Robust customer business, but financial turmoil affects results
«Despite one of the worst quarters in the financial markets ever, Nordea's development is robust. Excluding short-term effects from the financial turmoil, income grew from previous quarter. Costs decreased, adjusted for the restructuring provision. Thus, effects from the turmoil on operating results are limited.
Customer business volumes continue to grow with income and profit at high levels. The result for the first nine months is up 5% from last year, excluding the restructuring provision.
Nordea will continue with a more focused relationship strategy in order to improve profitability. In line with the ambition to remain in the top league of European banks, Nordea has replaced the previous financial targets with one: an ROE of 15% in a normalised macroeconomic environment».
(For further viewpoints, see CEO comments, page 2)
January-September 2011 vs Jan-Sep 2010 (third quarter 2011 vs second quarter 2011):
Summary key figures, EURm | Q3 2011 | Q2 2011 | Ch.% | Q3 2010 | Ch.% | Jan-Sep 2011 | Jan-Sep 2010 | Ch.% |
---|---|---|---|---|---|---|---|---|
Net interest income |
1,379 |
1,326 |
4 |
1,310 |
5 |
4,029 |
3,794 |
6 |
Total operating income |
2,091 |
2,342 |
-11 |
2,363 |
-12 |
6,943 |
6,827 |
2 |
Profit before loan losses |
678 |
1,067 |
-36 |
1,167 |
-42 |
2,990 | 3,281 |
-9 |
Net loan losses |
-112 |
-118 |
-5 |
-207 |
-46 |
-472 |
-713 |
-34 |
Loan loss ratio annualised, bps |
14 |
15 |
29 |
20 |
34 | |||
Operating profit |
566 |
949 |
-40 |
960 |
-41 |
2,518 |
2,568 |
-2 |
Operating profit, adjusted |
737* |
|
-22 |
|
|
2,689* |
|
|
Risk-adjusted profit |
485 |
643 |
-25 |
707 |
-31 |
1,899 |
1,901 |
0 |
Diluted EPS, EUR |
0.10 |
0.18 |
0.18 |
0.46 |
0.47 | |||
Return on equity, % |
6.5 |
11.5 |
12.2 |
10.0 |
11.0 | |||
Return on equity, adjusted % |
8.5* |
| 10.6* |
|
* Excluding restructuring provision in the third quarter of EUR 171m.
Currency rates used for DKK, NOK and SEK for 2011 are for income statement items 7.45, 7.81 and 9.01 respectively.