Best bank – Svenska Handelsbanken
Best debt house – CSFB
Best equity house – Enskilda Securities
Best M&A house – Enskilda Securities
Best local partner – Enskilda Securities
The top three banks in Sweden are Svenska Handelsbanken, SEB and Swedbank. SEB has shown a high degree of cost control. The bank carried out huge organic cost-cutting in corporate and retail banking as well as downsizing its IT budget over the past year. However, Svenska Handelsbanken wins the award for best bank in Sweden again this year. Its customers were the most satisfied according to a survey carried out by Swedish quality index Svenskt Kvalitetsindex in October 2002.
Handelsbanken has an impressive cost-to-income ratio of 47.2% and has the highest return on equity in Sweden at 14.6% and the lowest loan losses at 0.05%.
In Sweden, Handeslbanken’s market share grew from 19% of mutual fund sales in 2001 to 28.7% in 2002. Its share of household deposits grew from 16.2% in 2001 to 16.4% in 2002. Household lending stayed at 16%.
CSFB wins the award for best debt house. Although the bank doesn’t top the league tables for the 12-month period it has been the most consistent in its involvement across issuance by sovereigns, corporates and financial institutions. It acted as joint bookrunner on the Kingdom of Sweden’s $1 billion issue in November last year. In the financial issuance segment over the past 12 months the bank has been involved in several deals for Spintab, Swedbank’s mortgage institution, as well as SEB and Nordea in Sweden. And, in May last year it acted as joint bookrunner with Barclays Capital and Citigroup on a dual tranche euro/sterling issue for ABB International Finance.
The biggest deal in the equity capital markets over the past 12 months was the $3.2 billion Ericsson rights issue. Many banks were involved in this transaction, including Enskilda Securities. Enskilda was also bookrunner for two of the four largest IPOs in Sweden as well as a secondary placement for Billerud. All these transactions have outperformed the Stockholm All Share index since completion.
Enskilda also has a strong market share on the Swedish stock exchange. It was the largest stockbroker with 9.6% of turnover in 2002 and 11.4% from January to April this year. It has also consistently won awards for equity research in the region.
Enskilda Securities wins the best M&A house award for its high ranking in the league tables and its involvement in a large number of Swedish deals. Enskilda has advised on cross-border deals involving Swedish companies and deals between Swedish companies.
The firm acted as adviser, with Goldman Sachs, to Vodafone on its public offer for outstanding shares in Europolitan Vodafone in February this year. The deal was large at SKr4.9 billion ($632 million). Enskilda was sole adviser to US private-equity company Blackstone on its acquisition of properties from construction services group Skanska, which was Blackstone’s first Swedish deal. Enskilda also advised Swedish private-equity company EQT on its SKr2.2 billion acquisition of Swedish cable television company ComHem from Swedish telecom Telia.
Most foreign banks have a difficult time choosing between Carnegie and Enskilda when it comes to having a local bank on their teams and often the two work on either side of an M&A deal. For example, Carnegie advised JW Childs Equity Partners in its acquisition of Esselte, which was advised by Enskilda. However, Vodafone and Goldman Sachs chose Enskilda as its local partner in advising Vodafone in its acquisition of Europolitan Vodafone, which was advised by Carnegie. Out of the local players, Enskilda has also advised on the most M&A deals and so wins the best local partner award.
