Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q1 2000 Earnings Presentation
32 slides from Nordea Bank Abp's earnings presentation, Mar 31, 2000
Slide 1: MeritaNordbanken Unidanmark January – March 2000
MeritaNordbanken Unidanmark January – March 2000
Slide 2: Merger progress report
Merger progress report • Merger accepted by 97.1 per cent of Unidanmark shareholders • Strong first quarter pro forma results for new group 2
Slide 3: Merger effected
Merger effected • Shareholders representing 97.1 per cent of the Unidanmark A/S shares have accepted the share exchange offer from Nordic Baltic Holding (NBH) AB (publ) • All other conditions fulfilled • New Board of Directors and New Group Management operative • Over 50 key management positions fil
Slide 4: The largest financial group in the Nordic region
The largest financial group in the Nordic region Market capitalisation of Nordic banking groups, April 2000 NBH Handelsbanken SEB FöreningsSparbanken Danske Bank Den norske Bank Christiania Bank RealDanmark 0 5 10 15 20 bnEUR 4
Slide 5: Strong first quarter 2000 for the new group
Strong first quarter 2000 for the new group • Operating profit EUR 729 million (DKK 5.4 billion/SEK 6.2 billion) • Return on equity 19.2 % • Strong growth within Retail and Asset Management 5
Slide 6: Pro forma financial information
Pro forma financial information Jan – March 2000 Jan-March Full year 2000 1999 Earnings per share, EUR 0.17 0.55 Shareholders’ equity per share, EUR 3.45 3.43 Shares outstanding after full conversion 2 984.1 2 987.2 6
Slide 7: Legal structure
Legal structure Share- holders Nordic Baltic Holding * (NBH) AB (publ) MeritaNordbanken Abp * Tryg-Baltica A/S * Tryg-Baltica Vesta Unibank Merita Bank Nordbanken Insurance * Preparing to adopt a new name. 7
Slide 8: Group structure
Group structure Group Management Group Staffs & Service Units Corporate & Investment Asset Life Insurance Non-life Institutional Retail Banking Banking Management & Pensions Insurance Banking Retail Banking Retail Banking Retail Banking Denmark Finland Sweden Retail Banking Baltic & Poland 8
Slide 9: Share price development
Share price development Dec 31, 1997=100 1 60 1 50 1 40 1 30 1 20 110 1 00 90 80 1998 1999 2000 DJ Euro Stoxx Bank Nordic Baltic Holding 9
Slide 10: Unidanmark January – March 2000
FS Unidanmark January — March 2000
Slide 11: Unidanmark
Unidanmark Including Vesta in 1Q00 1Q99 1Q00 Profit before tax, EURm 143 274 ROE, % 11,9 20,2 Earnings per share, DKK 12 19
Slide 12: Unidanmark
Unidanmark Including Vesta in 1Q00 EURm 1Q99 2Q99 3Q99 4Q99 1Q00 Core earnings, bank 333 338 323 332 402 Core earnings, insurance 98 97 94 89 83 Core earnings, Unidanmark A/S 1 1 0 9 2 Core earnings 432 435 417 431 487 Expenses and depreciation (329) (344) (324) (339) (374) Profit on core activities
Slide 13: Banking
Banking Operating profit before tax EURm 1Q99 2Q99 3Q99 4Q99 1Q00 Excluding investment portfolio income: Net interest income 228 224 216 228 236 Other income 135 118 121 124 180 Provisions for bad and doubtful debts (30) (4) (14) (20) (14) Core earnings 333 338 323 332 402 1 Expenses and depreciatio
Slide 14: Insurance
Insurance Operating profit before tax 1 EURm 1Q99 2Q99 3Q99 4Q99 1Q00 1Q00 Premium income, non-life 201 201 198 200 324 203 Regular premiums, life 78 76 74 158 158 88 Single premiums, life 42 29 33 53 46 38 Premium income, total 320 306 305 411 528 329 Profit on investment activities 132 298 148 868
Slide 15: Insurance premium income, including Vesta
Insurance Premium income, including Vesta 600 500 400 EURm 300 200 100 - 1Q99 2Q99 3Q99 4Q99 1Q00 Premium, non life Regular premiums, life Single premiums, life
Slide 16: Unidanmark expenses and depreciation
Unidanmark Expenses and depreciation 400 350 300 250 EURm 200 150 100 50 - 1Q99 2Q99 3Q99 4Q99 1Q00 Expenses and dep. excl. Vesta Vesta
Slide 17: Unidanmark return on investment portfolio
Unidanmark Return on investment portfolio 280 230 180 EURm 130 80 30 (20) 1Q99 2Q99 3Q99 4Q99 1Q00
Slide 18: Core earnings before provisions for bad and doubtful debt
Core earnings before provisions for bad and doubtful debt Life Insurance Non-Life Insurance Business areas Investment 1Q00 Banking Asset Management 1Q99 Markets Corporate Banking Retail Banking 250 200 150 100 50 0 EURm
Slide 19: Capital under administration
Capital under administration Breakdown by asset class Investment Management 60 4Q98 4Q99 1Q00 50 Danish bonds 57% 40% 33% 40 International bonds 2% 2% 9% EURbn 30 Danish equities 12% 18% 11% 20 International equities 26% 39% 43% 10 Cash and cash equivalents 3% 1% 4% 0 94 95 96 97 98 99 00 4Q 4Q 4Q 4
Slide 20: Online investment
Online investment Antal kunder Number of customers Share of retailAndel af retail-aktiehandler customer’s stock trading 40 50000 35 40000 30 25 30000 20 20000 15 10000 10 5 0 0 Periode Periode
Slide 21: MeritaNordbanken January – March 2000
MeritaNordbanken January – March 2000
Slide 22: Steps towards a leading Nordic banking group
Steps towards a leading Nordic banking group • Merger with Unidanmark • Extension and adjustment of cash offer for Christiania Bank og Kreditkasse shares • Completion of the new structure – a single-owner company • Acquisitions and expansion continue in Baltic countries and Poland • Concentration on
Slide 23: Result
Result Jan – March, 2000 2000 1999 Q1 Q1 Operating profit, mEUR 472 375 (489*) Return on equity, % 23.1 22.4 Earnings per share, EUR 0.16 0.13 * Including capital gain from sale of Pohjola shares, 114 mEUR. 23
Slide 24: Income statement
Income statement Quarterly 2000 1999 mEUR Q1 Q4 Q3 Q2 Q1 Net interest income 487 457 439 454 448 Net commission income 267 257 190 194 181 Net result from financial operations 34 17 -7 -53 34 * Other operating income 94 57 60 91 92 Total operating income 882 788 682 686 755 Personnel expenses -202 -
Slide 25: Net interest and commission income
Net interest and commission income mEUR 500 Net interest income 400 Net commission 300 income 200 100 0 Q1 Q2 Q3 Q4 Q1 1999 2000 25
Slide 26: Expenses
Expenses mEUR 500 Other expenses 400 Personnel 300 expenses 200 100 0 Q1 Q2 Q3 Q4 Q1 1999 2000 26
Slide 27: Loan loss level
Loan loss level % 0.3 0.2 0.1 0.0 Full year Q1 Q2 Q3 Q4 Full year Q1 1998 1999 1999 2000 27
Slide 28: Operating profit by business area
Operating profit by business area mEUR 350 Q 1 1 999 300 Q2 250 Q3 200 Q4 1 50 Q 1 2000 1 00 50 0 -50 R e tail C o rp o rate Marke ts A sset Manag e m e nt and L ife I ns urance 28
Slide 29: Asset Management and Life Insurance
Asset Management and Life Insurance Assets under management bnEUR 40 35 Unit-linked life insurance 30 25 Life insurance (excl. unit-linked) 20 15 Institutional portfolio management 10 Mutual funds 5 (excl. unit-linked) 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1998 1999 2000 29
Slide 30: Key figures – result
Key figures – result % Return on equity % Cost/income ratio * 25 52 51 20 50 15 49 48 10 47 5 46 0 0 Q1 Q1 Q1 Q1 2000 1999 2000 1999 * Before loan losses. 30
Slide 31: Internet bank
Internet bank Number of customers 1996 – 2000 Million customers 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Dec Dec Dec Dec March 1996 1997 1998 1999 2000 31
Slide 32: MeritaNordbanken Unidanmark
MeritaNordbanken Unidanmark The largest financial banking group in the Nordic region