wholesale banking – a leading nordic platform · 9/12/2016 · wholesale banking – income...
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Wholesale Banking – a leading Nordic platform
Barclays, New YorkErik Ekman, Head of Wholesale Banking
Nordea●●●
13% CAGR in capital generation 2005-2015, CET 1 ratio improved from 5.9% to 16.5%
1) CAGR 2015 vs. 2005, adjusted for EUR 2.5bn rights issue in 2009. Equity columns represents end-of-period equity less dividends for the year. No assumption on reinvestment rate for paid out dividends
2) Calculated as Tier 1 capital excl. hybrid loans
2012 2015
43
2014
39
2013
3735
20
15
31
20082006
12
2005 20112010
19
2926
2007 2009
5.92 16.5
Acc. dividend, EURbnAcc. equity, EURbn
STRONG CAPITAL GENERATION AND STABLE RETURNS AT LOW RISK1
3
CAGR1 +13%
CET 1 Ratio,%
Nordea – the most stable bank in the Nordics
146
77 47 38
24 17
Peer 5Nordea Peer 4Peer 2 Peer 3Peer 1
1.040.88
0.520.350.33
0.21
Peer 3Peer 2Peer 1Nordea Peer 4 Peer 5
4
NORDEA AND PEERS 2006 – Q4 2015, %
1) Calculated as quarter on quarter volatility in CET1 ratio, adjusted so that the volatility effect of those instances where the CET1 ratio increases between quarters are excluded
Qua
rter
lyne
t pro
fitvo
latil
ity
Qua
rter
lyC
ET
1 ra
tiovo
latil
ity¹
Wholesale Banking●●●
An integrated part of the groupWholesale Banking
The Way Ahead
Wholesale Banking – in a group perspectiveBusiness area contribution, 2015
6
24% 30% 32%
Rest of Nordea GroupWholesale banking
OPERATING INCOME ECONOMIC CAPITALOPERATING PROFIT
Wholesale Banking – a leading Nordic platform
7
2015 - Tier 1 – Nordea Nordic #1
No. 1positions
No. 2 positions
No. 3 positions
#1 Nordea 22 12 8
#2 Nordic Peer 14 12 13
#3 Nordic Peer 5 14 13
GREENWICH PROSPERA
Wholesale Banking – an integrated part of Nordea
8
FOCUSED NORDIC OFFERING
Group-wide aligned Operations
Commercial & Business Banking
WealthManagement
Wholesale Banking
Personal Banking
Customersare
served by integratedoffering
WB formation
Transforming the business model
& culture
WB formation
Leveraging the platform
WB formation
Business model & culture
2011 - 2012 2014 -2013 - 2014
Wholesale Banking – the journey
9
o Nordic #1 or within reach, across all major productareas
o Managing for return
Wholesale Banking●●●
An integrated part of the groupWholesale Banking
The Way Ahead
11
Wholesale Banking
RussiaEquities WB COO
Corporate &
Investment Banking
FICC
Wholesale Banking – an overview
SIMPLE BUSINESS STRUCTURE
Revenue2.4 bn€
FACTS – FY 2015
FTE3,899
C/I36%
RoCar13%
Wholesale Banking – income split Income from capital light products in focus
12
INCOME SPLIT
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
NII NCI NFV
2011 H1 2016
62%
38%
WHOLESALE BANKING INCOME, H1 2016
Lending and transaction banking
Capital Markets
Wholesale Banking – Capital Markets offeringResponsible for the total Capital Markets offering in Nordea – but only partly visible in WB P/L
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2011 2012 2013 2014 2015 2016Ann.
60%
40%
WB Retail
TOTAL CAPITAL MARKETS INCOME, mEUR SPLIT BY BUSINESS AREAS (2015-2016)
13
Wholesale Banking – cost efficiency
14
800
850
900
950
1000
1050
2011 2012 2013 2014 2015 2016Annualised
COST DEVELOPMENT, mEUR
15
Wholesale Banking – credit quality
CREDIT QUALITY PRUDENTLY MANAGED - EVEN IN STRESSED ENVIRONMENT
-0,10%
0,00%
0,10%
0,20%
0,30%
0,40%
0,50%
0,60%
2008 2009 2010 2011 2012 2013 2014 2015 2016Ann.
SOO Russia Corporate
Wholesale Banking – managing for return
16
ROCAR DEVELOPMENT, %
0%
4%
8%
12%
16%
2011 2012 2013 2014 2015 2016Annualised
Ex xVA ImpactRoCar at unchanged capital
Wholesale Banking●●●
An integrated part of the groupWholesale Banking
The Way Ahead
DIGITALISATION
o Foundation first
o Customer interface
o Embedded compliance
o Culture
MACRO REGULATION
18
o SREP
o Basel IV
o FRTB
o …
CAPITAL
o New regulation
o “Regulatory drift”
o Get ahead of the curve
o Low growth, negative rates
o Capitalmarkets financing
Wholesale Banking – a new environment here to stay
VALUE CREATION FOR STAKEHOLDERS
Wholesale Banking – operationalisation of the strateg y
19
Risk and compliance embedded in everything we do
Best of peers to attract, develop and retain staff
Managing for return and a meaningful contribution to Group profit
Highest customer satisfaction among the customers where there is a joint interest for a mutually value creating
partnership
CU
STO
ME
RS
SH
AR
EH
OLD
ER
S
STA
FF
RIS
K C
ULT
UR
E
Wholesale Banking - ongoing initiatives
20
EXAMPLES
o Advisory and capital lighto Growth in institutional business
Corporate & Investment Banking
“ PEOPLE, PEOPLE, PEOPLE ”
o Sales offering, smaller inventoryo Exchange traded products
FICC and Equities Strategy
o Underwritings and syndicationso Dynamic allocation
Capital velocity
o Simplifying and streamlining, efficiencieso New management, organisation and culture
COO capabilities
Wholesale Banking – a leading Nordic platform
Barclays, New YorkErik Ekman, Head of Wholesale Banking