Swedbank Ab Class A · OMXSTO:SWED_A
Swedbank Ab Class A — Q4 2014 Earnings Presentation
15 slides from Swedbank Ab Class A's earnings presentation, 2015
Slide 1: Swedbank Year-end report 2014
Swedbank Year-end report 2014 Michael Wolf, CEO Göran Bronner, CFO Anders Karlsson, CRO © Swedbank
Slide 2: Swedish Banking: Strong customer activity
Swedish Banking Strong customer activity SEKm Q4 14 Q3 14 ▲ QoQ ▲ YoY • Improved market position Net interest income 3 301 3 372 -71 -271 Net commission income 1 821 1 746 75 642 • Lower deposit margins Other income 433 449 -16 681 Total income 5 555 5 567 -12 1 052 • Flat mortgage margins Total exp
Slide 3: Baltic Banking: Stable result
Baltic Banking Stable result SEKm Q4 14 Q3 14 ▲ QoQ ▲ YoY • Stable income despite low interest Net interest income 863 865 -2 340 rate environment Net commission income 505 500 5 223 Other income 165 148 17 -81 • Solid asset quality Total income 1 533 1 513 20 482 – No impact from the situation in R
Slide 4: Large Corporates & Institutions: Solid result in volatile market
Large Corporates & Institutions Solid result in volatile market SEKm Q4 14 Q3 14 ▲ QoQ ▲ YoY • Increased market volatility Net interest income 888 876 12 90 Net commission income 529 561 -32 248 • Good corporate activity Net gains and losses 433 354 79 -33 – Strong real estate market Other income 20
Slide 5: Group results: Improved market position
Group results Improved market position SEKm Q4 14 Q3 14 ▲QoQ FY 14 ▲YoY • Strong customer activity Net interest income 5 809 5 829 -20 22 642 613 Net commission • Mixed margins 2 882 2 816 66 11 204 1 072 income Net gains and losses 69 799 -730 1 986 502 • Treasury result effects Other income 619 70
Slide 6: Strong capitalisation – regulatory uncertainty remains
Capital Strong capitalisation – regulatory uncertainty remains CET1 capital ratio, % • CET1 capital positively impacted 20.7% 21.2% − IAS 19 (SEK 1.1bn) 19.3% − Dividend from insurance company (SEK 1.3bn) • REA net increase of SEK 4.6bn − Loan volume growth − LGD and PD effects Q3 2014 Q4 2014 CET1
Slide 7: Strong asset quality in challenging environment
Asset quality Strong asset quality in challenging environment Credit impairments, SEKm Q4 14 Q3 14 FY 14 • Continued low loan losses Swedish Banking 147 43 246 • Limited impact from Russia Baltic Banking -10 -59 -186 Large Corporates & 120 270 381 Institutions Group Functions & Other -3 -19 -22 Swed
Slide 8: Shipping and Offshore
Asset quality Shipping and Offshore • Total portfolio of SEK 30bn Shipping and Offshore Loans net, SEKm – Moderate volume increase over 10 000 time 9 000 8 000 – USD based 7 000 6 000 5 000 • SEK 19bn negatively impacted by 4 000 3 000 lower oil prices 2 000 1 000 0 • Stress tests performed – Listed
Slide 9: Swedbank Year-end report 2014 – Q&A
Swedbank Year-end report 2014 Q&A
Slide 10: Appendix
Appendix Swedbank @ 10
Slide 11: Conservative provision ratio
Asset quality Conservative provision ratio SEKm 20 000 65% 64% Provision ratio, % Q4 14 62% 60% Swedish Banking 61 57% 56% 54% 54% 55% LC&I 62 53% 53% Baltic Banking 48 15 000 Group 53 2 040 1 774 10 000 1 545 10 951 1 420 5 000 9 934 1 398 1 325 7 077 1 256 1 238 1145 1 211 1 133 4 429 4 047 3 570
Slide 12: Lower funding needs
Liquidity and funding Lower funding needs • LCR 120% (Swedish FSA definition FFFS 2012:6) • NSFR 98% (Basel committee) • Issued SEK 115bn of term funding in 2014 • FY 2015 funding plan of around SEK 160bn Term funding issuance – completed and planned Prefunded in excess of 12 months SEKbn SEKbn Cove
Slide 13: Long-term funding maturity profile
Liquidity and funding Long-term funding maturity profile • Funding plan of around SEK 160bn to meet volume growth and next 12 months’ nominal SEK 110bn maturities Long-term funding maturity profile, by funding source Long-term funding maturity profile, by currency SEKbn SEKbn 200 200 Senior unsecure
Slide 14: Real estate prices – Sweden 12 months performance
Swedish housing and mortgage market Real estate prices – Sweden 12 months performance Single-family homes1 Tenant-owner rights2 Combined3 12M Δ 12M Δ 12M Δ Jan/14 7% 13% 9% Feb/14 7% 13% 9% Mar/14 7% 13% 9% Apr/14 8% 12% 9% May/14 8% 12% 9% Jun/14 8% 11% 9% Jul/14 9% 14% 11% Aug/14 9% 14% 11% Sep/14
Slide 15: Real estate prices – Baltic countries
1 000 1 200 1 400 1 600 1 800 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 0 200 400 600 800 Dec-05 Dec-05 Jun-06 Jun-06 Dec-06 Dec-06 EUR/m2 /No. of deals EUR/m2 /No. of deals Jun-07 Jun-07 Dec-07 Dec-07 Jun-08 Jun-08 Dec-08 Dec-08 Real estate prices Jun-09 Jun-09 Dec-09 No. of deals Dec-09 No.