Large Corporates & Institutions
The financial markets faced great uncertainty in 2011. Work targeted on the new advisory model contributed to growth in customer-driven business.
- Focus on customer relationships and advisory services
- Integration of First Securities
- Adapt operations and costs to prevailing market conditions
The goal of Large Corporates & Institutions is to be the primary provider of financial advice and capital market products to a selected number of large companies and financial institutions as well as to Swedbank’s retail operations and the customers of the Swedish savings banks. The aim is to deepen and broaden customer relationships and thereby secure a larger share of each customer’s business.
Continued work with customer-oriented,advice-focused business model
Implementation of the new business model continued in 2011 in order to shift from providing financing or other individual products to a large number of customers to instead being a turnkey provider of financial services to a select number of customers. This will be achieved through greater cooperation with other parts of the bank, through sector-specialised customer teams and by focusing more on business development and follow-ups.
This has helped Swedbank to gain a larger share of its customers’ business.
The FX/Fixed Income product area has established many new customer relationships, thanks to which customer-driven business has grown. At the same time the bank further strengthened its leading position in the Swedish and Norwegian credit bond markets. Market concerns adversely affected income from proprietary risk management during the year, and during the second half-year the bank decided to reduce its risk level in fixed income and foreign exchange.
Since 2011 our customers have access to advice and expertise on the Nordic and Baltic equity, derivative and capital markets. Research operations now cover nearly 300 companies. The general recovery in the Baltic countries has been affected by global events, which resulted in limited customer demand for capital and financing. At the same time demand for various forms of financial hedges through currencies, fixed income and commodities has increased in these markets.
Integration of First Securities
In the area of Investment Banking, the integration of First Securities continued in 2011, adding cutting-edge competence and experience in Norwegian research, investment banking and customer relationship management. The goal is to transform the Norwegian operations from an advice-driven investment bank to a full-scale commercial bank with a broad range of financial products and services for businesses and institutions. The integration work has been more difficult than expected, not least because it has been carried out at the same time as the investment banking market was undergoing major changes.
Adjusting operations and the cost base to prevailing conditions
In connection with the turbulence and uncertainty in the financial markets in 2011, the investment banking market underwent sweeping structural changes. New market conditions require changes in routines and, in the short term, adjustments costs to the prevailing earnings potential. The product range has been left intact, but areas where earnings potential is being hurt by the current market are being downscaled in order to create a profitable, sustainable and competitive organisation.
New head of the business area
Magnus Gagner Geeber took over as head of the business area in June.
Developing cost-effective processes, optimising capital allocation and meeting the new regulations and requirements for the financial industry will remain priority areas. The
continuing aim is also to deepen and broaden relationships with companies and institutions in the Nordic and Baltic financial capital markets. In the Baltic countries, continued efforts are being made to improve and strengthen the customer offering by also helping to further develop local capital markets.