MeritaNordbanken January - September 1999 1 26.10.1999 13:06 - - PowerPoint PPT Presentation

▶
meritanordbanken
SMART_READER_LITE
LIVE PREVIEW

MeritaNordbanken January - September 1999 1 26.10.1999 13:06 - - PowerPoint PPT Presentation

Aug 29, 2022 303 likes •872 views

26.10.1999 13:06 MeritaNordbanken January - September 1999 1 26.10.1999 13:06 Sustained strong performance with reduced costs and high return on equity Operating profit EUR 1 051 million (SEK 9.3 billion), Adjusted for items

slide-1
SLIDE 1

1

26.10.1999 13:06

MeritaNordbanken

January - September 1999

slide-2
SLIDE 2

2

26.10.1999 13:06

Sustained strong performance with reduced costs and high return on equity

– Operating profit EUR 1 051 million (SEK 9.3 billion), – Adjusted for items affecting comparability the operating profit

increased 4 % to EUR 937 million

– ROE 20.0 %; excluding items affecting comparability 18.0 % – Earnings per share EUR 0.36 in Merita Plc, SEK 3.23 in Nordbanken Holding – Third quarter operating profit EUR 282 against EUR 280 million in the

preceding quarter

– Expenses down 5 % in the third quarter – Mutual funds and insurance products successful on the markets – 850 000 Internet banking customers in Finland and Sweden – Introduction of WAP banking services in Finland – Launch of electronic Solo Mall in Sweden

slide-3
SLIDE 3

3

26.10.1999 13:06

The Nordic Vision - two new initiatives

  • Cash offer of NOK 24.3 bn supported by the Board of

Christiania Bank

  • Simplification of the group structure facilitates creation of a ”one

share - one bank group”. Proposal for the merger of Nordbanken Holding AB and Merita Plc. A Nordic platform for growth

and enhanced shareholder value

slide-4
SLIDE 4

4

26.10.1999 13:06

A leading banking group in the Nordic and Baltic region

  • Customer base

6.5 million private individuals 400 000 small and midmarket companies 400 corporates

  • Average market shares

Finland 30 % - 55 % Sweden 15 % - 25 %

  • Distribution network

735 branch offices 1000 Swedish post offices Telephone bank Internet

  • Lending

EUR 67 bn

  • Deposits and customer funds

EUR 66 bn

  • Total assets

EUR 98 bn

  • Employees

18 058 (within banking operations)

slide-5
SLIDE 5

5

26.10.1999 13:06

The largest banking group in the Nordic region

  • 2

4 6 8 10 12 Den Norske Bank Kapital Holding Christiania Unidanmark SEB Den Danske Bank FöreningsSparbanken Handelsbanken MeritaNordbanken

slide-6
SLIDE 6

6

26.10.1999 13:06

Swedish government 26 % Swedish institutions 15 % Finnish government 3 % Finnish institutions 9 % Foreign

  • wnership *

32 % Finnish public 11 % Swedish public 3 %

Combined ownership structure

  • * Incl. possible nominee registered

Swedish ownership in Merita Plc.

slide-7
SLIDE 7

7

26.10.1999 13:06

Share price development

Nov. 1995 Nov. 1996 Oct. 1997 Oct. 1998 Oct 1999 Merita Nordbanken Holding DJ Euro Stoxx Bank 100 200 300 400 500

slide-8
SLIDE 8

8

26.10.1999 13:06

Total yield of Nordic banking shares

(Including dividends paid in cash or in the form of shares of real estate companies. Not reinvested.) 1998 - September 1999 Jan - September 1999 1996 - September 1999 1997 - September 1999

% % % % 50 100 150 200 250 20 40 60 80 100 120 140

Merita NB Hold SHB SEB FSB DnB ChrB DDB UNI

  • 10

10 20 30 40 50

Merita NB Hold SHB SEB FSB DnB ChrB DDB UNI

  • 20
  • 10

10 20 30 40 50 60 70

Merita NB Hold SHB SEB FSB DnB ChrB DDB UNI KapH Merita NB Hold SHB SEB FSB DnB ChrB DDB UNI

slide-9
SLIDE 9

9

26.10.1999 13:06

Income statement

1999 1998 Jan.-Sept./1999 mEUR Jan.-Sept. Jan.-Sept. Change, % mSEK Net interest income 1 341 1 363

  • 2

11 915 Net commission income 565 533 6 5 017 Net result from financial operations 88 290

  • 70

781 Other operating income 243 288

  • 16

2 160 Total operating income 2 237 2 474

  • 10

19 865 Personnel expenses

  • 587
  • 629
  • 7
  • 5 208

Other expenses

  • 646
  • 724
  • 11
  • 5 742

Total expenses

  • 1 233

1 353

  • 9
  • 10 950
  • Loan losses, net
  • 20
  • 101
  • 80
  • 174

Profit from companies accounted for under the equity method 67 26 589

  • Taxes
  • 276
  • 228

21

  • 2 451

Minority interest

  • 1
  • 4
  • 75
  • 9
slide-10
SLIDE 10

10

26.10.1999 13:06

Income statement

  • 1999

1998 Jan.-Sept./1999 mEUR Jan.-Sept. Jan.-Sept. Change, % mSEK Net interest income 1 341 1 376

  • 3

11 915 Net commission income 565 533 6 5 017 Net result from financial operations

  • 26

120

  • 228

Other operating income 243 213 14 2 160 Total operating income 2 123 2 242

  • 5

18 864 Personnel expenses

  • 587
  • 606
  • 3
  • 5 208

Other expenses

  • 646
  • 657
  • 2
  • 5 742

Total expenses

  • 1 233
  • 1 263
  • 2
  • 10 950
  • Loan losses, net
  • 20
  • 101
  • 80
  • 174

Profit from companies accounted for under the equity method 67 26 589

slide-11
SLIDE 11

11

26.10.1999 13:06

Items affecting comparability

mEUR 1999 1998 Operating profit excl. items affecting comparability 937 904 Net result from financial operations 114 170 Other operating income

  • 62

Personnel expenses

  • 23

Other expenses

  • 67
  • Operating profit incl. items affecting comparability

1 051 1 046 January-September

slide-12
SLIDE 12

12

26.10.1999 13:06

Income statement, quarterly

  • 1999

1998 mEUR Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1 Net interest income 439 454 448 459 448 473 455 Net commission income 190 194 181 189 174 190 169 Net result from financial operations

  • 7
  • 53

34 18 10 50 60 Other operating income 60 91 92 78 57 93 63 Total operating income 682 686 755 744 689 806 747 Personnel expenses

  • 195
  • 196
  • 196
  • 212
  • 205
  • 207
  • 194

Other expenses

  • 210
  • 229
  • 207
  • 249
  • 209
  • 232
  • 216

Total expenses

  • 405
  • 425
  • 403
  • 461
  • 414
  • 439
  • 410
  • Loan losses, net
  • 20
  • 38
  • 33
  • 29
  • 39

Profits 5 19 43 10 9 11 6

slide-13
SLIDE 13

13

26.10.1999 13:06

Net interest and commission income

mEUR 100 200 300 400 500 Net interest income Net commission income Q1 1997 Q2 Q3 Q4 Q1 1998 Q2 Q3 Q3 Q1 1999 Q2 Q3

slide-14
SLIDE 14

14

26.10.1999 13:06

  • 50

50 100 150 200 250 300

Net result from financial operations

mEUR Equity-related Currency-related Interest-rate-related Q1 1997 Q2 Q3 Q4 Q1 1998 Q2 Q3 Q3 Q1 1999 Q2

  • 100

Q3

slide-15
SLIDE 15

15

26.10.1999 13:06

Expenses

* Excluding restructuring expenses.

100 200 300 400 500 600 Q1 1997 Q2 Q3 Q4 Q1 1998 Q2 Q3 Q4 Q1 1999 Restructuring expenses Other expenses * Personnel expenses * mEUR Q2 Q3

slide-16
SLIDE 16

16

26.10.1999 13:06

Loan loss level, %

0.1 0.2 0.3 0,4 0.5 0.6 0.7 0.8 0.9 Loan loss level, quarterly Loan loss level, accumulated

Q1 1997 Q3 1997 Q1 1998 Q3 1998 Q1 1999 Q3 1999 Q2 1997 Q4 * 1997 Q2 1998 Q4 1998 Q2 1999 * Incl. reservations for Asia

slide-17
SLIDE 17

17

26.10.1999 13:06

Non-performing loans, net/lending

Q1 1998 Q2 Q3 Q4 Q1 1999 Q2 0.5 1 1.5 2 2.5 % Q3

slide-18
SLIDE 18

18

26.10.1999 13:06

Operating profit by business area, quarterly

Regional banks Corporate Markets Real Estate Treasury

  • 50

mEUR 50 100 150 200 250 Q1/1999 Q2/1999 Q3/1999

slide-19
SLIDE 19

19

26.10.1999 13:06

Results by business area, Jan.-Sept. 1999

Regional Asset banks Cor- porate manage- Real mEUR Markets ment estate Treasury Other Total

  • Income

1 465 318 99 189 83 77 6 2 237 Expenses

  • 839
  • 111
  • 75
  • 34
  • 120
  • 13
  • 41
  • 1 233

Loan losses

  • 6
  • 7
  • 7
  • 20

Profit from companies accounted for under the equity method

  • 3
  • 64

67

  • f which reallocated

128 3

  • 13
  • 118
slide-20
SLIDE 20

20

26.10.1999 13:06

Asset management

  • bnEUR

Unit-linked life insurance Insurance (excl. unit-linked) Portfolio management Mutual funds (excl. unit-linked) 5 10 15 20 25 30 Q1 1998 Q2 Q3 Q4 Q1 1999 Q2 Q3

slide-21
SLIDE 21

21

26.10.1999 13:06

Asset management

  • mEUR

10 20 30 40 50 60 70 80 Q1 1999 Q2 1999 Q3 1999 Administrative expenses Sales and distribution expenses Product earnings

slide-22
SLIDE 22

22

26.10.1999 13:06

Household savings

Finland Sweden

bnEUR

* Excluding the exchange rate effect (EUR/SEK), the volume increased by 8% in 1998.

1995 1996 1997 1998 * Sept. 1999 Share-index- linked bonds Retail bonds Insurance Mutual funds

  • excl. unit-linked

National public savings Deposits 5 10 15 20 25 30 1995 1996 1997 1998 Sept. 1999

slide-23
SLIDE 23

23

26.10.1999 13:06

Net savings in mutual funds *

* Including unit-linked.

Finland Sweden

mEUR Q1 1998 Q2 Q3 Q4 Q1 1999 Q2 Q3 50 100 150 200 250 300 350 400 450 500 Net savings

  • Acc. market share

5 10 15 20 25 30 35 40 45 50 Q1 1998 Q2 Q3 Q4 Q1 1999 Q2 Q3 %

slide-24
SLIDE 24

24

26.10.1999 13:06

Life insurance, premiums paid

Unit-linked Traditional

Finland Sweden

Q1 1998 Q2 Q3 Q4 Q1 1999 Q2 Q3 Q1 1998 Q2 Q3 Q4 Q1 1999 Q2 Q3 mEUR 50 100 150 200

slide-25
SLIDE 25

25

26.10.1999 13:06

Market shares, households

Deposits Mutual funds * Insurance * Total lending

Finland Sweden

(± XX) = compared with Q3/1998. * As per June 1999.

Insurance * Mutual funds Deposits Total lending Housing loans Housing loans 10 20 30 40

  • 10

20

  • 30 %

50 %

slide-26
SLIDE 26

26

26.10.1999 13:06

Market shares, corporate

(± XX) = compared with Q3/1998.

Lending Sweden Lending Finland Deposits Sweden Deposits Finland %

  • 10

20 30 40 50 60

slide-27
SLIDE 27

27

26.10.1999 13:06

Customer structure of loan portfolio

  • Companies

59 % Households 38 % Public sector 3 %

slide-28
SLIDE 28

28

26.10.1999 13:06

Lending to companies by industry

  • Construction

6 % Transport 7 % Trade & services 10 % Manufacturing 15 % Financial

  • perations

4 % Renting, consulting and

  • ther company

services 9 % Other companies 22 % Real estate management 27 %

slide-29
SLIDE 29

29

26.10.1999 13:06

Lending by customer groups, development *

Other companies Financial operations Manufacturing Trade & Services Transport Construction Real estate management Public sector Households Renting, consulting and

  • ther company services

* Compared with Q3/1998.

  • 0.5

0.5 1 1.5 2 2.5 3 bnEUR

slide-30
SLIDE 30

30

26.10.1999 13:06

100 % 50 % 40 % Shopping malls

Real estate divestment strategy in Finland

Real estate holdings Specialized companies to be sold Holdings to be sold separately To be retained Aleksia Hotel properties Real estate shares Other properties e.g. – foreign – offices – warehouses Banking premises

slide-31
SLIDE 31

31

26.10.1999 13:06

Write-down in 1998 FIM 3.7 billion Equity portfolio * Domestic properties Land and development projects Foreign properties Banking premises

* Incl. Aleksia, hotels and shopping malls and Aleksia debt.

Real estate divestment process in Finland

bnFIM 25 20 15 10 5 1998 1999 2000 2001 2002 2003

slide-32
SLIDE 32

32

26.10.1999 13:06

Personnel

Q3 1997 Q4 Q1 1998 Q2 Q3 Q4 Q1 1999 Employees Positions 12 14 16 18 20 22 Thousand Q2 Q3

slide-33
SLIDE 33

33

26.10.1999 13:06

Jan.-Sept. 1998 Jan.-Sept. 1998

Profitability

Including items affecting comparability Excluding items affecting comparability

Return on equity

% 5 10 15 20 25 Jan.-Sept. 1999 Jan.-Sept. 1999

* Before loan losses.

% 50 51 52 53 54 55 56 57 58

Cost-to-income ratio *

slide-34
SLIDE 34

34

26.10.1999 13:06

Return on assets

1 2 %

Overall interest spread

0.5 1 1.5 2 % 0.5 1.5 Including items affecting comparability Excluding items affecting comparability Jan.-Sept. 1998 Jan.-Sept. 1998 Jan.-Sept. 1999 Jan.-Sept. 1999

slide-35
SLIDE 35

35

26.10.1999 13:06

Regional banks

  • bnEUR

Helsinki & Uusimaa Central & Western Finland Eastern & Northern Finland Southern Sweden Western Sweden Stockholm Central Sweden Northern Sweden Lending & guarantees Customer savings 2 4 6 8 10

slide-36
SLIDE 36

36

26.10.1999 13:06

Number of branches

  • 50

100 150 200 250 Helsinki & Uusimaa Central & Western Finland Eastern & Northern Finland Southern Sweden Western Sweden Stockholm Central Sweden Northern Sweden

slide-37
SLIDE 37

37

26.10.1999 13:06

Balance sheet

  • Sept. 30
  • Dec. 31

bnEUR 1999 1998 Change, % bnSEK Loans to the public 67.1 59.8 12 585 Loans to financial institutions and central banks 8.5 11.8

  • 28

74 Interest-bearing securities Financial current assets 7.2 10.0

  • 28

63 Financial fixed assets 5.1 3.7 38 44 Other assets 9.8 10.7

  • 8

86 Total assets 97.7 96.0 2 852 Deposits from the public 39.3 38.5 2 343 Due to financial institutions and central banks 14.1 17.4

  • 19

123 Debt instruments outstanding 24.5 22.7 8 214 Other liabilities 11.2 10.1 11 98 Subordinated debt 3.2 2.5 28 28 Shareholders’ equity 5.4 4.8 12.5 47 Total liabilities and shareholders’ equity 97.7 96.0 2 852

  • Sept. 30, 1999
slide-38
SLIDE 38

38

26.10.1999 13:06

Balance sheet

bnEUR 10 20 30 40 50 60 70 80 90 100 Total assets Loans to the public Deposits from the public

  • Sept. 30, 1997
  • Sept. 30, 1998
  • Sept. 30, 1999
slide-39
SLIDE 39

39

26.10.1999 13:06

Capital adequacy

Tier 1 ratio Total capital ratio

  • Sept. 30, 1999
  • Dec. 31, 1998

% % 2 4 6 8 10 12 MNB-Group MeritaBank Nord- banken 2 4 6 8 10 12 MNB-Group MeritaBank Nord- banken

slide-40
SLIDE 40

40

26.10.1999 13:06

Earnings per share

EUR

Merita

  • Incl. items affecting comparability
  • Excl. items affecting comparability

SEK

Nordbanken Holding

0.1 0.2 0.3 0.4 Jan.-Sept. 1999 Jan.-Sept. 1998 0.5 1 1.5 2 2.5 3 3.5 Jan.-Sept. 1999 Jan.-Sept. 1998

slide-41
SLIDE 41

41

26.10.1999 13:06

Equity per share

EUR SEK

Merita Nordbanken Holding

5 10 15 20 25 30 Jan.-Sept. 1999 Jan.-Sept. 1998 0.5 1 1.5 2 2.5 3 Jan.-Sept. 1999 Jan.-Sept. 1998

slide-42
SLIDE 42

42

26.10.1999 13:06

Merger synergies

  • Plan

– Income and cost synergies of almost EUR 120 million by the year 2000

  • Implementation

– Synergies materialize as planned – Staff reductions continue – 1 300 gross since December 1997,

expansion in key strategic areas, appr. 360 employees

slide-43
SLIDE 43

43

26.10.1999 13:06 Medica Life Science Fund Customer concept for retail customers to Finland Internet services to Sweden Private Banking concept to Sweden Joint Euroland Fund Customer concept for large and medium-sized companies Monthly mutual fund savings to Finland Unit-linked insurance products to Sweden Joint Nordic Small Cap Fund Long-term housing loans to Finland East European Fund to Finland One-day payment transmission between Finland, Sweden and Baltic states Free Visa-card withdrawals from ATMs

New products every month

  • Solo-concept to be launched

throughout the region Joint IT Fund WAP telephone banking

slide-44
SLIDE 44

44

26.10.1999 13:06

450

New business generated

mEUR 50 100 150 200 250 300 350 400 Q1 1998 Q2 Q3 Q4 Q1 1999 Q2 Unit-linked insurance products in Sweden Long-term housing loans in Finland New cross-border mutual funds Monthly savings in mutual funds in Finland Q3

slide-45
SLIDE 45

45

26.10.1999 13:06

World leader in network banking services

  • 850 000 signed up as users of the Group’s Internet banking facilities
  • 290 000 customers in addition to above using the NB Direkt telephone

banking service having codes instantly activatable for Internet use

  • 2.5 million log-ins per month in the Group’s net bank
  • 3.0 million payment transactions per month
  • 760 on-line merchants currently accept payments for e-commerce
  • Solo Mall to be launched in Sweden in October
slide-46
SLIDE 46

46

26.10.1999 13:06

Network banking services increase rapidly

  • Higher degree of automation will result in further cost savings in the future
  • Major growth potential in earnings from new user contracts and services
  • Banking facilities accessible by WAP phones in October
  • Electronic student loan in Finland in September
  • International payments on the Internet in November (Finland)
slide-47
SLIDE 47

47

26.10.1999 13:06

Offers to Christiania Bank’s shareholders

  • Each shareholder to receive NOK 44 per share
  • Premium: 29 per cent to the closing price on 17 September, 1999
  • Christiania Bank’s shareholders to receive priority allocation of

25 % of shares in next expected placing by Swedish government

  • 6% p.a. interest from expiry date of offer period to the day before

settlement; only on completion

  • The new group to be listed in Oslo, in addition to Stockholm and

Helsinki

slide-48
SLIDE 48

48

26.10.1999 13:06

Offers to Christiania Bank’s shareholders

Conditions:

  • Minimum 90% acceptances
  • Necessary public approvals
  • Due Diligence
  • Offer period from and including 28 September to 17.00 hours
  • n 29 October 1999
slide-49
SLIDE 49

49

26.10.1999 13:06

  • Nordic holding company with new name domiciled in Sweden
  • Nordic parent bank with new name domiciled in Finland
  • Nordic holding company to be listed in Helsinki, Oslo and

Stockholm

  • Nordbanken Holding makes an exchange offer of 102 shares in

Nordbanken Holding for 100 shares in Merita Plc reflecting original 40-60 agreement

Creation of pan Nordic structure

slide-50
SLIDE 50

50

26.10.1999 13:06

Recommendation to accept One Share - One Bank

  • Group tax, dividend and capital vastly simplified
  • Pricing difference between the two shares to be removed
  • New Group able to issue shares more easily
  • Single share more transparent for financial market
  • Improved liquidity in trading
  • Tax-credit under current Finnish imputation system not

applicable

  • Board of Merita Plc recommends that shareholders accept the

exchange offer

slide-51
SLIDE 51

51

26.10.1999 13:06

Conditions for the exchange offer

  • General meetings in Merita Plc and Nordbanken Holding AB

(publ.) give the relevant approvals

  • Exchange offer accepted by more than 90 per cent of
  • utstanding votes and shares in Merita Plc
  • Relevant approvals must be obtained
  • Exchange offer to commence on 24 November and expire on

15 December, 1999

slide-52
SLIDE 52

52

26.10.1999 13:06

Appendices

slide-53
SLIDE 53

53

26.10.1999 13:06

Present group structure Planned group structure

Other operations

  • incl. real estate

Merita Bank Nordbanken AB 100 %

MeritaNordbanken Group

100 % Holding Company (Nordic Baltic Holding) Listed on the Stockholm and Helsinki Stock Exchange MeritaNordbanken

Shareholders Shareholders

  • Goals defined in 1997:

– simple juridicial structure – functional capital structure – no preference bonds

Shareholders

Other operations Merita Bank Nordbanken AB 40 % of capital

  • rdinary shares

40 % of capital

  • rdinary

shares 20 % of capital non-voting shares Merita Plc Listed on the Helsinki Stock Exchange MeritaNordbanken Cooperation Agreement Identical Boards Unified Management Nordbanken Holding AB Listed on the Stockholm Stock Exchange 100 %

slide-54
SLIDE 54

54

26.10.1999 13:06

Agency ratings, October 1999

Moody´s S&P Fitch IBCA Thomson Bankwatch Short- Long- Short- Long- Short- Long- Short- Long- term term term term term term term term Merita Bank P-1 A1 A-1 A F1 A+ TBW-1 AA- Nordbanken P-1 A1 A-1 A F1 A+ TBW-1 AA- Nordbanken P-1 Aa3 A-1 Hypotek

slide-55
SLIDE 55

55

26.10.1999 13:06

Reporting 2000

  • Financial reporting:

Year 1999 February 16, 2000

slide-56
SLIDE 56

56

26.10.1999 13:06

Contact information

  • SE-105 71 STOCKHOLM

FIN-00020 MERITA Telephone: + 46 8 614 7850 + 358 9 165 43041 Telefax: + 46 8 614 8710 + 358 9 612 1264 E-mail: investor.relations@nb.se taina.makijarvi@merita.mailnet.fi

Investor information on the Internet: www.meritanordbanken.com