Nordea Commercial & Business Banking Investor presentation Erik - - PowerPoint PPT Presentation

Nordea Commercial & Business Banking

Investor presentation

Erik Ekman September 13, 2017

Nordea is the largest financial services group in the Nordics

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Nordea = Nordic ideas

11 million customers

• 10 million household customers
• 700,000 corporate customers,
• incl. Nordic Top 500
• Operating in the 10th largest economy in the world

Financial strength

• EUR 10 bn in full year income (2016)
• EUR 643bn of assets (Q2 2017)
• EUR 31.4bn in equity capital (Q2 2017)
• AA level credit ratings
• Common equity tier 1 capital ratio
• f 19.2% (Q2 2017)

EUR ~45bn in market cap

• One of the largest Nordic corporations
• A top-10 European retail bank

7% 21% 23% 19% 30%

Operating Income

10% 28% 20% 17% 26%

Operating Profit Economic Capital

3% 10% 34% 25% 28%

Group Corporate Center & Other Wealth Management Wholesale Banking Commercial & Business Banking Personal Banking

Well mixed revenue generation

Business Area Contribution in 2016

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Commercial & Business Banking

Erik Ekman September 13, 2017

We implemented a needs based service model, addressing cost to serve and return on capital

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Commercial Banking Business Banking Business Banking Direct Corporate segments Return on capital Challenges Cost to serve Complexity of customer needs

• The household and corporate organisation was mixed
• Low visibility around where we generated profit
• Business was managed with focus on income and not

profit

• Customer segmentation model based on inside-out view
• No clear corporate value proposition
• No common operating model

Our starting point two years ago

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Financial development in Commercial & Business Banking since 2016

Operating income and Cost-income

(in Euro Million / percent)

474 468 469 465 458

Q2 Q1 2017 Q4 Q3 445 Q2 Q1 2016 Operating income Cost-income

8,9 9,3 7,6 6,0 6,4 7,9

Q2 Q1 2017 Q4 Q3 Q2 Q1 2016 RoCar

RoCar

(in percent)

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Commercial & Business Banking has a solid pan-Nordic platform

SE NO FI #1-2 in market Income 524m Lending 25,5bn #2-3 in market Income 430m Lending 20,3bn #2 in market Income 413m Lending 15,7bn #1 in market Income 538m Lending 18,7bn DK Commercial & Business Banking has a superior customer franchise and a unique position in the Nordics EUR, FY 2016

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We have the ambition to be #1 in ALL our markets and we want to have…

Customer satisfaction Profita- bility Preferred employer

Future Relationship Bank …best profitability – ahead of peers …most satisfied customers in the market segments we chose to compete in …most satisfied employees within the industry

#1 #1 #1

Cross Sales Re-pricing Business selection / Capital management

Business optimisation

Conversion to House bank

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Strong development since H1 2016…

Efficiency

Target Operating Model Process efficiency Digital efficiency

+1.6% H1 2017 8.9% H1 2016 7.3% RoCar of Commercial & Business Banking (in per cent)

…but still potential for improvement

• New digital channels (Web & Mobile)

– Self-service – Contact centers – Remote advisory platforms – Digital sales capabilities – Value added services − Trade Portal & Trade Club − e-markets

• Helping us transform the way we service our

customers – Online team based advisory – Visual agenda – online tool supporting sales process and tailored customer advice, e.g. liquidity management – Digital leads

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Digital capabilities are vital corner stones in our transformation

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…and through Transaction Banking

* Global leasing platform launched in Finland and being rolled out in rest of Nordics

• ~2,800 employees offering dedicated services to ~1.4 million

customers

• ~1,400 mEUR income
• Services all Nordea’s customers with payments, credit cards,

cash mgmt. solutions, financing, leasing, and trade finance

• One of the main innovation hubs in Nordea, e.g. through

collaboration with Stockholm Fintech Hub

• Creating the future of mobile payments, including Nordea

Wallet, Samsung Pay, and Siirto (Finland)

• New global platforms launched for Trade Finance and leasing*

Already 700+ sign-ups for Open Banking API

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Ambition is to realise the CBB #1 ambition

Close gap to realise CBB ambition on #1 Unique market position in the Nordics Solid segment strategy Clear value creation potential Develop capabilities for future growth Superior customer franchise Track record of improvement

Thank you!

Erik Ekman erik.Ekman@nordea.com