Second Quarter Report 2011

21.07.2011

Second Quarter Report 2011

Second Quarter Report 2011

Half-year operating profit up 21% to EUR 1,952m

CEO Christian Clausen's comment to the report:

"The solid business momentum is maintained. Income from customer areas increased by 5% in the quarter and both operating and risk-adjusted profit are higher than last year. Loan losses are at the lowest level since 2008 and credit quality continues to improve.

At the same time, the trading result decreased from last quarter's high levels due to volatility in the financial markets and interest income was affected by increased and prolonged funding.

Nordea's relationship strategy has laid a solid foundation for our New Normal ambition to reach an ROE in the top league of European banks of around 15%. In the autumn, we will continue to improve capital efficiency and implement plans to contain cost growth in the later part of 2011, and thereafter keep costs largely unchanged for a prolonged period of time."

(For further viewpoints, see CEO comments, page 2)

First half year 2011 vs first half year 2010 (second quarter 2011 vs first quarter 2011):

  • Total income up 9% (down 7%)
  • Number of Gold and Private Banking customers up 183,000 or 6%
    (up 40,000 in the second quarter, a 5% growth rate)
  • Net loan losses 17 basis points excluding the Danish deposit guarantee fund provision, down from 36 bps last year (12 bps in second quarter down from 22 bps in first quarter)
  • Operating profit up 21% (down 5%)
  • Core tier 1 capital ratio 11.0% excluding transition rules, up from 10.0% one year ago
    (up from 10.7% in the first quarter 2011)
  • Return on equity 11.7%, up from 10.4% in first half year 2010
    (11.5% in the second quarter 2011, down from 12.0% in the first quarter 2011)

Summary key figures, EURm Q2 2011Q1 2011Ch.%Q2 2010Ch.%H1 2011H1 2010Ch.%

Net interest income

1,326

1,324

1,249

2,650 

2,484 

7

Total operating income

2,342

2,510

-7

2,161

8

4,852 

4,464

Profit before loan losses

1,067

1,245 

-14

975 

2,312 

2,114

Net loan losses

-118

-242

-51

-245

-52

-360

-506

-29

Loan loss ratio annualised, bps

15 

31 

35

23

36

Operating profit

949

1,003

-5

730

30

1,952

1,608

21

Risk-adjusted profit

643

771

-17 

516 

25

1,414

1,194

18

Diluted earnings per share, EUR

0.18 

0.18 

0.13

0.36

0.29

Return on equity, %

11.5

12.0 

9.5

11.7

10.4

Second Quarter Report 2011 (PDF)


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