Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Investor Day (October 2019)
10 slides from Nordea Bank Abp's investor day presentation, Oct 25, 2019
Slide 1: Wholesale Banking Capital Markets Day
Wholesale Banking Capital Markets Day Martin A Persson, Head of Wholesale Banking 25 October 2019
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 assuran
Slide 3: Key messages
Wholesale Banking KEY MESSAGES All-time-high customer satisfaction Reduce capital consumption New strategic direction 3
Slide 4: Wholesale Banking overview
Introduction to Wholesale Banking Wholesale Banking overview Large corporate and institutional customer segments 10Y EUR interest rate Complex Daily banking 1,2 0,8 WB CBB CBB 0,4 LC&I BB BBD 0 Oct 14 Oct 15 Oct 16 Oct 17 Oct 18 Oct 19 -0,4 Selected capabilities Wholesale Banking capital requirement
Slide 5: All-time-high customer satisfaction with leading advisory and product services
Introduction to Wholesale Banking All-time-high customer satisfaction with leading advisory and product services Prospera overall performance1 #1 Nordic DCM franchise2 Award-winning Transaction Banking Rank 2018 2017 Best Bank for Cash Best Trade Finance Nordea 6 387 Management in Bank in the the No
Slide 6: Return improvement needed
Wholesale Banking in the Nordea Group Return improvement needed Income Cost Capital 1,555m -957m 7,852m 18% 19% 30% Share of Group income Share of Group cost Share of Group capital (Last 12 months) (Last 12 months) (Q3 2019) ROCAR Cost/income ratio 6% 62% 6 Note: WB ROCAR excl items affecting compar
Slide 7: New strategic direction for Wholesale Banking
Strategic direction for Wholesale Banking New strategic direction for Wholesale Banking Reduce low-return assets Capital optimisation Capital optimisation EUR 1.5bn ~1.5bn ECEC / 8bnREA / ~8bn REA reduction reduction Streamline Markets business model Simplification Complexity reduction TotalTotal co
Slide 8: Zooming in on the new strategic direction
Strategic direction for Wholesale Banking Zooming in on the new strategic direction ▪ Reduce low-returning on-balance sheet commitments Reduce low-return assets ▪ Review of sub-segments ▪ Increase active capital reallocation ▪ Targeting 25% EC reduction Streamline Markets business model ▪ Product re
Slide 9: Reality check
Strategic direction for Wholesale Banking Reality check Corporate economic income Markets capital and income dynamics 8% Complex 17% 15% 31% 61% 49% Advanced 59% 37% Basic 24% Customer turnover: < 1 bnEUR 1-5 bnEUR > 5bn EUR EC Income 9
Slide 10: Wholesale Banking target 2022
Wholesale Banking TARGET 2022 All-time-high customer satisfaction ROCAR ~10% Reduce capital consumption New strategic direction 10