Slide 1: Swedbank's first quarter 2016 results
Swedbank’s first quarter 2016 results Birgitte Bonnesen (CEO), Göran Bronner (CFO), Anders Karlsson (CRO) © Swedbank
Slide 2: Swedish Banking: Stable result in challenging environment
Swedish Banking Stable result in challenging environment SEKm Q1 16 Q4 15 ▲ QoQ • NII Net interest income 3 481 3 562 -81 – Deposit margin pressure Net commission income 1 618 1 765 -147 – Higher mortgage margins Other income 427 460 -33 – Loan volume growth Total income 5 526 5 787 -261 Total expen
Slide 3: Baltic Banking: Loan growth
Baltic Banking Loan growth SEKm Q1 16 Q4 15 ▲ QoQ • NII Net interest income 934 962 -28 – Loan volume growth Net commission income 483 548 -65 – Mixed margin development Other income 165 177 -12 Total income 1 582 1 687 -105 • High cost efficiency Total expenses 589 654 -65 Profit before impairments
Slide 4: Large Corporates & Institutions: Stable result in volatile market
Large Corporates & Institutions Stable result in volatile market SEKm Q1 16 Q4 15 ▲ QoQ • Deposit margin pressure Net interest income 764 836 -72 Net commission income 498 528 -30 • Low corporate finance activity Net gains and losses 403 415 -12 Other income 25 36 -11 • Stable trading income in vola
Slide 5: Group results: Strong result
Group results Strong result SEKm Q1 16 Q4 15 ▲QoQ • NII pressured by lower interest rates Net interest income 5 623 5 759 -136 Net commission income − Mixed margins 2 645 2 877 -232 Net gains and losses 400 165 235 • Weaker asset management income Other income 638 656 -18 Total income 9 306 9 457 -1
Slide 6: Capital: Increased REA
Capital Increased REA Risk exposure amount • Higher corporate credit exposures SEKbn 410 405 • Negative PD migrations in Norway 5.2 398.8 400 8.2 -2.8 -0.9 • Increased collateral values 395 389.1 390 385 380 375 370 Q4 2015 Exposure Rating LGD changes Other risk Q1 2016 change migration (PD) Increas
Slide 7: Strong capitalisation – no excess capital
Capital Strong capitalisation – no excess capital CET1 capital ratio, % • CET1 capital ratio decreased 24.1% 23.7% 22.4% 23.0% 20.4% • Increased capital requirements − Countercyclical buffer − PD factor and maturity floor (90bps impact on buffer) • CET1 capital buffer around Q2 2015 Q3 2015 Q4 2015
Slide 8: Asset quality: Solid asset quality
Asset quality Solid asset quality Credit impairments, SEKm Q1 16 Q4 15 ▲QoQ • Recoveries in Swedish Banking and Swedish Banking -13 347 -360 Baltic Banking Baltic Banking -42 -112 -70 Large Corporates & • Portfolio provisions relating to oil 97 164 -67 Institutions exposures Swedbank Group 35 399 -3
Slide 9: Q&A
Q&A Birgitte Bonnesen (CEO), Göran Bronner (CFO), Anders Karlsson (CRO)
Slide 10: Appendix
Appendix Swedbank @ 10
Slide 11: 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 12: 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 13: 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 14: Oil sector under stress
Asset quality Oil sector under stress • Loan portfolio negatively impacted 10 Shipping & Offshore, loans, SEK 31bn 9 2014-12-31 2016-03-31 by lower oil price, SEK 18.6bn 8 60% of the portfolio is negatively 7 impacted by lower oil – Derivative exposures of SEK 2.5bn 6 price 5 • Negative rating migra
Slide 15: Conservative funding position
Liquidity and funding Conservative funding position • LCR 148% (Swedish FSA definition FFFS 2012:6) • NSFR 107% (Basel committee) • Issued SEK 68bn of term funding in Q1 2016 • Plan to issue around SEK 180bn in 2016 Term funding issuance – completed and planned Prefunded for more than 12 months SEKb
Slide 16: 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 200 200 Senior unsecured debt 150 150 Covered bonds Other GBP 100 100 USD EUR 50 SEK 50 0 0 2016 2017 2018 2019 2020 2021 2022- 2
Slide 17: 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 Apr 15 13% 20% 16% May 15 13% 18% 15% Jun 15 12% 19% 14% Jul 15 14% 18% 15% Aug 15 13% 19% 15% Sep 15 14% 20% 16% House price index, Sweden3 2005