Stable Results Despite a Turbulent Environment.Business Editors STOCKHOLM Stockholm (stŏk`hôlm'), city (1995 pop. 692,954), capital of Sweden and of Stockholm co., E Sweden, situated where Lake Mälaren flows into the Baltic Sea. , Sweden--(BUSINESS WIRE) Oct.23, 2001- First nine months of 2001 in brief: - Operating profit amounted to SEK 6,362 M (8,004) - Operating profit, excluding nonrecurring items amounted to SEK 6,512 M (6,842) - The return on equity amounted to 15.5 percent (23.7) - Earnings per share amounted to SEK 7.71 (10.70) - Net interest income rose by 11 percent to SEK 11,201 M (10,129) - Net commission income decreased by 8 percent to SEK 4,586 M (5,011) - Loan losses remained unchanged at SEK 878 M (880) - Robur's share of net fund investments rose to 19 percent (14) - The number of Internet banking customers in the Group increased to approx. 1.4 million (0.9) - Continued strong growth in card and payment operations - The proposed merger with SEB called off Group Profit The Group's operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the first nine months of 2001 amounted to SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 6,362 M (8,004). Profit was affected by merger costs of approximately SEK 150 M. The first nine months of 2000 included capital gains of approximately SEK 700 M, a VAT VAT See: Value-added tax VAT See value-added tax (VAT). recovery including interest of SEK 202 M and a surplus insurance refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies from Alecta (formerly SPP (1) (Scalable Parallel Processor) A multiprocessing computer that can be upgraded by adding more CPUs. (2) (Standard Parallel Port) The Centronics parallel port that was used on the first PCs. ), which reduced expenses by SEK 260 M. Excluding these nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items, operating profit amounted to SEK 6,512 M (6,842). Earnings were positively affected by the development of FIH FIH Fédération Internationale de Hockey (French) FIH Factor Inhibiting HIF FIH first in human (clinical trial) FIH Flight Information Handbook FIH Kinshasa, Zaire - Kinshasa and Hansapank, while securities commissions declined. Earnings from associated companies associated company associate n → Partnerfirma f associated company n → società collegata were negatively affected foremost by the development in SpareBank Sparebank is a Norwegian savings bank without external owners. The Norwegian sparebanks are a separate type of juridical entity that differ from commercial banks. There are a total of 123 savings banks in Norway. 1 Gruppen in Norway Norway, Nor. Norge, officially Kingdom of Norway, constitutional monarchy (2005 est. pop. 4,593,000), 125,181 sq mi (324,219 sq km), N Europe, occupying the western part of the Scandinavian peninsula. . The return on equity during the period was 15.5 percent (23.7). Earnings per share amounted to SEK 7.71 (10.70). For the third quarter of 2001 operating profit was SEK 2,002 M (2,674). The change is due to lower stock prices and the resulting decline in securities commissions, merger costs and lower profit from associated companies. Compared with the second quarter of 2001, operating profit decreased by SEK 351 M. The change is due to seasonal fluctuations in dividend income, lower stock prices and the resulting decline in securities commissions, as well as higher merger costs and lower profit in associated companies. Income The Group's total income amounted to SEK 17,641 M (18,146). Income for the third quarter amounted to SEK 5,755 M, compared with SEK 6,031 M in the second quarter and with SEK 5,984 M in the third quarter of 2000. Net Interest Income The Group's net interest income rose by SEK 1,072 M or 11 percent to SEK 11,201 M (10,129). The improvement is primarily due to an increase of approximately SEK 600 M in FIH and Hansapank's net interest income. Spintab's net interest income rose by approximately SEK 250 M, of which SEK 100 M relates to a refund of insurance fees for loan insurance. In addition, the state deposit guarantee fee, which is charged to net interest income, declined by approximately SEK 350 M. During the third quarter net interest income amounted to SEK 3,681 M compared with SEK 3,724 M in the second quarter. Net Commission Income Net commission income for the period January-September 2001 decreased by SEK 425 M or 8 percent to SEK 4,586 M (5,011). Due to lower market volume and lower stock prices, brokerage commissions declined by approximately SEK 320 M and asset management commissions by approximately SEK 380 M. Net commission income from payment services continued to develop strongly, rising by approximately SEK 180 M compared with the corresponding period of 2000. Net commission income during the third quarter amounted to SEK 1,518 M compared with SEK 1,549 M in the second quarter. Net Profit On Financial Operations Net profit on financial operations amounted to SEK 962 M (1,299). Profit on stock trading declined, while income from foreign exchange operations developed positively, mainly at Swedbank Swedbank (formerly called FöreningsSparbanken) is a leading Nordic-Baltic banking group with 8.8 million retail customers and 441,000 corporate customers in Sweden, Estonia, Lithuania and Latvia. In Sweden, the group has more than 470 branches. Markets, though also at FIH and Hansapank. Net profit on financial operations during the third quarter amounted to SEK 341 M. In the second quarter the corresponding profit was SEK 397 M. Other Income Other income amounted to SEK 748 M (1,469) during the first nine months. The second quarter of 2000 included capital gains of approximately SEK 700 M from the sale of ForeningsSparbanken's shareholdings in Bank Handlowy and Svensk Exportkredit AB. The third quarter 2000 figure included a VAT recovery that affected other income by SEK 168 M. Excluding these items, other income amounted to SEK 601 M in January- September September: see month. 2000. Expenses Expenses for January-September 2001 amounted to SEK 10,326 M (9,452). In the second quarter of 2000 the Group reported a surplus insurance refund from Alecta, which reduced expenses by SEK 260 M. Excluding the subsidiaries FIH and Hansapank, allocations to the Kopparmyntet profit-sharing profit-sharing Noun a system in which a portion of the net profit of a business is shared among its employees profit-sharing n → participación f de empleados en los beneficios fund, merger costs and the refund from Alecta, expenses decreased by SEK 155 M or 2 percent to SEK 8,537 M (8,692). Expenses for the third quarter of 2001 amounted to SEK 3,443 M compared with SEK 3,405 M in the second quarter and with SEK 3,106 M in the third quarter of 2000. Staff Costs Staff costs for the first nine months of 2001 amounted to SEK 4,869 M (4,533), including charges of SEK 338 M (85) for profit-sharing allocations in the Group.
Change in number of full-time positions
Number of Group employees in terms of full-time positions.
Sept June Dec Sept
30 30 31 30
2001 2001 2000 2000
Permanent 9,050 9,194 9,106 9,033
employees
Temporary 511 493 574 654
employees
Subtotal 9,561 9,687 9,680 9,687
Hansapank* 6,098 5,961 3,180 3,121
FIH 150 143 142 139
Total 15,809 15,791 13,002 12,947
* The increase in Hansapank during the second quarter of 2001 is
due to the acquisition of LTB.
IT Expenses In addition to computer expenses, IT expenses include all other development and production expenditures as well as service charges for computer equipment and depreciation of computer equipment. IT expenses for the period January-September 2001, after deducting IT-related income from partly owned banks and independent savings banks savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , amounted to SEK 1,798 M (1,621). Third quarter IT expenses amounted to SEK 495 M, following SEK 620 M in the second quarter and SEK 683 M in the first quarter. Consequently, these expenses have, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. plan, gradually decreased since the first quarter of 2001. Other Expenses Expenses directly attributable to the cancelled merger preparations with SEB Noun 1. SEB - a form of staphylococcal enterotoxin that has been used as an incapacitating agent in biological warfare staphylococcal enterotoxin B , excluding staff and IT expenses, amounted to approximately SEK 150 M, of which SEK 100 Mkr in the third quarter and SEK 50 M in the second quarter. Expenses to liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the the Danish Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the bank, Firstviewbank, amounted to approximately SEK 60 M. Loan Losses The loan loss level for January-September 2001 was 0.2 percent (0.2). Loan losses amounted to SEK 878 M (880), of which FIH and Hansapank accounted for SEK 77 M (201). A specification of loan losses and problem loans is provided in Notes 4 and 5. Tax Expense 27 Percent The tax expense amounted to SEK 1,718 M (1,984) for the first nine months, or an effective tax rate of 27 percent (25). The lower tax rate last year is primarily due to a larger share of tax-exempt income Tax-exempt income Dividends and interest not subject to federal and, in some cases, state and local income taxes. . Interest Rate Risk An increase in market interest rates of one percentage point as of September 30, 2001 would have reduced the value of the Group's interest- bearing assets and liabilities, including derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. , by approximately SEK 631 M (637). The decrease in value for positions in SEK would have amounted to SEK 455 M (551) and for positions in foreign currency SEK 176 M (86). The Group's interest rate risk in foreign currency is primarily in the foreign subsidiaries Hansapank and FIH. An interest rate increase of one percentage point would have reduced the Group's net profit on financial operations by approximately SEK 236 M (255) as of September 30, 2001. The Group also holds positions in inflation-indexed instruments, denominated in SEK, which a one-percent increase in real interest rates would have reduced in value by approximately SEK 48 M (40) as of September 30, 2001, of which approximately SEK 24 M (8) would affect reported net profit on financial operations. Capital Adequacy On September 30, 2001 the capital adequacy ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. , which is calculated for the financial companies group, amounted to 10.5 percent (10.8), of which the primary capital ratio was 6.8 percent (6.9). Market risks as a share of the total capital adequacy ratio amounted to 0.6 percentage points (0.5). The risk-weighted amount for credit risks rose to SEK 523 billion (485). The increase is primarily attributable to higher lending by Spintab, FIH and Hansapank. The risk-weighted amount for market risks rose by SEK 6 billion to SEK 30 billion. The increase is mainly due to increased lending in Euro by Hansapank, a change in the maturity structure and an increased holding of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid securities at FIH, in addition to the higher market value of currency-related derivatives at Swedbank Markets owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de a lower exchange rate for the Swedish krona Noun 1. Swedish krona - the basic unit of money in Sweden krona Swedish monetary unit - monetary unit in Sweden ore - a monetary subunit in Denmark and Norway and Sweden; 100 ore equal 1 krona .
Specification of Capital Adequacy
SEK M Sept June Dec Sept
30 30 31 30
2001 2001 2000 2000
Primary capital 37,405 37,346 35,045 33,000
Supplementary capital 25,864 25,679 24,091 25,646
Less shares, etc. - - - -
5,453 5,292 5,020 4,874
Expanded portion of 244 230 883 849
capital base
Capital base 58,060 57,963 54,999 54,621
Risk-weighted amount for 523,269 514,206 484,775 476,456
credit risks
Risk-weighted amount for 29,924 32,197 24,192 20,412
market risks
Total risk-weighted amount 553,193 546,403 508,967 496,868
Capital adequacy ratio, % 10.5 10.6 10.8 11.0
Primary capital ratio, % 6.8 6.8 6.9 6.6
The capital base as of September 30 each year includes profit for
the first six months of each year.
As of September 30, 2001 the ForeningsSparbanken financial companies group included the ForeningsSparbanken Group, Eskilstuna Eskilstuna (ĕ`skĭlstü'nä), city (1990 pop. 89,820), Södermanland co., SE Sweden, between lakes Hjälmaren and Mälaren. Rekarne Rekarne can mean:
interj Scot & Irish an expression of surprise, annoyance, or disagreement Frosta Frosta, the smallest municipality in the county of Nord-Trøndelag, Norway. Frosta was established as a municipality January 1, 1838 (see formannskapsdistrikt). It is one of very few municipalities in Norway with unchanged borders since that date. Sparbank AB, ForeningsSparbanken Sjuharad AB, ForeningsSparbanken Soderhamn AB, Bergslagens Sparbank AB, Vimmerby Vimmerby is a city in Småland in south-eastern Sweden, and the seat of Vimmerby Municipality in Kalmar County. It has a population of 7,827 (2005). Stångån is a small river running through the city. In fact, Vimmerby had its charter as early as the 14th century. Sparbank AB, Aktia Sparbank Ab in Finland Finland, Finnish Suomi (swô`mē), officially Republic of Finland, republic (2005 est. pop. 5,223,000), 130,119 sq mi (337,009 sq km), N Europe. and Sparebank 1 Gruppen in Norway. The Group's insurance companies are not included. Business Area Development Savings Customers' savings in ForeningsSparbanken amounted to approximately SEK 503 billion (531) as of September 30, 2001. Deposits have risen by 10 percent since the beginning of the year Customers' deposits have risen to slightly over SEK 233 billion (211). Since the beginning of the year deposits have risen by a total of SEK 22 billion or slightly over 10 percent. Deposits in SEK were largely unchanged at approximately SEK 183 billion (179), while deposits in foreign currency rose by SEK 18 billion or approximately 57 percent to SEK 50 billion (32). Hansapank's newly acquired subsidiary LTB LTB Lustiges Taschenbuch (German Disney comic) LTB Landlord and Tenant Board LTB Last Time Buy LTB Last Time Buy (purchasing) LTB Looking to Buy accounts for SEK 8 billion of the increased deposits in foreign currency.
Savings and investments, the Group
SEK billion Sept June Dec Sept
30 30 31 30
2001 2001 2000 2000
Deposits from the public
Households, SEK 119.4 113.8 110.5 118.8
Other, SEK 63.3 69.8 68.6 73.2
Households, foreign 13.3 13.0 7.5 7.0
currency
Of which Hansapank 13.3 12.9 7.5 7.0
Other, foreign currency 37.1 33.9 24.7 22.4
Of which Hansapank 16.2 15.8 9.1 8.5
Subtotal 233.1 230.5 211.3 221.4
Discretionary management 21.1 19.4 21.5 22.3
Fund management 238.1 280.0 287.9 297.2
Retail bonds, interest- 3.2 3.1 3.1 4.1
bearing
Retail bonds, stock 5.4 5.4 5.6 5.1
index
Unit-linked fund 38.3 45.7 45.4 48.1
allocated insurance
of which in Group - - 43.7 - - 46.5
companies 36.3 43.5
Total 502.9 540.4 531.3 551.7
Robur's share of net fund investments rose to approximately 19 percent. Net contributions to Robur's funds during the first nine months of 2001 totalled approximately SEK 8.5 billion, against SEK 7.5 billion in the corresponding period previous year. Approximately SEK 4.0 billion (7.9) was insurance savings in Robur Robur can mean a number of things.
Fund management, Robur
Sept June Dec Sept
30 30 31 30
2001 2001 2000 2000
Assets under management 238 280 288 297
(SEK bn)
Of which:
Swedish equities, % 26.8 34.0 34.0 32.8
Foreign equities, % 42.9 43.6 45.3 46.8
Interest-bearing 30.3 22.4 20.7 20.4
securities, %
Number of customers 2,698 2,690 2,637 2,594
(thousands)
Assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. by Robur amounted to SEK 238 billion (288) as of September 30, 2001. The fact that assets under management decreased in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite higher net contributions is due to declining prices on the world's stock markets, which has reduced the value of the funds' investments. Robur's share of assets under management in the fund market was 30 percent as of June June: see month. 31, 2001. The subsidiary ForeningsSparbanken Kapitalforvaltning manages assets of SEK 34 billion (36), of which SEK 13 billion (13) is invested in Robur funds.
Unit-linked insurance, Robur Forsakring
Sept June Dec Sept
30 30 31 30
2001 2001 2000 2000
Assets under management 36 44 44 48
(SEK bn)
Number of policies 592 599 498 465
(thousands)
Sales (premiums paid) of fund-allocated unit-linked insurance amounted to SEK 7 billion (11) during the first three quarters of 2001. Net contributions during the same period amounted to SEK 4.3 billion (8.3). As of September 30, 2001 assets under management by Robur Forsakring amounted to approximately SEK 36 billion (44), a decrease of approximately SEK 8 billion since December December: see month. 31, 2000. On a moving 12-month basis Robur Forsakring had a market share for new fund-allocated unit-linked insurance policies of 21 percent as of June 30, 2001. Robur Forsakring had approximately 592,000 (498,000) policies as of September 30, in addition to around 1 million (950,000) group life insurance policies. Asset Management Results During the first nine months of the year Swedish stock prices fell by nearly 30 percent, while globally, stock prices declined by approximately 15 percent, measured in Swedish kronor. Robur's largest equity funds, Allemansfonderna ("Public Savings Funds") and Kapitalinvest, fell by approximately 23 percent, which was in line with their respective indexes. In absolute terms (Alg.) such as are known, or which do not contain the unknown quantity. See also: Absolute , these funds' performance was slightly better than those that invest only on the Swedish market. The Swedish funds have decreased by 25 percent, or 3 percentage points better than their index. The highest returns were generated by commodity related funds - for example, the Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). Fund, which rose by 23 percent; the Forestry Fund, which rose by 3 percent; and the Commodities Fund, which fell by only 5 percent. The lowest returns were turned in by funds with a large share of growth stocks in their portfolios, such as the Contura Fund (- 47%), the Communication Fund (- 43%) and the Small-Cap Small-cap A stock with a small capitalization, meaning a total equity value of less than $500 million. small-cap 1. Of or relating to the common stock of a relatively small firm having little equity and few shares of common stock Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. Fund (- 43%). Robur's Balanced Funds Balanced Fund A mutual fund that invests its assets into the money market, bonds, preferred stock, and common stock with the intention to provide both growth and income. Also known as an asset allocation fund. , which invest in both equities and fixed income instruments Fixed income instruments Assets that pay a fixed dollar amount, such as bonds and preferred stock. , declined in value by 10 percent during the period. The equity portion of the funds, which accounts for approximately 50 percent of their assets, declined by 23 percent. The fixed-income portion, which represents the other half, rose by 3 percent. The return generated by the Balanced Funds was 2 percentage points lower than their corresponding index. Since the beginning of April, when Robur began managing these funds in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with its new investment process, they have outperformed their index by 1 percentage point. The fixed income market has produced a fairly steady return so far this year, regardless of maturities. The indexes for both short- and long- long- Adverb (in combination) for or lasting a long time: long-established, long-lasting term fixed income funds have risen by 3.3 percent during the period. The returns produced by Robur's fixed income funds range between 2.8 and 3.4 percent. Adjusted for management fees, its long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. funds have slightly outperformed their indexes, while the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. funds have developed in line with their respective indexes. Lending The Group's net lending to the public and credit institutions other than banks and the National Debt Office, excluding repurchase agreements Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. (repos), amounted to approximately SEK 651 billion (608) as of September 30, an increase of SEK 43 billion or 7 percent since the beginning of the year. Lending by Hansapank and FIH totalled approximately SEK 98 billion (77). Approximately SEK 9 billion of the increase is due to fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. exchange rates. Since September 30, 2000 lending has risen by approximately SEK 57 billion or 10 percent. Loans to the household sector amounted to approximately SEK 285 billion (270), an increase of approximately SEK 15 billion or 6 percent. Slightly over 90 percent of which represents increased mortgage lending by Spintab. The increase primarily relates to private and agricultural loans arranged through the Swedish branch office network. Continued Low Exposure to Telecom and It Companies The Group's exposure to companies in the IT and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industries amounted to SEK 8.3 billion (8.3) as of September 30, 2001. The large part of the exposure relates to large, well-known and financially strong Nordic companies in the telecommunications sector.
Lending, the Group
SEK billion Sept June Dec Sept
30 30 31 30
2001 2001 2000 2000
Households 285.2 281.7 270.1 264.9
Of which Spintab 223.9 219.6 210.1 205.9
Real estate 136.7 135.0 131.1 130.3
management
Retail, hotels, 24.9 25.1 23.5 22.6
restaurants
Construction 10.6 10.5 9.6 9.4
Manufacturing 51.1 49.4 43.7 41.4
Transportation 15.5 13.7 11.5 10.0
Forestry and 27.2 26.5 25.4 24.8
agriculture
Other service 14.6 15.5 15.6 16.3
businesses
Other business
lending, 61.9 59.3 50.3 46.6
incl. credit
institutions
Municipalities *) 13.4 13.5 14.3 14.4
Other 10.0 10.3 12.8 13.6
Subtotal 651.1 640.5 607.9 594.3
Repurchase agreements 38.0 25.6 28.6 26.4
(repos)
Total 689.1 666.1 636.5 620.7
Of which Hansapank 22.2 20.0 15.3 13.2
Of which FIH 75.4 71.4 61.4 54.6
* Not including municipal companies.
Payments Customers' card use continues to rise ForeningsSparbanken's card operations continued to grow. As of September 30 the Bank had approximately 2.6 million cards in issue, a gain of around 90,000 or 4 percent compared with December 31, 2000. Customers' card use continues to rise. The number of card transactions cleared climbed to 167 million (125) during the period January-September, up 34 percent from the corresponding period of 2000. e-billing With e-billing, bills are sent directly to customers' online bank accounts, where they can safely and conveniently approve payment. During the third quarter six more companies signed on for the service, bringing the total to 85. Agreements have been signed with another 27 companies that will offer e-billing to their customers. Giro giro Noun pl -ros 1. (in some countries) a system of transferring money within a bank or post office, directly from one account into another 2. The Bank's customers are increasingly switching from paper-based giro payments to an electronic, Internet-based giro system via ForeningsSparbanken by Internet. The share of Internet-based giro transactions rose from 24 percent till 31 percent during the period January-September 2001 compared with the corresponding period of 2000. Retail The branch network is organized into 95 local banks around the country. With its 556 branches, ForeningsSparbanken has the largest network of any Swedish bank. The cooperation with the partly owned and independent savings banks adds another 333 branches. The branch network is complemented by 296 in-store banking locations, in addition to which the agreement with Posten, the Swedish postal service postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval , which allows customers to receive help with certain teller TELLER. An officer in a bank or other institution. He is said to take that name from tallier, or one who kept a tally, because it is his duty to keep the accounts between the bank or other institution and its customers, or to make their accounts tally. transactions at 1,267 post offices and through 2,700 rural mailmen. ForeningsSparbanken by Telephone As of September 30, 2001 approximately 1,180,000 customers (1,000,000) had signed up for ForeningsSparbanken by Telephone with personal assistance, an increase of 180,000 or 18 percent compared with a year earlier. The number of telephone banking customers who use the self- service option was approximately 2.0 million (1.9). The number of self- service visits to the telephone bank decreased by 1 percent compared with the corresponding period a year earlier. The number of visitors to the telephone bank using personal assistance rose by 3 percent during the first three quarters of 2001 compared with the corresponding period 2000. Swedbank Markets Swedbank Markets is the Bank's Investment and Merchant Banking unit and is responsible for institutional and large corporate customers. The business area offers trading in securities and derivatives in the equity, fixed income and currency markets as well as financing solutions and professional analysis and advice. The analysis unit issues a steady stream of analyses on around 150 Nordic companies. In fixed income and currency trading, Swedbank Markets maintained or increased its overall market shares during the third quarter. Its stock trading, on the other hand, was affected during September, by investor nervousness due to the events in the U.S. and Afghanistan. Corporate Finance advised Talisman Energy Talisman Energy TSX: TLM is one of Canada's largest petroleum companies. It was originally part of British Petroleum, known as BP Canada, but in 1992 it became an independent company named Talisman Energy. and mediated me·di·ate v. me·di·at·ed, me·di·at·ing, me·di·ates v.tr. 1. To resolve or settle (differences) by working with all the conflicting parties: the payment for the purchase of Lundin Oil. For individual investors, Swedbank Markets offers stock trading and broad-market products through ForeningsSparbanken's retail organization, the independent savings banks, partly owned banks, ForeningsSparbanken by Internet and ForeningsSparbanken by Telephone. One example is ForeningsSparbanken's SPAX SPAX Sax-like Interface for Parsing Soap stock index bond, a broad-market product whose return is linked to the performance of an official stock index. In September ForeningsSparbanken issued three SPAX products tied to the indexes for Stockholmsborsen, the U.S. stock market and a basket of the best companies in Europe's banking, health care and technology sectors. As of September 30 NetTrade - the Bank's online brokerage service - had 53,700 customers, an increase of 41 percent compared with September 30, 2000. NetTrade accounted for 33 (24) percent of transactions at local banks. Alliances Denmark ForeningsSparbanken owns 65 percent of FI-Holding, which in turn owns nearly 100 percent of FIH. FIH's operating profit for the period January- September amounted to SEK 832 M (570). Its return on equity was 12.7 percent (14.7). Lending to the public amounted to SEK 75 billion (61) on September 30, 2001, with total assets of approximately SEK 92 billion (78). Baltic States Baltic states, the countries of Estonia, Latvia, and Lithuania, bordering on the eastern coast of the Baltic Sea. Formed in 1918, they remained independent republics until their involuntary incorporation in 1940 into the USSR. They regained their independence in Sept. ForeningsSparbanken owns slightly less than 58 percent of Estonia's Hansapank, which reported an operating profit of SEK 814 M (503) in the first three quarters of 2001. Its return on equity was 27.5 percent (23.7). Deposits from the public amounted to SEK 29 billion (17) as of September 30, while lending to the public totalled SEK 22 billion (15). Total assets were approximately SEK 42 billion (26) on the same date. Since June 1, 2001 Lietuvos Taupomasis Bankas (LTB) is included in the Hansapank Group. Reported result has been marginally affected. During the third quarter LTB's income amounted to slightly over SEK 100 M, with an operating profit of SEK 10 M. LTB's total assets amounted to approximately SEK 9 billion on September 30, 2001. Norway ForeningsSparbanken owns 25 percent of SpareBank 1 Gruppen. Sparebank 1 Gruppen, together with its Norwegian Norwegian associated in some way with Norway. Norwegian buhund, Norwegian sheepdog a medium-sized (26-40 lb), spitz-type dog with a short, dense coat in wheaten, black, red or sable, sometimes with black markings on the face, ears co-owner banks, is the fourth largest banking and financial group in Norway. Earnings for the group's insurance operations were affected by falling stock prices. Goodwill amortization attributable to the acquisition of VAR-gruppen last year also had a negative effect on earnings. Finland ForeningsSparbanken owns slightly less than 25 percent of Aktia Sparbank in Finland. Aktia reported operating profit of approximately SEK 248 M (309) in the first nine months of 2001. Its return on equity was 15.9 percent (28.6). Deposits amounted to SEK 18 billion (16), while lending totalled SEK 20 billion kronor (17). Total assets as of September 30, 2001 amounted to SEK 33 billion (26). E-business
The Group's Internet banking services
Sept 30 June 30 Dec 31 Sept
2001 2001 2000 30
2000
Number of customers 967,000 900,000 749,000 666,000
in Sweden
Of whom private 886,000 823,000 691,000 619,000
customers
Of whom business 81,000 77,000 58,000 47,000
customers
Telephone bank via 80,000 65,000 65,000 73,000
the Internet
Number of Baltic 383,000 315,000 214,000 170,000
customers
Total number of 1,430,000 1,280,000 1,028,000 909,000
customers
Customers' Internet Use Continues to Rise The number of Internet payments rose compared with the period January- September 2000, from 22 million to 36 million. Of the giro payments during the first nine months of the year, 31 percent (24) were made online. Twenty percent (21) of the total number of fund purchases and redemptions were made via the Internet as well. Business Customers' Use of e-payrolls is Growing Quickly The e-payroll service introduced by ForeningsSparbanken by Internet a year ago allows businesses to administer their payrolls via the Internet bank. Since the start 21,852 companies have signed agreements to add the service, an increase of approximately 2,100 in the last quarter. New Internet See Web 2.0 and Internet2. Bank for Young People ForeningsSparbanken is the first bank in Sweden to start an Internet bank especially for young people. In addition to basic banking services, the bank will offer its young account holders such features as interesting newspaper and magazine articles and games. In a pilot project, some 3,000 youngsters from 15 to 17 years of age will test the service until the end of the year. A full-scale launch is expected to follow early next year. "The Bank via Internet - Young" is based on a totally new technical platform that utilizes state-of-the-art technology. The same platform will underlie ForeningsSparbanken's future development and provide services for all its digital media, e.g. Internet, mobile services and digital TV. Firstviewbank Liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. ForeningsSparbanken has decided to phase out the operations of its Danish Internet bank, Firstviewbank. The liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy will take place gradually during the autumn, as Firstviewbank's customers are offered alternative solutions in the Danish market. Liquidation costs of approximately SEK 60 M have been charged against third-quarter earnings. Other Foreningssparbanken and SEB Call Off Merger Preparations On September 19 ForeningsSparbanken and SEB announced that they had withdrawn their notification to the European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community concerning the planned merger of the two banks. The decision was made after it was established that the Commission's approval would have required such extensive concessions that the value of the merger would have been lost due to, among other things, a lack of synergies. Bank Included in Important Sustainability Index For the second consecutive year ForeningsSparbanken has been selected for inclusion in the Dow Jones Dow Jones the best known of several U.S. indexes of movements in price on Wall Street. [Am. Hist.: Payton, 202] See : Finance Sustainability Index, DJSI DJSI Dow Jones Sustainability Index , which ranks the world's 2000 largest companies based on financial, environmental and social criteria. The 200 or so companies which rank highest are included in the index. Accounting Change The interim report has been prepared in accordance with recommendation RR 20 of the Swedish Financial Accounting Standards Council and follows the same accounting principles as the most recent annual report, with the exceptions that comply with the Swedish Financial Supervisory Authority's amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. principles for insurance companies, which simplify consolidation. As of 2001 an operational profit and loss account has been introduced. The operational profit and loss account comprises the same legal entities and follows the same accounting principles as the legal profit and loss account, except that the items related to the insurance operations are integrated into the income and expenses of other operations. The descriptions in the running text of this interim report are based on the operational profit and loss account, unless indicated otherwise. The business area review is also based on the operational accounts. ForeningsSparbanken AB (publ) Birgitta Johansson-Hedberg President and Chief Executive Officer Financial Information The Group's financial reports can be accessed on ForeningsSparbanken's home page at http://www. foreningssparbanken.se/ir or at the nearest branch of ForeningsSparbanken. Current financial information is also published in Sweden on TV4's text- TV, page 182. The next issue of the Swedish shareholder magazine Banktidningen will be published in February 2002. ForeningsSparbanken will release its next earnings report on the following dates: Year-end report for 2001 February 14, 2002 Interim report January - March 2002 April 26 Interim report January - June 2002 August 23 Interim report January - September 2002 October 25 The Annual General Meeting in 2002 will be held in Sundsvall on April 11. |
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