Santander Consumer Bank Q1 2018 Investor .Santander Consumer Bank is a Nordic bank with more than

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  • Santander Consumer Bank

    Q1 2018 Investor Presentation

  • Who we areSantander Consumer Bank is a Nordic bank with more than

    1,400 colleagues in Sweden, Norway, Denmark and Finland, with a long history

    in the Nordics, and with global strength by being a part of Banco Santander.

    We are one of the largest Nordic banks providing loans and credits,

    credit cards, deposits and insurance to private customers.

    We work with the best people in an engaged, challenging and passionate

    organization that provides great opportunities for professional growth.

  • Regulated in Norway, owned by Banco Santander

    SCB is

    regulated

    by the

    Norwegian

    FSA

    Santander Consumer

    Finance S.A

    Fitch/Moodys/S&PA-/A2/A-

    Santander Consumer Bank AS

    Fitch/MoodysA-/A3

    Santander Consumer

    Bank Denmark

    (Branch)

    Santander Consumer

    Finance Finland

    (Subsidiary)

    Santander Consumer

    Bank Sweden

    (Branch)

    BancoSantander S.A.

    Fitch/Moodys/S&PA-/A2/A

  • Q1 Key figures

    Total

    deposits

    52.2NOK Bn

    Gross

    Outstanding

    Loans

    144.5NOK Bn

    Profit Before

    Tax

    744NOK million

    Core capital

    CET1

    15.5per cent

    People

    1,432employees

    Customers

    1.41million

    Return on

    Asset

    2.1per cent

    Partners

    4,785merchants

    +4,200car dealers

    Source: SCB Q1 2018 Report and Management Figures as per Q1 2018

  • History

    Bankia Bank acquired

    (credit cards)

    ELCON Finance becomes

    Santander Consumer

    Bank AS (SCB)

    ELCON Finance

    A leading Norwegian

    company within equipment

    leasing, factoring and auto

    financing

    Santander Consumer

    Finance (SCF) acquires

    ELCON

    Company

    demerges

    Auto finance retained in

    Norway and Sweden

    Launch consumer

    loans Norway

    Start up auto finance in

    Denmark and Finland

    GE Finland acquired

    (auto finance,

    consumer loans)

    Consumer loans in

    Sweden (2012) and

    Denmark (2013)

    Deposits launched in

    Norway and Sweden (2013)

    Deposits launched in

    Denmark in 2014

    1963

    2004

    2005

    2006/07

    2009

    2012/13

    2015

    SCB merges with

    GE Money Bank

    SCB becomes

    leader within car

    finance and

    unsecured loans in

    the Nordic region

  • Main product areas

    Auto & Leisure Unsecured InsuranceDeposits

    Saving products

    with high interest

    rates provided to

    private customers

    Insurance products

    related to payment

    protection, auto,

    health and travel,

    offered to private

    customers

    Loans, credit cards and sales

    finance services offered to private

    customers

    Loans and financial services

    provided to private customers and

    car dealers

  • Gross outstanding loans, distribution by productTotal Auto and Total Unsecured

    Auto SME

    10%

    Non Std. Auto

    8%

    Consumer

    Loan

    18%

    Credit Card

    5%

    Auto Private

    Persons

    59%

    Total

    Unsecured

    23%

    Total Auto

    77%

    Source: SCB Q1 2018 Report and Management Figures as per Q1 2018

  • Our auto products

    Saving products with high interest

    rates provided to private customers

    Auto &

    Leisure

    Loans and financial services

    provided to private

    customers SMEs and car dealers

    Distribution

    Online

    Dealers

    Cross sale

    Auto Loans & Hire Purchase

    Customers

    Private Customers

    Business Customers

    Distribution

    Online direct distribution

    Indirect distribution with

    dealers and importers

    Stock & Demo Financing

    Finance of dealer inventories

    Importer agreements (new)

    Direct to dealers (used)

    Customers

    Private Customers

    Business Customers

    Distribution

    Dealers

    Direct SME

    Auto Leasing

  • Position within Auto

    Source Norway: Internal calculations based on data from Finansieringsselskapenes Forening as per Q1 2018

    Source Finland: Internal calculations based on data from Finnish Transportation Safety Agency (Trafi) as per Q1 2018

    Source Denmark: Internal calculations based on data from Finans og Leasing as per Q1 2018

    Source Sweden: Internal calculations based on data from Finansbolagens Frening as per Q1 2018

    Partnerships with

    21brands

    +4.200dealers

    Position and market share in the Nordics

    #1Position

    24%market share

    #1Position

    23%market share

    #1Position

    39%market share

    #4Position

    9%market share

  • Unsecured products

    Sales finance Credit cardsDirect loans

    Unsecured

    Loans, credit cards and sales finance services

    offered to private customers

    Distribution

    Online

    Stores

    Cross sale

    Portfolio Management

    Distribution

    Online

    Stores

    Cross sale

    Distribution

    Online

    Agents

    Cross sale

    GDPRPSD2

  • Partnerships a key success factor

    4,785 merchants +4,200 car dealers and 30 brokers

    We started working with

    Santander as an exclusive

    partner two years ago.

    Since then, we have

    reached targets we didnt

    think were possible

    Paal Jahrmann,

    CEO Birger N. Haug

    Ive seen Santander work in a way that is not typical to a bank. You always take and run with our targets

    Stefan Andstrm, Sales Director, Nissan Nordic,

    Helsinki

  • Financials

  • Q1 2018 | Santander Group key figures

    Banco Santander S.A.

    Total assets 1.44 (trillion )

    Branches globally13,637 (units)

    Headcount 201,900

    Customers139 (million)

    Profit After Tax 2,054 (million )

    Santander Consumer Finance S.A.

    Loans 100 (billion )

    European countries15

    Headcount 15,850

    Customers 20 (million)

    Profit After Tax 351 (million )

    Source: Banco Santander and SCF Q1 2018 Institutional Presentation

  • Q1 2018 | SCB overview

    NordicQ1 2018 results

    144.5 Bn Gross Outstanding

    Loans

    744 MMProfit Before Tax

    Norway

    Auto Loans

    Unsecured Loans

    Profit Before Tax

    45.9 Bn

    11.5 Bn

    291 MM

    Denmark

    Auto Loans

    Unsecured Loans

    Profit Before Tax

    23.5 Bn

    5.7 Bn

    211 MM

    Finland

    Auto Loans

    Unsecured Loans

    Profit Before Tax

    23.2 Bn

    2.6 Bn

    97 MM

    Sweden

    Auto Loans

    Unsecured Loans

    Profit Before Tax

    18.6 Bn

    13.4 Bn

    144 MM

    40% Norway

    20% Denmark

    22% Sweden

    18% Finland

    Source: SCB Q1 2018 Report

    % of Gross Outstanding Loans

  • Growing presence in the NordicsWith a doubling of Gross Outstanding Loans in the past 5 years

    Source: SCB Annual Reports (2012 2017) and Q1 2018 Report

    59,575(mNOK)

    71,891(mNOK)

    83,322(mNOK)

    116,297(mNOK)

    124,625(mNOK)

    143,615(mNOK)

    59,575

    71,891

    83,321

    116,297124,625

    143,615149,053

    2012 2013 2014 2015 2016 2017 Q1 2018

    mNOK

    mNOK

    mNOK

    mNOKmNOK

    mNOK mNOK

    16%

    40%7%

    15%

    21%

    4%

  • Solid profitabilityStrong profitability, especially since the merger with GE Money Bank in 2015

    PBT development NOK MM

    1 1361 393 1 321

    1 942

    3 250

    3 995

    744

    2012 2013 2014 2015 2016 2017 Q1 2018

    Source: SCB Annual Reports (2012 2017) and Q1 2018 Report

    1) The Group reclassified issued AT1 capital of 2,25 Bn NOK from liabilities to equity in 2017. Interest expenses for 2017 of 169 MM NOK are consequently presented in equity instead of profit and

    loss, with related tax impact presented as part of other equity. Comparison figures are changed similarly. Please see principle 6) on page 40 in the 2017 Annual Report for further details.

    23%

    CAGR

  • Strong financial performanceEvidencing well-managed growth

    Source: SCB Annual Reports (2012 2017) and Q1 2018 Report

    ROA = PBT / ANEA (Annualized)

    NII Ratio = Net Interest Income / ANEA (Annualized)

    Cost/Income Ratio = OPEX / Gross Margin (OPEX: Total Operating Costs)

    4.5 4.54.8

    5.24.9 4.7

    2013 2014 2015 2016 2017 Q1 2018

    42 4448

    3740 39

    2013 2014 2015 2016 2017 Q1 2018

    2.1

    1.71.9

    2.73.0

    2.1

    2013 2014 2015 2016 2017 Q1 2018

    Return on AssetsPer cent

    Net Interest Income RatioPer cent

    Cost / Income RatioPer cent

  • Group Balance Sheet summaryRobust balance sheet driven by growth in loans to customers

    Q1 2018 Deposits with external institutions: Significant increase due to

    repayment of EUR bond maturity in April.

    Loans to customers: Growth in gross loans are partially off-set

    by IFRS9 impact on LLR

    Other financial assets: Increased liquidity portfolio due to bond

    purchases in Q1 2018

    Other assets: Change mainly driven by decreased consignment

    Debt to credit institutions: Increased levels of intragroup funding

    due to large EUR bond maturity

    Deposits from customers: Increase in deposits in accordance

    with funding strategy

    Debt established by issuing securities: Increase issuance in