Kjell Hedman EVP Swedbank, Head of Customer Offerings and Products - PowerPoint PPT Presentation

Capital Markets Day Tallinn, September 8, 2005 Kjell Hedman EVP Swedbank, Head of Customer Offerings and Products

2 • Retail mortgages • Cards and consumer credits • Packaged pension solutions • Non-life insurance

3 • Swedbank leads the market – no.1 market share – no.1 new sales volume • Capture growth of the mortgage market • …at attractive margins – funding cost – stabilizing new sales margins • …and maintaining high credit quality

4 • Card issuing – debit and credit cards • Acquiring card transactions • National and international payments • Transaction accounts, transfers, payroll systems,etc. • Clearing, cash settlement • Information services (e-billing, e-payrolls, etc.) • Identification services

5 Payments NCI, Payments’ share of Group NCI EUR M 80 50% 75 45% 70 65 40% 60 55 35% 50 30% 45 40 25% 35 30 20% Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Payments net commission income, EUR M Payments' share of net commission income

6 Number of payments per card, customer and month is increasing rapidly 10 8.8 9 8.4 8 7.4 6.6 7 5.9 6 4.9 5 4.3 4.1 4 3 2 1 0 1998 1999 2000 2001 2002 2003 2004 1H05

7 Market share, % 60 50 40 30 20 10 0 Bank cards Merchant Credit cards acquring

8 • EnterCard was created via a joint venture agreement between Barclaycard and FöreningsSparbanken The company was created on 1 st June, the transaction between Barclays • and Swedbank completed on 30 th June. EnterCard International EnterCard Sverige AB EnterCard AS Swedbank’s Swedish Norwegian credit card credit card operations operations

9 • Develop immature Swedish credit card market − Swedbank distribution channels to its customers − co-brand partners and a new open market proposition • Grow and develop the successful Norwegian business − open market play − distribution agreements with bank partners • Expand the franchise to a pan-Nordic business − Denmark • Business Plan 2005 – 2009 − grow the account base (Sweden & Norway) from 0.6 to 1.6 million − grow balances from EUR 450 M to EUR 1.7 bn

10 Barclaycard’s Core Swedbank’s Strategic Assets Competences Customer Value Management Customer Base Marketing Customer Information Distribution Channels Grow the market Grow income per customer

11 % 30 25 20 15 10 5 0 Fund Deposits Index-linked Pensions management bonds • Swedbank has client base, products and distribution capacity • No reason for lower market share

12 2007 One of the two largest players 2009 20% of total new sales (currently 12-13 %) Product segments New products - launched • Premium pensions • Robur Transfer • Contractual/occupational • Robur Traditional Pension pensions • Private pensions

13 annual premiums Swedbank market Product composition share IPS (IRA) 30% Private 16 % Unit-linked 20% Pensions Life insurance 50% EUR 1.7 bn Unit-linked 50% Occupational Pensions 5 % Life insurance 50% EUR 6.7 bn Pension Social Security system PPM 15 % (EUR 18 bn ”pay as you go”-system) Mutual funds EUR 2.7 bn funded system PPM

14 • Customer relations • Strong brand and reputation • Strong performance in asset management • Long experience from the private pension market • Attractive product range

15 • Market growth > 10% annually last 5 years • A natural add-on product for a banking customer • Increased revenues through cross-selling • A very successful concept in Norway – SpareBank1 Gruppen reached a market share of 10% in 7 years – customers with both bank and non-life products show higher customer satisfaction – generates attractive commission income

Building a leading Nordic-Baltic bank