Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q3 2015 Earnings Presentation
19 slides from Nordea Bank Abp's earnings presentation, October 2015
Slide 1: Investor presentation Third Quarter Results 2015
Second Quarter Results 2014 Investor presentation Fourth Quarter Second Quarter and Results 2015 Third Full Quarter Year Results Results 2014 2015 Press conference Press Conference Christian Investor Clausen, President and Group CEO presentation Christian Clausen, Presidentand Christian Clausen, Pre
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance
Slide 3: Highlights of third quarter 2015
Highlights of third quarter 2015 Third quarter 2015 vs third quarter 2014* Revenues down 3% Negative interest rates put pressure on NII Continued good inflow to savings operations but declining market return Challenging market conditions affect NFV negatively Costs are down 3%, delivering
Slide 4: Q3 2015 financial results highlights
Q3 2015 financial results highlights 14
Slide 5: Financial results
Financial results Q3/15 Q2/15 Chg Loc. Chg Loc. YTD 15 YTD 14 Chg Loc. Q3/Q2 curr. Q3/Q3 curr. 15/14 curr. EURm Chg % Chg % Chg % % % % Net interest income 1 272 1 309 -3 0 -9 -5 3 869 4 126 -6 -4 Net fee & commission 717 783 -8 -7 7 9 2 257 2 079 9 10 income Net fair value result 222 401 -45 -45 -2
Slide 6: Net interest income
Net interest income NET INTEREST INCOME DEVELOPMENT, EURm COMMENTS • Unchanged in local currencies 1 396 1 356 1 288 1 309 1 272 • Improved NII in business areas • Treasury down from a strong previous quarter • One additional interest day adds EUR 15m Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 6•
Slide 7: Net interest margin and volumes
Net interest margin and volumes BLENDED NET INTEREST MARGIN DEVELOPMENT, BPS COMMENTS • Blended margin down 2 bps to 98 109 108 103 bps 100 98 • Stable lending margin • Decreased deposit margin Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 • Lending volumes are up 3% y-o-y* • Deposit volumes are up 5% y-o-y* LENDIN
Slide 8: Net fee and commission income
Net fee and commission income NET FEE AND COMMISSION DEVELOPMENT, EURm COMMENTS 763 757 783 • Fee and commission income down on 717 667 a strong previous quarter 160 Lending commissions 210 171 153 171 • Lower AuM-fees following lower 148 Payments & cards 142 144 148 asset prices 160 • Savings and i
Slide 9: Continued inflow to our savings and investment offering
Continued inflow to our savings and investment offering AUM DEVELOPMENT, EURbn COMMENTS 19.9 273.3 • Decrease in AuM caused by negative -1.1 market development • Net inflow of EUR 2.8bn in the quarter • All segments contributed 254.5 positively • Continued good net inflow in Global Fund Distribution
Slide 10: Net fair value
Net fair value NET FAIR VALUE DEVELOPMENT, EURm COMMENTS 644 • Customer-driven activity holding up 95 • Low liquidity and higher credit spreads on the financial markets 207 401 make high volatility difficult to 367 manage 291 37 149 91 222 78 117 7 Wholesale Banking Other 86 72 Wealth Management 105
Slide 11: Long term improvement in cost efficiency
Long term improvement in cost efficiency TOTAL EXPENSES*, EURm COMMENTS 1 177 1 232 1 188 1 185 • Costs are down 5% in local 54 1 108 66 45 50 49 Depreciations currencies from previous quarter 418 380 364 363 303 Other expenses • Cost target full year 2015 of EUR 4.7bn reiterated • Solid improvement
Slide 12: Stable asset quality
Stable asset quality TOTAL NET LOAN LOSSES, EURm COMMENTS 171 180 • Loan losses largely unchanged at 13 158 135 bps – well within the long term 129 122 112 103 112 average of 16 bps • Impaired loans ratio down to 145 bps • Provisioning ratio increased to 48% (46%) Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14
Slide 13: Risk exposure amount
Risk exposure amount RISK EXPOSURE AMOUNT, EURbn* COMMENTS 160 • REA down EUR 3bn in the quarter 159 155 • Driven by FX, lower market risk 153 152 152 150 and improved credit quality 147 145 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 RISK EXPOSURE AMOUNT DEVELOPMENT, EURbn 1.5 0.7 0.3 1.9
Slide 14: CET 1 ratio up 30 bps
CET 1 ratio up 30 bps COMMON EQUITY TIER 1 RATIO DEVELOPMENT, % 0.2% 0.1% 0.2% 0.0% 0.1% 0.1% 16.3% 16.0% CET1 ratio Q2 FX Credit Quality Growth Market & CVA risk Other Profit & CET1 CET1 ratio Q3 2015 effects 2015 14 •
Slide 15: Management buffer reflects Nordea's diversified business
Management buffer reflects Nordea’s diversified business CET1 RATIO BUILD-UP, % MDA restriction level¹ 0.5-1.5 Approx.~10.4% 15.4 2.0 2.0 2.0 5.9 1.0 4.5 Pillar 1 Combined Swe & Nor Pillar 2 Pillar 2 (other) CET1 Management min buffer2 Mortgage Systemic level as per buffer Risk Weight Risk Buffer Sw
Slide 16: RoCaR and drivers
RoCaR and drivers ROCAR DEVELOPMENT YTD, GROUP AND BUSINESS AREAS GROUP RETAIL BANKING WHOLESALE BANKING WEALTH MANAGEMENT 36.4% 29.6% 13.8% 14.9% 13.4% 14.2% 13.9% 13.7% 9M 14 9M 15 9M 14 9M 15 9M 14 9M 15 9M 14 9M 15 ∆ RoCaR 1.1% ∆ RoCaR 0.8% ∆ RoCaR -0.2% ∆ RoCaR 6.8% ROCAR DRIVEN BY: ROCAR DRIVE
Slide 17: Financial summary
Financial summary 14
Slide 18: Continuing the journey – handing over to Casper von Koskull
Continuing the journey – handing over to Casper von Koskull 2006 to 2015 50% increase in relationship customers – up more than 1 million EUR 27bn of capital generated CET 1 ratio improved from 5.9% to 16.3% Many challenges still remain Journey continues in a clear and unchanged direction
Slide 19: Investor presentation Third Quarter Results 2015
Second Quarter Results 2014 Investor presentation Fourth Quarter Second Quarter and Results 2015 Third Full Quarter Year Results Results 2014 2015 Press conference Press Conference Christian Investor Clausen, President and Group CEO presentation Christian Clausen, Presidentand Christian Clausen, Pre