Capital Markets Day 4 December Fokus Bank ASA. Managing Director Thomas Borgen

Transcription

1 Capital Markets Day 4 December 2002 Fokus Bank ASA Managing Director Thomas Borgen

2 What did we say 12 mths ago Continue to improve credit portfolio/pricing Re-positioning of Fokus Bank Private Banking concept Geographical focus (4 major areas) Combine Danske Bank, Oslo Branch with Fokus Bank Utilize synergies from new IT platform Re-allocation of resources Focus on core business Utilize the platform for profitability focus

3 Which were going to Significantly improve the results

4 The Norwegian market 2002 Growth rates (estimates): GDP: 1.6 per cent (mainland economy) Investments mainland Norway: 2.2 per cent Credit growth: 9.5 per cent Saving rate: 5.5 per cent Average (YTD) 3 months Nibor: 6.9 per cent Wages: 5.5 per cent

5 Savings mutual funds Stock exchange index and net subscription in Norwegian registered mutual funds january september ,5 OSEBX jan 00- sep-002 Source: Oslo Stock Exchange Net subscrip tio n m rd N O K 2 1,5 1 0,5 0-0,5-1 -1,5-2 ja n.0 0 mar.00 m a y -0 0 ju l.0 0 sep.00 nov.00 ja n.01 m a r.01 may-01 jul.01 s ep.01 n o v.01 ja n.0 2 mar.02 m a y -0 2 ju l.0 2 sep.02 Source: Verdipapirfondenes forening

6 Equity market Sales of Equity Instruments Index Return (OSEBX) aug.00 oct -00 des.00 feb.01 apr.01 jun.01 aug.01 oct-01 des.01 feb.02 apr.02 jun.02 aug.02 oct jan feb mar apr may jun jul aug sep oct nov dec Turnover monthly Per cent Source: Oslo Stock Exchange Source: Oslo Stock Exchange

7 The income statement

8 Banking activities Norway Banking activities Corporate customers Private customers Investment services Danske Banks other business areas i Norway Danica Danske Securities Nordania Leasing Danske Capital BA Norway vs Fokus Bank (income statements): Fokus Bank (Banking activities, Fokus Markets,Danske Capital) BA Norway (Banking activities Fokus Bank and Oslo Branch)

9 Profit & loss banking activities Norway Q Q Q Q Q Increased net interest Stable other operating income Reduced costs DKK mill before loan losses Source: Danske Bank Quarterly Reports

10 Profit & loss Fokus Bank ASA Q3 Numbers annualized (linear) Operating profit before loan losses Q 2002 Losses on loans and guarantees Source: Fokus Bank Quarterly Reports

11 Loan losses 1,2 % 1,0 % 0,8 % 0,6 % 0,4 % 0,2 % 0,0 % Q Q Q Q Q Numbers ( ytd) are annualized Source: Fokus Bank Quarterly Reports

12 Growth in gross lending Fokus Bank % -0.1% 2.6% 1.5% 1.5% 2.1% 1.1% 4.7% Private sector; relatively strong growth Corporate sector: moderate growth Source: Fokus Bank Quarterly Reports

13 Signs of strengthening -competitiveness 3Q 2001 Annualised results in per cent of average total assets Net interest income Net other ordinary income Ordinary expenses Pre-tax profit before losses Net loan losses Pre-tax profit Fokus Bank DnB Does not include gains/(losses) on securities, foreign exchange and financial derivatives Source: Quarterly reports

14 Signs of strengthening -competitiveness 3Q 2002 Annualised results in per cent of average total assets Net interest income Net other ordinary income Ordinary expenses Pre-tax profit before losses Net loan losses Pre-tax profit Fokus Bank DnB Does not include gains/(losses) on securities, foreign exchange and financial derivatives Source: Quarterly reports

15 Strong credit focus Credit policy clearly defined Improved credit prosess and structure renewals, ratings, limits, monitoring and controll Skill enhancement the right man on the right place Critical revision of the portfolio selected customers have left the bank

16 Credit portfolio private/ business Private segment 50% Business segment 50%

17 Credit portfolio business Real estate 33% Other services 9% Transport, storage 8% Public segment 2% Miscellaneous 3% Foreign, finance Hotels & restaurants 4% 1% Trade Building and construction, Agriculture / forestry 3% 14% power and water supply Fishing / fish farming 4% 4% Shipping / Oil & gas 5% Industry / mining 10% Oslo branch not included Source: Internal statistics Fokus Bank

18 Credit portfolio Real estate Rentals Shopping malls Private housing Corporate risk

19 Re-positioning of Fokus Bank

20 TV Commercials What have youre money done for you lately?

21 . has led to increased general knowledge 40% 38% 36% General knowledge 34% 32% 30% 28% 26% 24% 22% 20% Advertising Jan Feb Mar Apr Mai Jun Jul Aug Sep Okt

22 The knowledge is at its highest level - and has increased most by those with highest income Over 500' 300'-500' 200'-300' June April Under 200' 10 % 15 % 20 % 25 % 30 % 35 % 40 %

23 Customers say An active bank A modern bank For urbane people August April For people with high income Individual treatment 1 1,5 2 2,5 3 3,5 4 4,5 5

24 Re-positioning is working Pragmatism Technology Challenge Liberalism Selfrespect Internationalisation Complexity Rationality Independence Materialism Modernity Performance Individualism Political influence Informal Alternative life Spontanity Dominans New family Self-realisation Participation Sensitivity emphathy Idealism Adaptability Network Investment Equality Risk profile Well-being Egoism Privatisation Fond of nature Hard working Status Outlook Mental development Economic certainty Religious Conformity Consumer The family Fear for violence Continuity Roots Fear for Technology Traditionalism

25 DnB The most satisfied customers 90,0 % 88,0 % 86,0 % 84,0 % 82,0 % 80,0 % 78,0 % 76,0 % 74,0 % 72,0 % 70,0 % Gallup, Forbruker og Media 2002 Satisfied customers Fokus Bank Skandiabanken Nordea Sparebank 1 Gjensidige Nor Postbanken

26 Going forward

27 Utilize the benefits from DB ownership Technology Cost efficient Product development Back office Funding Credit culture International solutions Products Markets Cash management Nordania Danica Danske Capital

28 Danske Bank, Oslo Branch Will remain But fully coordinated one organisation Market and cost synergies Main Brand: Fokus Bank

29 Strong focus on core business From production to distribution and customer focus, with the concept of Open architecture Multi channel distribution

30 Geographical reallocation The four largest geographical areas have been selected: Trondheim, Oslo, Bergen and Stavanger Three branches were sold in 2001, another three in 2002, in sparsely populated areas. Four new branches were opened in the selected growth areas / segments in 2002

31 The Norwegian market 2003 Credit growth 8-10 percent Credit risk Uncertainty related to certain sectors and business cycle Increasing spread between high and low risk segments Saving rate 4 percent, from a high level in 2002 Most likely on low risk products (deposits) Money market interest rate to remain high A general rise in prices of 2.3 percent, and an increase in wages of 5 percent Challenging market conditions

32 The next 12 months The same strategic direction and focus Continued investment and growth in the four major geographic areas Branch openings Reallocating of resources Continued investment and growth in higher potential segments, both corporate and retail.

33 The next 12 months Continued re-allocation of resources from back to front Continued strengthening of the credit portfolio Continued re-positioning of Fokus Bank Human resources Product development Communication Customer acqusition Growth In line with market, but in selected areas

34 Building a platform for sustainable long term profitability and growth

35 It`s all about execution!