Nordea – taking the next steps in Sweden Investor lunch Anna Storåkers 2018-05-23
External forces drive change New regulation Change in competition + & Change in customer behaviour Technology and expectations 2
Nordea is on a transformational journey Illustrative timeline Success factors RAMP UP (2015 – 2017) Simplification 3 Compliance & Operational Risk 1 Technology & Infrastructure OPTIMISATION Balance Sheet EXECUTION (2018 – 2021) 2 Distribution/Channels/Service model EXECUTION 2 Products & Digital offering Technology & Operations OPTIMISATION (2021 - ) 1 RAMP UP 3 Future relationship bank 2015 - 2017 2018 - 2021 2021 - 3
Sound credit risk profile and maturing processes on compliance and conduct risks Credit risk well diversified Operational and compliance risk – Conduct risk – across the Nordic countries stabilised high attention and maturing Know Your Customer Sweden Denmark Focus on investment remediation advisory Norway Finland Total lending in Personal Banking 1 4 1) Q3/2017. Baltics excluded.
Re-domicile will bring level playing field 5
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
Four distinct offerings drive top-line growth and focus Consumer Banking Affluent Everyday Homeowner Young potential Premium Banking 7
Continuously improving C/I ratio Personal Banking C/I ratio projection 56 Income Actual ~ +3 % p.a. Planned Costs ~ -2 % p.a. C/I-ratio % Low 40’s Illustrative 8
Branch locations Mobile banking [‘000] +71% -45% +70% -68% Locations Locations with cash Mobile transactions Mobile logins Q4 14 Q4 17 Q1 18 Q1 15 Q1 18 9
Customer behaviour and attitude is changing Mobile banking [‘000] Customers F2F preference* Number of branches +71% 40% -45% 20% +70% 10% -68% Mobile transactions Mobile logins Transactions Non-complex advice Complex advice Branches Branches with cash Q1 15 Q1 18 Q4 14 Q4 17 Q1 18 *McKinsey survey 2016
Transforming distribution to enable anywhere and anytime Number of online units 14 12 10 8 13 6 8 4 5 4 2 0 Sep 16 Dec 16 May 17 May 18 Share in mortgage centre and # FTEs 25% 70 Branch approach 65 65 20% 60 60 60 • Urban: Consolidation into larger units 15% 50 • Rural: Moved advisors to close by branch or Satellite branches 10% 40 20% 19% 15% • Fewer cash branches/automise through ATMs and Swish 5% 30 10% • Local presence for F2F customers and new customer acquisition 0% 20 Sep 16 Dec 16 May 17 May 18 11
Increased access to qualified advice Centralised mortgage centre Development of online units Broad competence to serve customers remotely # advisors (FTE) Share of mortgages in mortgage centre Share of online meetings . 106 40% 20% 2015 2016 2017 2018 2016 2017 2018 2014 2015 2016 2017 2018 • 12 units • All advisors conduct online meetings • Efficient centralised process • National pool of advisors • National pool of advisors • Advisors in rural branches work in national pool of advisors • Generous opening hours • Generous opening hours
Relevant and competent: strong affluent offering Acknowledgements • High competence in savings • Proven our ability to be at the top: 2014-2017 no 1 or no 2 in the market • Increasing sustainability focus in our pension offering • 1st version of Savings Robot “Nora” was launched in March 13
Movements in the mortgage market and value proposition Continued development of Risk based price model Market development the offering implemented . New entrants
Agile development teams to speed up customer deliveries • Agile development organisation in place • Agile teams have delivered 15
Increasing value to customers through mobile offering and partnerships Aggregated Online and open banking face-to-face services meetings Chat, Global chatbots, wallets calls – 24/7 Mobile as Local entry point to providers all services 16 Mobile banking app screen represents a beta version
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
Thank you! Anna Storåkers Head of Personal Banking Sweden Country Senior Executive
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