shaping the future relationship bank - nordea.com · 116 154 chart colours 166 166 166 191 ......
TRANSCRIPT
Shaping the future relationship bank
Analyst and investor presentation
Casper von Koskull, President and Group CEO
The relationship bank business
model has delivered
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Strong Nordea track record…
Strong capital generation and stable returns at low risk1
Acc. dividend, EURbn Acc. equity, EURbn
5.92 15.7 CET 1
Ratio, %
34 31
29 26
20 18
15
37 39
12
1) CAGR 2014 vs. 2005, adjusted for EUR 2.5bn rights issue in 2009. Equity columns represents end-of-period equity less dividends for the year. No assumption on reinvestment rate for paid out dividends
2) Calculated as Tier 1 capital excl. hybrid loans
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… with a low risk profile
1) ROE adjusted for restructuring costs in 2011 and one-off related items in 2014
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.8
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.9
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.7
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2008 2009 2010 2011 2012 2013 2014 2015
No quarter below 8%,
every year above 11%
Nordea ROE track record1, %
2008 2009 2010 2011 2012 2013 2014 Q3 2015
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The most stable bank in the Nordics
1) Calculated as quarter on quarter volatility in CET1 ratio, adjusted so that the volatility effect of those instances
where the CET1 ratio increases between quarters are excluded
17 25 32 46
83
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Nordea Peer 4 Peer 3 Peer 1 Peer 5 Peer 2
Qu
art
erl
y n
et
pro
fit
vo
lati
lity
Qu
art
erl
y C
ET
1 r
ati
o
vo
lati
lity
¹
0.21 0.36
0.50 0.54
0.92
1.08
Peer 2 Peer 3 Nordea Peer 4 Peer 5 Peer 1
0.38
Max
quarterly
drop
0.72 1.29 1.42 2.15 3.24
Nordea and peers 2006-2015, %
Management buffer reflects Nordea’s diversified business
4.5
Pillar 1
min
Swe & Nor
Mortgage Risk
Weight floors
1.0
Combined
buffer2
5.9
15.4 0.5-1.5
CET1
level as per
Swedish FSA3
Management
buffer
2.0
Pillar 2
Systemic
Risk Buffer
1) Maximum Distributable Amount, provided for illustrative purposes only. The Swedish FSA does not normally intend to make a formal decision on the capital requirement under Pillar 2. “Insofar that a formal decision has not been made, the
capital requirement under Pillar 2 does not affect the level at which the automatic restrictions on distributions linked to the combined buffer requirement come into effect.” Swedish FSA, Sep 2014
2) The combined buffer consists of 3% systemic risk buffer, 2.5% capital conservation buffer and 0.4% countercyclical buffer. In accordance with Swedish FSA Memorandum on Capital Requirement for Swedish banks (Sept. 2, 2015), the
calculation of the countercyclical buffer is based on the Swedish and Norwegian buffer rate of 1%. The buffer rates will increase from 1 to 1.5% when the new buffer rates enter into force in Q2 2016.
3) Capital need Q3 2015 in accordance with SREP, communicated by Nordea October 2, 2015
2.0
2.0
Pillar 2 (other)
MDA restriction level¹
Approx.~10.4%
CET1 ratio build-up, %
Nordea as a dividend stock
0.20 0.25
0.29 0.26
0.34
0.43
0.62
2008 2009 2010 2011 2012 2013 2014
6 •
DIVIDENDS, EUR/SHARE
Creating the leading
Nordic Wholesale bank
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Towards the leading Wholesale Bank in the Nordic region
8 •
Strategy
Structure
Operating model
Culture
Local
competition
International
competition
Customer dimension:
Intensity (Multi-local presence)
Pro
du
ct d
ime
nsio
n:
Re
leva
nc
e
(Siz
e a
nd
co
mp
ete
ncie
s)
Management
STRATEGIC POSITIONING CHANGE LEVERS
Leveraging scale, competences and closeness
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Wholesale Banking 2011-2014 - performance and value drivers
1) Assuming constant capital requirement (EC/REA) as for 2014 (~15%)
GDP growth
Low
Interest rates
Low
Volatility
Low
Capital markets regulation
High
Lending
-15%
Income
-5%
NII
-7%
Fair Value
-15%
Pricing
+30 bp
Fee & Comm.
+15%
Cost
±0%
REA
-30%
Loan losses
-43%
Market position
Achieved #1 position
Return¹
>+3 pp
Cost/Income
+2 pp Top line drivers
Value drivers
Value creation
Market
characteristics
One Nordea 14
10
We have earned the right to invest in the Future Relationship
Banking model
11 •
Capital hurdle
Return hurdle
Future business model
Direction and priorities – One Nordea through strengthened culture
and relentless execution
Common values
Common brand
In future In place
Common way of working
In progress
12 •
Common vision
Common systems One
- delivering
the Future
Relationship Bank
Becoming One Nordea is a continuation of the journey we have
already set out…
13 •
Future relationship bank
Universal banking
Financial targets 2016-18
P
P
P
Overall strategic direction and
targets remain unchanged
Accelerating transformation drivers and the current macro economic
environment only adds to this challenge
14 •
Digitalisation continues
to accelerate
Compliance requirements
still increasing
Economic environment
remains unfavorable
No tailwind in support
of transformation
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15 •
Execution of four main strategic priorities will be key to delivering
the transformation of our business model
Balance
sheet
regulations
Operationa
l
regulations
Digitalisati
on
Risk & compliance
setup Digital strategy Simplification
Prerequisites for creating greater shareholder value
Cost & capital
efficiency
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Future operating model of a digital bank – the vision
“DIGITAL FACTORY”
One operating model
for product and
service delivery
CUSTOMER FACING
TRUST AGILE
RELEVANT
RELIABLE
WELL
STRUCTURED
COST EFFECTIVE
INNOVATIVE
ANYTHING,
ANYTIME,
ANYWHERE EASY
PERSONALISED
END-TO-END
AUTOMATED
COMMON
PROCESSES
SCALABLE
The safe and trusted partner,
acknowledged for its people,
creating superior shareholder value
17 •
Truly living up to our values will be critical
It’s all about people One Nordea team
The safe and trusted partner,
acknowledged for its people,
creating superior shareholder value
Great customer
experiences
Shaping the future relationship bank
Analyst and investor presentation
Casper von Koskull, President and Group CEO