Opportunities in our priority geographical markets Anders Ek Head of Strategic & International Banking
Swedbank Group today Home markets, universal banking Other markets, niche banking Denmark - Swedbank branch Sweden - Swedbank Finland - Swedbank branch Estonia - Hansapank Norway - Swedbank branch, investment Latvia - Hansabanka banking through First Securities (51%) Lithuania - Hansabankas Russia - Corporate banking and leasing in Moscow, Kaliningrad and St Petersburg US - Merchant/investment and corporate Collaboration/alliances banking in New York Finland - 1.1 % ownership in Aktia 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 2. Acquisition-led expansion within certain product areas Nordic and Baltic regions - controlling share - economies of scale - cross-border customer - any acquisition should give a value positive contribution to group - additional distribution RoE long-term channels 3. Greenfield investments in 4. In addition: “Follow your Nordic metropolitan retail customer” operations
Home markets, our definition • Full-scale retail operation • Significant market share (at least 5 %) • Significant operating profit (at least EUR 50 M)
Delivering in line with the strategy Acquisitions Divestments • SpareBank 1 Gruppen (June ’06) sold • First Securities (May ’05) 51 % of remaining 19,5%; (June ’04) reduced holding shares; (June ’02) 33.3% of shares; from 25 to 19.5% • Hansabank Group (Apr ’05) • Aktia (Sep ’05) reduced holding from 9.6 to acquired 100% of outstanding shares 1.1%; (Jul ’05) reduced holding from 19,8% to • Kvest Bank (Mar ’05) Hansabank 9,6%; (Dec ’04) reduced 24,4% to 19,8% acquired 100% of shares • Kundinkasso AB (July ’05) sold 100% of • EnterCard (Sep ’03) acquired 100% shares to Lindorff Sverige AB of shares • FIH (Sep ’04) sold 100% of outstanding shares Greenfield investments • Erste Bank (June ’03) disposed of 3.9% stake • Helsinki Branch (Oct ’05) Joint Ventures • Copenhagen Branch (May ’05) • EnterCard (June ’05) J-V with Barclaycard International
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
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