Svenska Handelsbanken 1st Quarter 2000

Transcription

1 Svenska Handelsbanken 1st Quarter

2 Handelsbanken - customers favourite bank Strongest brand name Greatest confidence Most satisfied customers Best service Greatest number have changed to Most want to change to Source: Privata Affärer no 12/1999, Råd&Rön no 12/1999, Veckans Affärer no 48/1999 and Svenskt Kvalitetsindex

3 Anticipated 1st Quarter operating profit: SEK 2 320m Svenska Handelsbanken Group SEK m 1st Quarter Profit Profit Average Lowest Highest Median Std-deviation 8% 6% 8% Net interest income Net comm. income Loan losses 54 Source: SIX Market Estimates 3

4 Profit and Loss Accounts, January March Svenska Handelsbanken Group SEK m Change % Net interest income, excl trading Commission, net Trading Other income, excl trading Total income Staff costs, excl performance-related Performance-related staff costs Other expenses Total expenses Profit before loan losses Loan losses Operating profit

5 Operating profit, quarterly Svenska Handelsbanken Group SEK m Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q

6 Return on shareholders equity after standard tax 31 March 2000 % Handelsbanken Other listed commercial bank groups * *

7 Average volumes, deposits from the general public, January March Handelsbanken Group Change SEK bn % Deposits Swedish kronor Households Companies etc Deposits foreign currency Sweden Other Nordic countries Other

8 Average volumes, lending to the general public January March Handelsbanken Group Change SEK bn % Lending Swedish kronor Mortgage loans Bank loans Lending foreign currency Sweden Other Nordic countries Other

9 Interest spread branch office operations Svenska Handelsbanken Group % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Handelsbanken Total Mortgage Group 9

10 Commissions, January-March Handelsbanken Group Change SEKm % Brokerage Mutual funds Corporate finance, custody Payments Lending and deposits Other Commission expense Total

11 Expenses, January-March Handelsbanken Group SEKm Change % Staff costs excl performance-related Performance-related staff costs Other Total expenses

12 No. of employees falls despite Bergensbanken... Handelsbanken Group Förändring No. of employees as at 31 March of which Swedish regional banks -271 IT and development, Sweden +36 Bergensbanken +194 Other outside Sweden -56 Other -29 Change in no. of employees

13 The number of employees in the Swedish branch office network fell by 6% - an important reason being that more than 20% of the bank s business now goes via the Internet 13

14 Customers connected to Handelsbanken on the Internet One-third of the corporate customers Slightly more than a fifth of the private customers 275,000 customers connected - an increase of 20% since year-end 14

15 More Internet transactions than branch office transactions in Branch transactions Trans/month Internet transactions jan-99 apr-99 jul-99 okt-99 jan-00 apr-00 jul-00 okt-00 15

16 Proportion of various Internet services Handelsbanken, Sweden 25% 14% 21% 1998 (Dec) 2000 (Mar) 8% 7% 11% Equities Mutual funds Payments 16

17 Number of custody accounts and proportion of Internet customers Number % dec-98 mar-99 jun-99 sep-99 dec-99 mar No. of custody accts Proportion of Internet customers Three out of four new custody accounts are linked to the Internet Four times as many Internet-linked custody accounts compared to January

18 Handelsbanken - one of the largest Internet banks in Europe At the year-end, Handelsbanken had 2.5 % of all the equities customers in Europe connected to the Internet In the first quarter of 2000 the commission on equities transactions via the Internet was larger than for the whole of 1999 In March, more than 1 million payments were made via the Internet 18

19 Loan losses as a percentage of lending Svenska Handelsbanken Group % Handelsbanken Other Swedish banks * * As at 31 December March 19

20 Bad debts as a percentage of total lending Svenska Handelsbanken Group % March 20

21 Appropriations, January March Svenska Handelsbanken Group SEK m Operating profit Settlement of pensions Taxes Minority interests Net profit

22 Key figures Svenska Handelsbanken Group January March Return on equity 22.3% 18.0% Income/expenses ratio before loan losses after loan losses Net earnings per share, SEK * ) 3:10 2:21 12 mth moving total 10:20 8:10 *) Comparison figures adjusted for split 3:1 22

23 Capital base and capital ratio, 31 March 2000 Svenska Handelsbanken Group SEK bn % 9.8 % 9.4% 9.3% % 12.6 % 13.7 % 14.2 % 12.2 % Tier II capital % 8.4% 9.3 % 10.3 % 10.0 % 6.2 % 6.3 % 6.5% 6.4% Tier I capital

24 Moody s rating of European universal banks Lloyds TSB UBS Handelsbanken ABN AMRO Banco Bilbao Vizcaya Argentaria Barclays ING Bank HSBC NatWest Royal Bank of Scotland Bank of Scotland BNP Banco Santander Central Hispano Commerzbank Deutsche Bank Dresdner Bank Fortis Banque HypoVereinsbank San Paolo-IMI Société Generale Unicredito Italiano Den Danske FöreningsSparbanken Banca Intesa Credit Suisse Group Unibank MeritaNordbanken Banca Nazionale del Lavoro Christiania Bank Den Danske Bank Standard Chartered SEB Banca di Roma Credit Lyonnais Long-term rating. 30 of the largest listed European universal banks and other Nordic universal banks. Updated: 5 April 2000 Aaa Aa1 Aa2 Aa2 Aa2 Aa2 Aa2 Aa2 Aa2 Aa2 Aa3 Aa3 Aa3 Aa3 Aa3 Aa3 Aa3 Aa3 Aa3 Aa3 Aa3 Aa3 Aa3 A1 A1 A1 A1 A2 A2 A2 A2 A2 A3 A3 1 Lloyds TSB Aaa 2 UBS Aa1 3 Handelsbanken Aa2 24

25 Operating profit per business area January - March SEK m /-% Return on equity 1999 Branch offices % 22.4 % Handelsbanken Markets % 28.1 % Asset Management % 42.2 % Handelsbanken Finans % 22.6 % Handelsbanken Liv % 39.2 % Stadshypotek Bank % 17.1 % Central Treasury % 11.4 % SHB Group % 22.3 % 25

26 Operating profit, January March Branch office operations SEK m /-% Net interest income Commission, net Net result on financial operations Other income Total income Net internal remuneration incl. in income Total expenses Result before loan losses Loan losses Operating profit Return on equity 22.4 % 18.1 % 26

27 Handelsbanken Mutual Funds - market share Proportion of net inflow 27,1% to funds 17,3% 13,2% Q Source: Fondbolagens förening 27

28 Yield in Handelsbanken Liv Handelsbanken Liv Industry average % 15.8% % 20.2% 1st Quarter % 28

29 Expanding branch office network in the Nordic area Our domestic market Finland 16 branches Norway 23 branches Sweden 465 branches Denmark 5 branches 29

30 Result in the other Nordic countries January March SEK m Norway Denmark 6 4 Finland Total

31 0,5 A comparison: European universal banks 1999 (incl. loan losses) Expenses/total assets. % 1 1,5 2 2,5 3 HypoVereinsbank Commerzbank BNP Paribas ING Bank Dresdner Swedbank Société Générale Deutsche Bank Banca di Roma Credit Lyonnais S E B UBS ABN Amro Banca Intesa CS Group BSCH Unibank BBVA Fortis Den Danske Bank MeritaNordbanken Bank of Scotland San Paolo-IMI Barclays HSBC NatWest Royal Bank of Scotland Unicredito Italiano Den norske Bank Handelsbanken Christiania Bank Lloyds TSB 3,5 BNL Standard Chartered I/E-ratio Source: Source: Deutsche Bank (Svenska Handelsbanken for Nordic banks) Updated 10 April

32 Handelsbanken s objectives Higher return on equity than the average of of comparable banks To be achieved by Better service Lower expenses 32

33 Strategy 10% Implementation 90% 33

34 Internet who offers what? SHB NB FSB SEB Corporate services X (X) X Equities transactions X X X Trading station X Market Shares/ Shares Shares Shares information mutual funds Participation in new share issues X X Internet services in Denmark, Finland and Norway X 34

35 The Internet at Handelsbanken 500 local portals in in the Nordic countries - starting in in summer 2000 the branches will design their own home pages Internet profits accrue to to the branch - Internet is is not a separate result area This has made the branches enthusiastic sellers of of the new technology The branches give impetus to to technical and quality development Vision at at the local branches: One person takes care of the web site while another takes care of the bank... 35

36 Handelsbanken Mora E-post Hjälp & support KONTORET BANKÄRENDEN TJÄNSTER KONTORET BANKEN AKTUELLT KONTORSUPPGIFTER VÅR PERSONAL FÖR PRIVATPERSONER FÖR FÖRETAG Börskurser Revisionsbyråer Lokala länkar Välkommen till Handelsbanken Internet är ett sätt att besöka vårt kontor. Du är alltid välkommen att besöka oss personligen. Adress och öppettider hittar du under KONTORSUPPGIFTER. Attractive banking services. STARTSIDA INSTALLATION Allkortet - världens bästa kort Läs mer Locally adapted menus Local links 36

37 Handelsbanken Nyköping KONTORSUPPGIFTER VÅR PERSONAL FÖR PRIVATPERSONER Allkort - världens bästa kort Börskurser Att köpa bostad Bostäder till salu i Nyköping Lokala länkar FÖR FÖRETAG STARTSIDA INSTALLATION Locally adapted menus Välkommen till Handelsbanken. E-post Investment and Hjälp & support KONTORET BANKÄRENDEN TJÄNSTER KONTORET BANKEN AKTUELLT Financial news Vi har byggt om kontoret. Välkommen in! Våra öppettider hittar du under KONTORSUPPGIFTER. Senaste nytt Uppåt på börsen Nutek vill se mer pengar till forskning Räntan på väg ner, spår ekonomer share tips Affärsidé: KMT Lågt värderade verkstadsbolag har kommit i fokus. KMT kan bli en kursvinnare. Läs mer Flygande start för IT-Fonden Värdet på Handelsbankens IT-fond är nu över 1 miljard kronor. Fonden startade den 15 februari i år. Läs mer Generalindex

38 What is WAP? Text and pictures via a mobile phone 38

39 What is included in Handelsbanken s WAP service? Market information Account information Transfers 39

40 Market information Share prices the ones you want to see News market comments share tips 40

41 Account information and transfers Balance on accounts Latest transactions Transfers between own accounts to other pre-defined accounts 41

42 What do you need? A WAP phone A connection to the WAP service The correct phone settings 42

43 Internet developments in year 2000 Even better information and equities service Internet bank in the UK Foreign exchange transactions Additional cash management services 43

44 Annual profit growth for the Group Increase % Reported operating profit Actual growth in operating profit excl interest rate impact Market expectation 44

45 and only approximately half the increase is related to the strong equities market...

46 In which markets in Europe does the Internet pose a threat to the profitability of the banks? 2,9 Spain UK Interest spread, % 2,4 1,9 1,4 France Italy Benelux Nordic market Handelsbanken 0,9 1,2 1,4 1,6 1,8 2 I/E ratio Source: SalomonSmithBarney BankViews October 1999, Germany 46

47 Bank customers utilisation of Internet services % ,3 0 SHB Nordic area Germany Spain- France Benelux- UK Italy Source: Salomon Smith Barney Net Winners & Losers, October 1999 Proportion of bank customers in the respective countries using Internet services 47