FreningsSparbanken Lars-Erik Kvist Group EVP and Chief Credit - - PowerPoint PPT Presentation

FöreningsSparbanken

Lars-Erik Kvist

Group EVP and Chief Credit Officer

2

Lending and credit quality

3

Lending

• A sound profitability
• Annual growth rate in total lending 3.8 percent

(9M-2002 growth annualized)

– Continued strong position in the household sector – Increased market share in the agricultural sector (Jordbrukskredit) – FSPA Finans (finance services lending) has a strong growth and is growing its market share

4

Group lending 12/00– 09/02

Net excl. repurchase agreements

300 000 350 000 400 000 450 000 500 000 550 000 600 000 650 000 700 000 12/00 3/01 6/01 9/01 12/01 03/02 06/02 09/02

FI-Holding and Hansabank SEK M

5

Lending

• Sep. 30,
• Jun. 30,
• Mar. 31,
• Dec. 31,

SEK bn 2002 2002 2002 2001 Private individuals 296 291 285 281

• f which Spintab Group

242 237 232 228 Real estate management 137 136 135 136 Retail, hotels, restaurants 26 25 25 25 Construction 10 10 10 11 Manufacturing 51 50 51 51 Transportation 14 14 14 14 Forestry and agriculture 30 29 29 28 Other service businesses 14 15 16 17 Other business lending incl credit institutions 54 55 55 54 Municipalities 13 14 13 13 Other 13 10 10 10 Total 658 649 643 640 Repurchase agreements 46 51 54 44 Total lending 704 700 697 684

6

Group lending

2002 2001 2002 2001 2002 2001 SEK bn 9/30 12/31 9/30 12/31 9/30 12/31 Private individuals 289.0 275.0 7.3 6.2 0.0 0.0

• f which Spintab Group

242.1 228.2 Real estate management 117.2 116.9 2.7 2.1 17.0 16.5 Retail, hotels, restaurants 16.1 16.1 4.5 3.9 5.1 4.9 Construction 8.4 8.9 0.8 0.7 1.3 1.4 Manufacturing 13.6 14.3 5.3 4.3 31.8 32.8 Transportation 6.4 6.3 3.1 2.5 4.9 5.4 Forestry and agriculture 29.6 27.4 0.8 0.7 0.0 0.0 Other service businesses 12.1 13.4 1.6 1.6 0.3 1.7 Other business lending incl. credit institutions 41.6 42.6 1.6 1.9 11.0 9.9 Municipalities 12.8 13.0 0.0 0.0 0.0 0.0 Other 12.5 9.7 0.0 0.0 0.0 0.0 Total 559.3 543.6 27.7 23.9 71.4 72.6

FSPA excl. Hansabank and FI-Holding Hansabank FI-Holding

excluding repurchase agreements

7

Group lending

excluding repurchase agreements

SEK bn

• Sep. 30, 2002
• Dec. 31, 2001

Change FöreningsSparbanken AB 182 186 – 2 % Spintab 359 341 5 % FöreningsSparbanken Finans AB 15 13 12 % FI-Holding 71 * 73 – 2 % Hansabank 28 ** 24 16 % Other units 3 3 Total 658 640 3 %

* From which exchange rate fluctuation SEK – 2 bn

** From which exchange rate fluctuation SEK – 1 bn

8

Floating charges, 3% Personal guarantee, 2% Other properties , 16% Unsecured, 12% Other collateral, 6% Municipalities and county councils, 7% Residential properties incl. condominiums, 54%

September 30, 2002

Lending SEK 658 billion

Lending by collateral

9

Private individuals 45% Corporates 30% Other 2% Real estate management 21% Municipalities 2%

September 30, 2002

Lending SEK 658 billion

Lending by sector

10

Doubtful claims

• 2 000

2 000 4 000 6 000 8 000 10 000 12 000 14 000 dec-97 dec-98 dec-99 dec-00 01-dec 02-mar 02-jun 02-sep Doubtful claims gross Doubtful claims net SEK M

11

Doubtful claims gross by Group unit

SEK M

• Sep. 30, 2002
• Dec. 31, 2001 Sep. 30, 2001

FöreningsSparbanken AB 2,273 2,164 1,862 Spintab 574 626 644 FöreningsSparbanken Finans 148 167 134 FI-Holding 533 316 370 Hansabank 306 735 698 Others 143 245 274 Total 3,977 4,253 3,982

12

SEK M

• Sep. 30, 2002
• Dec. 31, 2001
• Sep. 30, 2001

FöreningsSparbanken AB – 535 56 84 Spintab 86 142 153 FöreningsSparbanken Finans 90 117 78 FI-Holding – 649 – 826 – 815 Hansabank – 120 217 169 Others 99 167 208 Total – 1,029 – 127 – 123

Doubtful claims net by Group unit

13

SEK M Jan-Sep 2002 Jan-Sep 2001 Established 531 503 Provisions 1,452 1,124 Recoveries – 740 – 764 Change in value of property taken over 15 Total 1,243 878

• f which general provisions

786 380

Loan losses

Provision ratio for doubtful claims 126% 103%

14

SEK M Jan-Sep 2002 Jan-Sep 2001 FöreningsSparbanken AB 1,183 685 Spintab 112 178 FI-Holding 84 74 Hansabank – 12 3 Others – 124 – 62 Total 1,243 878

Loan losses by Group unit

• f which general provisions

786 380

• in FöreningsSparbanken AB

710 397

15

Loan losses, private individuals

• 100

100 200 300 400 500 600 97-12 98-12 99-12 00-12 01-12 02-03 02-06 02-09 Loan losses net, SEK M SEK M

16

Doubtful claims, private individuals

200 400 600 800 1 000 1 200 1 400 1 600 1 800 97-12 98-12 99-12 00-12 01-12 02-03 02-06 02-09 Doubtful claims gross Doubtful claims net

SEK M

17

Country

• Sep. 30, 2002
• Dec. 31, 2001

Change Sweden 620,220 608,031 12,189 Denmark 77,710 80,786 – 3,076 USA 16,486 29,611 – 13,125 Rest of OECD 60,385 53,087 7,298 Latin America 1,242 1,618 – 376

• f which Argentina

41 119 – 78

• f which Brazil

628 774 – 146 Baltic region 36,485 32,104 4,381 Russia 228 86 142 Japan 262 676 – 414 Rest of East Asia 1,111 997 114 Other countries 3,506 3,311 195 Total 817,635 810,307 7,328

Credit exposure

book value SEK M

18

Improved efficiency

50 100 150 Spintab multifamily housing Rörelsekredit Spintab Blanco 2001 1999/2000

Despite added customers and increased lending volumes, resource consumption within Retail Sweden for lending activities has decreased from 27 to 25 percent

minutes

19

Credit risk control

Cental credit unit risk control

• Monthly/quarterly follow-up of the Group´s

loan portfolio in accordance with esta- blished report structure

• industry and collateral distribution
• loan losses and doubtful claims
• 20 largest problem loans/unit
• assets taken over to protect claims
• all risk exposures SEK 1 M with

estimated risk of loss within 24 months

• risk-classified loan portfolio
• Supervision by local credit organization
• credit organization
• education/competence
• need for support
• routines for customer follow-ups
• Support local officers
• Develop routines and instructions

Local credit risk control

• Review all new loans
• Monitor quality of local credit

portfolios

• decision quality
• risk classification
• register quality
• incomplete files
• handling of problems
• Report to local president

and board

• risk development
• deviations from instructions

20

Credit limit structure

Board of directors

Unlimited

Central headquarters

Board credit- and capital committee Unlimited Central credit committee SEK 150/350 M

Local bank

Local board SEK 10/20/30/40 M

Depending on size

Local delegation SEK 7.5/15/20/30 M Two officers jointly SEK 0.25/3/5 M

21

Outlook 2003

• Spintab - continued growth
• Jordbrukskredit - continued growth
• Finansbolaget - continued growth
• Improved credit scoring

– 40-50 percent of housing loan applications are handled manually. With the new scorecard up-and-running the figure will come down to 10 percent.