1 / 22

Handelsbanken Pär Boman, CEO UBS 11 th Annual Nordic Financial Services Conference

Handelsbanken Pär Boman, CEO UBS 11 th Annual Nordic Financial Services Conference Grand Hotel, September 4 2008. Handelsbanken Group Agenda. Major issues addressed in the last 2.5 years Group level Growth in Branch office operations outside Sweden Swedish branch office operations

malachi-wilcox
Download Presentation

Handelsbanken Pär Boman, CEO UBS 11 th Annual Nordic Financial Services Conference

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Handelsbanken Pär Boman, CEO UBS 11th Annual Nordic Financial Services Conference Grand Hotel, September 4 2008

  2. Handelsbanken GroupAgenda • Major issues addressed in the last 2.5 years • Group level • Growth in Branch office operations outside Sweden • Swedish branch office operations • Focus looking forward • Current situation in the banking sector

  3. Handelsbanken GroupIssues addressed - Group level Improved transparency in external reporting • Reporting by segment and geography • More details to explain trends in underlying earnings • More supplementary information More to come in the next 6 months

  4. Handelsbanken GroupIssues addressed - Group level Reduction of macro risk and earnings volatility • Sale of SPP in September 2007 for SEK 18bn • Realised gain of SEK 4.2bn • Sale of credit card-backed bond portfolio in March 2008 • Realised loss of SEK 0.8bn • In total, these transactions resulted in a realised gain of SEK 3.4bn and in a significant reduction of market risk and earnings volatility. In addition, the sale of SPP partly facilitated the extra dividend of SEK 3.1bn in 2008 The bank’s core risk competence is to assess and assume credit default risk. All other risks should be minimised

  5. Handelsbanken GroupIssues addressed - Group level Capital structure in Basel II • Our view: Limited potential for banks to reduce capital • First Nordic bank to get Pillar II clearance from supervisory authorities • Targeted Tier1-ratio of 9-11% in Basel II

  6. Handelsbanken GroupGrowth in Branch office operations outside Sweden 28 The number of branches outside Sweden has grown by 38% since Q2 2006 to 214 Deposits/lending in Great Britain, Denmark, Finland and Norway refers to average volumes in local currency.

  7. Branch office operations outside SwedenFastest growth in Great Britain The operations in Great Britain is showing a positive development and the current expansion is likely to continue

  8. Branch office operations outside SwedenRevenues & costs – 129 branch offices opened 1995-2007 SEK m per branch office

  9. Handelsbanken GroupBranch office operations in Sweden Three main areas with improvement potential were identified in 2006 • Growth • Productivity • The use of new technology

  10. Operating profit SEK 4,840m RoE 18.3% Net interest income increased by 10% C/I ratio before loan losses 38.7% Average volumes, bn Loans to the public 911 (819) +11% Deposits 276 (234) +18% Handelsbanken GroupBranch office operations in Sweden January – June 2008

  11. Branch office operations in SwedenNet interest margin – Variable rate household deposits SEK bn Market share, household deposits, increased from 16.0% in December 2007 to 16.6% in July 2008 2.11% +8bp 1.78% 2.03% 2005 2006 2004 2003 2007 2008 *Customer rate compared to 1 month STIBOR

  12. Handelsbanken GroupBranch office operations in Sweden – Successful card business • January – June 2008 • The no. of Allkort up by 33%, purchase volume up 35% • The no. of Business cards up by 12%, purchase volume up 14% • The no. of Frikort cards up by 45% No. of cards

  13. Branch office operations in SwedenTurnaround in Swedish mortgage sales

  14. Branch office operations in SwedenProductivity is improving, with more to come • Target 2006: 50% increase in time spent with customers by 2010 • Result April 2008: +34% • The impact from recent system launches not yet in the figures • Profit / employee +5% in H1 2008 Despite C/I-ratio of 38.7% in H1, there is still scope for further improvement

  15. Branch office operations in SwedenImproved productivity through new technology Internet Telephone Branch office The bank is currently running 35,000 clients in a full scale test of a fully integrated internet and telephone bank

  16. Handelsbanken GroupFocus going forward • Continue the organic international expansion with focus on the UK • Increased efforts towards Swedish large caps • Additional measures to increase market share in the savings area

  17. Handelsbanken GroupThe current banking environment • Not likely to ease in the near term • Significant liquidity risks in the market but poor transparency • The environment could get worse before it improves • Prudent liquidity planning will be key

  18. Handelsbanken GroupProlonged funding since early 2007

  19. 30 daysExisting cash should last for at least 30 days without any access to the funding markets 90 daysExisting cash + liquidity portfolio should last for 90 days without any access to the funding markets 360 daysExisting cash + liquidity portfolio + management actions should provide enough liquidity to continue the bank’s business for >360 days without any access to the funding markets The bank’s liquidity planning and funding activity aims at fulfilling the 30/90/360 day definitions at all times Handelsbanken GroupCash flow planning

  20. Handelsbanken GroupNet lending in SEK in the Swedish interbank marketJanuary – June 2008, weekly SEK m

  21. Handelsbanken GroupBad debts as a percentage of lending ,net* Bad debt asdasgsagasgg Increase related to the same commitments that explain loan losses in the period * Bad debts, net = Bed debts, gross – specific reserve. (Not adjusted for collective reserve). ** Average Nordea, SEB and Swedbank.

  22. Handelsbanken

More Related