Citi Global Financial Conference Hong Kong, 19 November 2013

Transcription

1 Citi Global Financial Conference Hong Kong, 19 November 2013 Hanse Ringström, Chairman SEB Asia Ulf Grunnesjö, Head of Investor Relations 1

2 SEB the Nordic corporate bank with a global reach Income distribution per segment Income distribution per country Norway SEK 39bn New York Private Dublin Finland Norway Sweden Estonia Latvia Denmark Lithuania S:t Petersburg Moscow New Delhi SEK 39bn Denmark Finland Germany Beijing Shanghai Hong Kong London Germany Warsaw Singapore Baltics Corporate São Paulo Luxemburg Geneva Kiev Sweden RoW 2

3 operating in a stable region Source: Eurostat Graphics: Stefan Rothmaier, Dagens Nyheter 3

4 A Nordic bank with global reach Following in our customers footprint Nordics 28% New York Dublin London Finland Norway S:t Petersburg Sweden Estonia Moscow Latvia Denmark Lithuania Northern Europe 25.5% Warsaw Germany Luxembourg Kiev Asia 14% Beijing New Delhi Shanghai Hong Kong Singapore São Paulo Note: Sales of 120 largest listed Swedish corporates Source: Annual reports 2011 Geneva RoW 14.5% SEB Asia 35 years presence 600 clients 200 staff on the ground 4

5 Nokia 45% Cargotec 39% Wärtsilä 38% Emerging market exposure Kone 30% 1 1) Based on assets (not sales) Source: Annual reports, APEA analysis and estimates except Finnish cos

6 Strong presence in Asia 5 Sites and 200 staff Close co-operation with home markets and between Asia sites, offers clients a seamless customer experience across Asia. Asia sites development Singapore (branch) 115 staff Established 1978 Offer: Lending, Trade Finance, Cash Management, Foreign Exchange, Shipping, PAEF to corporates and financial institutions in SE Asia. Private Banking to individuals in Asia Shanghai (branch) 46 staff Established 2005 Offer: Lending, Trade Finance, Cash Management and Foreign Exchange to corporates in China Beijing (rep) 4 staff Established 1983 Assist SEB Shanghai by covering northern China New Delhi (rep) 4 staff Established 2008 Focus on assisting SEB corporate clients in India Enhanced offer Hong Kong (branch) 35 staff Established in 2011 Offer: Lending, Trade Finance, Cash Management, Foreign Exchange, Capital Markets, Futures, Securities Finance and DMA Equities to corporates and financial institutions in Hong Kong, Korea, Taiwan and the rest of Asia. 6

7 SEB s main markets Economic fundamentals remain relatively robust % Nordic GDP development * Norway Denmark Germany Sweden Finland Estonia Latvia Lithuania Lithuania % German and Baltic GDP development * Germany Estonia Latvia Lithuania E 2014E % Eurozone GDP development * * Source: SEB Nordic Outlook, August

8 1 Profitable growth of customer franchise 2 Long-term stability 3 Financial targets 8

9 Creating customer value! Profitability Private individuals Sweden* SME Sweden** Large corporates Sweden* Brand Customer knowlegde 19% 31% Relationship and accessibility Customer knowledge High Trust & focus on customer needs Execution & advisory High Service Offering 11% Products & services 11% 16% Brand & image Tailor made offerings Price Low (hygiene factor) Committed facilities Daily support & interaction Price Low (hygiene factor) *Source: Loyalty study SEB, McKinsey & Co, TNS-SIFO **Source: Loyalty study SEB 9

10 Increased customer satisfaction Profitability Best Large Corporate bank Nordics SEB SEB SEB SEB Corporate Bank Sweden Swedish Quality Index Private Banking Net Promoter Score Baltic Corporate Net Promoter Score (avg.) SEB Avg. Swedish peers #4 #3 #2 10

11 Continued building of customer franchise Profitability 2013 Sep YTD Large Corporate Nordics & Germany New customers Since % Custody Equities DCM FX M&A Lending Trade Cash Fin. Mgmt. Commodities SME Sweden New full-service customers Since , % Private Sweden New full-service customers Since , % 11

12 Merchant Banking franchise Profitability New clients supporting income Contribution in % of MB total customer income % 7% Average product penetration cash management trade finance fund services corporate finance debt capital markets life foreign exchange custody leasing corporate cards relationship lending equities fixed income asset management commodities structured finance 4 2% New clients Clients: 84 Clients: 209 Clients: 305 Note: New clients are shown cumulative Now 12

13 Germany Executing on strategic plan Profitability Preferred bank for targeted German Corporates +160 New customers Since 2010 EUR 1,750m Joint Bookrunner GBP 650m Bookrunner/MLA EUR 4,500m Bookrunner/MLA EUR 475m MLA EUR 400m Bookrunner/MLA EUR 145m Underwriter/ Bookrunner SEB coverage model Custody Equities DCM FX M&A Lending Trade Fin. Cash Mgmt. Key activities going forward Continued customer acquisition and uptiering of existing customers Strengthened capital markets competence and offering Leverage international capabilities through SEB s international network 13

14 Large Corporate financing Credit portfolio FX-adjusted, SEK bn SEK league table Corporate bonds 12 month rolling (SEK bn) Headline transactions Q SEK 500m Sole bookrunner EUR 150m Joint Bookrunner EUR 750m Joint bookrunner EUR 685m Joint Bookrunner 14

15 Retail Sweden franchise: Corporates Profitability Number of customers (thousands) Corporate income (SEK bn) Note: Only active cash management corporate customers annualized Standardised solutions Solutions, not products Directly covers 70 per cent of the customers need Tailored solutions Advisory International/FX More complex financing Insurance Occupational insurance (corporate paid) 15

16 Retail Sweden franchise: Private individuals Profitability Growth private market Full-service customers (thousands) SEB s customer base Households in the major three cities Principal age group of borrowers is years High income households Dual income with kids Personal savings above average in Sweden Stronger credit rating vs.market average Market share 13.0% 13.3% 13.5% 15.1% 16.0% 16.2% >70% conversion to full-service customers Source: SCB/Swedish statistics 16

17 Asset gathering franchise: Coordination Full range of savings products through bancassurance model Profitability Household deposits (SEK bn) +7% CAGR Unit-linked AuM (SEK bn) +15% CAGR Private Banking AuM (SEK bn) +22% CAGR 17

18 Baltic Banking franchise: Wheels start turning Profitability Full-service customers Number of customers 2010=Index 100 Baltics SEK m total income per quarter SEK m EUs sentiment indicator Index (100 = historical average) Source: Macrobond Source: Macrobond 18

19 Strategic actions to reduce volatility Stability Divestment of non-core businesses Reduced size of investment portfolios Secured funding and liquidity reserves Maintained high asset quality Growth in areas of strength Volatility, Q Q (per cent) Net financial income Net profit Source: Nordea Equity Research, August

20 A balanced approach to cost management SEK bn Average quarterly expenses Stability Average quarterly income Average quarterly profit before credit losses Notes: Excluding one-offs (restructuring in 2010, and bond buy-back and IT impairment in 2012) Estimated IAS 19 costs in

21 Stability Nordics continue to support high asset quality Credit quality Loan loss ratio, Group Non-performing loans SEK bn Total bad debt coverage ratio % 80% 70% 60% 50% 40% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% -0.2% -0.4% Net credit losses in % Net credit losses in % Nordic countries SEB Group (negative = reversals) 21

22 A liquid balance sheet based on a solid funding base Stability Short-term liquidity Liquid assets 1 to short-term funding 2 has structurally improved 160% Liquid assets to short-term funding 140% 120% 100% 80% Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Structural liquidity Stable funding to long-term assets 3 has been stable Core Gap Ratio 160% 140% 120% 100% 80% Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep Liquid assets = trading assets excluding derivatives + central bank holdings + bond portfolios in Treasury + bank lending. 2. Short-term funding = central bank funding + CP/CD + bank funding 3. Core Gap = Core Gap Ratio is an SEB defined internal measure similar to the regulatory-defined NSFR but based on internal behavioural modelling. It measures the amount of more than 1 year funding in relation to more than 1 year assets. 22

23 Strong capital situation Stability Basel 2.5 Core Tier 1 ratio (per cent) Basel III fully implemented Strong capital formation Basel III leverage ratio 4.1% (US FDIC 5.3%) Maintain buffer to minimum regulatory levels - In Sweden CET 12% (+ countercyclical buffer?) Significantly more capital attributed to divisions to support capital rationalisation and pricing dynamics 23

24 Targets Financial targets Jan-Sep 2013 Long-term target CET1 Basel III 15.0% Vs. 13% RoE 12.8% Vs % 52% Vs. >40% Dividend payout ratio (FY 2012) 24

25 Managing views of other stakeholders Targets 1. SEB 2. Shareholders 3. Debt investors 4. Rating agencies 5. Regulators 6. Media/Public perception 25

26 The road map to further profit growth and RoE Key priorities Enhance customer satisfaction and increase share of wallet Use strategic window to expand franchise in: Nordic large corporates Selected German Mittelstand Retail Sweden Continued cost efficiency Maintain high asset quality Maintain strong balance sheet The Relationship bank in our part of the world 26

27 The relationship bank in our part of the world 27