Ulf Lundahl Senior Executive Vice President of Östgöta Enskilda Bank Östgöta Enskilda Bank
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Capital Market Day, Copenhagen, 29 June 2000 Den Danske Bank in Sweden Ulf Lundahl Senior Executive Vice President of Östgöta Enskilda Bank Östgöta Enskilda Bank Östgöta Enskilda Bank u Founded 1837 in Linköping u Regional bank in Östergötland with private banking unit in Stockholm 1837-90 u Supported by main shareholder L-E Lundberg during Swedish banking crisis u Growth strategy launched 1994 - geographical expansion Östgöta Enskilda Bank Östgöta Enskilda Bank u Acquired by Den Danske Bank March 1997 u From 400 to 1,000 employees 1994-2000 u 20,000 business customers u 145,000 private customers u Balance sheet total year-end 1999 SEK 59,320 M year-end 1996 SEK 14,500 M Östgöta Enskilda Bank Swedish market u Highly concentrated u 4 banking groups have 87% of all banking assets (1999) u Niche players have not challenged the major players significantly u ÖEB/DDB the only viable full-service challenger to the big four Östgöta Enskilda Bank Market positions 1999 (1995) Market Market Total lending share share (SEK BN) (%) 99 (%) 95 SHB 272 29 22 SEB 189 20 27 FsB 191 21 28 NB 157 17 18 ÖEB/DDB 38 4 1 Skandiabanken 6 0.6 0.4 LF WASA 2 0.2 < 0.1 IKANO 2 0.2 -- GE Capital 8 0.8 -- Citi Bank 2 0.2 0.1 Östgöta Enskilda Bank ÖEB Strategy u Focused full-service provider u High net worth families u Medium-sized and selected small businesses u Local branding creates perception - a network of local banks u Combination of a radical implementation of ”all business is local” with world class products and delivery (DDB) u Flexible and entrepreneurial organisation Östgöta Enskilda Bank Year 1992 Östgöta Enskilda Bank Stockholm Norrköping Linköping Boxholm Finspång Kisa Mjölby Skänninge Motala Söderköping Tranås Vadstena Åtvidaberg Göteborg Malmö Nyköping Södertälje Östgöta Enskilda Bank Year 1997 l Östgöta Enskilda Bank l Provinsbankerna Stockholm (3 branches) Göteborg - Bohusbanken Norrköping (3 branches) Halmstad - Provinsbanken Halland Linköping (3 branches) Örebro - Provinsbanken Närke Boxholm, Finspång Kisa, Mjölby, Skänninge, Motala Helsingborg - Provinsbanken Skåne Söderköping, Tranås, Vadstena, Malmö (1 branch) - Provinsbanken Skåne Åtvidaberg Nyköping - Provinsbanken Sörmland Södertälje - Provinsbanken Sörmland Den Danske Bank Karlstad - Provinsbanken Värmland Stockholm Jönköping - Smålandsbanken Växjö - Smålandsbanken Östgöta Enskilda Bank Year 2000 l Provinsbankerna Göteborg - Bohusbanken Kungsbacka -Bohusbanken Halmstad - Provinsbanken Halland Örebro - Provinsbanken Närke Helsingborg - Provinsbanken Skåne Kristianstad - Provinsbanken Skåne l Östgöta Enskilda Bank Malmö (3 branches) - Provinsbanken Skåne Stockholm (6 branches) Nyköping - Provinsbanken Sörmland Norrköping (3 branches) Södertälje - Provinsbanken Sörmland Linköping (3 branches) Karlstad - Provinsbanken Värmland Boxholm, Finspång Kisa, Mjölby, Skänninge, Motala Borås - Provinsbanken Älvsborg Söderköping, Tranås, Vadstena, Jönköping - Smålandsbanken Åtvidaberg Värnamo - Smålandsbanken Växjö - Smålandsbanken Den Danske Bank Sundsvall - Sundsvallsbanken Stockholm Uppsala - Upplandsbanken Östgöta Enskilda Bank Number of employees Forecasts Currently employed 1020 persons 975 persons 1200 Number of persons 1000 Full-time equivalent 800 600 400 200 0 'Jul 1997 'Jul 1998 'Jul 1999 'Jul 2000 'Jan 1998 'Jan 1999 'Jan 2000 'Jan 2001 Östgöta Enskilda Bank Deposits, business customers % Market share 1996-1999 6% 5% 4% 3% 2% 1% 0% 1996 1997 1998 1999 Östgöta Enskilda Bank Lending, business customers % Market share 1996-1999 5% 4% 3% 2% 1% 0% 1996 1997 1998 1999 Östgöta Enskilda Bank Deposits, personal customers % Market share 1996-1999 2,0% 1,6% 1,2% 0,8% 0,4% 0,0% 1996 1997 1998 1999 Östgöta Enskilda Bank Lending, personal customers % Market share 1996-1999 5% 4% 3% 2% 1% 0% 1996 1997 1998 1999 Östgöta Enskilda Bank Lending broken down on units and growth 50% 40% 30% 20% 10% 0% Östgöta Stockholm Provins + 27.3 % + 51.8 % + 64.4 % mar-99 mar-00 Östgöta Enskilda Bank Deposits broken down on units and growth 40% 35% 30% 25% 20% 15% 10% 5% 0% Östgöta Stockholm Provins +5.4 % + 72.2 % + 38.6 % mar-99 mar-00 Östgöta Enskilda Bank Funds broken down on units and growth 60% 50% 40% 30% 20% 10% 0% Östgöta Stockholm Provins + 52 % + 97 % + 76% mar-99 mar-00 Östgöta Enskilda Bank Income broken down on units and growth 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Östgöta Stockholm Provins + 23.7% +55.8 % + 81.5 % mar-99 mar-00 Östgöta Enskilda Bank Income growth ÖEB 1995-1999 M SEK 1995 1996 1997 1998 1999 Fee income exc. brokerage fees: 55 64 94 107 121 Brokerage and asset management fees: 39 46 84 106 149 Total fee income: 94 110 178 213 270 Östgöta Enskilda Bank Volume growth ÖEB 1995-1999 M SEK 1995 1996 1997 1998 1999 Leasing and factoring: 196 397 572 1,241 2,170 Östgöta Enskilda Bank 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 2000 7,3 BN SEK (1995: 1,5) Danica unit link: Established November 1999 Customers May 2000 3,000 Premiums 7 months 561 M SEK Market share 2000 2 % Östgöta Enskilda Bank Internet Banking u ÖEB first Internet Bank in Scandinavia November 1996 u 31,000 customers use Internet Banking u 28% of all personal customers with transaction accounts use Internet Banking (+4% 2000) u 180,000 payment transactions per month May 2000 - growth rate 10,000 per month u 7,000 business customers on business version of Internet Banking. 38% of all business customers, that use ÖEB for payment, is Internet Banking users Östgöta Enskilda Bank Opportunities u Regional banking strategy has more growth potential. ÖEB has no geographical presence in 10 targeted geographical centres u Stockholm presents more opportunities (6 branches at the end of 2000) u Product capability strengthened after systems migration to DDB platform October 2000 u Asset management/savings area including unit link (in early stages of development). Next phase - distribution outside ÖEB network. Capital Market Day, Copenhagen, 29 June 2000.