Swedbank Ab Class A · OMXSTO:SWED_A
Swedbank Ab Class A — Q1 2017 Earnings Presentation
18 slides from Swedbank Ab Class A's earnings presentation, 2017
Slide 1: Swedbank's first quarter 2017 results
Swedbank’s first quarter 2017 results Birgitte Bonnesen (CEO), Anders Karlsson (CFO), Helo Meigas (CRO) © Swedbank Information class Public
Slide 2: Swedish Banking: Strong result
Swedish Banking Strong result SEKm Q1 17 Q4 16 ▲QoQ • Net interest income Net interest income 3 637 3 656 -19 – Mortgage margins expanded in back-book and Net commission income 1 757 1 789 -32 declined in front-book Other income 1 069 369 700 – Increased resolution fund fee Total income 6 463 5 814
Slide 3: Baltic Banking: Resilient performance
Baltic Banking Resilient performance SEKm Q1 17 Q4 16 ▲QoQ • Net interest income Net interest income 1 001 1 061 -60 – Mixed margins Net commission income 527 582 -55 – Negative FX and day-count effects Other income 190 213 -23 Total income 1 718 1 856 -138 – Continued growth in private lending Tota
Slide 4: Large Corporates & Institutions: Lower result
Large Corporates & Institutions Lower result SEKm Q1 17 Q4 16 ▲QoQ • Net interest income Net interest income 823 908 -85 – Lower average loan volumes Net commission income 580 691 -111 – Positive impact from Swedish Banking Net gains and losses 452 530 -78 customer transfer Other income 28 13 15 Tot
Slide 5: Group results: Strong result
Group results Strong result SEKm Q1 17 Q4 16 ▲QoQ • Net interest income headwinds mitigated Net interest income 5 971 6 000 -29 by mortgage loan volume growth and Net commission income 2 822 3 055 -233 margin expansion Net gains and losses 486 285 201 Other income 1 372 607 765 • Lower commission in
Slide 6: Strong capitalisation – no excess capital
Capital Strong capitalisation – no excess capital • CET1 capital increased by SEK 0.9bn 25.0% 24.2% 23.0% 23.8% 21.7% − Positive effect from net profit of SEK 1.8bn excl. dividend − Negative pension liability valuation effect (IAS19) of SEK 0.5bn • REA increased by SEK 16.6bn Q2 2016 Q3 2016 Q4 2016
Slide 7: Increased REA
Capital Increased REA SEKbn 425 • Exposure changes 420 415 – Higher mortgage exposures 17.3 0.5 410.7 410 – Lower corporate exposures 405 400 • Model adjustments in corporate 395 394.1 1.2 portfolio relating to default frequency 390 -1.8 -0.6 385 380 375 Q4 2016 Exposure Rating LGD Other credit Othe
Slide 8: Solid asset quality
Group Solid asset quality Credit impairments, SEKm Q1 17 Q4 16 ▲QoQ • Credit impairments in line with Swedish Banking -3 -44 41 expectations Baltic Banking -66 -15 -51 – Additional provisions for oil related Large Corporates & institutions 408 652 -244 exposures Swedbank Group 339 593 -254 Ratios Q1
Slide 9: Q&A
Q&A Birgitte Bonnesen (CEO), Anders Karlsson (CFO), Helo Meigas (CRO) © Swedbank Information class Public
Slide 10: Appendix
Appendix © Swedbank Information class Public
Slide 11: Swedbank – a low-risk bank with strong capital base
Swedbank – a low-risk bank with strong This is Swedbank capital base • Low risk – a Board of Directors’ strategic priority – ensures access to funding markets and low funding cost • Retail profile and four home markets a key feature – 86% of total loans originated in Sweden - Swedish mortgages accou
Slide 12: Swedbank – strong and stable earnings capacity
Swedbank – strong and stable earnings This is Swedbank capacity • Four home markets – Sweden, Estonia, Latvia and Lithuania – Strong and stable economies – Market-leading position in all home markets – Largest customer base in all home markets • Retail profile ensures stable earnings with low volati
Slide 13: Swedbank – market leader in cost efficiency
Swedbank – market leader in cost efficiency This is Swedbank • Best-in-class cost efficiency – an executive management strategic priority • Executive management strongly focused on cost and change management − Integrated in corporate culture − Focus on straight-through-processing − Evolving househol
Slide 14: Value creation
Value creation This is Swedbank NSFR LCR CET1 capital ratio, CRDIV (RHS) 180 30 160 25 140 120 20 100 15 80 60 10 40 5 20 0 0 2012 2013 2014 2015 2016 Q1 2017 © Swedbank Information class Mar 2017 14 Public
Slide 15: Oil sector under stress
Oil sector under stress Asset quality • Loan portfolio negatively impacted by lower oil price, SEK 15.8bn – 1.1% of total loans net – Derivatives exposures of SEK 2.3bn (incl. collateral) • Provisions of SEK 417m in Q1 9 Shipping & Offshore, loans gross, SEK 26bn 14 Oil related, exposure by risk gra
Slide 16: Conservative funding position
Conservative funding position Liquidity and • LCR 137% (Swedish FSA definition FFFS 2012:6) funding • NSFR 109% (Basel committee) • Issued SEK 86bn of term funding YTD Q1 2017 • Plan to issue around SEK 200bn in 2017 Term funding issuance – completed and planned Prefunded for more than 12 months SEK
Slide 17: Long-term funding maturity profile
Long-term funding maturity profile Liquidity and funding Long-term funding maturity profile, by funding source Long-term funding maturity profile, by currency SEKbn SEKbn 200 Senior unsecured debt Covered bonds 200 150 150 Other GBP 100 100 USD EUR 50 50 SEK 0 0 2017 2018 2019 2020 2021 2022 2023 20
Slide 18: Real estate price performance – Sweden, 12 month
Real estate price performance – Sweden, 12 month Single-family homes1 Tenant-owner rights2 Combined3 12M Δ 12M Δ 12M Δ Apr 16 12% 10% 11% May 16 11% 9% 11% Jun 16 11% 7% 10% Jul 16 10% 7% 8% Aug 16 9% 6% 8% House price index, Sweden3 Sep 16 9% 6% 8% 2005=100 260 Oct 16 8% 7% 7% 240 Nov 16 9% 7% 8% 2