Den Danske Bank in Sweden

Transkript

1 Capital Market Day, Copenhagen, 29 June 2000 Den Danske Bank in Sweden Ulf Lundahl Senior Executive Vice President of Östgöta Enskilda Bank

2 Östgöta Enskilda Bank Founded 1837 in Linköping Regional bank in Östergötland with private banking unit in Stockholm Supported by main shareholder L-E Lundberg during Swedish banking crisis Growth strategy launched geographical expansion

3 Östgöta Enskilda Bank Acquired by Den Danske Bank March 1997 From 400 to 1,000 employees ,000 business customers 145,000 private customers Balance sheet total year-end 1999 SEK 59,320 M year-end 1996 SEK 14,500 M

4 Swedish market Highly concentrated 4 banking groups have 87% of all banking assets (1999) Niche players have not challenged the major players significantly ÖEB/DDB the only viable full-service challenger to the big four

5 Market positions 1999 (1995) Market Market Total lending share share (SEK BN) (%) 99 (%) 95 SHB SEB FsB NB ÖEB/DDB Skandiabanken LF WASA < 0.1 IKANO GE Capital Citi Bank

6 ÖEB Strategy Focused full-service provider High net worth families Medium-sized and selected small businesses Local branding creates perception - a network of local banks Combination of a radical implementation of all business is local with world class products and delivery (DDB) Flexible and entrepreneurial organisation

7 Year 1992 Östgöta Enskilda Bank Stockholm Norrköping Linköping Boxholm Finspång Kisa Mjölby Skänninge Motala Söderköping Tranås Vadstena Åtvidaberg Göteborg Malmö Nyköping Södertälje

8 Year 1997 Östgöta Enskilda Bank Stockholm (3 branches) Norrköping (3 branches) Linköping (3 branches) Boxholm, Finspång Kisa, Mjölby, Skänninge, Motala Söderköping, Tranås, Vadstena, Åtvidaberg Den Danske Bank Stockholm Provinsbankerna Göteborg - Bohusbanken Halmstad - Provinsbanken Halland Örebro - Provinsbanken Närke Helsingborg - Provinsbanken Skåne Malmö (1 branch) - Provinsbanken Skåne Nyköping - Provinsbanken Sörmland Södertälje - Provinsbanken Sörmland Karlstad - Provinsbanken Värmland Jönköping - Smålandsbanken Växjö - Smålandsbanken

9 Year 2000 Östgöta Enskilda Bank Stockholm (6 branches) Norrköping (3 branches) Linköping (3 branches) Boxholm, Finspång Kisa, Mjölby, Skänninge, Motala Söderköping, Tranås, Vadstena, Åtvidaberg Den Danske Bank Stockholm Provinsbankerna Göteborg - Bohusbanken Kungsbacka -Bohusbanken Halmstad - Provinsbanken Halland Örebro - Provinsbanken Närke Helsingborg - Provinsbanken Skåne Kristianstad - Provinsbanken Skåne Malmö (3 branches) - Provinsbanken Skåne Nyköping - Provinsbanken Sörmland Södertälje - Provinsbanken Sörmland Karlstad - Provinsbanken Värmland Borås - Provinsbanken Älvsborg Jönköping - Smålandsbanken Värnamo - Smålandsbanken Växjö - Smålandsbanken Sundsvall - Sundsvallsbanken Uppsala - Upplandsbanken

10 Number of employees Number of persons Full-time equivalent Currently employed 975 persons Forecasts 1020 persons 0 'Jul 1997 'Jan 1998 'Jul 1998 'Jan 1999 'Jul 1999 'Jan 2000 'Jul 2000 'Jan 2001

11 Deposits, business customers % Market share % 5% 4% 3% 2% 1% 0%

12 Lending, business customers % Market share % 4% 3% 2% 1% 0%

13 Deposits, personal customers % Market share ,0% 1,6% 1,2% 0,8% 0,4% 0,0%

14 Lending, personal customers % Market share % 4% 3% 2% 1% 0%

15 Lending broken down on units and growth 50% 40% 30% 20% 10% 0% Östgöta % Stockholm % Provins % mar-99 mar-00

16 Deposits broken down on units and growth 40% 35% 30% 25% 20% 15% 10% 5% 0% Östgöta +5.4 % Stockholm % Provins % mar-99 mar-00

17 Funds broken down on units and growth 60% 50% 40% 30% 20% 10% 0% Östgöta + 52 % Stockholm + 97 % Provins + 76% mar-99 mar-00

18 Income broken down on units and growth 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Östgöta % Stockholm % Provins % mar-99 mar-00

19 Income growth ÖEB M SEK Fee income exc. brokerage fees: Brokerage and asset management fees: Total fee income:

20 Volume growth ÖEB M SEK Leasing and factoring: ,241 2,170

21 Private banking/asset management area critical to Swedish strategy Individual portfolios under management march 2000: 33 BN SEK (1995: 8,5) Funds under management May ,3 BN SEK (1995: 1,5) Danica unit link: Established November 1999 Customers May 2000 Premiums 7 months Market share , M SEK 2 %

22 Internet Banking ÖEB first Internet Bank in Scandinavia November ,000 customers use Internet Banking 28% of all personal customers with transaction accounts use Internet Banking (+4% 2000) 180,000 payment transactions per month May growth rate 10,000 per month 7,000 business customers on business version of Internet Banking. 38% of all business customers, that use ÖEB for payment, is Internet Banking users

23 Opportunities Regional banking strategy has more growth potential. ÖEB has no geographical presence in 10 targeted geographical centres Stockholm presents more opportunities (6 branches at the end of 2000) Product capability strengthened after systems migration to DDB platform October 2000 Asset management/savings area including unit link (in early stages of development). Next phase - distribution outside ÖEB network.

24 Capital Market Day, Copenhagen, 29 June 2000