First Quarter Report 2012

24.04.2012

First Quarter Report 2012

High earnings power and further progress in change agenda

CEO Christian Clausen’s comment to the report:

“Nordea’s strong business momentum continues. We welcomed 22,000 new relationship customers from outside the bank, our new apps more than doubled the number of active mobile bank customers and we strengthened our market-leading position with the largest corporates in the Nordic countries.

Profitability is maintained at a high level, with ROE close to 12%. It is encouraging to see our earnings power despite low interest rates, slow growth and the comprehensive change agenda we are pursuing to build the future bank business model.

Costs are kept under strict control and we have continued to build a stronger capital position and balance sheet. In the quarter, our core tier 1 capital ratio increased by 0.4 %-point to 11.6%.” (For further viewpoints, see CEO comments, page 2)

First quarter 2012 vs first quarter 2011 (first quarter 2012 vs fourth quarter 2011):

  • Net interest income up 7% (largely unchanged)
  • Operating profit up 3% (up 1%)
  • Core tier 1 capital ratio increased to 11.6% excluding transition rules from 10.7% (up from 11.2% in the fourth quarter)
  • Cost / income ratio unchanged at 50% (up from 49% in the fourth quarter)
  • Net loan losses down to 26 basis points from 31 basis points (down from 33 in the fourth quarter)
  • Return on equity 11.7%, down from 12.0% in the first quarter 2011 (down from 12.3% in the fourth quarter)

Summary key figures, EURmQ1 2012Q4 2011Ch. %Q1 2011Ch. %

Net interest income

1 420

1 427

0

1 324

7

Total operating income

2 531

2 558

-1

2 510

1

Profit before loan losses

1 255

1 292

-3

1 245

1

Net loan losses

-218

-263

-17

-242

-10

Loan loss ratio (ann.), bps

26

33

31

Operating profit

1 037

1 029

1

1 003

3

Risk-adjusted profit

799

815

-2

771

4

Diluted EPS, EUR

0.19

0.19

0.18

Return on equity, %

11.7

13.3

12.0

First Quarter Report 2012


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