Unleashing potential through relationship focus Stefan Carlsson Head - - PowerPoint PPT Presentation

Unleashing potential through relationship focus

Stefan Carlsson Head of Large Corporates & Instit tions Stefan Carlsson, Head of Large Corporates & Institutions Magnus Geeber, Head of Large Corporates

Executing the fundamentals

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Fixed

Corporate Clients

Sectors Trade Finance Capital Equities FX Income

Clients

Sectors Real Estate Service Medtech GTS Custody Capital Markets Services Financing DCM Research

• Inst. Clients

Client

Shipping Retail Industrial Telecom GTS Financing Security services Swedbank Robur Corporate Finance Leasing Cards

teams

Energy Cash Management Robur

Retail

Institutions Banks

Retail

Organizations

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Risk management

Nordic/Baltic client strategy

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Figures

Total income SEK 6 306m (8 012) Net profit SEK 3 105m (4 005)

Client organisations

Large Corporates ~360 clients, 8 sectors Financial Institutions ~400 clients, 3 segments Return on allocated capital 13.8% (19.7) C/I-ratio 0.51 (0.36) Number of 1 229 (1 137) Institutions Retail Product and service provider to Nordic and Baltic retail customers Number of employees 1 229 (1 137)

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Retail gives competitive advantage

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Income split - customer segment 2010

Retail* Financial Institutions Large Corporates

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* Top box are income accounted for within Retail

Income growth potential in all segments

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10-15% 15-25% 60-80%

2010 2013 2010 2013 2010 2013 Retail* Large Corporates Financial Institutions

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* Top box are income accounted for within Retail

Opportunity in the large corporate segment

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• Participation in syndicated credit facilities – too often

”in the middle” in the middle

100 %

Total relationships Core relationships Lead relationships

80 40 60 20

Nordic Bank 1 Nordic Bank 2 Nordic Bank 3 Nordic Bank 4 Swedbank Nordic Bank 5

'09 '10 '09 '10 '09 '10 '09 '10 '09 '10 '09 '10

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Source: Greenwich associates LCB – 2011 - Sweden

Significant opportunity to acquire new customers

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Maturing debt - Syndicated loan market Nordic corporates (excl. Iceland)

60 50 40

n

30

EURbn

10 20

2011 2012 2013 2014 2015 2016 2017 2018 2019

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Source: Dealogic

Significant re-pricing opportunity in maturing debt 2011-2012 (own portfolio)

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g p g pp y g ( p )

25 20

n)

N ti t Negotiate 2011

15

• ans (SEKbn

Negotiate 2010

10

Maturing lo

5 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

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fw.

Active portfolio management

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• Continued re-allocation from

Real estate towards more

Healthcare Telecom 2%

Risk-weighted assets 2010 (SEK 89bn)

ancillary generating sectors

• Real estate reduced from 47%

Service 5% 2%

Real estate reduced from 47% to 40% of the portfolio, assets reduced by SEK 30bn

Real estate 40% Energy 9% 7% 40% Retail 11% Shi i Industrials 13% Shipping 13% %

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Focus on RAROC

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• 2010 – 60 clients below hurdle rate
• 2011 – estimated 36 clients below hurdle rate
• No. of large corporate clients by RAROC bucket

2011 2010 OC Hurdle rate RARO

• No. of Clients

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• No. of Clients

5 10 15 20 25 30 35 40 45

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Signs of more ancillary business g y

Client A Client B Client C Client D Client E Client F

Sole underwriter in private equity public Major card processing mandate won in 2 year RMB facility in place through our Refinancing a low yielding a Real Estate facility IPO mandate won due to financing Significant fee income on restructuring / buy-out, SEK 2.9bn Swedish market Shanghai Branch for a Swedish industrials company 2 years in advance with extended maturity relationship, sector knowledge and swap

• ptimising swap

portfolio for Swedish Real Estate company

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Substantial growth opportunity within present client base

LC&I - Summary

g pp y p

• Nordic/Baltic competence and customer strategy
• From product focus to truly client driven strategy
• Organise competence according to sectors and industries

Organise competence according to sectors and industries

• Cost control – improve efficiency

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