Ingen bildrubrik

1
Capital market day Stockholm, Sweden November 30,
2001
FöreningsSparbanken Birgitta Johansson-Hedberg Pr
esident and CEO
2
Stability and growth opportunities in a turbulent
environment
3
Our strategic approach

• Branches are the hub of our operations
• Focus on customer satisfaction
• Stable operating results
• Uncertain times require development and growth in
  controlled forms

4
Our platform

• Largest branch network of any Swedish bank
• Unique alliances and cooperations
• A strong brand with clearly defined values
• Competetive products and services with strong
  brands such as Robur, Spintab and Swedbank
  Markets
• Qualified staff

5
One of the leading banks inte the Nordic and
Baltic regions

• Nearly ten million customers
• Hansapank acquires LTB - 1.5 million new
  customers
• 16,000 employees
• 2 203 (889) branches
• 332 (296) in-store banks
• 1 267 post offices
• 2 700 rural mailmen

• 2 619 (1 113) ATMs
• Telephone bank -2,2 (2,0) million
  customers
• Internetbank -1,8 (1,0) million
  customers

(Figures in paranthesis refer to Sweden)
6
Profit and loss account
SEK M Jan-Sep 2001 Jan-Sep 2000 Change Net
interest income 11,201 10,129 11 Net
commissions 4,586 5,011  8 Net profit on
financial operations 962 1,299 26 Other
income 892 1,707 48 Total income
17,641 18,146 3 Staff costs 4,531 4,188 8
Allocation to profit-sharing funds
338 85 Other expenses 5,457 5,179 5 Total
expenses 10,326 9,452 9 Profit before loan
losses 7,315 8,694 16 Loan losses
878 880 Share of profit of associated
companies 75 190 139 Operating profit
6,362 8,004 21 Taxes, etc 1,751 2,001
12 Minority interest 543 354 53 Profit for
the period 4,068 5,649 28 of which
deposit guarantee fee 69 415
7
Profit and loss account Excl. nonrecurring items
SEK M Jan-Sep 2001 Jan-Sep 2000 Change Net
interest income 11,201 10,095 11 Net
commissions 4,586 5,011 8 Net profit on
financial operations 962 1,299 26 Other
income 892 839 6 Total income
17,641 17,244 2 Staff costs 4,528 4,448 2
Allocation to profit-sharing funds
338 85 Other expenses 5,310 5,179 3
Total expenses 10,176 9,712 5 Profit
before loan losses 7,465 7,532 1 Loan
losses 878 880 Share of profit of associated
companies 75 190 139 Operating profit
6,512 6,842 5 of which deposit
guarantee fee 69 415 Capital gains,
surplus pension insurance refund from
Alecta (formerly SPP), VAT recovery, merger
costs
8
Worries in the global economy

• Both 2001 and 2002 weak years for global economy
• Weak economy and major imbalances in Japan
• Milder economic slowdown in Europe, but waiting
  for an upturn in U.S.
• Sweden is dependent on stronger U.S. economy

9
Business approach
10

• A major potential for increased selling - thanks
  to the banks large customer base, complete
  product range and widespread distribution
  network

11
Large customer base

• Private individuals
• FSPA 4.1 million customers
• Jointly owned 0.4 million customers
• Independent 1.2 million customers
• Hansabank 2.4 million customers

• Municipalities (289)/County councils (21)
• FSPA 216 municipalities
• Jointly owned 20 municipalities
• Independent 93 municipalities
• FSPA 21 county councils

FöreningsSparbanken

• Small/mid-size companies
• FSPA 227,000 companies
• Jointly owned 25,000 companies
• Independent 90,000 companies
• FIH 5,000 companies
• Hansabank 128,000 companies

• Nationwide organizations
• Union, cooperative and religious organizations

Large companies
Several municipalities are customers of both
FSPA and jointly owned or independent savings
banks
12
Complete product range strongmarket position
Sweden
Salaries and payments 1st direct salary
deposits 1-2nd giro payments 1st card
clearing 1st debit cards
Savings and investments 1st household
deposits 1st mutual funds 2nd fund-allocated
insurance, (new policies) 1st individual
pension savings 2-6th stock trading 1st premium
pension savings
Meeting places 1st branches 1st Internet
banking 1st telephone banking 1st ATMs
Corporate market 20-30 deposits lending
installment financing and leasing
Housing 1-2nd mortgage loans 1-2nd real estate
brokerage
13
Complete product range strong market position
Estonia
Savings and investments 1st household
deposits 1st mutual funds 1st fund-allocated
insurance, (new policies) 1st individual
pension savings 1st stock trading
Salaries and payments 1st direct salary
deposits 1st debit cards
Meeting places 1st branches 1st internet
banking 1st telephone banking 1st ATMs
Corporate market 50-60 deposits lending
installment financing and leasing
Housing 1st mortgage loans
14
Our strategic base

• 7-point program has guided the Groups work
  since 2000
• Multispecialist organization - our objective is
  to be the leader in the areas in which we are
  active
• Improvement program from autumn 2000 is
  continuing and will ensure our long-term
  development

15
Coordinate the banks sales channels in a single
business area
What have we accomplished?
What are we going to do?

• New organizational unit
• Coordination of Internet, telephone and
  branches
• Professional roles and competence profiles
  established
• Clarification of business systems
• Implementation of new concept for asset
  management under way

• Better prepared for worrisome times
• Focus on customer satisfaction
• Higher level of activity
• Differentiated customer offerings
• Coordinated market communica- tion
• Improved local presence

16
An open value chain
What have we accomplished?
What are we going to do?

• Third-party funds via FöreningsSparbanken -
  24 funds via seven international fund
  managers

• Offer third-party products that are desirable
  in terms of customer demand or profitability
  and take into account the alliance with the
  savings banks

17
Improve operational efficiency
What have we accomplished?
What are we going to do?

• Action program in each business area followed
  up at Group level
• Project Administration 80/20 - nearly 80
  routines have been eliminated

• Reduce costs
• Project central functions

Cost efficiency is too low - the Groups C/I
ratio exceeds the target of 0.50
18
Building competence
What have we accomplished?
What are we going to do?

• Evaluation of professional roles
• Certification of professional roles in Retail
  and IT
• New leadership training program
• Enhanced human capital
• Pilot test of individual salary reviews

• More effective competence development
• Implement professional roles
• Bonus system based on customer satisfaction

Human capital in line with the best ever in local
banks
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Investment in growth areas
What have we accomplished?
What are we going to do?

• Hansapank has acquired Lithuanias LTB -
  strengthening the customer base by 1.5 million
• Develop long-term cooperation with independent
  and partly owned savings banks

• Extend cooperation with independent and
  partly owned savings banks
• Further develop existing alliances
• Metropolitan regions in Sweden

The alliance strategy has been successful - focus
ongrowth areas still applies
20
E-business
What have we accomplished?
What are we going to do?

• E-Enabling
• Development of the banks digital channels
• Lessmore
• Business web
• E-billing
• E-payrolls
• Online loan applications
• Pilot for stock trading
• Touchdown Europe
• e-Business
• Marakanda
• Firstviewbank an expensive experience

• Improve operational efficiency
• Manage existing investments

The most important effects have been achieved by
improving the banks operational efficiency
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The Groups priorities 2002
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Growth opportunities

• Increased activities in branch network
• Segmentation of customer base
• Migration of customer base to electronic
  channels
• Continued strong growth within the payments
  business
• Savings growth through changes in pension
  systems
• Strong growth in Baltic and Danish operations

23
Priorities 2002

• Improved branch operations
• Customer satisfaction, costs and market shares
  will be prioritized
• Differentiated customer offerings/service
• Shared business systems
• Increased cross-selling
• Need for greater cost efficiency
• The long-term objective of a C/I ratio of 0.5
  remains unchanged (today 0.59)
• Increase presence in Stockholm and Gothenburg

24
Priorities 2002

• Multispecialist bank
• Migration of customer base to electronic
  channels

We have good opportunities for future growth
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Appendix
26
FöreningsSparbanken is Swedens most accessible
bank
1 200
1 113
1 000
938
889
800
630
600
459
385
373
400
296
272
207
200
46,9
3
0
SHBSEB Nordea
FSPA
SHB
SEB
Nordea
Branches
ATM's
In-store banking
27
Nasdaq and SSE
325
300
275
250
225
Index 1998-01-02
200
175
150
125
100
75
May
Sep
May
Sep
May
Sep
May
Sep
99
00
01
28
USA Corporate profits after tax quarter
600
550
500
450
Miljarder USD
400
350
300
250
90
91
92
93
94
95
96
97
98
99
00
01
29
Sweden Housholds financial situation as of
disposable income
200
180
160
140
120
100
80
60
40
20
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
Nettoförmögenhet/Disponibelinkomst
Skulder/Disponibelinkomst
30
Economy/Credit situation
Pressure on the credit portfolio Business
activity in the market is declining Even
more important to take advantage of new business
opportunities
31
The marketss new demands - consequences for the
bank

• Strong branch operations
• Customer satisfaction, costs and market shares
  will be priorities
• Specialization within a single group
• Better cooperation between business areas and
  Retail Banking
• Differentiated customer offerings
• Shared business systems

32
The marketss new demands - consequences for the
bank, cont.

• Need for greater cost effectiveness
• The long-term goal of a C/I ratio of 0.5 remains
  unchanged
• Further growth requirements
• Third-party products with a focus on customers
  and profitability

33
The marketss new demands - consequences for the
bank, cont.

• Multispecialist bank
• Customer demands and increased competition are
  driving forces
• IT/Internet - increased efficiency
• Values

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Capturing potential in existing strengths

• Focus on volume and geographic growth, combined
  with stable margins
• Leverage on existing customer base by
  segmentation and differentiated offerings
• Further realizing scale economies
• Keeping up stability in performance
• Cost control and increase in operational
  efficiency