Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Shareholder Meeting (March 2011)
36 slides from Nordea Bank Abp's shareholder meeting presentation, March 2011
Slide 1: 2010 – a milestone on the journey towards Great Nordea
2010 – a milestone on the journey towards Great Nordea Christian Clausen President and Group CEO Annual General Meeting, Stockholm March 2011
Slide 2: Key messages
Key messages • 2010 – important milestone on the journey towards Great Nordea – Came out stronger from the financial crisis – Embarked on prudent growth strategy with nine initiatives • The prudent growth strategy is now delivering – More customers, stronger relationships and more satisfied customer
Slide 3: Where we were in 2009 – two years ago
Where we were in 2009 – two years ago GDP development (indexed), 2007 = 100 AGM 2009 110 105 100 95 90 Q1 2007 Q1 2008 Q1 2009 3
Slide 4: Where we were in 2009 – two years ago
Where we were in 2009 – two years ago Profitable organic growth Middle of the road Great Nordea 07 08 09 10 Organic growth strategy • Keep income growth momentum Group initiatives launched to • Cost, risk and capital support the strategy take the lead • Enable us to accelerate out of the crisis 4
Slide 5: Where we were in 2010 – one year ago
Where we were in 2010 – one year ago GDP development (indexed), 2007 = 100 AGM AGM 2009 2010 110 105 100 95 90 Q1 2007 Q1 2008 Q1 2009 Q1 2010 5
Slide 6: Where we were in 2010 – one year ago
Where we were in 2010 – one year ago Profitable organic Middle of the Prudent growth growth road Great 07 08 09 10 11 12 Nordea Organic growth Next level strategy based on stronger strategy position • Keep income growth momentum Group initiatives Next generation of launched to support • Cost, risk a
Slide 7: Where we are today
Where we are today GDP development (indexed), 2007 = 100 AGM AGM AGM 2009 2010 2011 110 105 100 95 90 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q12011 7
Slide 8: Strong volume growth
Strong volume growth EUR billion, year end Lending Deposits 314.2 176.4 +11% +15% 282.4 153.6 2009 2010 2009 2010 Assets under management Total assets 191.0 580.8 +21% +14% 507.5 158.1 2009 2010 2009 2010 8 *Inklusive inlåning från allmänheten
Slide 9: 2010 results – strong business momentum
2010 results – strong business momentum EUR million 2009 2010 2009- 2010, % Highest net interest income ever in Q4 – Net interest income 5,281 5,159 -2 2010 only down Net fee and commission 1,693 2,156 27 slightly income Net result from items at fair 1,946 1,837 -6 value Other operating income 153 1
Slide 10: 2010 results – strong business momentum
2010 results – strong business momentum EUR million 2009 2010 2009- 2010, % Net interest income 5,281 5,159 -2 All types of Net fee and commission 1,693 2,156 27 income provision and fee Net result from items at fair 1,946 1,837 -6 income is up value Other operating income 153 182 19 Total operating
Slide 11: 2010 results – strong business momentum
2010 results – strong business momentum EUR million 2009 2010 2009- 2010, % Net interest income 5,281 5,159 -2 Net fee and commission 1,693 2,156 27 income Net result from items at fair 1,946 1,837 -6 value Down due to strong Other operating income 153 182 19 2009 Nordea Markets Total operating inco
Slide 12: Total income at record level due to strong underlying customer activity
Total income at record level due to strong underlying customer activity Total income, EUR million 9,334 9,073 +10% 8,697 7,933 2009 2010 Customer areas Other areas 12 *Nordic Banking, NEM, SOSI, FID, Life och Int’l PB
Slide 13: 2010 results – strong business momentum
2010 results – strong business momentum EUR million 2009 2010 2009- 2010, % Net interest income 5,281 5,159 -2 Net fee and commission 1,693 2,156 27 income Net result from items at fair 1,946 1,837 -6 value Other operating income 153 182 19 Total operating income 9,073 9,334 3 Total costs -4,512 -4,
Slide 14: 2010 results – strong business momentum
2010 results – strong business momentum EUR million 2009 2010 2009- 2010, % Net interest income 5,281 5,159 -2 Net fee and commission 1,693 2,156 27 income Net result from items at fair 1,946 1,837 -6 value Other operating income 153 182 19 Total operating income 9,073 9,334 3 Total costs -4,512 -4,
Slide 15: Loan losses in line with average cycle level
Loan losses in line with average cycle level Loan losses, bps Credit risk appetite: 25 bps 15
Slide 16: 2010 results – strong business momentum
2010 results – strong business momentum EUR million 2009 2010 2009- 2010, % Net interest income 5,281 5,159 -2 Net fee and commission 1,693 2,156 27 income Net result from items at fair 1,946 1,837 -6 value Other operating income 153 182 19 Total operating income 9,073 9,334 3 Total costs -4,512 -4,
Slide 17: 2010 results – strong business momentum
2010 results – strong business momentum EUR million 2009 2010 2009- 2010, % Net interest income 5,281 5,159 -2 Net fee and commission 1,693 2,156 27 income Net result from items at fair 1,946 1,837 -6 value Other operating income 153 182 19 Total operating income 9,073 9,334 3 Total costs -4,512 -4,
Slide 18: Ambitious long-term targets remain: Risk-adjusted profit
Ambitious long-term targets remain: Risk-adjusted profit Rolling four quarter compared with 2006 48.6% Target for average yearly growth 34.0% Q1 Q1 Q1 Q1 2007 2008 2009 2010 18
Slide 19: Ambitious long-term targets remain: Total shareholder return
19 -100 -80 -60 -40 -20 0 20 40 Allied Irish Banks Bank of Ireland RBS Commerzbank Lloyds 2007 – 1 February 2011 KBC Unicredit Societe Generale Barclays Intesa Sanpaolo Total shareholder return Swedbank SEB BBVA Danske Bank Erste Bank Ambitious long-term targets remain: BNP Paribas Santander DnBNOR
Slide 20: Group initiatives are on track in all areas
Group initiatives are on track in all areas Household relationship Corporate relationship New European strategy strategy Markets 1.Future 4.Growth plan 6.Growth plan distribution CMB Poland 2.New customer 5.Customer-driven acquisition Markets business 3.Growth plan Finland Efficiency initiatives 7.T
Slide 21: Specialising our branches
Future distribution Specialising our branches Specialised branches support the 360- • 82 branches operating in new degree meeting formats 360-degree meeting • Customers like it Savings and – Better service investments – Better advice • We like it Daily – More customer meetings Insurance banking – Mo
Slide 22: Continued strong demand in household segment
New customer Growth plan Finland Continued strong demand in acquisition household segment Household volumes 2010, EUR billion 136.7 Lending up 14% 74.5 Deposits up 7% 119.5 36.4 68.3 Investment funds up 19% 30.7 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 22 ¹Nordic Banking
Slide 23: Record inflow of new customers
New customer Growth plan Finland Record inflow of new customers acquisition New Private Banking and Gold customers, 2010 200,000 70,000 130,000 New Nordea Development of Total customers existing customers 23 ¹Nordic Banking
Slide 24: Strong income growth within CMB
Growth plan CMB Strong income growth within CMB Total income Lending Deposits EUR million EUR billion EUR billion 1,528 43.8 22.8 42.4 21.3 1,226 +25% +3% +7% 2009 2010 2009 2010 2009 2010 24
Slide 25: High ranking in equity and bond markets
Nordea High ranking in equity and bond markets Markets Nordic Corporate Eurobond benchmark league table 2009 – 2010 Bookrunner Pos. Bank name Deal value EURm No. % share 1 Deutsche Bank 3,792 19 16% 2 BNP Paribas 3,371 18 14% 3 Nordea Markets 2,667 16 11% 4 RBS 2,004 11 8% 5 Barclays Capital 1,900 1
Slide 26: New European Markets – a growth area
Growth plan Poland New European Markets – a growth area Poland numbers Investments in new branches … … deliver strong results Number of branches Income, EUR million 203 211 158 149 150 145 85 92 2007 2008 2009 2010 2007 2008 2009 2010 26
Slide 27: Strong efficiency improvements in customer areas
Strong efficiency improvements in customer areas Income per FTE # 360 meetings/PBA New Nordea customers Nordic Banking Nordic Banking Nordic Banking +13% +27% +14% Q4 2009 Q3 2010 Q4 2010 Q4 2009 Q3 2010 Q4 2010 Q4 2009 Q3 2010 Q4 2010 Based on FTEs in Branches 27 * Excl. Roskilde & Fionia
Slide 28: Strong productivity improvements
Strong productivity improvements #contracts/loans/cards/ Corporate payment invoices / FTE transactions / FTE IT production costs / Nordea Finance Transaction Products production volumes +25% +28% -19% 2008 2009 2010 2008 2009 2010 2008 2009 2010 28 * Nordic processor
Slide 29: Significant improvement in C/I ratio
Significant improvement in C/I ratio Per cent 64 -12% points 63 60 56 53 52 52 52 50 2002 2003 2004 2005 2006 2007 2008 2009 2010 29
Slide 30: Consistent income growth
Consistent income growth Income, EUR million 2,507 2,359 2,363 2,303 2,251 2,279 2,277 2,142 2,158 2,161 1,957 1,961 1,992 1,996 1,914 1,873 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 30
Slide 31: The new regulation falls in three categories
The new regulation falls in three categories Proposed changes Implications • Higher capital levels – incl. leverage ratio • More equity Capital and systemic risk • Higher quality of capital – more equity • Higher RWAs • Generally larger liquidity buffer of higher • Lower returns Liquidity quality •
Slide 32: Significantly higher capital requirements: Nordea is compliant
Significantly higher capital requirements: Nordea is compliant Expected Basel III capital requirements for European banks, per cent 10.3 7-10 0-3 ~7 7 ~4 <2 Select Average Average Minimum Counter- Total Nordea banks core tier 1 cyclical 2010, capital buffer year end Pre-crisis Current Future regulat
Slide 33: Size and composition of liquidity buffers will change
Size and composition of liquidity buffers will change: Nordea in good shape Nordea liquidity buffer, EUR billion 61 56 +18 +38 38 23 Short-term funding Liquidity buffer End 2007 End 2010
Slide 34: New funding regulation requires longer funding
New funding regulation requires longer funding: Nordea close to behavioral match funding Nordea average behavioural maturity, years 2.7 2.3 Assets Liabilities
Slide 35: New normal growth plan to be developed in 2011
New normal growth plan to be developed in 2011 Again: very crowded picture Profitable Middle of Prudent growth New normal organic growth the road growth plan Great Nordea 07 08 09 10 11 12 13 14 Organic growth Next level strategy Acceptable strategy based on stronger sustainable growth position and
Slide 36: New normal growth plan to be developed in 2011
New normal growth plan to be developed in 2011 Again: very crowded picture Profitable Middle Prudent organic growth of the growth New normal growth plan road Great Nordea 07 08 09 10 11 12 13 14 Organic growth Next level Acceptable sustainable growth strategy strategy based on stronger and ROE – a n