First Quarter Report 2010

05.05.2010

First Quarter Report 2010

Strong result - higher income and lower loan losses

CEO Christian Clausen's comment to the report:

"Nordea's first quarter result was significantly better than the previous quarter and also better than the strong first quarter last year. Total income increased and costs decreased from the previous quarter, resulting in an operating profit increase by close to 50%. Loan loss ratio fell to 37 basis points.

Nordea welcomed more than 12,500 new Gold and Private Banking customers each month in the first quarter. Customer satisfaction increases and we gain market shares in corporate and household lending as well as investment funds.

Net interest income held up well, due to strong customer-related performance, but is still subdued by the exceptionally low interest rates. To reach the ambitious targets for 2013, Nordea's focus is now on the prudent growth strategy and implementing the Group initiatives for growth, efficiency and a strong foundation." (For further viewpoints, see CEO comments, page 2)

First quarter vs fourth quarter:

  • Total income up 7%
  • Expenses decreased 5%
  • Loan loss ratio 37 basis points (52 basis points)
  • Operating profit up 48% and risk-adjusted profit up 27%
  • Outlook. As previously stated, Nordea expects risk-adjusted profit to be lower in 2010 compared to 2009, due to lower income in Treasury and Markets. However, net loan losses in 2010 are likely to be lower than in 2009. Credit quality continues to stabilise, in line with the macroeconomic recovery. (For full outlook, see page 8)

Summary key figures, EURm

Q1 10

Q4 09

Ch.%

Q1 09

Ch.%

Total operating income

2,303

2,158

7

2,279

1

Profit before loan losses

1,139

939

21

1,189

-4

Net loan losses

-261

-347

-25

-356

-27

Loan loss ratio annualised, bps

37

52

54

Operating profit

878

592

48

833

5

Risk-adjusted profit

678

533

27

747

-9

Diluted earnings per share, EUR

0.16

0.11

0.19

Return on equity, %

11.3

8.1

13.9

First Quarter Report 2010 (PDF)


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