DNB The Norwegian bank

Transcription

1 DNB The Norwegian bank New York, Deutsche Bank 22 May 2012 CFO Bjørn Erik Næss

2 Agenda DNB - Q1 results DNB drivers for successful banking 2

3 Agenda Q1 results DNB drivers for successful banking 3

4 Profit per quarter Pre-tax operating profit before write-downs (NOK million) Pre-tax operating profit before write-downs excl. basis swaps (NOK million) Profit for the period (NOK million) Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 4

5 Business areas Pre-tax operating profit after write-downs in the first quarter (NOK million) First quarter 2012 First quarter Retail Banking Large Corporates and International DNB Markets Insurance and Asset Management DNB Baltics and Poland 5

6 Development in lending NOK billion Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March Lending at end of period Lending adjusted f or exchange rate movements June Sept. Dec. March 6

7 Development in deposits NOK billion Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March Deposits at end of period Deposits adjusted for exchange rate movements 7

8 Development in average interest rate spreads - DNB Group Per cent Lending spread Combined spread - weighted average Deposit spread 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2) 8

9 Net interest income - trailing 12 months NOK million per cent from 1 st quarter Trailing 12 months Net interest income March June Sept. Dec. March

10 Changes in net interest income NOK million From 1st quarter 2011 to 1st quarter (24) (229) Q11 Lending and deposit volumes Lending and deposit spreads Interest days Equity and non-interestbearing items Other net interest income Longterm funding 1Q

11 Changes in net interest income NOK million From 4th quarter 2011 to 1st quarter (57) (62) (75) (146) Q11 Lending and deposit spreads Lending and deposit volumes Equity and non-interestbearing items Interest days Other net interest income Longterm funding 1Q

12 Financial targets still apply - but more challenging 2012 NOK billion in pre-tax operating profit before write-downs 2015 NOK billion in pre-tax operating profit before write-downs NOK 2 billion in cost reductions ROE > 14 percent Cost/income ratio below 46 per cent Cost/income ratio below 45 per cent 12

13 Agenda Q1 results DNB drivers for successful banking 13

14 Driver 1: Sustainable achievements DNB has delivered as promised Development in pre-tax operating profit before write-downs (NOK billion) 14

15 Driver 2: A business model shaped for the future 50% 50% Private individuals SME + Corporate 15

16 Driver 3: An international strategy based on key Norwegian industries Energy Shipping/ Offshore Seafood 16

17 Driver 4: Sufficient solidity - DNB is among the most solid banks Equity Tier 1/total assets ( leverage ratio ) 4.9 % 3.9 % 4.2 % 3.1 % 3.2 % 2.6 % Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 DNB 17 Source: Fourth quarter report 2011 from the financial institutions

18 Improved capitalisation with Nordic risk weights Per cent Equity Tier 1 capital ratio Q Adjusted for Nordic risk weights 9.3 Adjusted for full IRB DNB risk weights Reported capital adequacy Pro forma full IRB IRB with Nordic risk weights 18

19 Driver 5: Favourable funding position NOK billion Maturity Spread 3-month Euribor Spread 3-month Nibor Covered bonds Senior bonds Total bp 151 bp Subordinated loan 5.7 Total 82.0 In addition: LTRO funding Spread Spread NOK billion Maturity 3-month Euribor 3-month Nibor Covered bonds Senior bonds Total bp 80 bp In addition: LTRO funding NOK billion Maturity Spread 3-month Euribor Covered bonds Senior bonds Total bp 19

20 Driver 6: Competitive on cost efficiency Cost/income ratio* Nordic banks Source: Company reports *All figures are before adjustments for goodwill i.a.

21 Driver 7: A strong home market Annual budget deficit/surplus for 2012 (forecast) General government net financial liabilities (As a percentage of nominal GDP 2011) Budget deficit Budget surplus 21 Source: OECD Economic Outlook No. 90, November 2011 Note: Budget surplus/deficit calculated as a percentage share of country GDP; forecasts for 2012

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