Slide 1: Swedbank year-end report 2016
Swedbank year-end report 2016 Birgitte Bonnesen (CEO), Anders Karlsson (CFO), Helo Meigas (CRO) © Swedbank
Slide 2: Swedish Banking: Strong result
Swedish Banking Strong result SEKm Q4 16 Q3 16 ▲ QoQ • Net interest income Net interest income 3 903 3 802 101 – Back-book mortgage repricing Net commission income 1 789 1 806 -17 – Mortgage volume growth of which Other income 369 413 -44 SEK 12.7bn from acquired portfolio1 Total income 6 061 6 021
Slide 3: Baltic Banking: Robust performance
Baltic Banking Robust performance SEKm Q4 16 Q3 16 ▲ QoQ • Net interest income Net interest income 1 061 1 045 16 – Mixed margins Net commission income 582 511 71 – Deposit volume growth Other income 213 185 28 Total income 1 856 1 741 115 • Net commission income Total expenses 704 644 60 – Asset ma
Slide 4: Large Corporates & Institutions: Stable result
Large Corporates & Institutions Stable result SEKm Q4 16 Q3 16 ▲ QoQ • Net interest income Net interest income 908 833 75 – Higher average loan volumes Net commission income 691 542 149 – FX and one-off effects Net gains and losses 530 583 -53 Other income 13 18 -5 • Net commission income Total inco
Slide 5: Group results: Strong financial position
Group results Strong financial position SEKm Q4 16 Q3 16 ▲QoQ • Net interest income Net interest income 6 247 6 062 185 − Higher mortgage margins Net commission income 3 055 2 838 217 − Mortgage loan volume growth Net gains and losses 285 669 -384 Other income 607 696 -89 • Asset management and brok
Slide 6: Capital: Strong capitalisation – no excess capital
Capital Strong capitalisation – no excess capital CET1 capital ratio, % • CET1 capital increased by SEK 25.0% 2.6bn 23.7% 23.8% 23.0% 21.9% − Positive effect from net profit of SEK 0.9bn (0.2%) excl. dividend − Positive pension liability (IAS19) effect of SEK 1.4bn (0.4%) • REA decreased by SEK 9.6b
Slide 7: Capital: Lower REA
Capital Lower REA Risk exposure amount • Exposure changes SEKbn 420 – Higher mortgage exposures 415 – Lower corporate exposures 410 403.7 0.4 – FX 405 400 -2.7 395 -2.4 394.1 • Positive PD migrations -4.9 390 385 • Increased collateral values 380 375 • Lower market risk 370 Q3 2016 Exposure Rating L
Slide 8: Asset quality: Solid asset quality
Asset quality Solid asset quality Credit impairments, SEKm Q4 16 Q3 16 ▲QoQ • Credit impairments in line with Swedish Banking -44 41 -85 expectations Baltic Banking -15 -28 13 – Mainly in oil-related exposures Large Corporates & 652 188 464 Institutions Swedbank Group 593 201 392 Ratios Q4 16 Q3 16
Slide 9: Q&A
Q&A Birgitte Bonnesen (CEO), Anders Karlsson (CFO), Helo Meigas (CRO)
Slide 10: Appendix
Appendix Swedbank @ 10
Slide 11: Group results FY 2016: Strong result
Group results – FY 2016 Strong result SEKm FY 2016 FY 2015 ▲YoY • ROE of 15.8% Net interest income 23 664 22 993 671 Net commission income 11 333 11 199 134 • CET1 capital ratio of 25.0% Net gains and losses 2 231 571 1 660 • NII increase Other income 4 407 2 861 1 546 Total income 41 635 37 624 4 0
Slide 12: Swedbank – a low-risk bank with strong capital base
This is Swedbank Swedbank – a low-risk bank with strong capital base • Low risk – a Board of Directors’ strategic priority – ensures access to funding markets and low funding costs • Retail profile and four home markets a key feature – 86% of total loans originated in Sweden - Swedish mortgages acco
Slide 13: Swedbank – strong and stable earnings capacity
This is Swedbank Swedbank – strong and stable earnings 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 14: Swedbank – market leader in cost efficiency
This is Swedbank Swedbank – market leader in cost efficiency • 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 15: Value creation
This is Swedbank Value creation % SEK 30 14 * 25 12 10 20 8 15 6 10 4 5 2 0 0 2012 2013 2014 2015 2016 Return on equity (LH scale) CET1 capital ratio (LH scale) Dividend per share (RH scale)* * Dividend proposal from the Board of Directors (for the financial year 2016) - to be decided by the Annual
Slide 16: Asset quality: Oil sector under stress
Asset quality Oil sector under stress • Loan portfolio negatively impacted 10 Shipping & Offshore, loans, gross, SEK 29bn 9 by lower oil price, SEK 16.8bn 8 2015-12-31 2016-12-31 59% of the portfolio is negatively 7 impacted by lower oil – 1.2% of the total loan book 6 price 5 4 – Derivative exposur
Slide 17: Conservative funding position
Liquidity and funding Conservative funding position • LCR 156% (Swedish FSA definition FFFS 2012:6) • NSFR 108% (Basel committee) • Issued SEK 160bn of term funding in 2016 • Plan to issue around SEK 200bn in 2017 Term funding issuance – completed and planned Prefunded for more than 12 months Covere
Slide 18: Long-term funding maturity profile
Liquidity and funding Long-term funding maturity profile 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- 2
Slide 19: Real estate price performance – Sweden, 12 month
Swedish housing and mortgage market Real estate price performance – Sweden, 12 month Single-family homes1 Tenant-owner rights2 Combined3 12M Δ 12M Δ 12M Δ Jan 16 14% 16% 15% Feb 16 13% 14% 13% Mar 16 12% 12% 12% Apr 16 12% 10% 11% May 16 11% 9% 11% Jun 16 11% 7% 10% House price index, Sweden3 2005=1