Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Investor Day (May 2015)
8 slides from Nordea Bank Abp's investor day presentation, May 27, 2015
Slide 1: Financial plan and targets
CFO Long term commitment, deliver on the Financial plan and targets financial plan Torsten Hagen Jørgensen Group CFO 1
Slide 2: Cost plan 2013-15 delivering the targeted 5% reduction
Cost plan 2013-15 delivering the targeted 5% reduction with all key elements contributing, but some unplanned events Cost efficiency clusters in 2015 plan Cost development 2013-2015 -5% P -6.7% Streamline physical distribution 5,040 ~250 Optimise advisory services P ~190 Reengineer processes P ~4,79
Slide 3: Nordea market commitments and financial priorities 2016-2018
Nordea market commitments and financial priorities 2016-2018 Market commitments Financial priorities Strong capital generation and Improved income mix & growth efficiency with return of excess capital to shareholders Continued cost efficiency ROE above the Nordic peer average Disciplined capital man
Slide 4: Continued cost efficiency
Continued cost efficiency Key cost drivers and initiatives 2016-2018 ■ Moderate salary drift Underlying ■ Premises and other external contracts, e.g., 1.5-2% cost drift procurement, linked to general inflation ■ Continue branch optimisation & remove manual cash handling Cost ■ Simplify & automate se
Slide 5: Management buffer reflects Nordea's diversified business
Management buffer reflects Nordea’s diversified business CET1 ratio build-up, % Management buffer designed to cover 1.5 0.5-1.5 Components Bps 14.7 0.8 FX volatility 0.7 (10% EUR weakening/historical vol. analysis) ~30-40 2.0 Pension risk (50bp decrease of discount rates) ~20 10.0 0.2 1.1 Countercyc
Slide 6: Earnings stability – The most stable bank in the Nordics
Earnings stability – The most stable bank in the Nordics Nordea and peers 2006-2015, % 150 Quarterly net profit volatility 83 46 25 32 17 Nordea Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Quarterly CET1 ratio 1.08 0.92 volatility¹ 0.50 0.54 0.36 0.21 Max Nordea Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 quarterly 0
Slide 7: Group financial targets 2016-2018
Group financial targets 2016-2018 Financial Targets - based on currently known regulatory requirements Dividend pay-out ratio Dividend policy of at least 75%1 Management buffer of 50-150 bps above Capital policy the regulatory CET1 requirement A total dividend RoE RoE above the Nordic peer average2
Slide 8: The RoE is targeted to be above the Nordic peer average
The RoE is targeted to be above the Nordic peer average throughout the period on a rolling 4 quarter basis Nordea & Peer average RoE development Weighting of Peer average Country share 13% of Nordea capital Weight in benchmark 12.4% DB 30% 12% DK 35% DNB 20% 11.8% 11% FI 20% SHB 15% NO 20% SEB 15% 1