Kjell Hedman EVP Swedbank, Head of Customer Offerings and Products - - PowerPoint PPT Presentation

Kjell Hedman

EVP Swedbank, Head of Customer Offerings and Products Capital Markets Day

Tallinn, September 8, 2005

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• Retail mortgages
• Cards and consumer credits
• Packaged pension solutions
• Non-life insurance

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• Swedbank leads the market

– no.1 market share – no.1 new sales volume

• Capture growth of the mortgage market
• …at attractive margins

– funding cost – stabilizing new sales margins

• …and maintaining high credit quality

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• Card issuing – debit and credit cards
• Acquiring card transactions
• National and international payments
• Transaction accounts, transfers, payroll systems,etc.
• Clearing, cash settlement
• Information services (e-billing, e-payrolls, etc.)
• Identification services

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30 35 40 45 50 55 60 65 70 75 80 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 20% 25% 30% 35% 40% 45% 50% Payments net commission income, EUR M Payments' share of net commission income Payments NCI, EUR M Payments’ share of Group NCI

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Number of payments per card, customer and month is increasing rapidly

4.1 4.3 4.9 5.9 6.6 7.4 8.4 8.8

1 2 3 4 5 6 7 8 9 10

1998 1999 2000 2001 2002 2003 2004 1H05

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10 20 30 40 50 60 Bank cards Merchant acquring Credit cards

Market share, %

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• EnterCard was created via a joint venture agreement between

Barclaycard and FöreningsSparbanken

• The company was created on 1st June, the transaction between Barclays

and Swedbank completed on 30th June.

EnterCard International

EnterCard Sverige AB

Swedbank’s Swedish credit card operations

EnterCard AS

Norwegian credit card

• perations

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• Develop immature Swedish credit card market

− Swedbank distribution channels to its customers − co-brand partners and a new open market proposition

• Grow and develop the successful Norwegian business

−

• pen market play

− distribution agreements with bank partners

• Expand the franchise to a pan-Nordic business

− Denmark

• Business Plan 2005 – 2009

− grow the account base (Sweden & Norway) from 0.6 to 1.6 million − grow balances from EUR 450 M to EUR 1.7 bn

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Barclaycard’s Core Competences

Customer Value Management Marketing

Swedbank’s Strategic Assets

Customer Base Customer Information Distribution Channels

Grow the market Grow income per customer

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• Swedbank has client base, products and distribution capacity
• No reason for lower market share

5 10 15 20 25 30 Fund management Deposits Index-linked bonds Pensions %

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2007 One of the two largest players 2009 20% of total new sales (currently 12-13 %)

Product segments

• Premium pensions
• Contractual/occupational

pensions

• Private pensions

New products - launched

• Robur Transfer
• Robur Traditional Pension

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Pension Social Security system (EUR 18 bn ”pay as you go”-system) EUR 2.7 bn funded system PPM Occupational Pensions EUR 6.7 bn Private Pensions EUR 1.7 bn 16 % 5 % 15 % Swedbank market share IPS (IRA) 30% Unit-linked 20% Life insurance 50% Unit-linked 50% Life insurance 50% PPM Mutual funds Product composition

annual premiums

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• Customer relations
• Strong brand and reputation
• Strong performance in asset management
• Long experience from the private pension market
• Attractive product range

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• Market growth > 10% annually last 5 years
• A natural add-on product for a banking customer
• Increased revenues through cross-selling
• A very successful concept in Norway

– SpareBank1 Gruppen reached a market share

• f 10% in 7 years

– customers with both bank and non-life products show higher customer satisfaction – generates attractive commission income

Building a leading Nordic-Baltic bank