Jan Lidn President and CEO, Swedbank 2 From our current position, - - PowerPoint PPT Presentation

Jan Lidén

President and CEO, Swedbank Capital Markets Day

Tallinn, September 8, 2005

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Maintain or raise market shares in core businesses in Sweden International growth Growth areas in Sweden

From our current position, we will utilize opportunities to increase growth in Sweden and internationally

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• Customer orientation
• International strategy
• Independent savings banks in Sweden
• Corporate governance

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• Our aim is to be a customer-oriented, responsive

universal bank with the most satisfied customers in our home markets, a strong distribution network and a complete product range

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• 1. Retail banking in the Nordic and Baltic regions

– Nordic/Baltic area – retail banking – majority ownership – any acquisition should give a positive contribution to group RoE long-term

• 2. Acquisition-led expansion within certain product areas

– economies of scale – cross-border customer value – additional distribution channels

• 3. Greenfield investments in metropolitan retail operations

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• Our relationship with the Swedish independent savings

banks and partly owned banks is a commercial one

• Our role as an owner should never interfere with that of

customer and partner

• We prefer full ownership whenever possible (applies

both nationally and internationally)

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• New rules of procedure and instructions, reviewed

annually

• All aspects of the Swedish Code of Corporate

Governance to be applied

• www.swedbank.se

8 Disposals

• KIAB (July ’05)

sold 100%, net gain SEK 1.4 bn

• Aktia (July ’05)

cut holding from 19.8 to 9.6%

• EnterCard (June ’05)

sold 40% to Barclays

• FIH (Sep ’04)

sold 100% of outstanding shares

• SpareBank 1 Gruppen (June ’04)

cut holding from 25 to 19.5%

• Erste Bank (June ’03)

disposed of stake of 3.9% of outstanding shares

Acquisitions

• Hansabank Group (Apr ’05)

Acquired 100% of outstanding shares

• Kvest Bank (Mar ’05)

Hansabank acquired 100% of shares

• EnterCard (Sep ’03)

Acquired 100% of shares

• First Securities (June ’02)

33.3% of shares; (May ’05) 51 % of shares

Greenfield investments

• Helsinki (Oct ’05)
• Copenhagen (May ’05)

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Home markets, universal banking Sweden - FöreningsSparbanken Estonia - Hansapank Latvia - Hansabanka Lithuania - Hansabankas Collaboration/alliances Norway – 19.5% ownership in

SpareBank 1 Gruppen

Finland – 9.6% ownership in Aktia Other markets, niche banking Denmark - Swedbank branch Finland - Swedbank branch Norway - Swedbank branch, investment

banking through First Securities (51%)

Russia - Corporate banking and leasing in

Moscow, Kaliningrad and St Petersburg

UK - Merchant/investment banking in London US - Merchant/investment and corporate

banking in New York

Luxemburg - banking for affluent Swedish

expatriates

China – Corporate services in Shanghai Japan - Rep. office in Tokyo

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• Return on equity

– RoE shall exceed average of all other large, publicly listed Nordic banks (SHB, SEB, Nordea, Danske Bank and DnB NOR) and be at least 20 percent higher than the long-term, risk-free rate of interest plus a normal risk premium

• Operational efficiency

– Group C/I ratio shall not exceed 0.5

• Capital adequacy

– Tier 1 ratio shall be 7 percent over the long term

• Payout ratio

– At least 40 percent of net profit shall be distributed to the shareholders

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reported

%

7.6 12.3 15 15.7 16.5 17.0 18.0 11.2 13.7 8.9 14.6 11.9 15.9 13.0 15.0 12.3 20.5 17.4 16.1 15.8 13.2 23.3

5 10 15 20 25 SEB Nordea SHB DnB NOR Danske Swedbank 2002 2003 2004 H1, 2005

16.6 19.2

12 0.61 0.63 0.59 0.63 0.69 0.62 0.59 0.56 0.55 0.58 0.57 0.56 0.56 0.53 0.53 0.54

0.20 0.40 0.60 0.80

Q3- 01 Q4- 01 Q1- 02 Q2- 02 Q3- 02 Q4- 02 Q1- 03 Q2- 03 Q3- 03 Q4- 03 Q1- 04 Q2- 04 Q3- 04 Q4- 04 Q1- 05 Q2- 05

target

0.49 incl capital gain EnterCard

13 6,9% 7,1% 7,1% 7,2% 8,2% 6,7% 5,8%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 2000 2001 2002 2003 2004 Q1- 2005 Q2- 2005

target

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• Leading market positions in four home markets
• Strong financial position going forward
• New management reflecting Swedbank Group

integration

• Group integration process initiated

15 Net Earnings Lending to the Public Customers Branches

Swedbank 81% Hansabank 19% Swedbank 91% Hansabank 9% Swedbank 49% Hansabank 51% Swedbank 63% Hansabank 37%

16 Total assets EURO Bn Operating profit EURO M

30 60 90 120 150

Q401 Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205

100 150 200 250 300 350 400

Total assets Operating profit excl non-recurring items

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Overall guidelines for integration

– group interest to take precedence – differences give room to adaption – decentralized business decision process

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Board of Directors President and CEO Strategic & International Banking Shared Services Markets Baltic Banking Swedish Banking

• Management Chair: CEO
• Deputy = rotating
• 6 Regional Heads
• Head of Customer

Offerings and Products

• Head of Telephone &

Internet Bank

• Head of Savings Banks

Alliance

• Head of Staffs
• CCO
• CIO
• Management Chair:

CEO Hansabank

• 4 Regional Heads
• Head of Retail Latvia
• Hansabank CIO
• Hansabank CFO
• Hansabank CRO
• Management Chair: Head
• f Swedbank Markets
• Head of CRM Financial

Institutions

• Head of Trading
• Head of Project &

Corporate Finance

• Head of Emerging Market

& Trade Finance, and Foreign Units

• Head of Operations
• Management Chair:

Head of Strategic & International Banking

Head of Internal Audit

• Management Chair:

Head of Swedbank Shared Services

• Head of IT Development
• Head of IT Operations
• Head of Support

Group Staffs Group Executive Management:

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Customer satisfaction Operational efficiency Growth Branches Internet Telephone Competence

1. 2. 3. 4. 5.

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• Extension of the branch network (Copenhagen, Denmark

and Helsinki, Finland)

• Strengthening investment and merchant banking
• perations in Norway
• Capturing credit card market potential

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• Keeping up the pace in the Baltics and Russia
• Creation of customer opportunities from the Group’s

leading positions in the Nordic-Baltic area

• Harmonizing of operations

– risk management – treasury and funding – other staff functions

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Swedish companies

399 86 120 193 742 700 1,000

• No. of Swedish

subsidiaries

1,524 486 466 964 3,600 4,900 4,800

Swedish companies with imports/ exports of > EURO 0.1M to…

Total Baltics Lit Lat Est Fin Den Nor

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• Corporate Bank of the Year for

3rd consecutive year

• Sweden’s Best Bank for

Entrepreneurs for 3rd consecutive year

• Voted most attractive financial

employer and top-5 overall

• Best bank in Estonia for 6

consequtive years

• Bank of the year in Lithuania for

the first time in 2005

• Most highly respected company

in Latvia in 2005

Swedbank Hansabank

Building a leading Nordic-Baltic bank