Danske Bank Retail Banking Personal Banking Strategy in Sweden 14 - - PowerPoint PPT Presentation
Danske Bank Retail Banking Personal Banking Strategy in Sweden 14 May 2019 Anneli Adler Co-head Danske Bank Retail Sweden Agenda 1 Danske Bank Group 2 Danske Bank - Banking SE 3 Danske Retail SE - A challenger in Sweden 4 Danske
Personal Banking Strategy in Sweden 14 May 2019 Anneli Adler Co-head Danske Bank Retail Sweden
Danske Bank Group Danske Retail SE - A challenger in Sweden Danske Hypotek – Going Forward 1 3 4 2 Danske Bank - Banking SE
Q1 2019
Lending growth of 3% y/y, driven by growth of 2% y/y at Banking DK and 7% y/y at Banking Nordic Expenses up 9% y/y due mainly to investments related to regulatory requirements and compliance, further AML efforts, digital transformation and SEB Pension Danmark Trading income negatively affected by value adjustments and a regulatory one-off expense at Danica Pension Significant funding issuance activity in Q1, totalling around DKK 51 bn, including our first green bond and a tier 2 instrument
down 39% from Q1 2018 due to lower NII, as well as higher expenses and impairments
4.9 Net profit (DKK bn) 3.0 Q1 2019 Q1 2018 7.7 ROE (%) 12.6
Northern Ireland Banking DK Banking Nordic Corporates & Institutions Wealth Management
5% 31% 23% 23% 18%
Total income by Business Unit, %
Nordic lending markets
Ongoing investigations by Danish, Estonian, French and US authorities. Class action lawsuit filed in the US Our investigation continues and all findings are shared with relevant authorities through regular updates. Timing of completion is uncertain and subject to dialogue with authorities Number of FTEs allocated to AML up from 820 in 2017 and around 1,400 in 2018 to around 1,700 in Q1 2019 Investments of up to DKK 2.0 bn over the next three years specifically earmarked for AML digitalisation efforts. Expense impact of around DKK 0.3 bn in 2019 In total, we have so far spent around DKK 450 million on the Estonia investigation
Growth
Lending 371 SEK bn +9% (y/y)
Profitability
Profit before tax 1.6 SEK bn -18% (y/y)
Income
NII 1.8 SEK bn +1% (y/y) Fee income 0.4 SEK bn
Trading Income 0.4 SEK bn
Total income
Q1 2019
2.6 SEK bn
Mortgage market growth 2018, SEK millions (source: SCB Bolånerapport)
Customer satisfaction Profitability Controlled risks
Strengthening our position in the Swedish market
Partners Online Cross BU collaboration
Strategic partners Early actions to mitigate risks SACO & TCO customers
Early actions to mitigate risks
Ahead of credit regulations
Target the right customers
Strategic partnerships
Higher credit quality than
average
Higher use of digital tools
and channels than average
Faster to broaden their
relation than average 650,000 members 23 affiliated associations Launch February 2016 1,300,000 members 14 affiliated associations Launch April 2017
Debt-to-income (DTI) caps
Amortisation requirements
LTV cap on high priced properties
Digital interfaces and processes
Digital on-boarding of new customers
Focus on customer value
Life event based solutions with advice
Simplicity & transparency
Customer Program
Customer relations digital
Online bookings & meetings
1) Finansinspektionen, The Swedish Mortgage Market , April 2019 2) SCB
Mortgage portfolio compared to market average 1
Share of Swedish mortgage market Q1 2019 2
Market share 3.8% Share of market growth Q1 8.8% Share of market growth 2018 8.2%
20 40 60 80 100 120
Billion SEK
10 20 30 40 50 60 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Basis points
Danske Hypotek LF Bank Nordea SBAB SEB Handelsbanken Swedbank
DH2212 DH2312 DH2112
during H1, subject to market conditions
per year the coming years
during 2019
during H2 and hence increasing loan portfolio from SEK 78bn to SEK 88bn (expected) .
DH2212 DH2112
Actual asset transfer Planned asset transfer
DH2312 DHXX
Important Notice This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation
enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied
not been, and will not be, registered under the Securities Act of 1933, as amended (“Securities Act”), and may not be offered
Securities Act. This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Danske Bank believes that the expectations reflected in such forward- looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors many of which are beyond Danske Bank’s control. This presentation does not imply that Danske Bank has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.
Danske Bank Group has a strong commitment to the Swedish mortgage market
Existing cover pools Cover pool in Danske Hypotek New originated loans Asset release
Danske Bank
Swedish mortgage lending
Origination Principal and interest New lending
Swedish mortgage lending Danske Hypotek
Parent Loan Sale of mortgages
Covered Bonds
Bond proceeds Principal and interest
EMTCN Covered Programme SEK Covered Programme
Danske Hypotek - Structure Danske Hypotek pool (incl. indicative future transfer capacity)
100 2019 2020 2021 SEK bn Longer term