Creating value in a deleveraging environment - Twelve drivers for - - PowerPoint PPT Presentation
Creating value in a deleveraging environment - Twelve drivers for successful banking Morgan Stanley European Financials Conference 28 March 2012 CEO Rune Bjerke Driver 1: Sustainable achievements DNB has delivered as promised Development
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Development in pre-tax operating profit before write-downs (NOK billion)
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Private individuals SME + Corporate 50% 50%
Selective inter- national position Regional/ global position
Shipping &
Telecom Healthcare products Forest industries Media Comm. real estate Retail industry Tech- nology Public sector Service Finance
Seafood
From Norwegian to Nordic position
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International expansion based on industries with traditional Norwegian competence Energy
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NOK million
0 % 0 % 7 % 9 % 5 %
0 % 5 % 10 % 15 % 20 % 25 %
2.000 3.000 4.000 5.000 6.000 7.000 8.000 2007 2008 2009 2010 2011
International shipping Total Shipping in % of DNB Group
Write-downs DNB Group and shipping
Offshore; 27,1 % Crude oil tankers; 11,5 % RoRo/PCC; 2,9 % Container; 12,0 % Cruise; 3,5 % Dry; 13,9 % Chemical & product tankers; 7,2 % Other shipping; 3,4 % Other non- shipping; 3,2 % Gas; 9,4 % Aviation; 0,3 % Logistics; 5,7 %
Exposure at default according to sector 29.02.2012
6 Source: Fourth quarter report 2011 from the financial institutions
2.6 % 3.1 % 3.2 % 3.9 % 4.2 % 4.9 % Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 DNB
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Reported capital adequacy Pro forma full IRB IRB with "Nordic" risk weight
Adjusted for Nordic risk weight for credit cards Adjusted for Nordic risk weight for corporates Adjusted for Swedish risk weight for mortgage loans Adjusted for full IRB DNB risk weights
9.4 10.8 14.2
EquityTier 1 capital as at 31 December 2011 (CET 1)
Per cent
NOK Spread Billion Maturity 3-month Euribor Covered bonds 34.0 7.6 72 Senior bonds 39.2 6.7 175 Total 73.2 7.1 127 bp Subordinated loan 5.7 10nc5 340 ECB’s Liquidity Facility LTRO2) 9 3,0 i.a NOK Spread Billion Maturity 3-month Euribor Covered bonds 98.3 6.5 53 Senior bonds 27.8 8.8 108 Total 126.1 7.0 65 bp ECB’s Liquidity Facility (LTRO1) 15.7 3.0 i.a NOK Spread Billion Maturity 3-month Euribor Covered bonds 84,4 7.5 49 Senior bonds 32.3 7.3 84 Total 116.6 7.5 59 bp 8
55% 45% 37% 56% 47% 58% 46% 46% 56% 54% DNB Bank 1 Bank 2 Bank 3 Bank 4 4Q10 4Q11
Deposit-to-loan ratio – Nordic banks
Source: Fourth quarter report 2011 from the financial institutions 9
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Cost/income ratio* – Nordic banks 2011
Source: Company reports *All figures are before adjustments for goodwill i.a.
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Source: OECD Economic Outlook No. 90, November 2011 Note: Budget surplus/deficit calculated as a percentage share of country GDP; forecasts for 2012
Annual budget deficit/surplus for 2012 (forecast)
General government net financial assets (As a percentage of nominal GDP 2011)
Budget deficit Budget surplus
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Development in income – DNB Markets
2553 3092,5 3183,2 3590,7 3872,5 3216,9 5685 7243,2 5471,3 6159,2
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
NOK million
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1.61 1.58 1.60 1.57 1.67 1.61 1.55 1.55 1.64 0.23 0.29 0.32 0.41 0.27 0.29 0.31 0.33 0.28 1.13 1.12 1.15 1.16 1.17 1.13 1.10 1.11 1.14 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Per cent 2) Lending spread Deposit spread Combined spread
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