Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Investor Presentation (November 2017)
15 slides from Nordea Bank Abp's investor presentation, Nov 13, 2017
Slide 1: Wholesale Banking
Wholesale Banking Stockholm 2017-11-13 1 Martin Persson, Head of Wholesale Banking
Slide 2: Wholesale Banking contribution to group
Wholesale Banking contribution to group Key figures – YTD 17 (Q1-Q3) OPERATING INCOME OPERATING PROFIT ECONOMIC CAPITAL FTEs 22% 21% 30% 12% Wholesale Banking Nordea Group 2
Slide 3: Simple and flat business structure
Simple and flat business structure Governance Key figures – YTD 17 (Q1-Q3) Income Wholesale € 1.6bn Banking FTE ~4000 C/I 44% C&IB* Markets COO Russia RoCaR 8% 3 *Includes Shipping oil & offshore
Slide 4: Unique strategic positioning
Unique strategic positioning Strategic position Market leader International competition (Size and span of competences) Product dimension: Relevance Local competition Customer dimension: Intensity (Local presence and customer closeness) 4
Slide 5: Strong corporate client momentum in Sweden
Strong corporate client momentum in Sweden 5
Slide 6: Well diversified income and lending mix
Well diversified income and lending mix Operating income split YTD - 17 (Q1-Q3) Lending per industry - 17 Q3 8% 17% Russia 21% 18% 14% SE Other SOO SOO* 2% Transport 3% Consumer 3% Material 4% Energy Real Estate 18% NO 13% 14% FIG* Utilities 4% Retail FI Institutional ** DK 8% Industrial 17% 13% 14%
Slide 7: Transition from bank to capital markets financing
Transition from bank to capital markets financing Income Economic capital 100% 9000 90% 21% 19% 22% 8000 26% 24% 28% 28% 80% 7000 70% 6000 32% 38% 60% 36% 28% 34% 35% 35% 5000 50% 4000 40% 3000 30% 47% 46% 2000 20% 42% 43% 42% 37% 37% 10% 1000 0% 0 2011 2012 2013 2014 2015 2016 2017 Annualised Net I
Slide 8: Active business selection and de-risking of loan portfolio
Active business selection and de-risking of loan portfolio Net interest income (Q1 2016 rebased to 100) 102 100 88 90 86 80 70 60 52 50 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 WB SOO Russia WB excluding Russia & SOO 8
Slide 9: Strategic focus in growing ancillary income
Strategic focus in growing ancillary income Debt Capital Markets deal value, €bn Mergers & Acquisitions deal value, €bn 70 12 Thousands Thousands +9%** +28%** 60 10 50 8 40 6 30 20 4 10 2 0 0 2011 2012 2013 2014 2015 2016 2017* 2011 2012 2013 2014 2015 2016 2017* Equity Capital Markets deal value,€b
Slide 10: Leading Nordic franchise in debt capital markets
Leading Nordic franchise in debt capital markets 10
Slide 11: Shipping oil and offshore
Shipping oil and offshore RoCaR development* 25% 20% 15% Average*** 13.2% 10% 5% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD** Loan Losses, % Average 0.43%*** 0.19 -0.1 0.03 -0.1 -0.1 -0.01 0.00 0.08 0.75 0.33 1 1.85 0.83 -0.32 0.05 1.22 1.27 2017 2001
Slide 12: Nordea Markets - resilient income generation despite record low volatility
Nordea Markets - resilient income generation despite record low volatility VIX index YTD 17 Markets income €bn 2017 2016 2015 2014 45 40 1.5 1.4 1.4 35 1.2 30 25 20 15 10 5 0 jan feb mar apr maj jun jul aug sep 2014 2015 2016 2017 Annualised 12 *Stability fund fees and IAS adjustment have been exclu
Slide 13: Wholesale Banking transformation
Wholesale Banking transformation Key transformation initiatives Cost efficiencies and quality gains Where do the cost efficiencies come from? Distribution/ IT & Channels/ High High Business strategy unchanged, #1 relationship bank in the Nordics Operations Service model • Streamlined customer servic
Slide 14: Value drivers going forward – looking ahead
Value drivers going forward – looking ahead GDP growth Interest rates Volatility Regulation Market characteristics ~2% 0% Low High Lending Income NII Cost/Income Top line characteristics Pricing Fee & Comm. EC Loan losses Value drivers Market position Return Value creation #1 12% 14
Slide 15: Thank you!
Thank you! 15
Nordea Bank Abp — Investor Presentation (November 2017) on 6ix