Slide 1: Interim report Q1 2007
Interim report Q1 2007 April 25, 2007 Jan Lidén President and CEO
Slide 2: Highlights Q1 2007
Highlights Q1 2007 • Strong and stable results intact – SEK 2,910m (2,270 Q1, 2006) – Strong and stable results from all major business areas; Swedish- and Baltic Banking and Swedbank Markets – Group net interest income increased for the fourth consecutive quarter • Swedish Banking – SEK 1,632m (1,4
Slide 3: Strong position for profitability and growth
Strong position for profitability and growth Sweden Baltics Russia and Ukraine Swedbank is the leading bank in Sweden. The Baltic economies are experiecing strong Swedbank has a small but growing Profitability is high and stable and the bank economic growth that is expected to remain presence in Rus
Slide 4: Business volumes, lending
Business volumes, lending SEKbn Growth Q1-07, SEKbn SEKbn Balance, March 2007 50 1,000 962 40 800 30 600 43 390 20 400 331 3 10 2 200 15 88 11 49 4 5 0 0 Lending, Mortgage, Corporate, Mortgage, Corporate, Lending, Mortgage, Corporate, Mortgage, Corporate, Group private, Sweden private, Baltics Group
Slide 5: Business volumes, savings
Business volumes, savings SEKbn Growth Q1-07 SEKbn Balance, March 2007 25 500 433 20 400 304 15 300 22 10 200 15 90 5 3 100 3 0 0 Deposits, Deposits, AM funds, Deposits, Deposits, AM funds, Sweden Baltics Group Sweden Baltics Group Due to change in exchange rate between SEK and Euro (5)
Slide 6: Margins
Margins % Lending Deposits % 3.5 3.5 Latvian rate RIGIBOR increased 3.0 3.0 substantially 2.5 2.5 Shift in product mix towards mortgages 2.0 2.0 and higher RIGIBOR 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Estonia Latvia Estonia Latvia Lithuania Swed
Slide 7: Swedish Banking
Swedish Banking SEKm % • Continued positive volume- and 4,500 0.7 market share development in: 4,000 0.6 – Household mortgages 3,500 0.5 – Household deposits 3,000 – Corporate lending 2,500 0.4 2,000 0.3 • Net interest income was stable 1,500 0.2 • Swedbank was named Sweden’s most 1,000 attractive w
Slide 8: Swedbank leads the savings market in Sweden
Swedbank leads the savings market in Sweden Total market shares Dec. 2006 Breakdown of savings market Swedbank; 14.2 (14.0) PPM; 6.4 (2.4) Others; 13.8 (9.7) Bonds etc; Deposits; 16.3 (16.7) 3.5 (3.6) The state; 3.5 (2.9) SEB; 13.0 (14.2) Alecta; 10.1 (11.7) Mutual funds; 26.8 (25.1) Folksam; 4.1(3.
Slide 9: New ways of distributing mutual funds
New ways of distributing mutual funds (9)
Slide 10: Swedbank Robur strengthens its leading position in asset management in the Nordic area
Swedbank Robur strengthens its leading position in asset management in the Nordic area • Swedbank Robur will manage Folksam’s portfolio of interest- bearing securities and equities totalling SEK 142m • Swedbank Robur acquires Folksam Fond AB, with assets under management of approx. SEK 27bn, for SEK
Slide 11: Baltic Banking
Baltic Banking SEKm % 2,200 0.6 • Continued good earnings trend 2,000 – Profit for the period increased by 8 per cent 1,800 0.5 to SEK 995 million 1,600 0.4 – C/I-ratio improved to 0.40 1,400 1,200 • Some slowing down in the lending 0.3 1,000 increase 800 0.2 600 • Strong increase in saving volumes
Slide 12: Decreasing lending growth in Baltics
Decreasing lending growth in Baltics EURm Baltic Banking EURm Estonia 1,800 14% 600 14% 12.8% 12.8% 1,600 11.9% 12.0% 12% 500 12% 11.7% 1,400 10.4% 10.4% 10% 9.9% 10% 1,200 400 8.5% 1,000 8% 8% 300 7.0% 800 6% 6% 600 200 4% 4% 400 2% 100 2% 200 0 0 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q1 06 Q2 06 Q3 06 Q4
Slide 13: Actions taken in the Baltics
Actions taken in the Baltics • Plan to combat inflation in Latvia – Expected to be introduced during the spring and summer 2007 – Hansabank has taken an active part in preparing the plan • Since Q1 2006; increased risk margins on new credits to e.g. certain parts of the real-estate sector – Financin
Slide 14: Baltic Banking, market shares
Baltic Banking, market shares Estonia Latvia Lithuania Feb 28, Dec 31, Feb 28, Dec 31, Feb 28, Dec 31, Balance, % 2007 2006 2007 2006 2007 2006 Deposits, households 62.4 62.3 29.4 29.5 39.1 38.6 Mortgage lending, households 49.0 49.2 30.2 29.8 29.7 29.8 Consumer/bank lending 58.4 59.0 18.7 18.7 32.3
Slide 15: Swedbank Markets
Swedbank Markets SEKm • Continued strong development in all 450 product areas 400 – Net profit increased 16 percent vs. Q4 2006 350 and 49 percent vs. Q1 2006 300 – C/I-ratio improved to 0,51 250 • Fixed income and foreign exchange 200 reported best improvements 150 100 • Issue of structured product
Slide 16: TAS-Kommerzbank
TAS-Kommerzbank • Acquisition process is running according to plan. Closing is expected during Q3 after approval from Sverige Finland Ukrainian competition authorities and Norge the central bank Estland Ryssland • Ongoing preparations in several Danmark Lettland Litauen areas, e.g. treasury, credit,
Slide 17: Swedbank Russia
Swedbank Russia SEKm SEK 200 50 180 45 160 40 Incl. provisions for 140 35 VAT dispute 120 30 100 25 80 20 60 15 40 10 20 5 0 0 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Profit (right scale) Income Costs (17)
Slide 18: Group results
Group results Mikael Inglander CFO (18)
Slide 19: Income statement, Group
Income statement, Group Q1 Q4 Q1 SEKm 2007 2006 % 2006 % Net interest income 4,501 4,303 5 3,506 28 Net commission income 2,289 2,309 –1 2,098 9 Net gains/losses on financial items at fair value 530 908 – 42 531 –0 Other income 473 392 21 408 16 Total income 7,793 7,912 –2 6,543 19 Staff costs – 1,9
Slide 20: Improved efficiency
Improved efficiency Capital gains from SEKm sale of Kundinkasso 9,000 and 50% of EnterCard 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- 04 04 04 04 05 05 05 05 06 06 06 06 07 Income Costs (20)
Slide 21: Net interest income, by business area
Net interest income, by business area Q1 Q4 Q1 SEKm 2007 2006 % 2006 % Swedish Banking 2,950 2,949 0 2,752 7 Baltic Banking Operations 1,324 1,221 8 853 55 Baltic Banking Investment – 104 – 103 – 1 – 125 17 Swedbank Markets 399 254 57 – 35 Asset Management and Insurance 19 10 90 8 138 Shared Service
Slide 22: Net interest income Swedish Banking, change
Net interest income Swedish Banking, change Q1 2007 Q1 2007 SEKm vs Q4 2006 vs Q1 2006 Net interest income Q4 2006 2,949 Net interest income Q1 2006 2,752 Changes: Higher lending volumes 39 216 Decreased lending margins – 58 – 249 Higher deposit volumes 25 101 Higher deposit margins 32 222 Other cha
Slide 23: Baltic Banking, change in net interest income
Baltic Banking, change in net interest income Q1 2007 Q1 2007 SEKm vs Q4 2006 vs Q1 2006 Net interest income Q4 2006 1,221 Net interest income Q1 2006 853 Changes: Higher lending volumes 63 314 Decreased lending margins – 11 – 33 Higher deposit volumes 10 46 Higher deposit margins 119 206 Other chan
Slide 24: Net commission income, Group
Net commission income, Group SEKm 1,100 900 Q1 2006 700 Q2 2006 Q3 2006 500 Q4 2006 Q1 2007 300 100 -100 management Insurance Payments Brokerage Lending Other Corporate finance Asset (24)
Slide 25: Expenses
Expenses SEKm Q1 2007 Q4 2006 % Q1 2006 % Swedish Banking – 2,204 – 2,350 – 6 – 2,156 2 Baltic Banking – 820 – 866 –5 – 651 26 Swedbank Markets – 517 – 535 –3 – 437 18 Other business areas – 396 – 346 14 – 406 –2 Total expenses – 3,937 – 4,097 – 4 – 3,650 8 of which staff costs in: Swedish Banking –
Slide 26: Loan losses, Group
Loan losses, Group SEKm % 500 0.25 400 0.20 300 0.15 200 0.10 100 0.05 0 0.00 -100 -0.05 -200 -0.10 Q1-03 Q3-03 Q1-04 Q3-04 Q1-05 Q3-05 Q1-06 Q3-06 Q1-07 Loan losses Loan loss level (26)
Slide 27: Credit quality, Group
Credit quality, Group % % 200 0.20 175 0.15 150 0.10 125 0.05 100 0.00 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Share of impaired loans (right scale) Provision ratio (27)
Slide 28: Credit quality, Baltic Banking
Credit quality, Baltic Banking NPL/loan portfolio (12-month old) 1.5% 1.2% 0.9% 0.6% 0.3% 0.0% Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Est Lat Lit Net provisions* to average portfolio Increase relates to 1.5% an individual 1.0% customer 0.5% 0.0% Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3
Slide 29: Business areas
Business areas Swedish Baltic Swedbank Asset Banking Banking Markets Mgmt Q1 Q1 Q1 Q1 Q1 07 vs Q1 06, SEKm 2007 % 2007 % 2007 % 2007 % Net interest income 2,950 7 1,324 55 399 #### 19 138 Net commission income 1,082 1 432 23 364 24 399 4 Other income 376 18 279 81 248 – 51 56 87 Total income 4,408 6
Slide 30: Key figures
Key figures Mar 31, 2007 Mar 31, 2006 Return on equity, % 18.9 16.6 Earnings per share, SEK 5.65 4.41 Equity per share, SEK 122.84 108.66 C/I ratio before loan losses 0.51 0.56 Loan loss ratio, net, % 0.02 0.02 Share of impaired loans, % 0.07 0.09 Provision ratio for impaired loans, % 199 188 Tier 1
Slide 31: Highlights Q1 2007
Highlights Q1 2007 • Strong and stable results intact – SEK 2,910m (2,270 Q1, 2006) – Strong and stable results from all major business areas; Swedish- and Baltic Banking and Swedbank Markets – Group net interest income increased for the fourth consecutive quarter • Swedish Banking – SEK 1,632m (1,4