 3 -9 2- 8 5 -9 2- 8 7 -9 2- 8 9 2- -98 11 -9 2- 8 1 -9 2- 9 3 -9 2- 9 5 -9 2- 9 7 -9 2- 9 9 Euro/USD 2- -99 11 -9 2- 9 1 -0 Exchange rate, Euro/USD 2- 0 3 -0 2- 0 5 -0 2- 0 7 -0 2- 0 9 2- -00 11 -0 2- 0 1 -0 2- 1 3 -0 2- 1 5 -0 2- 1 7 -0 1
Slide 138: Exchange rate, Euro/SEK
1- 1 SEK 8 8,4 8,8 9,2 9,6 10 -9 1- 8 3 -9 1- 8 5 -9 1- 8 7 -9 1- 8 9 - 1- 98 11 -9 1- 8 1 -9 1- 9 3 -9 1- 9 5 -9 1- 9 7 -9 1- 9 9 - EUR/SEK 1- 99 11 -9 1- 9 1 Exchange rate, Euro/SEK -0 1- 0 3 -0 1- 0 5 -0 1- 0 7 -0 1- 0 9 - 1- 00 11 -0 1- 0 1 -0 1- 1 3 -0 1- 1 5 -0 1- 1 7 -0 1
Slide 139: Exchange rate, Euro/NOK
2- 1 SEK 7 7,5 8 8,5 9 9,5 10 -9 2- 8 3 -9 2- 8 5 -9 2- 8 7 -9 2- 8 9 2- -98 11 -9 2- 8 1 -9 2- 9 3 -9 2- 9 5 -9 2- 9 7 -9 2- 9 9 Euro/NOK 2- -99 11 -9 2- 9 1 -0 Exchange rate, Euro/NOK 2- 0 3 -0 2- 0 5 -0 2- 0 7 -0 2- 0 9 2- -00 11 -0 2- 0 1 -0 2- 1 3 -0 2- 1 5 -0 2- 1 7 -0 1
Slide 140: Stock exchange indices
31 -1 0 500 1000 1500 2000 2500 -9 7 970131 = 100 30 -4 -9 31 7 -7 -9 31 7 -1 0 -9 31 7 -1 -9 8 HEX Index 30 -4 -9 31 8 Oslo Total Index -7 -9 31 8 -1 0 -9 31 8 -1 -9 30 9 -4 -9 Stock exchange indices 31 9 -7 -9 31 9 -1 0 -9 31 9 -1 -0 30 0 -4 -0 KFX Index 31 0 -7 -0 31 0 -1 0 -0 31 0 -1 -0 30 1 -4
Slide 141: Government bond, 10 year
1- 1 3 3,5 4 4,5 5 5,5 6 6,5 7 -9 1- 8 3 -9 1- 8 5 -9 1- 8 7 -9 1- 8 9 1- -98 11 -9 Denmark 1- 8 1 -9 1- 9 3 -9 1- 9 5 -9 Finland 1- 9 7 -9 1- 9 9 1- -99 11 -9 Norway 1- 9 1 -0 1- 0 3 Government bond, 10 year -0 1- 0 5 -0 1- 0 Sweden 7 -0 1- 0 9 1- -00 11 -0 1- 0 1 -0 1- 1 3 -0 1- 1 5 -0 1- 1 7 -0 1
Slide 142: Money market, 3 months rates
1- 1 2 3 4 5 6 7 8 9 10 11 -9 1- 8 3 -9 1- 8 5 -9 1- 8 7 -9 1- 8 9 1- -98 11 -9 Denmark 1- 8 1 -9 1- 9 3 -9 1- 9 5 -9 Finland 1- 9 7 -9 1- 9 9 1- -99 11 -9 Norway 1- 9 1 -0 1- 0 3 -0 1- 0 5 -0 Sweden 1- 0 7 Money market, 3 months rates -0 1- 0 9 1- -00 11 -0 1- 0 1 -0 1- 1 3 -0 1- 1 5 -0 1- 1 7 -0 1
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