OP-Pohjola Group and Pohjola Bank (formerly OKO Bank)

Transcription

1 OP-Pohjola Group and Pohjola Bank (formerly OKO Bank) CFO Jouko Pölönen Group Treasurer Hanno Hirvinen

2 Structure of OP-Pohjola Group 2 Central Cooperative Support services Strategic holdings Ownership 1% Member cooperative banks Retail banking Proportion of shares 3 % Proportion of votes 57 % Pohjola Group Banking Asset Management Non-life Insurance Proportion of shares 14 % Proportion of votes 13 % Credit institutions within OP-Pohjola Group are liable for each other's debts and commitments

3 Joint responsibility of OP-Pohjola Group 3 Helsinki OP Bank Funds Life insurance OP-Pohjola Group Central Cooperative 221 Group member banks Banking Asset Management Pohjola Bank plc OP Mortgage Bank Non-life Insurance Credit institutions within OP-Pohjola Group are liable for each other's debts and commitments.

4 4 Joint Responsibility within OP-Pohjola Group Join responsibility within OP-Pohjola Group is based on the Cooperative Banks Act. OP-Pohjola Group Central Cooperative and its member credit institutions are liable for each other's debts and commitments in accordance with the Act. On the basis of this joint responsibility, the Central Cooperative and the member credit institutions are jointly and severally responsible for the debts of the central institution or a member credit institution which is in liquidation or in bankruptcy in the event that these debts cannot be paid from its funds. The liability is apportioned among the Central Cooperative and the member credit institutions in proportion to the total assets in the most recently adopted balance sheets. OP-Pohjola Group's insurance companies do not fall within the scope of joint responsibility.

5 % OP-Pohjola Group on the deposit and lending markets* Market share of lending Market share of deposits Latest value March/29 3/ * Up until 12/22 deposit banks' loans to and deposits placed by Finnish non-mfi's; since 1/23 MFI's loans to and deposits placed by euro area non-mfi's

6 OP-Pohjola Group Market shares 6 31 Mar 8 31 Mar 9 Change 12 m % Deposits 33.1% 33,8 % +,7 Credit and loans 31,4 % 32,2 % +,8 Home loans 35, % 36, % +1, Corporate Credit 26,3 % 26,7 % +,4 Savings in mutual funds 21, % 22,1 % +1,1 Life insurance savings 19,7 % 19,3 % -,4 Non-life Insurance* 26,9 % 27,5 % +,6 * In Dec 27 and Dec 28

7 7 Market Share in Deposits 31 December 28 4 % OP- Pohjola Group Nordea Danske Bank Handelsbanken Savings banks Aktia Local Ålandsbanken cooperative banks Tapiola Bank Source: Federation of Finnish Financial Services

8 Market Share in Loans 31 December % OP- Pohjola Group Nordea Danske Bank Savings banks Aktia Handelsbanken Local Ålandsbanken cooperative banks Tapiola Bank Source: Federation of Finnish Financial Services

9 % Market shares of non-life insurance premiums written 28 Domestic direct insurance OP-Pohjola Group* If Tapiola** Fennia Local Insurance*** * Pohjola Non-Life, A-Insurance, Eurooppalainen, OVY ** incl. Turva *** incl. Palonvara Other Source: Federation of Finnish Financial Services

10 35 % Market shares in life insurance Gross premiums written OP- Pohjola Group * Mandatum Life and Kaleva Nordea Mandatum Life* Skandia Tapiola Others Source: Federation of Finnish Financial Services

11 11 1,2 million OP-Pohjola Group Earnings before tax, 12 month moving total FAS 1, /9

12 12 OP-Pohjola Group Income statement million Change 1 January to 31 March million % Net interest income Other income Total income Personnel costs Other expenses Total expenses Impairments of receivables Returns to owner-members and OP bonus customers Earnings before tax

13 13 OP-Pohjola Group Balance sheet items million 3/29 12/28 Total assets Receivables from customers Non-performing and zero-interest claims Deposits Equity capital

14 14 OP-Pohjola Group Ratios 3/29 12/28 Net interest margin, % * Cost/ income ratio, Banking and Investment Services, % Return on equity (ROE), % Return on equity at fair value, % Return on assets (ROA), % Non-performing and zero-interest bearing receivables of loans and guarantees, %.5.4 Tier 1 ratio, % Capital adequacy ratio, % * Net interest income as a % of average total assets

15 OP-Pohjola Group The amalgamation of the cooperative banks Capital resources and capital adequacy 15 6, million % 24 Other capital resources 5, 2 Tier 2 capital resources 4, 3, 2, 1, Dec. 27 March 28 June 28 Sept. 28 Dec March Subordinated loans Tier 1 capital resources excl. subordinated loans Capital adequacy ratio, % Tier 1 funds/ Riskweighted items, total, % Deductions of own funds are not included

16 % 1 Balance Sheet Funding OP-Pohjola Group 59 bn 65 bn 75 bn 76 bn 2 % 1 % 1 % 1 % % 48 % 49 % 49 % Liabilities to other financial institutions Deposits from customers 6 Insurance liabilities 4 13 % 13 % 1 % 11 % Debt securities issued to the public Subordinated liabilities 2 23 % 22 % 24 % 23 % 2 % 2 % 2 % 2 % 5 6 % 7 % 7 % 1 % 1 % 1 % 1 % 8 % 8 % 6 % 7 % Q1/9 Provisions and other liabilities Cooperative capital Shareholders' equity and minority interests

17 OP-Pohjola 17 6 EUR billion Loans and Funding breakdown 31 March Corporate loans 32% Long-term wholesale funding* 13,8% Short-term 19,7% wholesale funding Household loans 68% Deposit funding 66,5% * Including OP Mortgage Bank

18 Pohjola Bank in Brief

19 19 Pohjola Bank in Brief Pohjola Bank provides banking, investment and non-life insurance services. It ranks among the leading players in the Finnish financial sector. Serving businesses, institutions and private individuals, Pohjola provides an extensive package of banking and insurance services which are convenient for customers while supporting corporate customers' business. With over 33, shareholders, Pohjola Bank Series A shares are quoted on the NASDAQ OMX Helsinki. Pohjola aims to grow through all of its business divisions and strengthen its market position further. The company places a strong emphasis on profitability throughout its operations and is also committed to effective capital management and a shareholder-friendly dividend policy Pohjola is part of OP-Pohjola Group, the leading financial services group in Finland with over four million customers.

20 Business Structure 2 Pohjola Group Banking Asset Management Non-life Insurance Group Functions Corporate Banking Markets Baltic Banking Institutional Customers Private Customers Corporate Customers Private Customers Baltic States Finance Risk management HR services Corporate communications

21 Competitiveness of business model has been demonstrated across business areas 21 Banking Market share and margins in corporate loans developed favourably Currently ranking number two with a market share of approximately 19 per cent 1) 1) Share of corporate lending in Euros in Finland Deposit banks' corporate loan portfolio until Dec. 22 The proportion as of Jan. 23 based on a new statistical basis of the Bank of Finland /99 9/ 9/1 9/2 9/3 9/4 9/5 9/7 9/7 9/8 Source: Bank of Finland 12/8 19.% Non-life Non-Life Insurance Leading non-life insurer in Finland for second consecutive year, market share 27.6 per cent 2) Strong underwriting profitability (operating combined ratio of 91.5 per cent in 28) 5 2) Market share of domestic direct premiums written. 28 based on preliminary data as of March Pohjola If/Sampo Tapiola Fennia Lähivakuut us Source: Federation of Finnish Insurance Companies % Asset Management Leading position in asset management for institutions based on AUM (asset management and mutual funds) 3) 3) % of total amount of funds under external management (excluding insurance companies) 25 figures include only former OKO Bank asset management (not then-pohjola Group s asset management activities Pohjola Company2 Company1 Company % Source: SFR. Based on interviews and answers by institutional investors with disclosed investment size

22 Pohjola Bank Q1/9 Consolidated Earnings 22 rolling 12Mo 28 million Q1/9 Q1/8 Net interest income Impairments Net interest income after impairments Net income from Non-life Insurance Net commissions and fees Net trading income Net investment income Other operating income Total income Total expenses Earnings before tax Change in fair value reserve Earnings/loss before tax at fair value Earnings per share,,13,7,5,44

23 million Pohjola Bank Capital Resources and Capital Adequacy ,8 12,9 11,2 11,7 11,5 9,6 1,7 8,2 9,4 9, Q1/9 % Tier 1 Tier 2 Tier 3 Capital adequacy ratio, % Tier 1 ratio, % * For capital adequacy measurement, treatment of insurance company holdings changed as of 27

24 24 Nordic banks Basel II Tier 1 ratios excluding transitional rules (12/8) before and after the rights issue 14,% 12,% 12,1% 11,9% 11,9% 11,1% 1,9% 1,8% 1,% 9,6% 8,% 6,5% 6,% 4,% 2,%,% SEB Pohjola (postissue) Danske Bank Swedbank Handelsbanken Nordea Pohjola (preissue) DnB NOR Source: Company data Note: Tier 1 capital ratios based on latest reported Basel II figures excluding transitional rules and adjusted for subsequent announced capital raisings Note: Nordea adjusted for the rights issue of 2.5bn on February 1; Danske Bank adjusted for the participation to Danish state s hybrid capital program of DKK26.bn on February 6; Swedbank adjusted for the dividend reduction of SEK2.9bn on March 9; SEB adjusted for the rights issue of SEK15.bn; Handelsbanken adjusted for the tier 1 hybrids issue of SEK2.7bn on March 25

25 % Pohjola Bank Balance Sheet Loans and Investments 24 bn 26 bn 32 bn 32 bn 14 % 9 % 2 % 32 % 18 % 36 % 11 % 11 % 1 % 3 % 12 % 12 % 9 % 6 % 7 % 11 % 14 % 14 % 1 % 7 % 38 % 8 % 4 % 9 % 19 % 38 % 1 % 16 % Q1/9 Loans to Member Cooperative Banks Receivables from other financial institutions Financial assets for trading Loans to customers Non-life Insurance assets Investment assets Other items 25

26 % % Pohjola Bank Balance Sheet Funding 24 bn 26 bn 32 bn 32 bn 5 % 6 % 8 % 7 % 5 % 5 % 3 % 3 % 8 % 11 % 11 % 11 % 8 % 7 % 8 % Deposits from Member Cooperative Banks Liabilities to other financial institutions Deposits from customers % 5 % 51 % 49 % Non-life Insurance liabilities Debt securities issued to the public Subordinated liabilities 2 3 % 3 % 3 % 3 % 7 % 1 % 11 % 13 % 1 % 1 % 8 % 7 % 1 % 1 % Q1/9 Provisions and other liabilities Hybrid capital Shareholders' equity and minority interests

27 Receivables and liabilities between Pohjola Bank and OP-Pohjola Group retail banks 27 million /6 3/7 6/7 9/7 12/7 3/8 6/8 9/8 12/8 Cash reserve deposits Other deposits Capital investments and perpetual bonds Reserve deposits Other loans Net position

28 OP-Pohjola Group 28 Issued Senior Debt by Maturity Pohjola OP-Mortgage Bank

29 OP-Pohjola Group 29 LT2, UT2 and Tier 1 by Call Date Tier1 Upper tier2 Lower tier

30 3 Pohjola Bank Liquidity reserve Q1/9 Financial assets included in liquidity reserve by maturity and credit rating on 31 March 29 EUR million Year Total % AAA % AA % A % BBB % BB+ or lower % Internally rated % Total %

31 Long-term Credit Ratings*) 31 Moody's Investors Standard Fitch Service & Poor s Ratings Pohjola Bank Aa1**) AA- AA- Handelsbanken Aa1 AA- AA- Nordea Aa1 AA- AA- DnB NOR Aa1**) AA- - Danske Bank Aa3 A A+ Swedbank A1 A+ A+ SEB A1 A A Pohjola Insurance Ltd**) A1 A+ - If **) A2 A - Finnish sovereign Aaa AAA AAA *) Long-term debt **) Credit Rating is under review for possible downgrade ***) Insurer financial strength

32 Finnish Economy

33 Change in GDP volume % United States Finland Eurozone f 1f Sources: Reuters EcoWin, forecasts OP-Pohjola Group

34 34 Trade balance and current account in Finland 12-month moving total 2 EUR billion 15 Trade balance 1 5 Current account f 1f Sources: Bank of Finland, forecasts OP-Pohjola Group

35 Unemployment rate 12-month moving average % f 1f Sources: Statistics Finland, forecasts OP-Pohjola Group

36 36 Average house prices 3 Index 1996=1 Sweden Finland Netherlands United States 1 France Sources: Reuters EcoWin, Statistics Sweden n

37 37 Average house prices Index 1996=1 Ireland Great Britain Spain Finland Source: Reuters EcoWin

38 Investor Relation contacts 38 CFO Jouko Pölönen Tel jouko.polonen@pohjola.fi Executive Vice President, Group Treasury Hanno Hirvinen Tel hanno.hirvinen@pohjola.fi Senior Vice President, Investor Relations Tarja Ollilainen Tel tarja.ollilainen@pohjola.fi IR Assistant Anne Hasso Tel anne.hasso@pohjola.fi

39 39 Appendix

40 Pohjola Bank Q1/9 Earnings before tax improved by EUR 19 million and at fair value by EUR 89 million. Banking made an excellent result and impairment losses are in line with the previous quarter The balance on technical account was good, and return on investment at fair value stood at -.4%. Our successful rights issue improved capital adequacy

41 Pohjola Bank Earnings before Tax by Business Segment million Banking 3 January March 29 2 Asset Management 22-1 Non-life Insurance Group Functions 17 Total Q1/8 Q1/9

42 42 Pohjola Bank / Banking Doubtful receivables EUR 48 million (35) and impairments of billion 16 receivables EUR 12 million (-1) % 6, 14 5, , 3, 2, 4 2,26,2,1,,,,25,2,34,1 1,, Q1/9-1, Loan and guarantee portfolio *) Doubtful receivables / Loan and guarantee portfolio, % Impairment of receivables / Loan and guarantee portfolio, % *) Loan portfolio, including leasing assets, repos, guarantees and guarantee commitments

43 Pohjola Bank / Banking Average margin of corporate loan portfolio 43 % 1,2 1, 1,3 1.3% %,8,6,4,2 Average margin of corporate loan portfolio, 3/ 3/1 3/2 3/3 3/4 3/5 3/6 3/7 3/8 3/9

44 44 Pohjola Bank Corporate exposure by sector*), a total of EUR 16 billion EUR million Renting and operation of own or leased residental estate 11,1 % Manufacture of Machinery and and equipment (incl. servi... 1,3 % Wholesale and retail trade Q1/9 1,2 % Construction 8, % Transportation and storage 7,1 % 7, % 6,7 % 5,3 % 4,9 % 4,9 % 4,7 % Forest industry Real estate investments Chemical industry Services Metal industry Renting and operation of own or leased real estate Food industry 4,1 % 4,1 % 3,4 % 2,5 % 1,9 % 1,9 %,8 %,7 %,6 % Energy Other Manufacturing Information and communication Financial and insurance services Agriculture, forestry and fishing Mining and quarrying Water supply, sewerage and waste management Other industries *) Classification standard revised with respect to the Companies and Housing Corporations sector

45 Pohjola Non-life Insurance Performance 45 rolling 12Mo 28 million Q1/9 Q1/8 Insurance premium revenue Claims incurred Operating expenses Balance on technical account before amortisation Amortisation/adjustment on intangible asset* Balance on technical account Net investment income Other income and expenses Earnings/loss before tax Change in fair value reserve Earnings/loss before tax at fair value Operating loss ratio, % 69,5 76,4 62,8 69,7 Operating expense ratio, % 21,8 21,7 22, 21,9 Operating combined ratio, % 91,3 98,2 84,6 91,5 Return on investment, % -,4 -,6-6,8-7, *) Due to amortisation on intangible assets arising from company acquisition

46 million Pohjola Non-life Insurance Growth in insurance premium revenue January March 12% % Private Customers % % Corporate Customers Baltic 2% Total 5% 5 % 46 Q1/8 Q1/9

47 47 Pohjola Non-life Insurance Allocation of investment portfolio 1 % 2,482 M 2,57 M 2,415 M 2,546 M 3% 2% 11% 15% Money market 8 % 6 % 4 % 72% 69% 7% 68% Bonds and bond funds Capital investments Equities 2 % % 5% 13% 3% 4% 4% 14% 7% 4% 4% 4% 5% 6% 3% 4% 4% 6% Q1/9 Alternative investments Real estate