Best bank
Svenska Handelsbanken Best debt house
Barclays Capital
Best equities house
Enskilda Securities
Best M&A house
Deutsche Bank
Best at cash management
SEB
Best at risk management
Deutsche Bank
Best at investor services
Nordea
Svenska Handelsbanken is one of the most profitable banks in the region and remains the best bank. Its profits after tax grew by 11% to SKr8.1 billion ($1.1 billion) in 2003. Handelsbanken Markets, its investment bank, doubled profits to SKr1,009 million.
Assets rose to SKr1,316 billion and loan losses were kept low. The bank had a higher return on equity than its peers, rising to 14.9%. With a cost/income ratio of 46.5%, Handelsbanken is the region?s most cost-effective bank. In March, Moody?s upgraded its long-term credit rating to Aa1 from Aa2.
Danske Bank and Nordea are the largest banking groups by assets, but Nordea still needs to cut costs and rationalize. Danske?s cost/income ratio has improved but it is higher than Handelsbanken?s at 55%. In April, Moody?s upgraded Danske?s long-term rating from Aa2 to Aa1.
Both SEB and Swedbank (FöreningsSparbanken) have strong operations in Sweden and a presence in all the Baltic markets. SEB lowered costs again but its cost/income ratio is 71.7% and Swedbank?s 61%.
Many Nordic and Baltic sovereigns issued bonds this year, as did financial institutions. Corporates preferred the loan market. While Citigroup wins best debt house in Sweden and Finland, the two most active bond and loan markets, Barclays Capital is regional winner for its consistency, as well as for being involved with different types of issuers.
Despite not winning any country awards, BarCap was hot on Citigroup?s heels in Sweden and Finland and was stronger in other Nordic countries, including Iceland.
Deutsche Bank also did well, acting as bookrunner in about double the amount of bond issuance as BarCap and Citigroup, but it was not as active in syndicated loans. The strongest local house is Nordea, clear leader in the Nordic loan market.
Enskilda Securities scoops best equities house for its involvement in the primary markets. It was also strong in secondary markets and has respected brokerage and research teams. Enskilda acted as lead manager in three deals for Swedish kitchen fittings manufacturer Nobia. The firm was also joint lead manager for both of Alfa Laval?s follow-on offerings, and was joint lead manager for ABB?s $2.5 billion rights issue. Enskilda was not a bookrunner on the Oriflame IPO but was a co-lead manager. It was also involved in several other IPOs, such as those for Aker Kværner and Yara.
Deutsche Bank wins best regional M&A house. The bank had the highest market share of deals, with a good range involving firms across the region. It advised on the government?s sale of an additional 13.9% of its stake in Norwegian telecom company Telenor, and it advised US industrial tools maker Danaher in its acquisition of Radiometer for DKr4.49 billion ($735.5 million).
Deutsche also advised local companies in acquiring outside the region. It advised Swedish healthcare provider Capio in its acquisition of the 80% of UK Healthcare that it did not already own for £262 million ($477 million). It advised Swedish hygiene products company Svenska Cellulosa in its acquisition of tissue and feminine-hygiene businesses from a New Zealand plantation operator for NZ$1 billion ($632.5 million).
SEB is best at cash management. According to Euromoney?s poll, the firm had the highest average score across all questions in the section ?How do their own customers rate them?? SEB?s key strength in cash management and payments is its technology. The firm has also helped set up the Integrated Business Exchange, IBX, a procurement business exchange.
IBX aims to reduce costs for clients. Total savings estimated by Ericsson for 2000/04 were e100 million. IBX sees e200 million through the platform each month. Patrik Havander, head of concepts and packaging at SEB, says: ?IBX is now one of the largest e-market places in Europe.?
Deutsche is best at risk management. It offers top services across foreign exchange, interest rates and credit and has been strong in providing creative ideas and balance sheet advice to clients.
Although Citigroup is strong in foreign exchange advisory services and performed well across Nordic currencies in our foreign exchange poll, it has not done as much credit risk management for Nordic clients.
Nordea is best at investor services. It is consistently highly rated across the region and has an impressive size of assets under custody, with a 16% increase over the year.
The bank has also made efforts to improve services for clients. Nordea has added to its risk management processes within custody services.
It has also streamlined its services for financial institutions, including custody services, by creating a separate division for such clients.
