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Six good reasons for choosing DNB in the new banking environment - - PowerPoint PPT Presentation
Six good reasons for choosing DNB in the new banking environment - - PowerPoint PPT Presentation
Six good reasons for choosing DNB in the new banking environment UBS Conference 12 September, Stockholm Rune Bjerke, CEO of DNB 1 Reason 1: DNBs Norwegian platform 2 Norway- one of the strongest home markets globally General government
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Norway- one of the strongest home markets globally
Source: DNB Markets and OECD Economic Outlook, May 2012
2.8 2.1 1.8 1.5
Norway* Sweden Finland Denmark Average real GDP growth
1990 - 2012
* Mainland
- 200
- 150
- 100
- 50
50 100 150 General government net financial liabilities
(As percentage of nominal GDP 2012)
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A strong position
- Market leader in Norway and leading within selected global industries
Source: DNB Markets
Significant market share Global leader within selected industries
DNB Other #1 shipping and offshore bank globally One of the world’s leading seafood banks A leading international energy bank
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Reason 2: DNB’s strong track record of competitive returns
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Sustainable achievements – We have delivered on our promises
15.6 18.7 21.1 21.8 20.8 11.2 3.5 7.7 3 3.4 3.2 1.7 2008 2009 2010 2011 2012 H113
Development in pre-tax operating profit before impairment (NOK billion) Pre-tax operating profit before impairment Impairment
CAGR: 7.5 %
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Stable returns in spite of an increasing capital base
70.1 89.6 94.9 104 116 118 12.4% 10.6% 13.6% 11.4% 11.2% 11.6%
0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 14,0 % 16,0 % 18,0 % 20,0 %
20 40 60 80 100 120 140
2008 2009 2010 2011 2012 2Q 2013 CET1 capital (NOK billion) Return on equity (%)
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Reason 3: DNB’s favourable funding position
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Highest deposit-to-loan ratio
Source: 2Q 2013 from the financial institutions
50 53 55 58 63 68 75 Deposit-to-loan ratio: DNB
(Per cent)
75 70 54 39 58 48 DNB Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Deposit-to-loan ratio: Nordic banks
(Per cent, 2Q13)
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Stable access to long-term funding and decreasing funding costs
Source: DNB Markets
- 50
50 100 150 200 2007 2008 2009 2010 2011 2012 2013
Indicative Trading Level Spreads NOK
DNB 5Y senior unsecured DNB 5Y covered bonds 5-year senior and covered bonds
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Reason 4: DNB’s potential for growth in quality earnings
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Stable growth in net interest income
All numbers are in NOK Million
24 197 24 613 25 252 25 887 26 473 26 907 27 216 27 419 28 266
30 June 30 Sept. 31 Dec. 31 March 30 June 30 Sept. 31 Dec. 31 March 30 June 2011 2012 2013
+ 8.3 per cent + 9.4 per cent + 9.3 per cent + 7.8 per cent + 5.9 per cent + 6.8 per cent
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Still high potential in non-capital-intensive areas
Source: Second quarter report 2013 from the financial institutions
72 63 60 56 56 44 28 37 40 44 44 56 Bank1 DNB Bank2 Bank3 Bank4 Bank5 Net interest income as a percentage of total income (%) Net other operating income as a percentage of total income (%)
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Several areas with high expected growth
Issuance of non-financial bonds in Norway at all-time high in 2012 Norway has the world’s highest growth in USD millionaires
Issuance of non-financial bonds in Norway in NOK million
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011 2012 2013 64 55,3
Growth potential in the non-life insurance market
5% 95% DNB Others Non-life insurance market 2010 2011 Development in number
- f USD millionaires,
Norway 6.2% 90 000
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Reason 5: DNB’s firm actions for cost reductions
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Firm actions for cost reductions ensures competitive cost efficiency
Source: Company Reports Q213 * Ratios ‘as reported’
46% 48% 50% 50% 52% 61% Bank 1 DNB Bank 2 Bank 3 Bank 4 Bank 5
Cost/income ratio* – Nordic banks 2013
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Reason 6: DNB’s solid capital base
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Perceived solidity is not best in class – different risk weights due to local regulatory requirements
12.1 14.2 17.2 17.8 14.0 DNB Bank 1 Bank 2 Bank 3 Bank 4
Equity Tier 1 ratio Basel III
Per cent
Source: Second quarter report 2013 from the financial institutions
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Risk-adjusted capital places us among the most solid banks
Standard and Poor’s 2013
9.42% 8.86% 8.25% 8.22% 8.21% 7.78%
Bank 1 DNB Bank 2 Bank 3 Bank 4 Bank 5
DNB’s risk-adjusted capital versus peers 2013
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Six good reasons for choosing DNB in the new banking environment
Our “Norwegian” platform Our strong track record of competitive returns 3 4 5 6 Our solid capital base Our firm actions for cost reductions Our potential for growth in quality earnings Our favourable funding position
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