seb presentation · 2019-09-24 · seb presentation masih yazdi, finance ... 24 september 2019 . a...
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SEB presentation Masih Yazdi, Finance Director
24 September 2019
A leading Nordic financial services group operating in strong macroeconomic economies
2,300 Large
corporations
700 Financial
institutions
400k Small & medium-sized companies
4m Private
individuals
39%
37%
12%
7% 5%
Large Corporates & FinancialInstitutionsCorporates & PrivateCustomersBaltic Banking
Life
Investment Management
Divisional breakdown Operating profit H1 20191
60% 22%
13% 5% Sweden
Nordics ex Sweden
Baltics
Germany & UK
Geographical breakdown Operating profit FY 20181
Return on Equity Cost / Income
CET1 ratio Net ECL level
13.2%
16.6% 7bps
Key numbers in brief H1 2019
0.47
1 Operating profit before items affecting comparability. Excl. International network and eliminations
2
Financial summary
2019 January-June
2018 January-June
% SEK m
Net interest income 11,037 10,488
Net fee & commission income 9,026 9,005
Net financial income 3,600 3,062
Other income 440 136
Total operating income 24,103 22,690 6
Total operating expenses -11,329 -10,957 3
Profit before credit losses 12,774 11,733 9
Expected credit losses etc. -807 -309
Operating profit before IAC 11,967 11,424 5
IAC 4,506
Operating profit 11,967 15,930 -25 3
NII driven by volume development offset by rates, margin pressure and resolution fund fees
2019 January-June
2018 January-June
% SEK m
Net interest income 11,037 10,488
Net fee & commission income 9,026 9,005
Net financial income 3,600 3,062
Other income 440 136
Total operating income 24,103 22,690 6
Total operating expenses -11,329 -10,957 3
Profit before credit losses 12,774 11,733 9
Expected credit losses etc. -807 -309
Operating profit before IAC 11,967 11,424 5
IAC 4,506
Operating profit 11,967 15,930 -25
Net interest income development (SEK bn)
Credit portfolio development (SEK bn)
0.6 0.9
1.1 1.1
1.1 1.2 1.4
1.8 2.5
2.1
2010 2011 2012 2013 2014 2015 2016 2017 2018 1H'19x2
Resolution fund fee to decline by SEK 600-800m in 2020
Regulatory fees
0
200
400
600
800
1 000
1 200
Dec
10
Dec
11
Dec
12
Dec
13
Dec
14
Dec
15
Mar
16
Jun
16
Oct
16
Dec
16
Mar
17
Jun
17
Oct
17
Dec
17
Mar
18
Jun
18
Oct
18
Dec
18
Mar
19
Jun
19
Corporates HouseholdsCommercial real estate Residential real estateHousing co-ops
CAGR ’10-19
7%
3%
4% 4%
11%
4
Financial summary
2019 January-June
2018 January-June
% SEK m
Net interest income 11,037 10,488
Net fee & commission income 9,026 9,005
Net financial income 3,600 3,062
Other income 440 136
Total operating income 24,103 22,690 6
Total operating expenses -11,329 -10,957 3
Profit before credit losses 12,774 11,733 9
Expected credit losses etc. -807 -309
Operating profit before IAC 11,967 11,424 5
IAC 4,506
Operating profit 11,967 15,930 -25 5
NFCI consists mainly of stable and recurrent income
% SEK m
1 000
2 000
3 000
4 000
5 000
6 000
Payments, card, lending Asset value based Activity based
Life insurance income Life insurance income
47%
32%
13%
7%
15%
Net fee & commission income components (SEK m)
1 261 1 328
1 475
1 708 1 668 1 749
1 830 1 699
1 932
Dec2011
Dec2012
Dec2013
Dec2014
Dec2015
Dec2016
Dec2017
Dec2018
Jun2019
Assets under management (SEK bn)
48.8 51.6 53.5 58.6 61.1 62.2 64.7 69.2 70.1
Dec2011
Dec2012
Dec2013
Dec2014
Dec2015
Dec2016
Dec2017
Dec2018
Jun2019
Turnover Cards (SEK bn) 47%
32%
CAGR ’11-19: 6%*
CAGR ’11-19: 5%
* Definition of AUM changed from 2015. Divestment of SEB Pension in 2018
6
Financial summary
2019 January-June
2018 January-June
% SEK m
Net interest income 11,037 10,488
Net fee & commission income 9,026 9,005
Net financial income 3,600 3,062
Other income 440 136
Total operating income 24,103 22,690 6
Total operating expenses -11,329 -10,957 3
Profit before credit losses 12,774 11,733 9
Expected credit losses etc. -807 -309
Operating profit before IAC 11,967 11,424 5
IAC 4,506
Operating profit 11,967 15,930 -25 7
Net financial income stable over time
%
Net interest income
Net fee & commission income
Net financial income
Other income
Total operating income 24,103 22,690 6
Total operating expenses -11,329 -10,957 3
Profit before credit losses 12,774 11,733 9
Expected credit losses etc. -807 -309
Operating profit before IAC 11,967 11,424 5
IAC 4,506
Operating profit 11,967 15,930 -25
Median LCFI
Median Group
0
500
1 000
1 500
2 000
2 500
Q12014
Q22014
Q32014
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
LC&FI Other divisions and Treasury
Net financial income development SEK m
8
Financial summary
2019 January-June
2018 January-June
% SEK m
Net interest income 11,037 10,488
Net fee & commission income 9,026 9,005
Net financial income 3,600 3,062
Other income 440 136
Total operating income 24,103 22,690 6
Total operating expenses -11,329 -10,957 3
Profit before credit losses 12,774 11,733 9
Expected credit losses etc. -807 -309
Operating profit before IAC 11,967 11,424 5
IAC 4,506
Operating profit 11,967 15,930 -25 9
Expenses to large extent driven by cost of staff
% SEK m Total staff cost/FTE 1H 2019, SEK ‘000
738
974 997 1 028 1 098 1 124
1 230 1 314 1 338
1 466
1 863
2 119 2 279
SEB
Nordic peers International peers
Nordic peers: SHB, Swedbank, Nordea, Danske, DNB International peers: Barclays, ING, Deutsche B ank, ABN Amro, UBS, Credit Suisse, JP Morgan
0.57
0.48
0.65
0.48
0.56 0.52
0.41 0.42 0.47 0.49
0.59 0.60
SEB
C/I ratio 2010 vs 1H 2019, Nordic peers
2010 1H 2019
10
0.2
0.4
0.6
0.8
Continued improvement of operating leverage through diligent efficiency savings Average quarterly income1
(SEK bn)
9.2 9.4 9.8 10.4 10.9 11.2 10.8 11.4 11.5 12.1
Avg2010
Avg2011
Avg2012
Avg2013
Avg2014
Avg2015
Avg2016
Avg2017
Avg2018
Jan-Jun2019
Average quarterly expenses1
(SEK bn)
5.8 5.9 5.7 5.6 5.4 5.5 5.5 5.5 5.5 5.7
Avg2010
Avg2011
Avg2012
Avg2013
Avg2014
Avg2015
Avg2016
Avg2017
Avg2018
Jan-Jun2019
Average quarterly profit before credit losses (SEK bn)
3.4 3.5 4.1 4.8 5.5 5.7 5.4 5.9 6.0 6.4
Avg 2010 Avg 2011 Avg 2012 Avg 2013 Avg 2014 Avg 2015 Avg 2016 Avg 2017 Avg 2018 Jan-Jun20191 Excluding items affecting comparability.
C/I r
atio
C/I ratio 0.47
11
Negative interest rates
Macro outlook – corporate activity
AML
12
The Journey Towards…
…World-Class Service to Our Customers Continues