Annika Falkengren - SEB€¦ · Wealth Management Life Merchant Banking Germany Sweden Lithuania...
Transcript of Annika Falkengren - SEB€¦ · Wealth Management Life Merchant Banking Germany Sweden Lithuania...
Annika FalkengrenPresident & CEO
Market turbulence and striking economic deterioration
Market turbulence and striking economic deterioration
Dark year for global banking sectorStock market developmentMarket capitalisation
12 largest global banks
December 2007 compared to February 2008, billion USD
1,300
440 0
20
40
60
80
100
120
140
160
Jan-06 Jan-07 Jan-08 Jan-09
Nordicbank indexSEB
The past year
Operating result SEK 12.5bn
Relation between costs and income C/I 0.62
Credit loss level 0.30%
Return on equity 13.1%
Profit per share SEK 14.66
Stable client business
0,40
0,45
0,50
0,55
0,60
0,65
0,70
0,75
0,80
1998 2000 2002 2004 2006 2008
0
400
800
1,200
1,600
Q12006
Q3 Q12007
Q3 Q12008
Q30%
2%
4%
6%
8%
SEB Way freed up time
Increased productivityC/I-ratio
Cumulative freed-up FTEs Freed-up FTEs (annualised run-rate) in % of total
Leading in:Scandinavian currencies worldwide
Cash management worldwide
Nordic asset management
Nordic stock broking
Nordic and Baltic investment banking
SME’s in Sweden
Custody in Nordics and Baltics
4%
3%
6%
3%
6%
4%
65%9%
27%
7%13%
53%
Geography and Divisions – Adjusted for OtherSweden – Adjusted for centralisation of investment portfolio
Retail Banking
Wealth Management Life
Merchant Banking
Germany SwedenLithuania
LatviaEstonia
Norway
FinlandDenmark
A diversified platformDistribution of 2008 operating profit
487538
709
2006 2007 2008
Corporate lendingBillion SEK
Increased lending
+10 %
+45 %
Life
Private Banking
Strong sales in several distribution channels
Swedish funds – net flows2008 Jan – Dec, billion SEK
Increased long term savings
-18
7
Other SEB
1 Economic situation: How serious is the downturn?
77
97
61
1 Economic situation
SEB equipped for further economic deterioration
Tier I capitalSEK bn
Dec 2008 before capital
measures
Pro forma after capital measures
Dec 2006
2 The Baltic countries: How is SEB handling the situation?
The Baltic countries2
Measures taken
●Continuous analysis of portfolios
●Special risk committee
●Set up work-out teams for problem credits
●Special purpose vehicles for problem credits
0%
1%
2%
3%
4%
Dec-07
Mar-08
Jun-08
Sep-08
Dec-08
Estonia Latvia Lithuania
Impaired loans gross% of credit exposure excl. banks
3 What is the asset quality of SEB’s credit portfolio?
Well diversified Stable quality
The credit portfolio3
Sweden 50%
Lithuania 5%Latvia 3%
Estonia 3%
Germany 25%
Other 5%
Denmark 2 %Finland 2 %
Credit exposureTotal exposure = 1,934 billion SEK
Norway 6 %
4 Is it difficult for SEB to retain funding?
020406080
100120140
jan-08
mar-08
maj-08
jul-08
sep-08
nov-08
jan-09
mar-09
Financing4
Covered mortgage bonds, 5 yrSpread against interest rate swap rates
Good availability of short term funding
SEK 166bn on maturities over one year
Strengthen existing client relationships
Continued focus on cost efficiency
Maintain sound risk management as well as strong capitalisation and liquidity levels