Wholesale Banking a leading Nordic platform Barclays, New York - - PowerPoint PPT Presentation

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Wholesale Banking a leading Nordic platform Barclays, New York - - PowerPoint PPT Presentation

Mar 25, 2024 151 likes •369 views

Wholesale Banking a leading Nordic platform Barclays, New York Erik Ekman, Head of Wholesale Banking Nordea 13% CAGR in capital generation 2005-2015, CET 1 ratio improved from 5.9% to 16.5% STRONG CAPITAL GENERATION AND STABLE

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Wholesale Banking – a leading Nordic platform

Barclays, New York

Erik Ekman, Head of Wholesale Banking

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Nordea

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13% CAGR in capital generation 2005-2015, CET 1 ratio improved from 5.9% to 16.5%

1) CAGR 2015 vs. 2005, adjusted for EUR 2.5bn rights issue in 2009. Equity columns represents end-of-period equity less dividends for the year. No assumption on reinvestment rate for paid out dividends 2) Calculated as Tier 1 capital excl. hybrid loans

2012 2015 43 2014 39 2013 37 35 20 15 31 2008 2006 12 2005 2011 2010 19 29 26 2007 2009

5.92 16.5

  • Acc. dividend, EURbn
  • Acc. equity, EURbn

STRONG CAPITAL GENERATION AND STABLE RETURNS AT LOW RISK1

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CAGR1 +13% CET 1 Ratio,%

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Nordea – the most stable bank in the Nordics

146 77 47 38 24 17 Peer 5 Nordea Peer 4 Peer 2 Peer 3 Peer 1 1.04 0.88 0.52 0.35 0.33 0.21 Peer 3 Peer 2 Peer 1 Nordea Peer 4 Peer 5

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NORDEA AND PEERS 2006 – Q4 2015, %

1) Calculated as quarter on quarter volatility in CET1 ratio, adjusted so that the volatility effect of those instances where the CET1 ratio increases between quarters are excluded

Quarterly net profit volatility Quarterly CET1 ratio volatility¹

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Wholesale Banking

  • An integrated part of the group

Wholesale Banking The Way Ahead

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Wholesale Banking – in a group perspective

Business area contribution, 2015

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24% 30% 32%

Rest of Nordea Group Wholesale banking OPERATING INCOME ECONOMIC CAPITAL OPERATING PROFIT

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Wholesale Banking – a leading Nordic platform

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2015 - Tier 1 – Nordea Nordic #1

  • No. 1

positions

  • No. 2

positions

  • No. 3

positions #1 Nordea 22 12 8 #2 Nordic Peer 14 12 13 #3 Nordic Peer 5 14 13

GREENWICH PROSPERA

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Wholesale Banking – an integrated part of Nordea

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FOCUSED NORDIC OFFERING Group-wide aligned Operations Commercial & Business Banking Wealth Management Wholesale Banking Personal Banking Customers are served by integrated

  • ffering
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WB formation Transforming the business model & culture WB formation Leveraging the platform WB formation Business model & culture 2011 - 2012 2014 - 2013 - 2014

Wholesale Banking – the journey

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  • Nordic #1 or

within reach, across all major product areas

  • Managing for

return

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Wholesale Banking

  • An integrated part of the group

Wholesale Banking The Way Ahead

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Wholesale Banking Russia Equities WB COO Corporate & Investment Banking FICC

Wholesale Banking – an overview

SIMPLE BUSINESS STRUCTURE Revenue 2.4 bn€ FACTS – FY 2015 FTE 3,899 C/I 36% RoCar 13%

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Wholesale Banking – income split

Income from capital light products in focus

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INCOME SPLIT 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% NII NCI NFV 2011 H1 2016 62% 38% WHOLESALE BANKING INCOME, H1 2016 Lending and transaction banking Capital Markets

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Wholesale Banking – Capital Markets offering

Responsible for the total Capital Markets offering in Nordea – but only partly visible in WB P/L 200 400 600 800 1000 1200 1400 1600 1800 2000 2011 2012 2013 2014 2015 2016 Ann. 60% 40% WB Retail TOTAL CAPITAL MARKETS INCOME, mEUR SPLIT BY BUSINESS AREAS (2015-2016)

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Wholesale Banking – cost efficiency

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800 850 900 950 1000 1050 2011 2012 2013 2014 2015 2016 Annualised COST DEVELOPMENT, mEUR

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Wholesale Banking – credit quality

CREDIT QUALITY PRUDENTLY MANAGED - EVEN IN STRESSED ENVIRONMENT

  • 0,10%

0,00% 0,10% 0,20% 0,30% 0,40% 0,50% 0,60% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Ann. SOO Russia Corporate

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Wholesale Banking – managing for return

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ROCAR DEVELOPMENT, % 0% 4% 8% 12% 16% 2011 2012 2013 2014 2015 2016 Annualised Ex xVA Impact RoCar at unchanged capital

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Wholesale Banking

  • An integrated part of the group

Wholesale Banking The Way Ahead

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DIGITALISATION

  • Foundation

first

  • Customer

interface

  • Embedded

compliance

  • Culture

MACRO REGULATION

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  • SREP
  • Basel IV
  • FRTB
  • …

CAPITAL

  • New

regulation

  • “Regulatory

drift”

  • Get ahead of

the curve

  • Low growth,

negative rates

  • Capital

markets financing

Wholesale Banking – a new environment here to stay

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VALUE CREATION FOR STAKEHOLDERS

Wholesale Banking – operationalisation of the strategy

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Risk and compliance embedded in everything we do Best of peers to attract, develop and retain staff Managing for return and a meaningful contribution to Group profit Highest customer satisfaction among the customers where there is a joint interest for a mutually value creating partnership CUSTOMERS SHAREHOLDERS STAFF RISK CULTURE

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Wholesale Banking - ongoing initiatives

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EXAMPLES

  • Advisory and capital light
  • Growth in institutional business

Corporate & Investment Banking “ PEOPLE, PEOPLE, PEOPLE ”

  • Sales offering, smaller inventory
  • Exchange traded products

FICC and Equities Strategy

  • Underwritings and syndications
  • Dynamic allocation

Capital velocity

  • Simplifying and streamlining, efficiencies
  • New management, organisation and culture

COO capabilities

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Wholesale Banking – a leading Nordic platform

Barclays, New York

Erik Ekman, Head of Wholesale Banking