Nordea taking the next steps in Sweden Investor lunch

Transcription

1 Nordea taking the next steps in Sweden Investor lunch Anna Storåkers

2 External forces drive change New regulation + Technology Change in competition & Change in customer behaviour and expectations 2

3 Nordea is on a transformational journey Illustrative timeline Success factors 3 OPTIMISATION 1 RAMP UP ( ) Simplification Compliance & Operational Risk Technology & Infrastructure Balance Sheet 2 EXECUTION 2 EXECUTION ( ) Distribution/Channels/Service model Products & Digital offering Technology & Operations 1 RAMP UP OPTIMISATION ( ) Future relationship bank 3

4 Sound credit risk profile and maturing processes on compliance and conduct risks Credit risk well diversified across the Nordic countries Operational and compliance risk stabilised Conduct risk high attention and maturing Sweden Denmark Know Your Customer remediation Focus on investment advisory Norway Finland Total lending in Personal Banking 1 4 1) Q3/2017. Baltics excluded.

5 Re-domicile will bring level playing field 5

6 Customers drive our vision Easy to deal with Relevant and competent Anywhere and anytime Where the personal and digital relationship makes Nordea my safe and trusted partner 6

7 Four distinct offerings drive top-line growth and focus Consumer Banking Affluent Everyday Banking Homeowner Young potential Premium 7

8 Continuously improving C/I ratio 56 Personal Banking C/I ratio projection Actual Planned Income ~ +3 % p.a. Costs ~ -2 % p.a. C/I-ratio % Low 40 s Illustrative 8

9 Branch locations Mobile banking [ 000] -45% +71% -68% +70% Locations Locations with cash Mobile transactions Mobile logins Q4 14 Q4 17 Q1 18 Q1 15 Q1 18 9

10 Customer behaviour and attitude is changing Customers F2F preference* Number of branches Mobile banking [ 000] 40% -45% +71% 20% 10% -68% +70% Transactions Non-complex advice Complex advice Branches Branches with cash Mobile transactions Mobile logins Q4 14 Q4 17 Q1 18 Q1 15 Q1 18 *McKinsey survey 2016

11 Transforming distribution to enable anywhere and anytime Number of online units Sep 16 Dec 16 May 17 May 18 Share in mortgage centre and # FTEs Branch approach Urban: Consolidation into larger units 25% 20% 15% Rural: Moved advisors to close by branch or Satellite branches Fewer cash branches/automise through ATMs and Swish 10% 5% 10% 15% 19% 20% Local presence for F2F customers and new customer acquisition 0% Sep 16 Dec 16 May 17 May

12 Increased access to qualified advice Development of online units Centralised mortgage centre Broad competence to serve customers remotely # advisors (FTE) 106 Share of mortgages in mortgage centre. Share of online meetings 20% 40% units National pool of advisors Generous opening hours Efficient centralised process National pool of advisors Generous opening hours All advisors conduct online meetings Advisors in rural branches work in national pool of advisors

13 Relevant and competent: strong affluent offering High competence in savings Proven our ability to be at the top: no 1 or no 2 in the market Increasing sustainability focus in our pension offering Acknowledgements 1st version of Savings Robot Nora was launched in March 13

14 Movements in the mortgage market and value proposition Market development Risk based price model implemented. Continued development of the offering New entrants

15 Agile development teams to speed up customer deliveries Agile development organisation in place Agile teams have delivered 15

16 Increasing value to customers through mobile offering and partnerships Online and face-to-face meetings Aggregated open banking services Chat, chatbots, calls 24/7 Global wallets Mobile as entry point to all services Local providers 16 Mobile banking app screen represents a beta version

17 Increasing customer satisfaction is our top priority New proactive initiatives Focus on insights from our customers Increase the quality at all customer touchpoints Gain loyalty 17

18 Thank you! Anna Storåkers Head of Personal Banking Sweden Country Senior Executive