seb enskilda nordic banks seminar, may 2010

8/8/2019 SEB Enskilda Nordic Banks Seminar, May 2010

1/16

SEB Enskilda Nordic Banks SeminarMay 2010

Erkki Raasuke, CFO


2/16

427 404 393

154 100 91

521 555 559

9788 81

948 959 952

251188 172

0

200

400

600

800

1 000

1 200

Q4 08 Q4 09 Q1 10 Q4 08 Q4 09 Q1 10

Sweden

SEKbn

CEE

Private

Corporate

Significantly improved resilience

Reduced CEE lending

2

Note: CEE lending as % of equity calculated as net lending to the public divided by balance sheet equity

290%of equity 209% 191%


3/16

Efficient handling of distressed assets

FR&R units (340 FTEs) operational in Sweden, Estonia, Latvia,

Lithuania, Russia, and Ukraine The whole loan portfolio has been worked through Active business plans for distressed exposures

Ektornet established to minimize losses and protect value

Long-term investment horizon, high degree of real estate Intake forecast: SEK 4bn at YE 2010 and SEK 5-10bn at YE 2012 Three quarters of intake is expected in the Baltic countries

3


4/16

Strengthened liquidity position

Rights issue in October 09 realturning point for access to fundingmarkets

Swedbank exits guaranteeprogramme as per 30 April 2010

SEK 100bn of long-term debtissued during Q1, and SEK20bn todate in Q2

Average maturity of wholesalefunding* 24 months (14 YE 2008)

Cumulated net cash flow over 12months amounts to SEK +158bn

* Debt securities in issue, repos with central banks and interbank deposits

4

Outstanding wholesale funding

* Issued with more than 12 months maturity, government fee of 83bp** Including interbank deposits*** Issued with less than 12 months maturity, government fee of 50bp

SEKbn, notional value

61

97

116

180

397

28

87

108

174

459

Total short -term,

guaranteed***

Total short -term, non-

guaranteed**

Central bankrepos

Total long-term,

guaranteed*

Total long-term, non-guaranteed

Q1 2010

Q4 2009


5/16

Well capitalised

5

Core Tier 1 capital ratio* YE 09 12.01%Result +0.09%

RWA reduction +0.16%

Other +0.05%

Core Tier 1 capital ratio* Q1 10 12.31%9.4

9.8 9.9

12.012.3

0

2

4

6

8

10

12

14

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

%

*according to full Basel 2

Core Tier 1 capital ratio*


6/16

Improved perceived risk profile but still some way to go

6

Source: Reuters, 5y CDS spreads in EUR

Restructuring unitsestablished Rights issue

Reduced CEEexposure

Improved fundingstructure

0

20

40

60

80

100

120

140

160

180

200

2 0 0 9 / 0 9 / 0 1

2 0 0 9 / 0 9 / 1 6

2 0 0 9 / 1 0 / 0 1

2 0 0 9 / 1 0 / 1 6

2 0 0 9 / 1 0 / 3 1

2 0 0 9 / 1 1 / 1 5

2 0 0 9 / 1 1 / 3 0

2 0 0 9 / 1 2 / 1 5

2 0 0 9 / 1 2 / 3 0

2 0 1 0 / 0 1 / 1 4

2 0 1 0 / 0 1 / 2 9

2 0 1 0 / 0 2 / 1 3

2 0 1 0 / 0 2 / 2 8

2 0 1 0 / 0 3 / 1 5

2 0 1 0 / 0 3 / 3 0

2 0 1 0 / 0 4 / 1 4

2 0 1 0 / 0 4 / 2 9

2 0 1 0 / 0 5 / 1 4

5y senior CDSSwedbank

Nordea

Svenska Handelsbanken

SEB


7/16

NII headwinds and temporary effects

7

Q4 2009 4 702

Funding maturity mismatch -208Trading strategy -145Wholesale funding cost -121Baltic Banking, Russia & Ukraine -118NII and equity hedges -37Other -50

Q1 2010 4 023

4 702

4 023163

147 44 73252

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000NII Q4 09 Retail LCI Baltic

BankingRussia &Ukraine

GroupTreasury

and Other

NII Q1 10SEKm


8/16

SEKm Q1 10 Q4 09* Q1 09

Retail 32 45 43

Large Corporates & Institutions 441 55 1 332

Baltic Banking 72 88 183

Russia & Ukraine 27 149 10

Group Treasury and Other 75 -114 143

Swedbank Group 647 223 1 711

Stronger net gains

Trading strategy pressed NII and boosted net gains and losses

Stable currency rates in Ukraine

Lower P&L impact from wholesale funding valuation

8

* Excluding capital gain of SEK 39m (saleof Aktia shares SEK 24m and of TallinnStock Exchange shares SEK 15m)


9/16

9

First quarter 2010 resultsSEKm Q1 2010 Q4 2009 Change

Net interest income 4 023 4 702 -679

Net commission income 2 282 2 361 -79

Net gains/losses on financial items, fair value 647 223 424

Other income 715 751 19

Non recurring items -55 -55

Total income 7 667 7 982 -315

Staff costs 2 296 2 319 -23

Variable staff costs 79 23 56

Other expenses 2 016 2 370 -354Non recurring items -412 412

Total expenses 4 391 4 300 91

Profit before impairments 3 276 3 682 -406

Impairment of intangible assets 14 0

Impairment of tangible assets 36 352 -316

Credit impairments 2 210 5 003 -2 793

Operating profit 1 016 -1 673 2 689

Tax expense 469 115 354

Result for the period 547 -1 788 2 335

Profit for the period attributable to: Shareholders of Swedbank AB 536 -1 804 2 340


10/16

Asset quality continues to strengthen

Improved macro

Stabilised/increasing property prices in CEE

Swedbank risk profile continue to improve Limited flow of new distressed loans Increasingly confident about current distressed loans

10


11/16

-50

0

50

100

150

200

250

300

350

400

Q 1 0 9

Q 2 0 9

Q 3 0 9

Q 4 0 9

Q 1 1 0

Q 1 0 9

Q 2 0 9

Q 3 0 9

Q 4 0 9

Q 1 1 0

Q 1 0 9

Q 2 0 9

Q 3 0 9

Q 4 0 9

Q 1 1 0

Q 1 0 9

Q 2 0 9

Q 3 0 9

Q 4 0 9

Q 1 1 0

Q 1 0 9

Q 2 0 9

Q 3 0 9

Q 4 0 9

Q 1 1 0

EURm

Quarterly change of 60-day past due loans

Continued stabilisation

11

Estonia Latvia Lithuania Russia Ukraine


12/16

Small increase of impaired loans

Increased SEK 1.5bn excluding FX effects

12

Impaired loans as% of gross lending

Ukraine 57%

Russia 20%

Lithuania 17%

Latvia 25%

Estonia 7.6%

LCI 0.3%Retail 0.2%

9 343

9 736

6 113

4 362 196

10 578

19 921

29 657

35 770

40 132 40 328

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

FY 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

SEKm

1 625

1 150

5 473

13 370

7 896

2 381

8 432

Q1 10


13/16

Significant improvement

Sweden still at very low levels

Small recoveries in Russia andUkraine

Baltic countries

Positive trend Property prices stabilise/increase

13

Asset quality

Development of credit impairments

6 845 6 672

6 121

5 003

2 210

-1 000

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

SEKm

Retail LCI Baltic Banking Russia & Ukraine Other


14/16

Conclusion

Significant improvement of asset and liability risk profiles

Economy gaining momentum although uncertainty is high Areas of concern

Exit strategy central banks Fiscal consolidations

Swedbanks resilience has vastly improved

14

191%209%

290% of equity

251

188172

106

0

50

100

150

200

250

300

Q4 08 Q4 09 Q1 10

117%

SEKbn

without Estonia

CEE lending

Private Corporate


15/16


16/16

Exposure towards Greece, Ireland, Italy, Portugal and Spain

SEKmBonds 588

Loans (money market/deposits)

seb enskilda nordic banks seminar, may 2010

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