Sampo Oyj · OMXHEX:SAMPO
Sampo Oyj — Nordea — Investor Day (2015)
25 slides from Sampo Oyj's investor day presentation, 2015
Slide 1: Nordea at Sampo Analyst Day 2015
Second Quarter Results 2014 Investor presentation Fourth Quarter Presentation Second Quarter and at Sampo Analyst Results Day 2015 Full Year Results 2014 Rodney Press Alfvén, Head of Investor Relations conference Christian InvestorClausen, President and Group CEO presentation Christian Clausen, Pres
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance
Slide 3: Strong Nordea track record…
Strong Nordea track record… Strong capital generation and stable returns at low risk1 Acc. dividend, EURbn Acc. equity, EURbn 39 37 34 31 29 26 20 18 15 12 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 CET 1 2 Ratio, % 5.9 15.7 1) CAGR 2014 vs. 2005, adjusted for EUR 2.5bn rights issue in 2009.
Slide 4: … with a low risk profile
… with a low risk profile Nordea ROE track record1, % Priorities ■ Sustain forward looking and 23.6 holistic risk appetite 22.4 21.5 framework 20.0 No quarter below 8%, 16 risk boundaries 19.1 18.1 18.0 every year above 11% across all risk types Close monitoring of 16.2 15.8 15.0 leading indicat
Slide 5: The most stable bank in the Nordics
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 0.38 0.72 1.29 1.42 2.
Slide 6: Highlights of first half year 2015
Highlights of first half year 2015 First half year 2015 vs first half year 2014* Revenues are up 7% Negative interest rates put pressure on NII Continued strong trend in savings and investment operations Costs are down 1%**, delivering according to plan C/I ratio improved more than 4 %-poi
Slide 7: Q2 2015 financial results highlights
Q2 2015 financial results highlights 14
Slide 8: Financial results
Financial results Q2/15 Q1/15 Chg % Local H1/15 H1/14 Chg % Local EURm currencies currencies Chg % Chg % Net interest income 1 309 1 288 2 0 2 597 2 730 -5 -3 Net fee & commission 783 757 3 3 1 540 1 412 9 10 income Net fair value result 401 644 -38 -37 1 045 767 36 37 Total income* 2 523 2 719 -7 -
Slide 9: Net interest income
Net interest income NET INTEREST INCOME DEVELOPMENT, EURm COMMENTS • NII holds up despite pressure on 1 368 1 396 1 356 1 309 margins 1 288 • Negative interest rates in Denmark, Finland and Sweden • Strong result in Treasury due to positioning for lower rates • One additional interest day adds EUR 1
Slide 10: Net interest margin and volumes
Net interest margin and volumes BLENDED NET INTEREST MARGIN DEVELOPMENT, BPS COMMENTS • Blended margin down 3 bps to 109 109 108 103 100 bps 100 • Lending margins are slightly down driven by Norwegian mortgages Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 • Pressure on deposit margins • Lending volumes are up 3% y
Slide 11: Net fee and commission income
Net fee and commission income NET FEE AND COMMISSION DEVELOPMENT, EURm COMMENTS 763 757 783 • Fee and commission income up on a 708 667 strong previous quarter 160 Lending commissions 210 171 162 171 • Main driver Savings and 148 Payments & cards 148 142 144 Investment operations 160 • Somewhat slow
Slide 12: Strong demand for our savings and investment offering
Strong demand for our savings and investment offering AUM DEVELOPMENT, EURbn COMMENTS 290.0 286.1 • Slight decrease in AuM caused by 254.5 262.2 negative market development 248.3 • Net inflow of EUR 3.1bn in the quarter • All segments contributed positively Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 • Continued
Slide 13: Net fair value
Net fair value NET FAIR VALUE DEVELOPMENT, EURm COMMENTS 644 • Lower customer activity from a high level in Q1/15 95 • Negative one-off effect of EUR 31m in Denmark 207 401 356 367 291 37 116 149 Wholesale Banking Other 91 78 117 78 87 Wealth Management 105 89 83 90 84 Wholesale Banking 60 134 146 R
Slide 14: Long term improvement in cost efficiency
Long term improvement in cost efficiency TOTAL EXPENSES*, EURm COMMENTS 1 213 1 177 1 232 1 188 1 185 • Costs are down 1% in local 58 54 66 45 50 Depreciations currencies from previous quarter 403 418 364 363 Other expenses 380 • Costs are down 2% in local currencies and excluding performance relate
Slide 15: Strong asset quality
Strong asset quality TOTAL NET LOAN LOSSES, EURm COMMENTS 186 171 180 • Loan losses down to 12 bps – the 158 135 lowest level since Q3/08 129 122 112 103 • Stable or improved credit quality in all units • Collective provisions in Russia, EUR 10m, and for Danish Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4
Slide 16: Risk exposure amount
Risk exposure amount RISK EXPOSURE AMOUNT, EURbn* COMMENTS 162 160 • REA down EUR 2bn in the quarter 159 155 152 153 152 150 145 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 RISK EXPOSURE AMOUNT DEVELOPMENT, EURbn 1.7 2.5 2.9 151.5 1.1 0.5 149.8 Q1/15 FX Credit Growth Trading Stand. & Q2/15
Slide 17: CET 1 ratio up 40 bps
CET 1 ratio up 40 bps COMMON EQUITY TIER 1 RATIO DEVELOPMENT, % 0.1% 0.1% 0.2% 0.4% 0.4% 0.2% 16.0% 15.6% Q1/15 FX Credit Quality Growth Trading book, Profit & Eligible CET1 deductions Q2/15 Stand. and reserves Other* *REA reservation incl. in Other, 50bps 17 •
Slide 18: Management buffer reflects Nordea's diversified business
Management buffer reflects Nordea’s diversified business CET1 RATIO BUILD-UP, % 1.5 0.5-1.5 14.7 0.8 0.7 2.0 10.0 0.2 1.1 Pillar 1 Counter- Swe & Nor Pillar 2 Pillar 2 Pillar 2 CET1 Management cyclical Mortgage Systemic (IRRBB, (other)2 level as per buffer pension, Buffer1 Risk Weight Risk conc. ris
Slide 19: SREP/pillar 2 process and REA provision
SREP/pillar 2 process and REA provision • This year’s annual SREP (pillar 2) process started in July 2015 • 0.8 %-point of possible pillar 2 add-on already included in Nordea’s capital requirement estimate (from CMD in May) • Seemingly formalistic and tougher SREP/pillar 2 process • Add-on outcome w
Slide 20: Higher return across the board
Higher return across the board ROCAR DEVELOPMENT YTD, GROUP AND BUSINESS AREAS GROUP RETAIL BANKING WHOLESALE BANKING WEALTH MANAGEMENT 39.0% 30.4% 14.2% 16.6% 14.3% 15.8% 13.0% 14.8% H1 14 H1 15 H1 14 H1 15 H1 14 H1 15 H1 14 H1 15 IMPACT FROM IMPACT FROM IMPACT FROM IMPACT FROM INCOME 1.8% INCOME -
Slide 21: Casper von Koskull new CEO in Nordea
Casper von Koskull new CEO in Nordea and Torsten Hagen Jørgensen new COO and Deputy CEO from November 1 Business plans and financial targets as presented at Capital Markets Day still valid Intention with new leadership team and the creation of a COO organisation Better capable of focusing on s
Slide 22: Wholesale Banking 2011-2014 - performance and value drivers
Wholesale Banking 2011-2014 - performance and value drivers GDP growth Interest rates Volatility Capital markets regulation Market characteristics Low Low Low High Lending Income NII Fair Value Cost/Income Top line drivers -15% -5% -7% -15% +2 pp Pricing Fee & Comm. Cost REA Loan losses Value driver
Slide 23: Financial summary
Financial summary 14
Slide 24: Financial highlights
Financial highlights KEY FINANCIAL DEVELOPMENT H1/15 vs H1/14* Income • up 7% Costs** • down 1% C/I ratio** • improved 420 bps to 45.3% Loan losses • down 22% to 13 bps Operating profit** • up 21% RoE** • Improved 210 bps to 13.7% CET1 ratio • up 80 bps to 16.0% *In local currencies **Excluding rest
Slide 25: Second Quarter Results 2014
Second Quarter Results 2014 Investor presentation Fourth Quarter Presentation Second Quarter and at Sampo Analyst Results Day 2015 Full Year Results 2014 Rodney Press Alfvén, Head of Investor Relations conference Christian InvestorClausen, President and Group CEO presentation Christian Clausen, Pres