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CMD Agenda, 30 May 2013
1
12.30 - 12.45 Welcome - Kari Stadigh, Group CEO and President, Sampo Group 12.45 - 13.15 Torbjörn Magnusson, Head of P&C Insurance, Sampo Group 13.15 - 13.45 Christian Sagild, CEO of Topdanmark 13.45 - 14.15 Break 14.15 - 14.45 Torsten Hagen Jørgensen, Group CFO of Nordea Bank 14.45 - 15.00 Closing Remarks – Björn Wahlroos, Chairman of the Board, Sampo Group 15.00 – Q&A
Welcome Sampo Group, Capital Market Day 2013 Kari Stadigh, Group CEO and President
Internal dividends 2008–2012
181
488 540 406
544 130
80
204
250
224
200
100
0 100 200 300 400 500 600 700 800 900
2008 2009 2010 2011 2012
P&C insurance (total 2,159) Nordea (total 888) Life insurance (total 300)
511 568
756 744
2
Dividend payout ratio for 2008–2012 (average): P&C insurance: 83.2% Nordea: 40.6% Life insurance: 56.8%
EURm
768
Welcome Sampo Group, Capital Market Day 2013 Kari Stadigh, Group CEO and President
If P&C Sampo Capital Market Day May 30, 2013
TORBJÖRN MAGNUSSON, CEO
2
The leading Nordic P&C insurer
• GWP EUR 4.7bn
• Nordic market share of 19%*
• Solvency of 77% and S&P A rating
• 6,225 employees
* Including share of associated companies
Private; 55%
Commercial; 29%
Industrial; 14%
Baltic; 2%
If at a glance
19,2%
-0,8%
53,2%
39,8%
12,4%
36,9% 39,7%
2,6%
-3,1%
12,4%
7,4%
1,8%
6,1%
1,4%
2007 2008 2009 2010 2011 2012 2013Q1
3
Average ROE 2007-2012 of 25.1% Average dividend EUR 495m
90,6% 91,8% 92,1% 92,8% 92,0% 88,9% 88,7%
2007 2008 2009 2010 2011 2012 2013Q1
(R12)
Combined ratio (%) ROE (%) and ROI (%)
Performance over time
Performance update – Q1 2013
4
(EURm) Q1 - 13 Q1 - 12 Change (%)
GWP 1,775 1,701 4.4%
Technical result 122 120 1.7%
Investment result 102 113 -9.7%
Operating result 204 198 3.0%
Result for the period 161 155 3.9%
Risk ratio 67.7% 69.0% -1.3%-p
Cost ratio 23.2% 22.7% 0.5%-p
Combined ratio 90.9% 91.7% -0.8%-p
Return on equity 39.7% 52.1% -12.4%-p
91,5% 88,1%
90,6%
4,1% 3,3% 2,7%
Q1-12 2012 Q1-13
Industrial
Private Commercial
94,8%
89,0% 92,0%
4,1%
2,6%
3,2%
Q1-12 2012 Q1-13
92,5% 95,8%
92,0% 5,7%
3,7%
-3,3% Q1-12 2012 Q1-13
Baltic
89,0% 87,1%
94,6%
1,3%
0,8% 0,6%
Q1-12 2012 Q1-13
5
Results by Business Area - Q1 2013 Combined ratio and GWP growth
If ; 18%
Tryg; 11%
RSA Scandinavia; 9%
LF; 9%
Gjensidige; 9%
Pohjola; 4%
Topdanmark; 5%
Other; 35%
Nordic P&C – market size of EUR 24bn
6
Nordic market shares (%)
Note: If market share including holding in Topdanmark 19%
3,9
6,5
6,7
7,7
Finland
Norway
Denmark*
Sweden
Nordic market mix
7
19%
25%
10%
26%
Sweden Norway Denmark* Finland
Note: Including holding in Topdanmark
Nordic 19%
GWP 2012 (EURbn) If market share
*2011 figures
8
56%
18%
Share of total market
92,8
98,8
93,3
85,4
95,3 96,6
88,9 88,2 88,0 86,6 85,3
97,1
90,9 90,3 92,3
94,2
If Tryg Topdanmark RSAScandinavia
Gjensidige Pohjola
102,0
100,0
96,5 97,0
102,0
99,0 99,0
LähiTapiola Länsförsäkringar Folksam
2010 2012 2013 Q1
Share of total market
Market profitability Combined ratio (%)
Market development Sweden
19% 19% 19%
31% 29% 30%
17% 16% 16%
14% 15% 15%
19% 21% 20%
2008 2010 2012
If LF Trygg-Hansa Folksam Other
Developments Market share (%)
9
• 5th biggest company (Tryg) only 3% market share
• New bancassurance agreement 2013 – Nordea/If
• Volkswagen/Audi-If agreement renewed 2013
• Price increases in excess of inflation in private lines
• Aggregator market share <2%
Market development Norway
28% 25% 25%
29% 28% 25%
18% 17%
15%
10% 10%
10%
17% 20% 25%
2008 2010 2012
If Gjensidige Tryg SpareBank 1 Other
Market share (%)
10
Developments
• Growing economy and insurance market
• Several new entrants 2008-2010, stable market since 2011
• Period of high inflation, since 2012 replaced by period of low claims frequency
• No aggregators, low internet sales
Market development Finland
26% 25% 26%
28% 28% 29%
27% 28% 27%
11% 10% 10% 9% 9% 8%
2008 2010 2012
If Pohjola Tapiola+Lähivakuutus Fennia Other
Market share (%)
11
Developments
• Acquisition of Tryg branch
• New bancassurance agreement 2013 – Nordea/If
• Further consolidation – LähiTapiola
• No significant new entrants
• No aggregators, however internet sales significant
12
UW focus
UW focus in practice
13
• UW policy with very clear and enforced limitations
• UW committee with real power as an active challenger
• Models cannot replace experience and risk aversion in top management
• Gross underwriting principle
• Explicit accountability for each underwriting decision
• Willingness to underwrite only business that is clearly understood
• Focus on making tariffs effective in distribution
Pricing: Unrivalled pricing skills Example of price build-up and pricing criteria
Objective criteria
Customer product choices
Customer behavior
Price
Customer product choice
Young driver
Claims
Age
Deductible
Car Make
Objective criteria
Customer behavior
14
Correct customer pricing strongly supports sales and customer retention
Annual If Pen Award
Incentivised organisation Skills in focus
• Incentive systems including
all employees linked to performance
• Accountability of results
• Continuity in management
15
Performance & underwriting culture
Strong pricing and underwriting control
92% 92% 93%
92%
89% 89%
4,1%
3,8%
3,0%
2,4% 2,0%
1,9%
2008 2009 2010 2011 2012 R122013 Q1
CR Technical interest
Implementation of low interest rate environment Financial discipline
2,4% 2,4% 2,9%
3,3% 2,8%
1,2%
2008 2009 2010 2011 2012 2013 Q1
Prior year gains (% of CR)
16
Average Combined Ratio & Standard Deviation 2007-E2014
17 Source: Macquarie, European Insurance, 22.01.2013
0
1
2
3
4
5
6
7
90 91 92 93 94 95 96 97 98 99 100
Gjensidige
Topdanmark
Swiss Re
Tryg
Sampo
Munich Re
Generali
AXA
Aviva
Zig
SCOR
Hannover Re
Stan
dar
d d
evia
tio
n, %
Combined ratio, %
Sub-group 1
Sub-group 2 Sub-group 3
Sub-group 4
AVERAGE
Allianz
Creating shareholder value
• Stable return through underwriting excellence and scale advantage
• Financial discipline
• Management commitment to continuous improvement
18
1 1 1
SAMPO CMD 2013 PRESENTATION OF TOPDANMARK
BY CHRISTIAN SAGILD, CEO 30 MAY 2013
2 2 2
• Profitable growth – in that order
• The Danish non-life market
• Highlights in Q1 2013
• How to grow profitably
Agenda
• Share buy-back
3 3 3
• All of the 6 largest players representing a market share of 73% are quoted on the stock exchange
• Efficient players • Operating with an expense ratio of ~ 17% • Expense ratio for EU peers around 25-30%
• Low interest rates increase focus on technical result
• Provisions for outstanding claims discounted by a zero coupon rate structure
• Direct market
• Large Non-Nordic – except for RSA – do not operate in the personal and SME segments
The Danish non-life market
4 4 4
• Disciplined market – efficient players
• Already direct market
• Low expense ratio
• Relatively small market
• Micro rating
• Takes time to build a profitable portfolio
The best way to penetrate the Danish market is to make an acquisition
Entry barriers
5 5 5
Example based on experience from Topdanmark: - Premium volume DKK 1,000m – portfolio in personal market - CR = 90 or a profit of DKK 100m - Expense ratio 18%, of which 10% new business
02468
10121416
0 2 4 6 8 10 12 14 16 18 20+Age of policies – number of years
Premium profile (%)
Total = 100%
0
50
100
150
200
0 2 4 6 8 10 12 14 16 18 20+Age of policies – number of years
Combined ratio
Weighted CR Total = 90
Entry barriers
6 6 6
(100)(80)(60)(40)(20)
02040
Age of policies – number of years
Profit (DKKm) kr.
Total = DKK 100m
(100)
(50)
0
50
100
150
Age of policies – number of years
Accumulated profit (DKKm)
Profit 20+ = DKK 100m
Milestones
Example based on experience from Topdanmark: - Premium volume DKK 1,000m – portfolio in personal market - CR = 90 or a profit of DKK 100m - Expense ratio 18%, of which 10% new business
Accumulated profit shows result of new business after x years
Entry barriers
7 7 7
• Profitable growth – in that order
• The Danish non-life market
• Highlights in Q1 2013
• How to grow profitably
Agenda
• Share buy-back
8 8 8
• In non-life nothing is easier than top line growth
• What is difficult is growing without diluting CR
• Topdanmark is primarily exposed to personal, agricultural and SME segments
• Segments with high claims frequency and low average claims • Relatively low volatility in CR due to this strategy combined with risk-
based prices (micro rating) and a comprehensive reinsurance programme
• Reduced exposure to large industrial customers as their profitability does not meet Topdanmark’s return requirements
• E.g. exposure to workers’ comp reduced by 41% since 2007
• Continued limited top line growth expected • Expected premium growth of 1-2% in 2013
• >1-2% in personal, agricultural and SME segments • <1-2% in industrial segment • Improved quality in profitability
• Focus on growth in EPS
Profitable growth – in that order
9 9 9
• Profitable growth – in that order
• The Danish non-life market
• Highlights in Q1 2013
• How to grow profitably
Agenda
• Share buy-back
10 10 10
Distribution power
Pricing Efficiency
Customer satisfaction
Our criteria of success
11 11 11
0A B C D E F G H
Company without price differentiation
0A B C D E F G H
Company with price differentiation
Risk premium Basis for pricing
Micro rating – How it works!
Risk-based prices
12 12 12
020406080
100120140160180
A B B E E F G H0
20406080
100120140160180
A C C D D F G H
Premium increase Lower turnover
Company without segmentation Company with segmentation
MICRO RATING
How it works!
13 13 13
• Topdanmark has a multi-distribution strategy
• Improved distribution agreement with Danske Bank • Previously Danske Bank was responsible for the sale of Topdanmark’s
non-life insurance products to its customers • Now Danske Bank only refers potential customers to Topdanmark
• Topdanmark is responsible for sales • Works well and more sales representatives employed to attend to
referrals from Danske Bank • High correlation between being a good bank customer and a good
non-life customer
• Topdanmark’s own sales force strengthened by employment of more sales representatives
• Strong competitive position in personal, agricultural and SME segments
Distribution power Strong distribution power in mass market
14 14 14
Annual churn 24% Share of customers 3%
Annual churn 4% Share of customers 39%
Annual churn 14% Share of customers 2%
Annual churn 10% Share of customers 22%
Annual churn 7% Share of customers 34%
Ambassador B high C Medium D Low E very low TEST GROUP Days
mono = Total group Survival function
9
1 and 2
Customer satisfaction
15 15 15
Source: ASMA telephone measurements – 30 April 2013
Unsatisfied customers Ambassadors
Improved customer measurements
8.1%
7.7%
6.8%
5.6%34%
37%
39%
42%
30%
35%
40%
45%
4%
5%
6%
7%
8%
9%
10%
2010 2011 2012 YTD 30 April 2013
16 16 16
1) Scandinavian business
93.6
95.7
92.0 90.3 91-92
80.0
85.0
90.0
95.0
100.0
105.0
110.0
2009 2010 2011 2012 2013 E
Com
bine
d ra
tio
Topdanmark Tryg Codan Alm Brand1)
Topdanmark’s CR excl. run-off is relatively stable
17 17 17
• Profitable growth – in that order
• The Danish non-life market
• Highlights in Q1 2013
• How to grow profitably
Agenda
• Share buy-back
18 18 18
• Q1 2013 profit of DKK 505m (Q1 2012: DKK 561m) • Profit per share declined from DKK 4.3 to DKK 4.1
Profit forecast model for 2013 • Assumed growth in premiums unchanged at 1-2% for 2013 • Assumed CR adjusted from 91-92 to 90-91 for the full year 2013, excl. run-off profits / losses in Q2-Q4 2013 • Profit forecast model for 2013 upgraded by DKK 150m to DKK 1,200-1,300m, excl. run-off profits / losses in Q2-Q4 2013
• Premiums increased by 0.8% in non-life insurance and 3.1% in life insurance • Investment return declined to DKK 251m (Q1 2012: DKK 505m) • Result of life insurance increased to DKK 209m (Q1 2012: DKK 51m)
• CR improved to 89.6 (Q1 2012: 90.2) • CR excl. run-off increased to 93.9 (Q1 2012: 92.2)
• Buy-back programme for 2013 increased by DKK 150m to DKK 2,150m
• Buy-back yield of 12.2%
Highlights – Q1 2013
19 19 19
• Profitable growth – in that order
• The Danish non-life market
• Highlights in Q1 2013
• How to grow profitably
Agenda
• Share buy-back
20 20 20
BUY-BACK FOR 2013
• Increase from DKK 2,000m to DKK 2,150m
• Buy-back yield of 12.2 % • To date in 2013 shares of DKK 704m bought back • Leaving a balance of DKK 1,446m of buy-back for 2013 • Since 1998 Topdanmark has cancelled 69.7% of outstanding
shares • Average price per share: DKK 41
• From 2000 to 2012 average buy-back yield has been 9.3%
21 21 21
0
2
4
6
8
10
12
14
16
18
20
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 E
7
19
13
9 10
7
10
14
3
2
8
10 9
12.2
AVERAGE YIELD OF 9.3% (2000-2012) Yi
eld
9.3 Average
22 22 22
Any questions?
23 23 23
Disclaimer
This presentation includes statements relating to the future. Such statements are uncertain and involve both general and specific risks. Many factors may cause a significant deviation from the forecasts and assumptions set out in the presentation. Such factors could be, for example, cyclical movements, changes in the financial markets, the financial effect of non-anticipated events like acts of terror or exceptional weather conditions, changes in Danish and EU rules, competitive factors in the insurance industry and the trends in the reinsurance market. Also see www.topdanmark.com → Investor → Risk management. The above description of risk factors is not exhaustive. Investors and others, who may base decisions relating to Topdanmark on statements relating to the future, should make their own careful considerations on these and other factors of uncertainty. Topdanmark’s statements relating to the future are solely based on information known at the time of the preparation of the interim report for Q1 2013. This publication is a translation. In case of any divergence, the original Danish text shall prevail.
Nordea’s financial plan 2013-2015
Sampo Capital Markets Day 2013Torsten Hagen Jørgensen, Group CFO
Disclaimer
This presentation contains forward-looking statements that reflect management’s currentviews with respect to certain future events and potential financial performance. AlthoughNordea believes that the expectations reflected in such forward-looking statements arereasonable, no assurance can be given that such expectations will prove to have beencorrect. Accordingly, results could differ materially from those set out in the forward-lookingstatements as a result of various factors.
Important factors that may cause such a difference for Nordea include, but are not limited to:(i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in theregulatory environment and other government actions and (iv) change in interest rate andforeign exchange rate levels.
This presentation does not imply that Nordea has undertaken to revise these forward-lookingstatements, beyond what is required by applicable law or applicable stock exchangeregulations if and when circumstances arise that will lead to changes compared to the datewhen these statements were provided.
• The financial plan
• Q1 2013 result highlights
4
2015 plan – progress against our published goals
Capital initiatives to maintain CT1 ratio >13%
Initiatives for income generation
Flat costs 2013-14Initiatives for cost savings of ~EUR450m
Low risk profile and low volatility
Strong capital generationand return of excess capital
to our shareholders
ROE target of 15%at a CT1 ratio >13%
and with normalised interest rates
Delivering low volatility resultsbased on a well diversified
and resilient business model
Nordea market commitments Key initiatives and levers
5
>10%11.6%
>13%
>15%
2012 Regulation,net
Capitalcalibration
RoEadjusted
Incomegeneration
Costefficiency,lower C/I
ratio
Lower loanlosses
2015 ROEforecast
Normalisedinterestrates
ROE atnormalised
interestrates
~1p.p.~1p.p.
~1p.p.
~2p.p.
~(1) p.p.
Well balanced plan to reach ambitious ROE target
Return on equity, %
2
¹ Average equity and CT1 management buffer2 Short term interest rates at ~3%
1
Equity capital effect1
6
Net interest income growth constituting 40-50% of income growth 2013-2015
Nordea Group income split Initiatives
58% 56%
19% 24%
23% 20%
2009 2012 2015E
NII NCI Other income
Blended margin
Repricing of lending margins
More business with existing customers
Other (e.g. deposit margins and new customers)
1,00%
1,05%
1,10%
1,15%
1,20%
1,25%
1,30%
2007
2008
2009
2010
2011
2012
2013
E20
14E
2015
E
Initiatives for supporting NII growth and margin expansion
Normalised interest rates
Current expectations
7
Ancillary income growth driven by product capabilities
Net commission and Net gains constituting 50-60% of income growth 2013-2015
Nordea Group income split Initiatives
58% 56%
19% 24%
23% 20%
2009 2012 2015E
NII NCI Other income
Non NII-Income vs. Nordic peers
70
80
90
100
110
120
130
140
Q4/
07Q
2/08
Q4/
08Q
2/09
Q4/
09Q
2/10
Q4/
10Q
2/11
Q4/
11Q
2/12
Q4/
12
Nordea
Nordic peers
Risk products
Asset management
Transaction related
8
Flat costs will be maintained throughout 2014 (excluding effect of FX and variable salaries, including profit sharing)
Gross savings of EUR450m, in total for 2013-15, corresponding to 8.7% of total 2012 cost base
C/I ratio expected to improve
Reinvestments in prioritised areas e.g.
— IT infrastructure and investments to meet mandatory regulatory requirements
1 21
0
1 16
4
1 20
3
1 17
3
1 19
3
1 16
3
1 17
7
1 16
8
1 19
6
Q4/
10
Q1/
11
Q2/
11
Q3/
11
Q4/
11
Q1/
12
Q2/
12
Q3/
12
Q4/
12
Q1/
13
Q2/
13
Q3/
13
Q4/
13
Q1/
14
Q2/
14
Q3/
14
Q4/
14
CommentsNordea total expenses (Excl. FX and variable pay), EURm
Nordea total expenses, EURm
5,18
6 (350)
+250 +100(100)
+70+130
2012
Gro
sssa
ving
s
Cos
tin
flatio
n
Rei
nves
t-m
ents
FX a
ndva
riabl
esa
larie
s
2014
E
Gro
sssa
ving
s
Cos
tin
flatio
n
Rei
nves
t-m
ents
2015
E
Cost efficiency to further improve in the 2015 plan
9
Loan losses expected to decrease
Actual loan losses, bps Comments
Average loan loss ratio approximately 16bps
For 2012, Banking Denmark and Shipping constituted more than half of loan losses
Loan losses expected to revert to around historical average during 2013-2015, following signs of improved conditions in problem areas
(16)
(70)
(60)
(50)
(40)
(30)
(20)
(10)
0
10
20
30
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
10
Expectations in summary
CAGR ~4% Including normalised interest rates, CAGR ~6%
Income growth
CAGR ~0% 2012-14 (excl. FX and variable salaries) Some cost growth 2015 if supported by income growth
Cost growth
Approach 16bps during the period Loan loss ratio nearing historical average
Loan loss ratio
CAGR ~0% Mitigations compensating regulation
RWA
>13%CT1 ratio
CAGR ~2-3%Lending growth
>13% 2015, given expected interest rate development >15% 2015, with normalised interest rates
ROE
Nordea financial plan and expectations 2013-2015
• The financial plan
• Q1 2013 result highlights
Financial results Q1/13
12 •
EURm Q1/13 Q4/12 Change % Q1/12 Change %
Net interest income 1 400 1 429 (2) 1 420 (1)
Net fee and commission income 632 692 (9) 596 6
Net fair value result 444 444 0 469 (5)
Total income1 2 558 2 630 (3) 2 531 1
Staff costs (769) (764) 1 (771) 0
Total expenses (1 299) (1 327) (2) (1 276) 2
Cost Income Ratio 51% 50% 50%
Profit before loan losses 1 259 1 303 (3) 1 255 0
Net loan losses (199) (244) (18) (218) (9)
Operating profit 1 060 1 059 0 1 037 2
Net profit 796 842 (5) 775 3
Risk-adjusted profit 863 882 (2) 829 4
Return on equity (%) 11.3% 12.3% -100bps 11.9% -40bps
Core Tier 1 capital ratio (%) 13.2% 13.1% 10bps 11.6% 160bps
Risk-weighted assets (EURbn) 168 168 unch. 182.3 -8%
1 Includes Other income
Stable Net Interest Margin but lower volumes
13 •
Largely unchanged margin, up 2 bps to 107 bps in Q1
Lower interest rates put pressure on deposit margins
Lending margins up somewhat in quarter
Improved in Finland and CIB Sweden
Demand for corporate lending remains subdued- Increasing importance of capital markets financing
Funding gap under control
Blended net interest margin development, % Comments
0,0%
0,3%
0,6%
0,9%
1,2%
1,5%
Q3/11 Q1/12 Q3/12 Q1/13
107 bps
Lending- and deposit volumes, EURbn*
307 314 317 323 325 320 321
167 176 179 184 186 184 181
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13
Lending volumes Deposit volumes
* Excluding Repos
14 •
Robust credit quality
Underlying credit quality remains robust
Stabilisation in level of impaired loans
Provisioning ratio increased to 43%
Credit quality remains solid in Finland, Norway, Sweden, Baltics and Poland
Losses in Denmark and shipping remain at elevated levels but were down in both areas compared to the previous quarter
- Loan loss ratio in Banking Denmark decreased from 55 bps to 47 bps in Q1/13*
- Ship values seem to be bottoming out, loan loss ratio in shipping decreased from 185 bps to 123 bps in Q1/13
Total net loan losses, EURm
4 004 4 023 3 905
2 852 2 882 2 922
Q3/12 Q4/12 Q1/13
Performing Performing Performing
Non-performing Non-performing Non-performing
Impaired loans, EURm
Comments
242
118 112
263
218 217254 244
199199
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13
* Excluding provisions to the Danish Deposit Guarantee Fund
15 •
Risk weighted assets
RWA flat on previous quarter
- Increase due to yearly update of operational risk
- Higher risk weights for commercial and residential real estate exposures due to expired regulatory transition rules. Interimistic impact until AIRB approval
Efficiency gains of EUR 2bn- Roll out of Internal Model Method
Risk-weighted assets , EURbn* Comments
* Basel 2.5 excluding transition rules
182 180 183 185 182 181 179
168 168
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13
16 •
Core Tier 1 ratio
10.711.0 11.0 11.2
11.6 11.812.2
13.1 13.2
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13
Improved ratio 10 bps sine Q4/12 due to increased core tier 1 capital driven by strong profit generation and reduced shortfall reduction
Compliant with our capital policy of a Core Tier 1 ratio of >13%
Core Tier 1 capital ratio, %* Comments
* Excluding hybrids. Basel II excluding transition rules
17
RoE development YoY - challenging macro environment and increased capital offset strong underlying business performance
RoE, per cent, Q1/Q1 Comments
Strong re-pricing of lending margins since January 2012, and lower loan losses
Lower interest rates, higher state guarantee fees and higher shareholders’ equity offset the improvement
Return on EquityQ1 2012 – Q1 2013
1,7
0,6 0,30,3
1,4
1,0
RoE Q1/13
11.3
Other incl FX
0,1
Increase in capital
Higher state guarantee
fees
0,2
Lower interest rates
Lower loan losses
Lower business volumes
0,2
NFVNCI excl state guarantee
fees
Re-pricingRoE Q1/12
11.9
Business driven +2.1%
External factors 2.6%
18
Progress in summary
Core Tier 1 ratio +10 bps in Q1 to 13.2% CT1 ratio
RWA development in Q1 approx. flatRWA
Income holding upIncome growth
Underlying costs flat for 10th consecutive quarterCosts
Decreasing in line with planLoan losses
RoE slightly down y/y (-60 bps)RoE
Progress on Nordea financial plan 2013-2015, in Q1 2013
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Nordea’s financial plan 2013-2015
Sampo Capital Markets Day 2013Torsten Hagen Jørgensen, Group CFO