Opportunities in our priority geographical markets Anders Ek Head - - PowerPoint PPT Presentation

Opportunities in our priority geographical markets

Anders Ek Head of Strategic & International Banking

Home markets, universal banking

Sweden - Swedbank Estonia - Hansapank Latvia - Hansabanka Lithuania - Hansabankas Collaboration/alliances Finland - 1.1 % ownership in Aktia

Swedbank Group today

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

US - Merchant/investment and corporate

banking in New York

Luxembourg - banking for Swedish

expatriates

China - Rep. office in Shanghai Japan - Rep. office in Tokyo Spain - Rep. office in Marbella

International expansion

• 1. Full service retail banking in

Nordic and Baltic regions

• controlling share
• any acquisition should give a

positive contribution to group RoE long-term

• 3. Greenfield investments in

Nordic metropolitan retail

• perations
• 4. In addition: “Follow your

customer”

• 2. Acquisition-led expansion

within certain product areas

• economies of scale
• cross-border customer

value

• additional distribution

channels

Home markets, our definition

• Full-scale retail operation
• Significant market share (at least 5 %)
• Significant operating profit (at least EUR 50 M)

Divestments

• SpareBank 1 Gruppen (June ’06) sold

remaining 19,5%; (June ’04) reduced holding from 25 to 19.5%

• Aktia (Sep ’05) reduced holding from 9.6 to

1.1%; (Jul ’05) reduced holding from 19,8% to 9,6%; (Dec ’04) reduced 24,4% to 19,8%

• Kundinkasso AB (July ’05) sold 100% of

shares to Lindorff Sverige AB

• FIH (Sep ’04) sold 100% of outstanding shares
• Erste Bank (June ’03) disposed of 3.9% stake

Joint Ventures

• EnterCard (June ’05) J-V with Barclaycard

International

Acquisitions

• First Securities (May ’05) 51 % of

shares; (June ’02) 33.3% of shares;

• Hansabank Group (Apr ’05)

acquired 100% of outstanding shares

• Kvest Bank (Mar ’05) Hansabank

acquired 100% of shares

• EnterCard (Sep ’03) acquired 100%
• f shares

Greenfield investments

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

Delivering in line with the strategy

Norway

• GDP growth 2006: 2.5% - past the peak but still strong.

Sensitive to price of oil. Increasing shortage of labour

• GDP/capita 2005: 40,420 USD
• Population: 4.6m
• Swedish trade with Norway

– 9% of Swedish exports – 8% of Swedish imports

• Swedbank customers doing business with Norway

– About 200 companies customers of the branch – About 150 Swedbank customers have subsidiaries in Norway

Swedbank in Norway

Branch:

• Established in March 2000
• Offers central bank functions to Norwegian savings banks
• Provides corporate banking services for Swedish,

Norwegian as well as other Nordic-Baltic companies

FX/Fixed Income:

• Cooperation between Swedbank Markets and First Securities regarding

interest and currency products and bonds/certificates

Swedbank in Norway

• Exit from the SpareBank 1 alliance
• Talks on changing the form of cooperation

with the SpareBank 1 banks did not lead to satisfactory results.

• For this reason and to be able to enter the

retail market, Swedbank has exited the alliance, sold the shares in Sparebank 1 Gruppen and the PCCs in two of the banks. Swedbank still owns PCCs in one bank.

Swedbank in Norway

• Going forward
• The scope of the branch is to be widened with retail

business and new locations

– Cooperation with First Securities and EnterCard – Targeting the customer base of the above companies – New product offerings

• Acquisition opportunities

Denmark

• GDP growth 2006: 2.8% - higher than long-term potential.

Shortage of labour an obstacle to sustained high growth

• GDP per capita 2005: 33,570 USD
• Population: 5.4m
• Swedish trade with Denmark

– 6.5% of Swedish exports – 9% of Swedish imports

• Swedbank customers doing business

with Denmark

– 400 corporate customers have subsidiaries or other operations in Denmark – 150 of them customers of the branch

Swedbank in Denmark

• The first Copenhagen branch opened in May 2005.

A second branch was opened in October 2006

• Provides banking services to individuals and

companies with relations to both Denmark and Sweden

Swedbank in Denmark

• Going forward
• The branch will expand into domestic Danish business,

e.g., housing loans and new corporate products

• A third office will be opened in 2007
• Cooperation with EnterCard
• Acquisition opportunities

Finland

• GDP growth 2006: 4.5% - stronger than expected, decline in 2007.

Structural unemployment and shortage of labour

• GDP per capita 2005: USD 31,170
• Population: 5.2m
• Swedish trade with Finland

– 6% of Swedish exports – 6% of Swedish imports

• Swedbank customers doing business with Finland

– 145 Swedish corporate customers with banking in Finland – 30 of them customers of the branch – 250-300 Finnish companies are customers of Swedbank Group

Swedbank in Finland

• The branch was established in October 2005
• Provides corporate services for Finnish and

Swedish companies with operations in Finland, the Baltics and Russia

Swedbank in Finland

• Going forward
• Expanding operations with new customers and products
• Exploiting Baltic and Russian trade
• Acquisition opportunities

Russia

• GDP growth: 2006 6.6% - mostly from domestic demand - strong

prospects short term, in the long term reforms are needed

• GDP per capita 2005: USD 10.640
• Population: 143.2m
• Swedish trade with Russia

– 1.5% of Swedish exports (5.3% of EU exports) – 3.5% of Swedish imports (9.1% of EU imports)

• Finnish and Baltic trade with Russia

– Exports: Finland 11.0%, Estonia 6.5%, Latvia 9.9% Lithuania 10.4% – Imports: Finland 13.9%, Estonia 9.3%, Latvia 9.0% Lithuania 27.8%

Swedbank in Russia

• Leasing and banking services for corporate customers
• Three locations: Moscow, St Petersburg and

Kaliningrad

Swedbank in Russia

• Going forward
• Expanding into domestic business as well as retail
• Acquisition opportunities

Ukraine

• GDP growth 2006: 6.0% - a strong recovery, expected to

slow down a little 2007. Households drive the growth. Reforms slowed down

• GDP/capita 2005: USD 6,720
• Population: 47.1m
• Swedish trade with Ukraine

– 0.5% of Swedish exports (1.2% of EU exports) – 0.1% of Swedish imports (0.7% of EU imports)

Swedbank in Ukraine

• Representative office in Kiev opened in

November 2006

– Supporting Swedbank’s customers – Building networks – Business intelligence

Poland

• GDP growth 2006: 5.0% - strong activity in all sectors,

EU membership will push reforms

• GDP/capita 2005: USD 13,490
• Inhabitants 38m
• Swedish trade with Poland

– 2% of Swedish exports – 2.5% of Swedish imports

• Swedbank customers doing business with Poland

– About 75 companies with subsidiaries in Poland

Swedbank in Luxembourg

• Bank established in 1973, providing Private Banking

services and fund administration

• In June 2005 an office opened in Spain
• Moving into pension advice and life insurance

products