Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea — Q1 2003 Earnings Presentation
175 slides from Nordea Bank Abp's earnings presentation, May 7, 2003
Slide 1: Presentation for Investors 7 May 2003
Presentation for Investors 7 May 2003
Slide 2: Contents
Contents z Financial highlights Q1/03 Page 3 z Credit quality Page 39 z Economic capital Page 58 z Nordea Page 63 z Business areas Page 71 z Balance sheet Page 113 z Market shares Page 120 z Appendix Page 135 2
Slide 3: Financial highlights Q1/03
Financial highlights Q1/03 3
Slide 4: Result influenced by lower interest rates
Result influenced by lower interest rates z Operating profit EUR 380m (EUR 446m) z Total income decreased by 6% compared to fourth quarter following lower interest rates and weak equity markets z Total expenses down 8% z Loan losses EUR 98m (EUR 76m), or 0.27% of loans and guarantees z Earnings per
Slide 5: Areas of attention – development on track
Areas of attention – development on track z Reduced volatility – maintained low equity exposure z Capital efficiency maintained – strong capital position z Credit quality remains stable – loan losses in isolated areas z Cost level according to plan – Q1 costs 2% lower than quarterly average in 2002
Slide 6: Increasing focus
Increasing focus z Nordisk Renting sold to Royal Bank of Scotland z Changed business model in investment banking activities z Further reduction of real estate exposure being prepared 6
Slide 7: Key figures
Key figures EUR Earnings per share % Return on equity (excl. goodwill) 0.12 20 18 0.10 16 14 0.08 12 0.06 10 8 0.04 6 4 0.02 2 0.00 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 7
Slide 8: Earnings per share – 12 months rolling
8 Q 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 1/ EUR 20 00 Q 2/ 20 00 Q 3/ 20 00 Q 4/ 20 00 Q 1/ 20 01 Q 2/ 20 01 Q 3/ 20 01 Q 4/ 20 01 Q 1/ 20 02 Q 2/ 20 02 Earnings per share – 12 months rolling Q 3/ 20 02 Q 4/ 20 02 Q 1/ 20 03
Slide 9: Market development – stock market indexes
Market development – stock market indexes % 20 15 10 5 0 -5 -10 -15 Q4/02 Q1/03 Copenhagen Helsinki Oslo Stockholm Nasdaq Dow Jones 9
Slide 10: Market development – interest rates
Market development – interest rates % 31-12-02 31-03-03 Change Short, EUR (one week) 3.00 2.50 -0.50 Long, EUR (5 years) 3.41 3.27 -0.14 Short, DK 3.06 2.70 -0.36 Long, DK 3.68 3.41 -0.27 Short, NO 6.69 5.50 -1.19 Long, NO 5.43 5.11 -0.32 Short, SE 3.85 3.55 -0.30 Long, SE 4.14 4.09 -0.05 10
Slide 11: Net interest income
Net interest income EURm 1000 z Lower short-term interest rates 874 885 800 837 855 835 z Decreased deposit margins z Two days less in Q1 600 compared to Q4 z Increased volumes 400 200 z Improved corporate lending margins year-on-year 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 11
Slide 12: Structural Interest Income Risk (SIIR)
Structural Interest Income Risk (SIIR) EURm Annualised effect on NII Increasing market rates, 100bp 92* Decreasing market rates, 100bp -177* *Approximately, end Q1/03 z SIIR is defined as the effect on net interest income (NII) in the next 12 months if market rates change by one percentage point z T
Slide 13: Commission income
Commission income EURm 388 500 396 380 371 61 z Weak equity markets 50 353 38 50 44 – AuM down 1% 400 91 87 86 95 – Brokerage and custody down 88 300 55 46 38 35 z Commission from 24 157 183 189 195 179 payments reduced – Number of payment 200 transactions decreased z Commission expenses 100 126 115
Slide 14: Trading
Trading EURm 180 z Leading Nordic provider of 160 157 derivatives and debt capital 140 136 137 market services 120 127 130 100 z High level of activity and 80 strong customer demand 60 z High quality earnings 40 – Customer driven revenue stream 20 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 14
Slide 15: Expenses
Expenses EURm 993 1000 922 925 448 z Developed according to plan 905 917 408 404 399 397 z Down 8% compared to Q4 800 2002 – Lower restructuring costs 600 – Seasonal factors in Q4 521 545 520 – Underlying cost reductions 506 514 400 z 2% below quarterly average 2002 200 z Expenses increased 1% year-
Slide 16: Loan losses
Loan losses EURm 100 z Losses in isolated areas 98 – Concentrated to provisions on one corporate client and Norwegian 75 Retail portfolio 76 66 z 0.27% of total loans and 63 50 56 guarantees annualised in Q1 25 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 16
Slide 17: Investment earnings, banking
Investment earnings, banking EURm 50 z Gains on fixed-income portfolio 40 39 41 z Gain of EUR 24m included in Q4, Europay AS 30 31 29 20 10 11 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 17
Slide 18: Profit, insurance
Profit, insurance EURm 60 z Investment return down to 40 44 1.4% (2.7% in Q4) 20 -3 -13 19 0 z Normalised operating -31 -26 -20 -4 margin stable -40 -60 z Net written premiums -87 -80 decreased -100 – Fourth quarter seasonally high -120 -140 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 z Volatility reduced Life Ge
Slide 19: Income statement summary
Income statement summary EURm Q1/03 Q4/02 Change Q1/02 % Income 1,374 1,457 -6 1,382 Expenses -917 -993 -8 -905 Loan losses -98 -76 29 -63 Equity method 14 16 15 Profit before inv. earnings and insurance 373 404 -8 429 Investment earnings, banking 29 41 11 Operating profit, life insurance 19 44 -3 O
Slide 20: Results by business area
Results by business area EURm 500 400 300 345 348 200 100 138 109 61 33 27 58 0 -100 -128 -168 -200 Retail CIB Asset Mgmt & Group Other Life Treasury Q4/02 Q1/03 20
Slide 21: Retail Banking operating profit
Retail Banking operating profit EURm 450 z Strong sales 400 424 418 411 z Pressure on deposit margins 350 345 348 z Loan losses in Retail Banking 300 Norway 250 z Unchanged operating profit 200 150 Key ratios Q1/03 2002 100 C/I ratio, % 60 58 50 RoE, % 22 22 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 21
Slide 22: CIB operating profit
CIB operating profit EURm 150 z Continued strong deal flow 138 120 z Weak income from equity 127 123 123 related activities 109 90 z Changed business model in investment banking activities 60 z Cost savings achieved 30 Key ratios Q1/03 2002 C/I ratio, % 50 54 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 RoE, % 1
Slide 23: Asset Management, product result
Asset Management, product result EURm 60 z Improved inflow 56 50 – 8% annualised 49 z AuM down 1% 40 38 z Continued focus on efficiency 35 30 31 measures 20 Key ratios Q1/03 2002 10 C/I ratio*, % 74 66 AuM, EURbn 95 96 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 *Customer responsible units 23
Slide 24: Profit, Life Insurance
Profit, Life Insurance EURm 50 z Investment return down to 40 44 1.4% (2.7% in Q4) z Normalised operating margin 30 stable 20 z Net written premiums 19 10 decreased – Fourth quarter seasonally high 0 -3 -10 -13 -26 Key ratios Q1/03 2002 -20 Inv return, % 1.4 0.2 -30 Financial 3.0 3.1 Q1/02 Q2/02 Q3/
Slide 25: Other column
Other column Q1/03 Q4/02 z Funding cost for acquisition Income -55 -67 of Nordea Bank Norway z Expenses in Group functions Expenses -99 -122 not defined as service offered Loan losses 9 60 to business areas z Change in central provisions Equity method 9 14 z Depreciation of goodwill Investment earni
Slide 26: Areas of attention – development on track
Areas of attention – development on track z Reduced volatility – maintained low equity exposure z Capital efficiency maintained – strong capital position z Credit quality remains stable – loan losses in isolated areas z Cost level according to plan – Q1 costs 2% lower than quarterly average in 2002
Slide 27: Reduced volatility – maintained low equity exposure
Reduced volatility – maintained low equity exposure z Successfull measures taken in second half of 2002 z Volatility in Life result reduced z Pension commitments covered by assets z Reduced exposure in Treasury portfolio 27
Slide 28: Life - investments
Life - investments EURbn. End of period 25 22.1 z Equities – Predominantly listed equities 20 – 50/50 Nordic/international z Bonds 15 – ¾ Nordic issuers 10 – Primarily govmn’t & mortgage inst. 5 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Equities Bonds Real estate Unit linked 28
Slide 29: Life - asset allocation
Life - asset allocation Total, EURbn Equities, % End of period Q1/03 Q4/02 Q1/03 Q4/02 Denmark 10.6 10.4 14* 15* Finland 5.6 5.5 13 13 Norway 3.1 3.2 6 6 Sweden 2.4 2.5 2 0 Total 21.7 21.6 11 11 Total equity exposure including hedge, % 4.5 *Hedged 29
Slide 30: Life - solvency situation
Life - solvency situation End of Q1/03 Required Actual Solvency Solvency in % EURm solvency solvency buffer of requirement Denmark 430 480 50 112 Finland 201 447 246 222 Norway 122 199 76 163 Sweden 63 106 44 170 30
Slide 31: Life – financial buffers
Life – financial buffers* EURm % of guaranteed liabilities Q1/03 Q4/02 Q1/03 Q4/02 Denmark 363 368 3.9 3.9 Finland 123 137 2.8 3.3 Norway 5 5 0.2 0.2 Sweden 44 41 2.9 2.7 Total 535 551 3.0 3.1 * Financial buffers are defined in accordance with local regulations and practices. 31
Slide 32: Pension commitments
Pension commitments z Defined benefit plans in Sweden, Finland and Norway mainly covered by pension funds under local regulation z Nordea intends to implement RR29/IAS19 during 2003 z Transitional value will be recognised as reduction of equity 32
Slide 33: Pension commitments – financial structure in Finland, Sweden and Norway
Pension commitments – financial structure in Finland, Sweden and Norway Finland Sweden Norway Total End of period, EURm Q1/03 Q4/02 Q1/03 Q4/02 Q1/03 Q4/02 Q1/03 Q4/02 Assets 558 583 717 723 280 288 1,555 1,594 Pension commitments 537 537 854 844 465 493 1,856 1,874 Funded status 21 46 (137) (121) (
Slide 34: Cost level – according to plan
Cost level – according to plan z Target of same cost level through 2003 and 2004 as in 2002 – Total expenses in 2002 were EUR 3,745m z Ongoing cost reductions will have a gradual effect throughout the year z Specific initiatives include: – IT development costs capped at 80% of 2002 level – Structura
Slide 35: Capital efficiency maintained – strong capital position
Capital efficiency maintained – strong capital position z Tier 1 ratio 7.2% (target 6.5%) and total capital ratio 9.7% end of Q1 z Nordisk Renting sold to Royal Bank of Scotland – Expected gain of EUR 30m – Subject to regulatory approval z Further reduction of real estate exposure being prepared – S
Slide 36: Balance sheet - key items
Balance sheet - key items Change, 12 EURbn. End of period Q1/03 Q4/02 Q1/02 months % Lending 147.0 145.7 142.0 4 Deposits 92.1 91.7 85.6 8 Shareholders’ equity 12.1 11.9 12.2 0 Total assets 261.9 249.6 253.0 4 Risk-weighted assets 136.6 134.7 139.9 -4 36
Slide 37: Capital adequacy
Capital adequacy Tier 1 ratio Total capital ratio % % 10 12 9 10 8 9.9 9.7 7 9.2 8.9 9.0 7.2 7.4 7.1 7.2 8 7.0 6 5 6 4 4 3 2 2 1 0 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 37
Slide 38: Outlook
Outlook 2003 outlook z Market expectations for growth in the Nordic area have been revised downwards in Q1 z Scope for revenue growth may be further limited z Sharp attention on cost control will be maintained, aiming at flat costs on a full year basis z Uncertainty in the global economy may lead to
Slide 39: Credit quality
Credit quality 39
Slide 40: Credit quality – losses in isolated areas
Credit quality – losses in isolated areas z Overall credit quality remains stable z No major changes in composition of loan portfolio in Q1 z Fish-farming industry in Norway still experiencing profitability problems – Weaker currency in Q1 to some extent countered effects of depressed salmon prices
Slide 41: Loan portfolio by customer group
Loan portfolio by customer group End of Q1/03 EUR 147.0bn Public sector 2% Personal customers 40% Companies 58% 41
Slide 42: Lending to personal customers
Lending to personal customers End of Q1/03 EUR 58.6bn Other loans comprise: Other loans z Consumer credits 24% z Investment credits z Car financing z Overdraft facilities z Credit cards Housing loans 76% 42
Slide 43: Lending to companies by industry
Lending to companies by industry End of Q1/03 Transport, EUR 85.1 bn communication Agriculture & 4% Construction Fishing 3% 5% Real estate Shipping & 27% offshore 6% Other companies 6% Renting, consulting and other services 10% Manufacturing Commerce and 16% services Finance 10% 43 13%
Slide 44: Loan portfolio
Loan portfolio EUR bn. End of period Q1/03 Q4/02 Q3/02 Q2/02 Q1/02 Personal customers 58.6 57.9 56 55 52 Real estate 22.6 22.4 23 22 22 Construction 2.9 3.1 3 3 3 Transport, communication 3.5 3.5 3 4 4 Trade and services 8.9 8.3 9 9 8 Manufacturing 13.5 13.9 15 15 16 Finance 10.7 9.1 9 8 7 Renting,
Slide 45: Lending by geographical area
Lending by geographical area End of Q1/03 EUR 147bn Latin America Asia 0.8% Non-OECD 0.6% 0.9% USA Other OECD Nordic countries 1.3% 0.7% 90.5% Other 9.5% The Baltic states and Poland 0.8% Other EU countries 4.4% Nordic countries, EUR 133bn z Denmark 36 z Finland 29 z Norway 23 45 z Sweden 45
Slide 46: Transfer risk exposure
Transfer risk exposure EURm. End of Q1/03 Asia 602 Latin America 294 -of which China 204 -of which Brazil 148 South Korea 134 Mexico 60 Indonesia 28 Chile 33 Panama 26 Argentina 5 Middle East 325 -of which Iran 114 Turkey 68 46
Slide 47: Nordea telecom financing portfolio
Nordea telecom financing portfolio Divided by operators and manufacturers End of Q1/03 Total exposure approx EUR 5.3 bn Manufactures z Total outstanding EUR 3.2bn 29% z Majority of exposure related to – major Nordic equipment manufacturers – major Nordic telecom operators z ECA or cash cover for 9%
Slide 48: Nordea fisheries financing
Nordea fisheries financing End of Q1/03 Total exposure approx EUR 2.3 bn Fish processing/ export z Total outstanding EUR 2.0bn 25% Fish z Mainly Norwegian exposure farming 42% z Fish farming the troubled area z Salmon prices still depressed Fishing vessels 33% 48
Slide 49: Nordea shipping portfolio
Nordea shipping portfolio Distribution by type of vessel End of Q1/03 Total exposure approx EUR 5.9bn Other dry cargo Combined Reefers 4% vessels 1% z Outstanding, EUR 5.2bn 5% Misc.loans Cruise 13% z Well diversified portfolio 5% Crude tankers by type of vessel Pure car carries 14% 5% z Focus on la
Slide 50: Lending to real estate companies by country
Lending to real estate companies by country End of Q1/03 Total exposure approx EUR 22.6 bn z Largest industry exposure Denmark 8% z Relatively large and Norway financially strong companies 20% Sweden 51% z High level of collateral coverage z Lending to residential real estate companies approx Finlan
Slide 51: Impaired loans
Impaired loans EURm. End of period Mar 02 Dec 02 Sept 02 June 02 Mar 02 Impaired loans, gross 2,892 3,260 3,136 3,180 3,132 Provisions -2,087 -2,153 -2,290 -2,305 -2,291 Of which: Specific provisions -1,630 -1,698 -1,834 -1,836 -1,829 Appraised by category -64 -64 -79 -79 -82 General provisions -393
Slide 52: Impaired loans
Impaired loans EURm. End of period, Q1/03 Gross Provisons Net Personal customers 504 292 212 Real estate 204 141 63 Construction 71 54 17 Transport, communication 179 155 24 Trade and services 230 167 63 Manufacturing 324 241 83 Finance 59 47 12 Renting, Consulting and other services 269 248 21 Othe
Slide 53: Loan losses
Loan losses EURm 400 z Losses in isolated areas 300 – Concentrated to provisions on 219 236 one corporate client and 184 181 Norwegian Retail portfolio 200 168 98 100 63 56 66 76 z 0.27% of total loans and guarantees annualised in 0 Q1 -100 -105 -115 -128 -143 -138 -200 -300 Q1/02 Q2/02 Q3/02 Q4/02
Slide 54: Comments on certain industries: Real estate
Comments on certain industries Real estate z Vacancy rates increasing from very low levels in commercial real estate z Rent levels down from peak but still higher than original levels 3-5 years ago z Low interest rates help secure cash flow and secondary market values z New construction volumes adju
Slide 55: Comments on certain industries: Telecom
Comments on certain industries Telecom z Nordic operators have strengthened their positions z Handsets keeping up fairly well as new applications introduced z Delayed investments in 3G affect equipment suppliers and subcontractors z Consolidation in the industry continues 55
Slide 56: Comments on certain industries: Travel and Aircraft Finance
Comments on certain industries Travel and Aircraft Finance z Iraq war and SARS added to previous problems z Capacity heavily reduced to meet lower demand z Aircraft values decreased further z US, Asian and cross-atlantic operators suffering most 56
Slide 57: Comments on certain industries: Shipping and Offshore
Comments on certain industries Shipping and Offshore industry z Slower economic growth generally affects the industry negatively z Container ships recovering, tanker rates very volatile z Industrial shipping doing reasonably well z Cruising market affected by global uncertainty z Offshore industry s
Slide 58: Economic capital
Economic capital 58
Slide 59: Economic capital
Economic capital z Economic capital is the capital required by Nordea to cover unexpected losses z 6 different risk categories are incorporated z The measurement period is one year z The confidence level is 99.97% z The economic capital may change over time due to: – the composition of risk exposure
Slide 60: Economic capital
Economic capital EURbn 12 z Economic capital reduced by 11 EUR 0.6bn since end of 2002 10 10.7 10.4 10.1 9 9.9 9.5 z Credit risk capital reduced by 8 both adjusted parameters and 7 lower exposure 6 z New model for Life insurance 5 4 reduced economic capital 3 somewhat 2 z Market risk capital increas
Slide 61: Economic capital per business area
Economic capital per business area End of Q1/03 EUR 9.5bn Other 10% Treasury 5% Asset Mgmt & Life 13% Retail 50% CIB 22% 61
Slide 62: Distribution of economic capital - by risk category
Distribution of economic capital - by risk category End of Q1/03 Real estate risk Life risk 6% 1% Business risk 9% Operational risk 9% Credit risk 57% Market risk 18% 62
Slide 63: Nordea
Nordea 63
Slide 64: Mission and Vision
Mission: ‘Making it possible’ By providing a broad set of easily accessible and competitive financial services and solutions, Nordea helps customers where we operate to reach their objectives. Vision We will be valued as the leading financial services group in the Nordic and Baltic financial markets
Slide 65: Strategic direction and top priorities
Strategic direction and top priorities Sustainable growth of economic profit Top priorities z Reduce volatility and ensure growth of income Establish a Ensure stable and operational z Speed-up integration Optimise risk broadly excellence and unification taking and based and cost use of capital z Imp
Slide 66: Top priorities firmly anchored throughout the Group
Top priorities firmly anchored throughout the Group Retail Banking Corporate and Asset Management Other / Group Top priorities Institutional Banking & Life Reduce volatility and • Increase share of wallet for • Enhance position among • Capture share of expected ensure growth of personal customers in
Slide 67: Financial targets
Financial targets Key performance indicator Q1/03 2002 2001 Target Total shareholder return, peer group 15 16 In the top five of the peer group ranking Return on equity excluding goodwill, % 12.2 11.3 19.2 Sustainable RoE>15% from 2004 Costs, EURm 917 3,745 3,389 Same cost level through 2004 as in 2
Slide 68: European banks by market cap
European banks by market cap HSBC RBOS UBS BARCLAYS LLOYDS TSB HBOS BNP PARIBAS SANTANDER BBVA DEUTSCHE BANK CREDIT SUISSE ABN AMRO SOCIETE GENERALE UNICREDITO NORDEA DEXIA BANCA INTESA ALLIED IRISH BANKS DANSKE BANK BANK OF IRELAND SAN PAOLO IMI KBC SHB HYPOVEREINSBANK MEDIOBANCA 0 10 20 30 40 50 6
Slide 69: Strong distribution network throughout the Nordic and Baltic Sea region
Strong distribution network throughout the Nordic and Baltic Sea region Finland Branch offices 415 Personnel 10,200 Sweden Branch offices 263 Helsinki Personnel 8,300 Stockholm St Petersburg Norway Oslo Tallinn Branch offices 146 Copenhagen Riga Personnel 4,300 Vilnius Moscow Hamburg Denmark Warzawa
Slide 70: Large customer base with high penetration in e-banking
Large customer base with high penetration in e-banking Baltic Sea Total DK FI NO SE Region Banking customers (1,000) Personal customers 1,600 3,000 600 4,200 250 9,700 Corporate customers 80 330 65 460 30 965 Life insurance customers (1,000) 620 290 215 460 35 1,620 Net banking customers (1,000) 470
Slide 71: Business areas
Business areas 71
Slide 72: Results by business area
Results by business area EURm 500 450 400 350 345 348 300 250 200 150 138 100 109 50 61 58 33 27 0 Retail CIB Asset Mgmt & Life Group Treasury Q4/02 Q1/03 72
Slide 73: Retail Banking
Retail Banking 73
Slide 74: Retail Banking operating profit
Retail Banking operating profit EURm 450 z Strong sales 400 424 418 411 z Pressure on deposit margins 350 345 348 z Loan losses in Retail Banking 300 Norway 250 z Unchanged operating profit 200 150 Key ratios Q1/03 2002 100 C/I ratio, % 60 58 50 RoE, % 22 22 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 74
Slide 75: Retail Banking operating profit by markets
Retail Banking operating profit by markets Retail DK FI NO SE P&B EURm Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Net interest income 744 782 197 205 198 222 119 115 222 229 10 9 Non-interest income 319 343 89 79 76 79 42 60 101 113 10 9 Total income 1,063 1,125 286 284 274 301 161 175 323 342 20 18 Total
Slide 76: Retail Banking lending
Retail Banking lending EURbn. End of period 40 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Q4/02 Q1/03 Certain minor organisational changes have been made, which has been reflected in historical figures 76
Slide 77: Retail Banking deposits
Retail Banking deposits EURbn. End of period 25 20 15 10 5 0 Denmark Finland Norway Sweden Q4/02 Q1/03 Certain minor organisational changes have been made, which has been reflected in historical figures 77
Slide 78: Retail Banking deposits
Retail Banking deposits EURbn. End of Q1/03 25 20 9.1 4.5 15 6.4 2.2 6.5 6.4 1.1 10 3.8 9.0 5 6.0 6.0 6.0 0 Denmark Finland Norway Sweden Corporate Personal customer - saving accounts 78 Personal customer - current accounts
Slide 79: Retail Banking, volumes and margins
Retail Banking, volumes and margins Volumes Margins EURbn Q1/03 Q4/02 Q1/03 Q4/02 Lending to corporates 58.6 57.4 1.2% 1.2% Lending to personal customers 57.2 56.4 1.7% 1.6% Total lending 115.8 113.8 1.4% 1.4% Deposits from corporates 28.1 28.6 1.1% 1.2% Deposits from personal customers 40.1 40.0 1.
Slide 80: Retail Banking, lending and deposit margins
Retail Banking, lending and deposit margins Margin development 2.0 z Margins exclude Poland 1.9 & Baltic 1.8 1.7 z Figures are quarterly 1.6 averages 1.5 1.4 1.3 1.2 1.1 1.0 02 02 02 02 03 1/ 2/ 3/ 4/ 1/ Q Q Q Q Q 80 Lending Deposit
Slide 81: E-banking & transactions
E-banking & transactions 81
Slide 82: E-banking customers
E-banking customers E-banking customers Equity trading customers Mill. Thousands 3.5 350 300 3 250 2.5 200 2 150 100 1.5 50 1 0 00 01 2 02 3 00 01 00 01 02 02 03 00 01 -0 0 ly - ly - ly - n- n- n- ly- ly- ly- n- n- n- n- n Ja Ja Ja Ja Ju Ju Ju Ja Ja Ja Ja Ju Ju Ju 82
Slide 83: Payments and log-ons
Payments and log-ons E-banking payments E-banking log-ons Mill. Mill. 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 00 00 01 01 02 02 03 00 00 01 01 02 02 03 1/ 3/ 1/ 3/ 1/ 3/ 1/ 1/ 3/ 1/ 3/ 1/ 3/ 1/ Q Q Q Q Q Q Q Q Q Q Q Q Q Q Denmark Finland Norway Sweden Denmark Finland Norway Sweden 83
Slide 84: Penetration on the net
Penetration on the net % Mutual funds penetration rate % Equity trading penetration rate Executed trades 25 80 70 20 60 15 50 40 10 30 20 5 10 0 0 02 00 01 02 00 01 03 01 2 2 1 03 0 -0 -0 n- n- n- ly - l y- l y- n- ly- ly- n- n n Ja Ja Ja Ja Ju Ju Ju Ju Ja Ja Ja Ju 84
Slide 85: Cards
Cards Card payments Issued debit and credit cards Mill. Mill. 40 5.0 35 4.5 4.0 30 3.5 25 3.0 20 2.5 2.0 15 1.5 10 1.0 5 0.5 0 0.0 3 02 01 01 02 02 01 01 02 03 -0 n- n- ly- ly- n- n- l y- l y- n- ar Ja Ja Ja Ja Ja Ju Ju Ju Ju M 85
Slide 86: Payment transactions, households
Payment transactions, households Payment transactions Mill. 250 z Payment transactions 240 down 3% in Q1 230 220 z Card payments down 4% 210 – Reflecting seasonally high 200 card usage in the fourth quarter 190 180 z Continued migration from 170 transactions in branches 160 to e-banking 150 01 01 01
Slide 87: Corporate and Institutional Banking (CIB)
Corporate and Institutional Banking (CIB) 87
Slide 88: CIB operating profit
CIB operating profit EURm 150 z Continued strong deal flow 138 120 z Weak income from equity 127 123 123 related activities 109 90 z Changed business model in investment banking activities 60 z Cost savings achieved 30 Key ratios Q1/03 2002 C/I ratio, % 50 54 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 RoE, % 1
Slide 89: Stock market development
Stock market development Market Volume Market index Q1 2003, Chg Q1 vs Q4, % Q1 2003, % EURbn Denmark 11.4 0.4 -6.4 Finland 38.2 -22.5 -13.7 Norway 13.3 -0.9 -9.7 Sweden 59.6 -10.4 -7.3 Nordic average -12.9 -9.3 Source: Nordea securities 89
Slide 90: CIB operating profit by main area
CIB operating profit by main area International Corporate Inv. & Shipping Other Markets* CIB Division Banking Division EURm Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Total income 276 325 208 238 40 48 12 24 16 15 162 135 Total expenses -137 -177 -63 -81 -13 -24 -16 -30 -45 -42 -63 -58 Profit bef. loan los
Slide 91: CIB lending volume
CIB lending volume EURbn. End of period 30 25 20 15 10 5 0 Corporate Division International & Shipping Total Division Q4/02 Q1/03 91
Slide 92: Asset Management & Life
Asset Management & Life oe te 4 a slit 92
Slide 93: Asset Management, product result
Asset Management, product result EURm 60 z Improved inflow 56 50 – 8% annualised 49 z AuM down 1% 40 38 z Continued focus on efficiency 35 30 31 measures 20 Key ratios Q1/03 2002 10 C/I ratio*, % 74 66 AuM, EURbn 95 96 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 *Customer responsible units 93
Slide 94: Assets under management, volumes
Assets under management, volumes EURbn. 120 95 100 80 60 40 20 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Investment management Private banking Investment funds Real estate within Life 94
Slide 95: Asset structure – Investment Management
Asset structure – Investment Management* December 2002 March 2003 EUR 63.8bn EUR 63.4bn Int'l. fixed Int'l. fixed income income 12% 13% Nordic Nordic equities equities 13% 12% Nordic Nordic fixed fixed income income Int'l. 55% Int'l. 56% equities equities 20% 19% 95 *Including mgmt of own investment
Slide 96: Asset structure – Investment Funds
Asset structure – Investment Funds December 2002 March 2003 EUR 31.9bn EUR 31.7bn Balanced Balanced funds funds 13% 12% Equity funds Fixed 47% income Equity funds Fixed funds 51% income 37% funds 40% 96
Slide 97: Investment Funds volumes and margins
Investment Funds volumes and margins EURbn Volumes. End of period % Margins 16 1.6 14 1.4 12 1.2 10 1.0 8 0.8 6 0.6 4 0.4 2 0.2 0 0.0 DK FI NO SE DK* FI NO SE Q4/02 Q1/03 Q4/02 Q1/03 * Net margin 97
Slide 98: European Fund distribution
European Fund distribution EURm 2000 z More than 1000 active distribution 1800 agreements 1600 z New agreement with Commerzbank 1400 – Nordea 1 of 8 preferred partners 1200 1000 z Assets by country of source: 800 – 30% from Germany 600 – 26% from Switzerland 400 200 – 14% from Austria 0 – 8% from Lu
Slide 99: Profit, Life Insurance
Profit, Life Insurance EURm 50 z Investment return down to 40 44 1.4% (2.7% in Q4) z Normalised operating margin 30 stable 20 z Net written premiums 19 10 decreased – Fourth quarter seasonally high 0 -3 -10 -13 -26 Key ratios Q1/03 2002 -20 Inv return, % 1.4 0.2 -30 Financial 3.0 3.1 Q1/02 Q2/02 Q3/
Slide 100: Life - breakdown of operating profit
Life - breakdown of operating profit EURm Q1/03 Q4/02 Normalised operating margin 77 74 Fluctuations compared to normalised investment return -8 117 Chg in discount rate for life provisions -48 -83 Allocation to policy-holders -8 0 Allocation from financial buffers 11 -51 Operating profit Unit Linke
Slide 101: Life
Life EURm Q1/03 Q4/02 Q3/02 Q2/02 Q1/02 TRADITIONAL LIFE Premiums written net 499 595 381 486 559 Normalised investment. return 244 284 285 239 239 Benefits paid and change in provision -636 -771 -511 -642 -704 Insurance operating expenses -30 -34 -29 -31 -31 Normalised operating margin 77 74 126 52
Slide 102: Life
Life EURm Denmark Finland Norway Sweden Other Total TRADITIONAL LIFE Premiums written net 158 190 113 35 2 499 Normalised investment. Return 119 56 50 18 1 244 Benefits paid and change in provision -236 -225 -131 -42 -2 -636 Insurance operating expenses -12 -3 -9 -3 -3 -30 Normalised operating margi
Slide 103: Life - investments
Life - investments EURbn. End of period 25 22.1 z Equities – Predominantly listed equities 20 – 50/50 Nordic/international z Bonds 15 – ¾ Nordic issuers 10 – Primarily govmn’t & mortgage inst. 5 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Equities Bonds Real estate Unit linked 103
Slide 104: Life - solvency situation
Life - solvency situation End of Q1/03 Required Actual Solvency Solvency in % EURm solvency solvency buffer of requirement Denmark 430 480 50 112 Finland 201 447 246 222 Norway 122 199 76 163 Sweden 63 106 44 170 104
Slide 105: Life – financial buffers
Life – financial buffers* EURm % of guaranteed liabilities Q1/03 Q4/02 Q1/03 Q4/02 Denmark 363 368 3.9 3.9 Finland 123 137 2.8 3.3 Norway 5 5 0.2 0.2 Sweden 44 41 2.9 2.7 Total 535 551 3.0 3.1 105 * Financial buffers are defined in accordance with local regulations and practices.
Slide 106: Life – solvency sensitivity, end of March 2003
Life – solvency sensitivity, end of March 2003 Denmark Finland Norway Sweden % Solvency in % of requirement 112 222 163 170 Equities drop 12% 112 209 154 163 Interest rates down 50bp 105 265 164 203 Interest rates up 50bp 109 182 161 134 106
Slide 107: Life – P/L effect sensitivity, end of March 2003
Life – P/L effect sensitivity, end of March 2003 Denmark Finland Norway Sweden EURm Financial buffers* 361 123 5 44 Equities drop 12% -8 -42 -5 -8 Interest rates down 50bp 39 69 2 27 Interest rates up 50bp -21 -69 -2 -27 * Financial buffers are defined in accordance with local regulations and practi
Slide 108: Group Treasury
Group Treasury A £ 4 q a 4 108
Slide 109: Group Treasury operating profit
Group Treasury operating profit EURm 70 z Record issuance of Mortgage 60 58 Bonds 50 z Profiting from volatile markets 40 30 35 31 27 20 21 10 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 109
Slide 110: Group Treasury operating profit by main areas
Group Treasury operating profit by main areas Investment & Risk Trading Group Funding Total Fixed income Equity portfolios portfolios EURm Q1/03 Q4/02 Q1/03 Q4/02 Q1/03 Q4/02 Q1/03 Q4/02 Income 30 25 2 -4 37 18 Expenses -2 -2 -1 -2 -8 -8 Profit excl. Investment earnings 29 10 29 10 Investment earnin
Slide 111: Group Treasury - investments
Group Treasury - investments EURbn. End of period 20 z Equities 17.2 15 – Listed, unlisted & private equity funds 10 z Bonds – ¾ Nordic issuers 5 – Primarily government and mortgage inst. 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Fixed income Equities 111
Slide 112: Treasury – risk management
Treasury – risk management End of Q1/03 z Price risk – Price risk in interest-rate positions, calculated as a parallel shift assuming a change in market interest rates of 100bp z Equity risk (VaR) – Risk related to equities, calculated as VaR, comprise all equities including listed, unlisted and pri
Slide 113: Balance sheet
Balance sheet 113
Slide 114: Balance sheet - key items
Balance sheet - key items EURm. End of period Q1/03 Q1/02 Change,% Lending 147,008 142,028 4 Deposits 92,140 85,621 8 Shareholders’ equity 12,145 12,192 5 Total assets 261,935 252,975 0 Risk-weighted assets 136,646 139,910 -4 114
Slide 115: Balance sheet structure - assets
Balance sheet structure - assets EURbn. End of period 150 142 147 120 90 60 32 30 34 26 25 22 25 30 21 6 5 0 Lending Interest Loans and Assets, Other assets, Other bearing advances to insurance banking securities credit inst. 31/03/02 31/03/03 115
Slide 116: Real estate holdings
Real estate holdings Book value. End of period, EURbn Q1/03 2002 2001 2000 1999 Owner occupied properties 1.2 1.2 1.5 1.4 1.4 Non owner occupied properties 0.2 0.2 0.3 0.6 2.1 Shares in real estate holding 0.4 0.4 0.3 0.4 0.4 companies Investments of the insurance 1.9 1.9 2.0 1.6 1.6 companies Total
Slide 117: Balance sheet structure – liabilities and equity
Balance sheet structure – liabilities and equity EURbn. End of period 100 90 92 80 86 70 60 67 66 50 40 30 35 33 30 20 24 20 20 10 12 12 9 8 0 Deposits Debt Deposits by Other Liabilities, Shareholder´s Other securities in credit inst. liabilities, insurance equity issue banking 31/03/02 31/03/03 117
Slide 118: Lending and deposits
Lending and deposits Lending Deposits EURbn. End of period EURbn. End of period 160 100 140 147 146 147 91 92 92 142 143 80 86 90 120 100 60 80 60 40 40 20 20 0 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 118
Slide 119: Capital base
Capital base EURm End of Q1/03 Shareholder´s equity 12,145 Deductions insurance companies and other -742 Shareholder´s equity in the capital base 11,403 Hybrid capital 363 Minority interests 11 Group goodwill -1,934 Other deductions -72 TIER 1 CAPITAL 9,771 TIER 2 CAPITAL (subordinated debt) 5,251 D
Slide 120: Market shares
Market shares * Statistics as of February 2003 120
Slide 121: Market shares, personal customer deposits
Market shares, personal customer deposits % 40 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Feb 02 Feb 03 121
Slide 122: Personal customer deposits - market volume & share
122 Fe 00 b -A 0 100 200 300 400 0 100 200 300 400 DKKbn NOKbn M -00 00 ug ay -N Au - 00 01 ov g -F N - 00 ov 01 eb F e - 00 -m b 01 ay M -01 -A ay u Au - 01 01 g g -N N - 01 02 ov ov -F Norway F e - 01 Denmark 02 eb b -m M -02 ay 02 ay Au -02 -A g u 02 g N - 02 -N ov F e - 02 03 ov b- -F 03 eb Mark
Slide 123: Market shares, corporate deposits
Market shares, corporate deposits % 50 45 40 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Feb 02 Feb 03 123
Slide 124: Corporate deposits - market volume & share
124 Fe A b ug - 0 100 200 300 0 100 200 300 M -00 ay N 00 ov DKKbn NOKbn Au -00 - g F e 00 N - 00 b- ov M 01 F e - 00 ay b - M -01 A 01 ay ug - Au -01 N 01 g ov N - 01 - ov F e 01 F e - 01 b- Norway Denmark b M 02 M -02 ay ay - A -02 A 02 ug ug - N - 02 N 02 ov ov F e - 02 - F e 02 b- b- 03 03 Marke
Slide 125: Market shares, personal customer lending
Market shares, personal customer lending % 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Feb-02 Feb-03 125
Slide 126: Personal customer lending - market volume & share
126 Fe A b ug - 0 100 200 300 400 500 600 700 0 50 100 150 200 250 M -00 ay N 00 ov DKKbn NOKbn Au -00 - g F e 00 N - 00 b- ov M 01 F e - 00 ay b - M -01 A 01 ay ug - A -01 ug N 01 ov N - 01 - ov F e 01 F e - 01 b- Norway Denmark b M 02 M -02 ay ay - A 02 A -02 ug ug - N - 02 N 02 ov ov F e - 02 - F
Slide 127: Market shares, corporate lending
Market shares, corporate lending % 50 45 40 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Feb 02 Feb 03 127
Slide 128: Corporate lending - market volume & share
128 Fe A ug b - 0 50 100 150 200 250 300 350 0 100 200 300 400 500 M -00 ay N 00 ov DKKbn NOKbn A -00 - ug F e 00 N - 00 b- ov M 01 F e - 00 ay b - M -01 A 01 ug ay - A -01 N 01 ug ov N - 02 - ov F e 01 b- F e - 02 M 02 Norway Denmark b ay M -02 - ay A 02 A -02 ug ug - N - 02 N 02 ov ov - F e - 02 F
Slide 129: Investment funds - market volume & share
Investment funds - market volume & share DKKbn Denmark EURbn Finland 32% 300 18 34% 30% 16 32% 250 14 200 28% 12 30% 26% 10 28% 150 8 26% 100 24% 6 24% 50 22% 4 2 22% 0 20% 0 20% 0 1 2 2 3 98 9 01 00 1 3 98 9 01 2 02 -0 l- 0 -0 -0 -0 -9 -0 -0 9 0 - - n n- n ar ct ep ec ec - p- - p- - Ju ar ar Ju ec
Slide 130: Investment funds, Nordic region
Investment funds, Nordic region Market volume and Nordea's market share EURbn 180 25% 160 140 23% 120 21% 100 80 19% 60 40 17% 20 0 15% 9 0 1 2 9 0 1 2 8 9 9 0 0 1 1 2 2 -9 -0 -0 -0 -9 -0 -0 -0 -9 9 -9 0 -0 0 -0 0 -0 p- p- p- p- n n n n ar ar ar ar ec ec ec ec ec Ju Ju Ju Ju Se Se Se Se M M M M D D
Slide 131: Investment funds, net inflow, Norway
Investment funds, net inflow, Norway Market volume, Nordea volume, and accumulated market share ytd NOKm % 3,000 60 50 2,000 40 30 1,000 20 10 0 0 -10 -1,000 -20 -30 -2,000 -40 -50 -3,000 -60 1 2 1 1 2 2 3 2 3 ay 1 1 2 -0 -0 -0 -0 l-0 -0 l-0 -0 -0 -0 0 0 -m p- p- ov ov ar ar ar n n ay Ju Ju Ja Ja Se
Slide 132: Investment funds, net inflow, Finland
Investment funds, net inflow, Finland Market volume, Nordea volume, and accumulated market share ytd EURm % 1200 40 1000 32 800 24 600 16 400 8 200 0 0 -200 -8 -400 -16 01 02 1 2 1 2 01 02 03 1 2 01 02 -0 -0 0 0 r-0 r-0 n- n- b- g- b- g- b- - - ct ct ec ec Ap Ap Ju Ju Au Au Fe Fe Fe O O D D Market n
Slide 133: Investment funds, net inflow, Sweden
Investment funds, net inflow, Sweden Market volume, Nordea volume, and accumulated market share ytd SEKm 18bn % 18bn 19bn 14,000 28 12,000 24 10,000 20 8,000 16 6,000 12 4,000 8 2,000 4 0 0 -2,000 -4 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 r-0 y- 0 n-0 ul-0 g-0 p- 0 t-0 v-0 c-0 n-0 b-0 r-0 r
Slide 134: Market share, equity dealing - Nordea Securities
Market share, equity dealing - Nordea Securities % Equity market turnover EURbn 16 Q1/03 Q4/02 14 Denmark 11.4 11.3 12 Finland 38.2 49.3 10 Norway 13.3 11.6 8 Sweden 59.6 64.1 6 4 2 0 ki o m en sl sin ol ag O kh el h oc H en St op C 2002 Q1/03 134
Slide 135: Appendix
Appendix z Financials Page 136 z Nordea share Page 145 z Other Page 153 z Macro statistics Page 158 135
Slide 136: Appendix: Financials
Appendix z Financials 136
Slide 137: Operational income statement
Operational income statement EURm Q1/03 Q4/02 Q3/02 Q2/02 Q1/02 Net interest income 835 885 874 855 837 Commission income 353 388 371 396 380 Trading 157 130 127 137 136 Other 29 54 34 37 29 Income 1,374 1,457 1,406 1,425 1,382 Personnel expenses -520 -545 -521 -514 -506 Other expenses -397 -448 -40
Slide 138: Statutory income statement
Statutory income statement EURm Q1/03 Q1/02 Interest income 2,539 2,509 Interest expenses -1,620 -1,615 Net interest income 919 894 Dividends received 10 5 Net commission income 363 386 Net result from financial operations 85 82 Other income 29 29 Total income 1,406 1,396 General administrative expe
Slide 139: Reconciliation of operational and statutory accounts
Reconciliation of operational and statutory accounts EURm Operational Trading Investment Insurance Other Statutory Jan.-Mar 2003 income activities adjustment Jan-Mar 2002 Net interest income 835 58 1) 26 6) 919 Dividends received 4 4) 6 9) 10 Commission income 353 10 2) 363 Trading 157 -157 5) Net r
Slide 140: Reconciliation of operational and statutory accounts
Reconciliation of operational and statutory acounts 1. Net interest income from trading transactions in Nordea 10. Costs related to investment activities, reclassified from Markets (for example interest related to swaps etc.), relevant category of cost in the statutory accounts, to being reclassifie
Slide 141: Expenses - breakdown
Expenses - breakdown EURm Q1/03 Q4/02 Q3/02 Q2/02 Q1/02 Personnel 1) 521 547 523 515 507 Information technology 2) 99 136 111 113 103 Marketing 18 34 21 36 23 Postage, telephone and office expenses 58 62 50 52 60 Rents, premises and real estate 82 89 79 74 71 expenses Other 142 130 146 134 144 Expen
Slide 142: Total IT-related expenses
Total IT-related expenses* EURm 250 200 216 183 182 184 177 150 100 50 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 *Total IT-related costs, including computer operations, service expenses, consultants and 142 personnel personnel etc (excluding IT expenses in insurance operations)
Slide 143: C/I ratio
C/I ratio C/I ratio, banking C/I ratio, banking % % 70 70 66 65 60 64 63 64 60 64 58 50 50 40 40 30 30 20 20 10 10 0 0 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 2001 2002 143
Slide 144: Gains and losses on various disposals etc
Gains and losses on various disposals etc EURm Q1/03 Q4/02 Q3/02 Q2/02 Q1/02 Europay AS 24 Contant Oy 22 Sale of General Insurance -4 -40 Real Invest -16 DLR 30 Total 24 2 -10 - 144
Slide 145: Appendix: Nordea share
Appendix z Nordea share 145
Slide 146: Dividend per share 2002
Dividend per share 2002 z Per share, EUR 0.23 z Total, EURm 673 z Pay-out ratio (of the net profit, target >40%) 76% z Dividend yield (calculated on share price Dec 30, 2002) 5.5% z Ex dividend date 25 April z Record date 29 April z Payment date 7 May 146
Slide 147: Nordea share price vs DJ STOXX European banks
Nordea share price vs DJ STOXX European banks 6 March 2000* - 10 April 2003 180 160 140 120 100 80 60 June-00 June-01 June-02 Nordea DJ STOXX European Banks * Date of announcement of MNB/Unidanmark merger 147
Slide 148: Shareholder structure, end of Q1/03
Shareholder structure, end of Q1/03 4.0% 2.1% 6.1% 22.6% 7.0% International investors Swedish institutions Swedish state 8.5% Danish institutions Finnish institutions Finnish public Danish public Swedish public 18.5% 31.2% Number of shareholders approx 508,000 148
Slide 149: Largest registered shareholders, end of Q1/03
Largest registered shareholders, end of Q1/03 Shareholder Number of shares Percent Swedish state 542,015,102 18.51 % Alecta 114,374,426 3.91 % Nordea Danmark fonden 102,529,423 3.50 % Tryg i Danmark smba 92,609,801 3.16 % Robur fonder 85,796,917 2.93 % Nordea fonder 65,820,664 2.25 % Fjärde AP-fonde
Slide 150: Distribution of shares, end of 2002
Distribution of shares, end of 2002 No of shares Shareholders Shareholders,% No of shares Shares,% 1-1,000 424,911 83.31 134,691,243 4.60 1,001-10,000 80,147 15.71 192,537,928 6.58 10,001-100,000 4,153 0.81 102,627,695 3.50 100,001-1,000,000 592 0.12 195,701,342 6.68 1,000,001- 240 0.05 2,302,550,01
Slide 151: Number of shares
Number of shares Type of Number of Outstanding Date transaction Subject shares issued shares Jan, 2000 New issue Merita 815,800,287 2,091,067,728 April, 2000 New issue Unidanmark 869,776,488 2,960,844,216 June, 2000 New issue Unidanmark 18,348,501 2,979,192,717 2000-2001 New issue Conversions* 3,473
Slide 152: Data per share
Data per share Q1/03 2002 2001 2000 19991) 1998 EUR EUR SEK SEK SEK Dividend 0.23 0.23 2.00 1.75 1.64 Shareholders equity per share, EUR 4.15 4.06 4.00 3.74 3.43 2.68 Earnings per share, EUR 0.09 0.30 0.53 0.58 0.55 0.53 Share price, end of period, 37.4 38.4 55.5 71.5 50 52 SEK P/E ratio 13.5 14.0 1
Slide 153: Appendix: Other
Appendix z Other 153
Slide 154: Ratings
Ratings Moody’s S&P Fitch BFSR Short Long Short Long Short Long Individ. Nordea Bank D B P-1 Aa3 A-1 A+ F1+ AA- B Nordea Bank F B P-1 Aa3 A-1 A+ F1+ AA- B Nordea Bank N B- P-1 Aa3 A-1 A+ F1+ AA- B Nordea Bank S B P-1 Aa3 A-1 A+ F1+ AA- B Nordea Hypotek P-1 Aa3 A-1 Nordea Kredit Aa1 Norgeskreditt P-1
Slide 155: Business structure
Business structure Board of Directors Internal Audit Activity CEO Lars G Nordström Group Management Secretariat Corporate and Asset Management Group Processing Group Corporate Retail Banking Group Staffs Institutional Banking & Life and Technology Centre Kari Jordan Peter Schütze Tom Ruud Christian
Slide 156: Legal structure
Legal structure Nordea AB (Publ) Sweden Nordea Bank Nordea Asset Nordea Securities Nordea Life Holding Finland Plc Finland Management AB AB Sweden A/S Denmark Sweden Nordea Bank Nordea Bank Nordea Bank Various Various Sweden AB Norge ASA Danmark A/S subsidiaries subsidiaries (publ) Sweden Norway Den
Slide 157: Group Executive Management
Group Executive Management Lars G Nordström Group CEO Christian Clausen Head of Asset Management & Life Carl-Johan Granvik Head of Group Credit and Risk Control Kari Jordan Head of Retail Banking Arne Liljedahl Head of Group Corporate Centre, Group CFO Markku Pohjola Head of Group Processing and Tec
Slide 158: Appendix: Macro statistics and estimates
Appendix z Macro statistics and estimates Source: Nordea Economic Research Estimates from January 2003 158
Slide 159: Macro data
Macro data % 2002e 2003e 2004e Gross domestic product DK 1.6 1.5 2.0 FI 1.6 2.5 3.8 NO 1.3 1.5 2.4 SE 1.9 2.1 2.9 Inflation DK 2.4 2.0 2.1 FI 1.5 1.7 1.8 NO 1.4 2.6 2.0 SE 2.4 2.3 2.1 Private consumption DK 2.0 1.8 2.2 FI 2.1 3.5 2.7 NO 3.4 3.0 3.0 SE 1.3 2.2 2.7 Unemployment DK 5.2 5.5 5.3 FI 9.1 9
Slide 160: Market development - GDP
Market development - GDP % 2001 2002e 2003e 2004e Denmark 1.4 1.6 1.5 2.0 Finland 0.7 1.6 2.5 3.8 Norway 1.2 1.3 1.5 2.4 Sweden 0.8 1.9 2.1 2.9 Source: Nordea Economic Research, January 2003 160
Slide 161: Gross domestic product
Gross domestic product Change in % YoY 10 8 6 4 2 0 Q1/90 Q1/95 Q1/00 -2 -4 -6 -8 Denmark Finland Norway Sweden 161
Slide 162: Inflation
Inflation % 14 12 10 8 6 4 2 0 -2 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Denmark Finland Norway Sweden 162
Slide 163: Private consumption
Private consumption Change in % YoY 10 8 6 4 2 0 Q1/90 Q1/95 Q1/00 -2 -4 -6 -8 Denmark Finland Norway Sweden 163
Slide 164: Household savings ratio
Household savings ratio % 12 10 8 6 4 2 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Denmark Finland Norway Sweden 164
Slide 165: Unemployment
Unemployment % of labour force 20 15 10 5 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 165 Denmark Finland Norway Sweden
Slide 166: Credit growth total lending to non-bank sector
Credit growth total lending to non-bank sector Change in % YoY 15 10 5 0 ch ch ch ch ch ch ar pt pt pt pt pt p p e e -M Se Se Se Se Se ar ar ar ar ar ar -S -S -5 M M M M M M 02 01 02 96 97 98 99 00 96 97 98 99 00 01 -10 Denmark Finland Norway Sweden 166
Slide 167: Bankruptcies
Bankruptcies Number of bankruptcies per month 1800 1600 1400 1200 1000 800 600 400 200 0 94 95 96 97 98 99 00 01 02 03 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ Q Q Q Q Q Q Q Q Q Q Denmark Finland Norway Sweden 167
Slide 168: Exchange rate, USD/EUR
168 1/ 1 /9 0.8 0.85 0.9 0.95 1 1.05 1.1 1.15 1.2 USD 8 1/ 5 /9 8 1/ 9 /9 8 1/ 1 /9 9 1/ 5 /9 9 1/ 9 /9 9 1/ 1 /0 0 1/ 5 /0 0 1/ 9 /0 0 1/ 1 Exchange rate, USD/EUR /0 1 1/ 5 /0 1 1/ 9 /0 1 1/ 1 /0 2 1/ 5 /0 2 1/ 9 /0 2 1/ 1 /0 3
Slide 169: Exchange rate, EUR/SEK
169 1/ 1 /9 8 8.4 8.8 9.2 9.6 10 8 SEK 1/ 5 /9 8 1/ 9 /9 8 1/ 1 /9 9 1/ 5 /9 9 1/ 9 /9 9 1/ 1 /0 0 1/ 5 /0 0 1/ 9 /0 0 1/ 1 Exchange rate, EUR/SEK /0 1 1/ 5 /0 1 1/ 9 /0 1 1/ 1 /0 2 1/ 5 /0 2 1/ 9 /0 2 1/ 1 /0 3
Slide 170: Exchange rate, EUR/NOK
170 1/ 1 /9 7 7.5 8 8.5 9 9.5 10 8 NOK 1/ 5 /9 8 1/ 9 /9 8 1/ 1 /9 9 1/ 5 /9 9 1/ 9 /9 9 1/ 1 /0 0 1/ 5 /0 0 1/ 9 /0 0 1/ 1 /0 Exchange rate, EUR/NOK 1 1/ 5 /0 1 1/ 9 /0 1 1/ 1 /0 2 1/ 5 /0 2 1/ 9 /0 2 1/ 1 /0 3
Slide 171: Oilprice development, Brent, USD/Barrel
171 1/ 1 /9 0 5 10 15 20 25 30 35 40 45 50 0 Dollar 1/ 1 /9 1 1/ 1 /9 2 1/ 1 /9 3 1/ 1 /9 4 1/ 1 /9 5 1/ 1 /9 6 1/ 1 /9 7 1/ 1 /9 8 1/ 1 /9 9 1/ 1 /0 0 1/ 1 /0 1 1/ 1 Oilprice development, Brent, USD/Barrel /0 2 1/ 1 /0 3
Slide 172: Stock exchange indices
172 31 /1 0 200 400 600 800 1000 1200 1400 31 /97 /5 / 3 0 97 /9 / 3 1 97 /1 Index 100 = 1990 31 /98 /5 / HEX Index 3 0 98 /9 / Oslo Total Index 3 1 98 /1 31 /99 /5 30 /99 /9 / 3 1 99 /1 31 /00 /5 / Stock exchange indices 3 0 00 /9 / 3 1 00 /1 31 /01 /5 30 /01 /9 KFX Index / 3 1 01 /1 31 /02 /5 / 3
Slide 173: Money market, 3 months rates
173 1/ 1 /9 2 3 4 5 6 7 8 9 8 % 1/ 5 /9 1/ 8 9 /9 1/ 8 1 /9 1/ 9 5 Denmark /9 1/ 9 9 /9 1/ 9 1 /0 0 Finland 1/ 5 /0 1/ 0 9 /0 1/ 0 1 Norway /0 1/ 1 5 /0 1/ 1 9 /0 Money market, 3 months rates Sweden 1/ 1 1 /0 1/ 2 5 /0 1/ 2 9 /0 1/ 2 1 /0 3
Slide 174: Government bond, 10 year
174 1/ 1 /9 % 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 1/ 5 /9 8 1/ 9 /9 8 1/ 1 /9 9 1/ 5 /9 Denmark 9 1/ 9 /9 9 1/ 1 /0 0 Finland 1/ 5 /0 0 1/ 9 /0 0 Norway 1/ 1 /0 1 Government bond, 10 year 1/ 5 /0 1 1/ 9 Sweden /0 1 1/ 1 /0 2 1/ 5 /0 2 1/ 9 /0 2 1/ 1 /0 3
Slide 175: Financial calendar 2003
Financial calendar 2003 z Q2 report 2003 will be published on 20 August 2003 z Q3 report 2003 will be published on 29 October 2003 www.nordea.com/ir 175