Nordea Banking Denmark David Hellemann March 8th 2016 1 16/03/2015
Nordea Bank Denmark comes strong through a challenging year and deliver a significant enhanced result Delta pct. Mio.kr. 2015 2014 2015/ 2014 Net interest income 9.547 10.479-9% Net fee & commission income 5.186 4.975 4% Net fair value result 1.590 1.553 2% Other operating income 77 21 - Total income inkl. Allocations 16.398 17.028-4% Staff costs -2.546-2.603-2% Total expenses inkl. Allocations -7.784-8.401-7% Profit before loan losses 8.615 8.627 0% Net loan losses -1.141-1.946-41% Low interest rates put a pressure on the net interest income Net fee and commission income driven by extensive mortgage refinancing and high investment activity High activity in the beginning of 2015, increase the net result of financial items at fair value Decrease in costs as a result of digitization and optimization of internal processes Decline in loan impairment as a result of improved macroeconomic conditions Operating profit 7.474 6.681 12% *Inkl. Private Banking and New CIB 2
Danish mortgage and lending market is characterized by low lending growth which intensifies competition The unusual level of interest rates changes customers choice of loan and our advices Nordea closely monitoring market development Reprising of Corporate mortgage Q4 2015 Better match between risk, capital and pricing 100% 5% 6% 10% Delta pct. Mia.kr. 2015 2014 2015/ 2014 80% 26% 28% 28% Lending to corporates 244 242 1% 60% 21% 16% 12% Lending to households 265 259 2% Consumer lending 85 91-7% 40% 20% 48% 50% 50% Total lending 593 593 0% 0% Q4-14 Q2-15 Q4-15 Fastrente F1-2 F3-10 Kort Rente 3
Private Banking is a growing business area with an intensified competition for the best customers AuM development (EURbn) #1 Nordic Bank in Luxembourg Market leader in Finland and Denmark 288.2 11.1 14.9 262.2 Q4 2014 Net flow Investment Q4 2015 return AuM development (EURbn) 4 4
Stabilisation in most segments though still problem areas Significant decrease in allowances in 2015 3,6 2,6 Corporate customers in general Real Estate 1,9 1,1 2012 2013 2014 2015 Mia. kr. Household customers Agriculture 5
Considerable influence and uncertainty from external factors causes changes Challenging macroeconomic conditions Noticeable changes in customer behavior Changes in the competitive environment Increased regulation 6
Our customer vision are shaping the future relationship bank Easy to deal with.. Customer vision relevant and competent anywhere and anytime where the personal and digital relationship makes Nordea my safe and trusted partner 7
Our strategy is to build on our strengths Advisory expertise and competence Largest Nordic footprint and broadest customer base Relationship Banking Strong set of solutions and services Extensive risk and credit knowledge Financial strength and funding access 8
and adding winning capabilities for the future ADVICE ANYWHERE AND ANYTIME Relationship Banking DIGITAL TAILORED TO CUSTOMER NEEDS & PREFERENCES EFFICIENCY ONE NORDIC MODEL CULTURE TOGETHER WE ASPIRE TO BE BEST 9
Large focus on digital and online solutions to meet the future customer demand and market requirements Strong growth in ebranches Expect 100.000 customers in 2016 Remote meetings increased from 1,600 in 2014 to 60,000 in 2015 In Q4 2015 50,000 customers used our chat function New App for MobileBank with more features Additional 200 recruitments in Q4-2015 and 750 MDKK investments budgeted in 2016 to support digital solutions 10
In a cooperation with agile digital players to create new business opportunities 11
At the same time we are developing our advisory format Branches are being specialised to complex advise Increase accessibility with extended opening hours Advisory sessions either online or physical Increased use of specialist competences Digital processes to free up time for customers 12
Focus on increased profitability and satisfaction for corporate customers Improved profitability Lower capital consumption Risk based pricing Specialist concept for Small Entrepreneurs has resulted in large intake of new customers New Business Banking Direct value proposition to be launched New organisation with special units focussing on agriculture and commercial real estate 13
Privat- og erhvervskunder 2. kvartal 2014 Peter Lybecker Adm. direktør Nordea Bank Danmark A/S, leder af Banking Danmark Jørgen Op Høholt Nyt billede kommer Medl. af direktionen Nordea Bank Danmark A/S, leder af Corporate & Institutional Banking Danmark Privat- og erhvervskunder 3. kvartal 2014 Peter Lybecker Adm. direktør Nordea Bank Danmark A/S, leder af Banking Danmark Jørgen Høholt Medl. af direktionen Nordea Bank Danmark A/S, leder af Corporate & Institutional Banking Danmark Nordea i i Danmark 1. 2. kvartal 2015 Questions? Peter Lybecker Adm. direktør Nordea Bank Danmark A/S A/S Jørgen Høholt Medl. af af direktionen Nordea Bank Danmark A/S A/S