Nordic Baltic Holding January June 2 0 0 0 The leading financial - - PowerPoint PPT Presentation

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Nordic Baltic Holding January June 2 0 0 0 The leading financial - - PowerPoint PPT Presentation

Nov 27, 2022 421 likes •996 views

Nordic Baltic Holding January June 2 0 0 0 The leading financial services group in the Nordic and Baltic Sea region Helsinki Bergen Stockholm St. Petersburg Oslo Tartu Tallinn Gdynia Riga Copenhagen Moscow Vilnius Ham burg

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SLIDE 1

Nordic Baltic Holding

January – June 2 0 0 0

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SLIDE 2

The leading financial services group in the Nordic and Baltic Sea region

National network Branch office or subsidiary Branch office of an associated bank Riga Vilnius Tallinn Moscow Warsaw Helsinki Luxem burg Oslo Stockholm Copenhagen

  • St. Petersburg

Tartu Gdansk Gdynia Frankfurt Berlin Ham burg Bergen

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SLIDE 3

Strong earnings growth

Operating profit up 29% , to EUR 1,359m (SEK 11,4bn) Earnings per share January-June EUR 0.33, up by 14% Total income up 16% , expenses up 4%

(both excluding acquired business)

Return on equity 18.6% Strong growth in interest and commission income Improved ratings

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SLIDE 4

Strong performance in growth areas

Strong Retail earnings E-banking leadership: – e-customers more than 1.6 million, up 0.6 million

since the year end

– strong growth in customers using online equity

trading

Significant growth in Asset Management – EUR 104 bn under management

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SLIDE 5

Decisive steps for Nordic leadership

  • Merger process: Business integration continues

according to plan

  • Continued expansion in the Baltic Sea region
  • New bid for Christiania Bank og Kreditkasse, NOK

44 per share

  • The leading financial services group in the Nordic

and Baltic region

– Market capitalisation EUR 24 bn

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SLIDE 6

Merger process proceeds according to plan

The overall structure of business organisation in place Integration of foreign units proceeds globally Common trading floors for foreign exchange and fixed

income trading established

Product and service concept integration in progress in

all business areas

Key principles for credit risk and market risk evaluation

and control implemented

Common financial control principles and reporting

established

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SLIDE 7

Continued expansion in the Baltic Sea region

New branches Tartu in Estonia Vilnius in Lithuania Warsaw (Bank Komùnalný) in Poland New services Internet services in Estonia Life insurance operations in Poland expected to

begin in the second half of the year

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SLIDE 8

New cash offer for Christiania Bank og Kreditkasse

Parliamentary decision in Norway to sell the state held

shares

A new offer to acquire all shares in Christiania Bank og

Kreditkasse at NOK 44 per share

Increased price - greater potential of Christiania Bank

  • g Kreditkasse in the new Group

The offer values Christiania Bank og Kreditkasse at NOK

24.3bn (EUR 3 bn)

The offer period ends on August 31, 2000 The Group has reserved the right to prolong the offer

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SLIDE 9

The leading financial services group in the Nordic and Baltic Sea region

Custom er base 9 million private customers 600.000 corporate customers 500 large corporate and many institutional clients Distribution netw ork 1 100 branch offices 125 insurance service centres Leading Internet services Comprehensive telephone services

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SLIDE 10

The leading financial services group in the Nordic and Baltic Sea region

Market shares

Finland Denm ark Sw eden Norw ay Retail Banking

Private custom ers 35% 23% 20% - Corporate custom ers 46% 25% 16%

  • Life insurance and

pensions 30% 9% 6% 5% Non-Life insurance - 22% - 19%

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SLIDE 11

5 10 15 20 25 RealDanmark Christiania Bank Den norske Bank Den Danske Bank SEB FöreningsSparbanken Handelsbanken NBH

The largest financial services group in the Nordic region

Market capitalisation of Nordic banking groups, August 15, 2000

bnEUR

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SLIDE 12

Jan-June Jan-June Change 2000 1999 Operating profit, m EUR 1,359 1,054 + 29% Return on equity, % 18.6 19.9 Return on equity before goodw ill depreciation, % 19.2

  • Cost/ incom e ratio

( before loan losses) , banking 52 57

Increased profit

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SLIDE 13

Key figures – result

% %

Return on equity Cost/ income ratio *

* Before loan losses. 5 10 15 20 25 Jan-Jun 2000 Jan-Jun 1999 45 50 55 60 Jan-Jun 2000 Jan-Jun 1999

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SLIDE 14

Income statement

Jan - June Jan - June Change m EUR 2000 1999 % Net interest income 1,502 1,386 8 Net com m ission incom e 761 536 42 Operating incom e from insurance 321 255 26 Net result from financial operations 236 140 69 Other income 212 204 4 Total incom e 3 ,0 3 2 2 ,5 2 1 2 0 Personnel expenses

  • 913
  • 812

12 Other expenses

  • 706
  • 663

6 Total expenses

  • 1 ,6 1 9
  • 1 ,4 7 5

1 0 Profit before loan losses 1 ,4 1 3 1 ,0 4 6 3 5

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SLIDE 15

Income statement

Jan - June Jan - June Change 2000 1999 % Profit before loan losses 1 ,4 1 3 1 ,0 4 6 3 5 Loan losses, net

  • 37
  • 55
  • 33

Profit from com panies accounted for under the equity method 32 81

  • 60
  • Op. profit bef. goodw ill depreciation

1 ,4 0 8 1 ,0 7 2 3 1 Goodwill depreciation

  • 49
  • 18

172 Operating profit 1 ,3 5 9 1 ,0 5 4 2 9 Loss on disp. of real estate holdings

  • 40
  • Refund of surplus in Pension found.

17

  • Taxes
  • 360
  • 180

100 Minority interest

  • 2
  • Net profit

9 7 4 8 7 4 1 1

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SLIDE 16

Net interest and commission income

mEUR 500 1000 1500 2000 2500 3000 Q2 2000 Q1 2000 Jan- June 2000 Jan- June 1999 Full year 1999 Net interest income Net comission income

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SLIDE 17

I ncome from insurance and financial operations

mEUR 100 200 300 400 500 600 700 Q2 2000 Q1 2000 Jan- June 2000 Jan- June 1999 Full year 1999 Operating income from insurance Net result from financial

  • perations
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SLIDE 18

Expenses

500 1000 1500 2000 2500 3000 Q2 2000 Q1 2000 Jan- June 2000 Jan- June 1999 Full year 1999 Other expenses Personnel expenses

mEUR

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SLIDE 19

Continued stringent cost control

Factors explaining the expense increase

Acquisition of Vesta and other new business – accounts for more than 50 % of the expense

increase

Provisions for bonus payments and other variable

salaries related to increased earnings

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SLIDE 20

Profit by business area

Jan-June 2000

mEUR

100 200 300 400 500 600 700 800

Retail Corporate & Instutional Investment Banking Asset Management Life Insurance & Pensions Non-life Insurance

Product result Operating profit

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SLIDE 21

Retail banking

Jan-June 2000

Improved C/ I ratio Continued high sales of e-banking products Net interest income showed a positive trend Continued strong growth in commission income Operating profit EUR 746m Return on equity 26 %

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SLIDE 22

Group net banking services customers

Million 0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6

Dec 1996 Jun 1997 Dec 1997 Jun 1988 Dec 1998 Jun 1999 Dec 1999 Jun 2000

Denmark Sweden Finland

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SLIDE 23

Log-ons by net banking customers

Seasonally adjusted

Million per month 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5

Dec 1996 Jun 1997 Dec 1997 Jun 1998 Dec 1998 Jun 1999 Dec 1999 Jun 2000

Denmark Sweden Finland

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SLIDE 24

Bill payments in the net

Seasonally adjusted

Million per month 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0

Dec 1996 Jun 1997 Dec 1997 Jun 1998 Dec 1998 Jun 1999 Dec 1999 Jun 2000

Denmark Sweden Finland

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SLIDE 25

Internet banking targets

G Targets for 2000/ 2001

– 6 million log-ons in December 2000 – 6 million bill payments per month – 2 million Internet/ PC banking customers by the beginning of 2001

G Impact on result

–

Internet expansion estimated to create possibilities for increased earnings of 350 - 400 million Euro annually in a three-year perspective

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SLIDE 26

Corporate and Institutional Banking

Jan-June 2000

Strong activity in the corporate banking market Increased demand for foreign exchange products Operating profit EUR 226m Return on equity 15 %

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SLIDE 27

I nvestment Banking

Jan-June 2000

High ranking in Europe for ArosMaizels Corporate

Finance

Strong market position in the Nordic region for

ArosMaizels Equities

Operating profit EUR 43m Product result, equity trading EUR 75m

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SLIDE 28

Asset management

Jan-June 2000

Strong growth in assets under management Top rating for Investment management - one of the

leading organisations in Europe

Strong growth and increased profitability in Mutual

funds

Largest Nordic private banking operation in Luxemburg Operating profit, customer responsible units EUR 72m Product result EUR 163m Assets under management EUR 104bn

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SLIDE 29

Assets under management

20 40 60 80 100 120 Q2 2000 Q1 2000 Q4 1999 Private banking Institutional bnEUR bnEUR 20 40 60 80 100 120 Q2 2000 Q1 2000 Q4 1999

Danmark Finland Sweden

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SLIDE 30

Life Insurance and Pensions

Jan-June 2000

Strong growth in premiums and life insurance

provisions - especially in Finland

High investment return Focus on unit-linked and corporate pension schemes Return on equity 14 % Product result EUR 61m

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SLIDE 31

Life insurance, gross premiums

100 200 300 400 500 Q2 2000 Q1 2000 Q4 1999 mEUR

Finland Sweden Denmark

100 200 300 400 500 Q2 2000 Q1 2000 Q4 1999 100 200 300 400 500 Q2 2000 Q1 2000 Q4 1999 mEUR mEUR Traditional Vesta (traditional) Unit-linked

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SLIDE 32

Non-Life Insurance

Jan-June 2000

Improved technical result except for a run-off loss from

December 1999 hurricane in Denmark (EUR 63m)

Reduced cost base Operating profit EUR 31m Return on equity 11 % (33 % excl. the impact of the

hurricane)

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SLIDE 33

Balance sheet

50 100 150 200 Total assets Loans Deposits

June 2000 End 1999

bnEUR

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SLIDE 34

June 30 Dec 31 Change bnEUR 2000 1999 % Loans to credit institutions and central banks 21 20 5 Loans to the public 109 104 5 Interest-bearing securities Current assets 18 20

  • 10

Financial fixed assets 6 6 1 Shares and participations 3 3 Shares and participations in Group and associated companies 1

  • 38

Real Estate Holdings 2 3

  • 39

Other assets, banking 13 12 13 Assets, insurance 20 18 11 Total assets 1 9 2 1 8 6 3

Balance sheet - assets

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SLIDE 35

June 30 Dec 31 Change bnEUR 2000 1999 % Due to credit institutions and central banks 27 26 1 Deposits from the public 65 65 1 Other borrowing from the public 2 2 29 Debt instruments outstanding 47 45 3 Other liabilities, banking 17 15 7 Liabilities, insurance 19 17 11 Subordinated debt 5 5 31 Total liabilities 1 8 1 1 7 6 3 Shareholders' equity 11 10 5 Total liabilities and shareholders' equity 1 9 2 1 8 6 3

Balance sheet - liabilities

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SLIDE 36

Loan portfolio by customer group

EUR 108.5 bn (June 30, 2000)

Households 38 % Companies 59 % Public sector 3 %

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SLIDE 37

Lending to households

EUR 40.7 bn (June 30, 2000)

Other lending 26.2 % Housing loans 73.8 %

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SLIDE 38

Other companies 19 % Construction 4 % Real estate 20 % Transport 9 % Renting, consulting and

  • ther services

12 % Financial

  • perations

8 % Manufacturing 17 % Commerce & Services 11 %

Lending to companies

EUR 64.6 bn (June 30, 2000)

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SLIDE 39

Doubtful loans

500 1000 1500 2000 2500 3000 3500 4000 June 30 2000 June 30 1999

Gross Net

m EUR %

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SLIDE 40

Loan losses, net

25 50 75 100 Q2 2000 Q1 2000 Jan- June 2000 Jan- June 1999 Full year 1999 m EUR

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SLIDE 41

Loan losses and doubtful loans, net

Per cent of net lending

0,0 0,2 0,4 0,6 0,8 1,0 1,2 June 30 2000 Dec 31 1999 June 30 1999

Net loan losses Net doubtful loans

%

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SLIDE 42

Ratings, August 2000

Merita Nord- Uni- NB Uni- Bank banken bank Hypotek kredit Moody's Short-term P-1 P-1 P-1 P-1 Long-term Aa3 Aa3 Aa3 Aa3 Aa2 S & P Short-term A-1 A-1 A-1 A-1 Long-term A A Fitch I BCA Short-term F1 F1 F1 Long-term A+ A+ A+ Thom son Bankw atch Short-term TBW-1 TBW-1 TBW-1 Long-term AA- AA- AA-

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SLIDE 43

0,00 0,10 0,20 0,30 0,40 0,50 0,60

Jan-June 2000 Jan-June 1999 Full year 1999

Earnings per share

EURO

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SLIDE 44

EURO

Equity per share

0,00 1,00 2,00 3,00 4,00

June 2000 Year end 1999 June 1999

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SLIDE 45

60 80 100 120 140 160

Share price development in 2000

DJ Europe Stoxx Banks Nordic Baltic Holding Dec 31, 1999 = 100 Jan Feb March Apr May Jun July Aug

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Operative goal

To create value to the shareholders in line with the best among European financial services companies. Value to the shareholders is realised through market value growth per share and dividends.

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SLIDE 47

Creating Value

Shareholders

Maximising value

Custom ers

Maximum level of satisfaction among growing number of loyal customers

Em ployees

Most attractive employer in the region with a commitment to world- class competence

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SLIDE 48

Creation of added value

Strategic focus

  • Leading role in the Nordic and the Baltic Sea region
  • Financial solutions in co-operation with customers
  • Europe’s leading provider of Internet banking services
  • Competence a competitive asset
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SLIDE 49

Creation of added value

Operating efficiency

  • Common values
  • Integrated organisation and common identity
  • Cost awareness
  • One share - one group - one bank
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SLIDE 50

Creation of added value

Optim al financial structure

  • Capital limited to operating requirements

Credible profit grow th

  • Regional leader
  • Added value through operating objectives
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SLIDE 51

NBH financial objectives

Return on equity

to exceed the risk-free Euro interest rate +

8 percentage points Tier 1 capital

A core capital ratio of 6.5 per cent in

banking deemed sufficient Dividend pay out

As a rule to exceed 40 per cent of net profit

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SLIDE 52

NBH financial objectives

Expenses

lcost/ income ratio before loan losses < 55

per cent in banking

lcombined ratio < 100 per cent in non-life

insurance Risk exposure

lAverage loan losses over a business cycle

< 0,4 per cent of the loan portfolio

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SLIDE 53

Group structure

Group Staffs & Service Units Group Managem ent Corporate & I nstitutional Banking I nvestm ent Banking Asset Managem ent Retail Banking Life I nsurance & Pensions Non- life I nsurance Retail Banking Denm ark Retail Banking Finland Retail Banking Sw eden Retail Banking Baltic & Poland

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SLIDE 54

Merita Plc

Legal structure, June 2000

Vesta Forsikring A/S MeritaNordbanken Plc

Nordic Baltic Holding (NBH) AB ( publ)

Nordbanken AB Other

  • perations

Unidanmark A/ S Unibank A/S Tryg-Baltica A/S 40% 60% 99,2% Other

  • perations

Merita Bank Plc

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SLIDE 55

Contact information

Nordic Baltic Holding Investor Relations

SE-105 71 STOCKHOLM FI N-00020 MERI TA Telephone:+ 46 8 614 7850 + 358 9 165 42646 Telefax: + 46 8 614 8710 + 358 9 612 1264 E-m ail: investor.relations@nb.se m erita.investorrelations@m erita.fi P.O.BOX 850 DK-0900 COPENHAGEN I NFORMATI ON ON THE I NTERNET: Telephone:+ 45 33 33 6648 w w w .nordicbalticholding.com Telefax: + 45 33 33 48 73 E-m ail:sboye@unibank.dk