Third Quarter Results 2013

23.10.2013

Third Quarter Results 2013

Delivery on income, costs and capital.

 

CEO Christian Clausen’s comments on the results:
“Despite the current low-growth environment with low interest rates, Nordea’s income increased by 3% in local currencies (up 1% reported) compared to the third quarter 2012, primarily driven by savings-related income. Costs are down somewhat in local currencies (down 3% reported) and loan losses are down by 26% (28%), leading to a 15% (12%) increase in operating profit. We have welcomed 87,000 new relationship customers in the last 12 months and World Finance has named us the Best banking Group in the Nordics.

Core tier 1 ratio has improved by 2.2 %-points to 14.4% mainly due to strong capital generation and strict volume discipline. Cost efficiency continues to be high on the agenda and we see our initiatives delivering better than expected.

Credit quality continues to improve, especially in Shipping. Loan losses in the Group decreased to 20 basis points and impaired loans were largely unchanged.”

January-September 2013 vs. Jan-Sep 2012 (Third quarter 2013 vs. Second quarter 2013)¹:

  • Total operating income unchanged (-3%)
  • Operating profit +3% (-3%)
  • Core tier 1 capital ratio up to 14.4% from 12.2% (up from 14.0%)
  • Cost/income ratio unchanged at 51% (up to 51% from 50%)
  • Loan loss ratio of 22 basis points, down from 26 basis points (down to 20 basis points)
  • Return on equity 11.2%, down from 11.4% (down to 10.8% from 11.5%)

Summary key figures, continued operations¹, EURm

Q3
2013

Q2
2013

Ch.
%

Q3
2012

Ch.
%

Jan-
Sep
2013

Jan-
Sep
2012

Ch.
%

Net interest income

1,386

1,391

0

1,393

-1

4,135

4,181

-1

Total operating income

2,426

2,490

-3

2,412

1

7,422

7,428

0

Profit before loan losses

1,192

1,234

-3

1,146

4

3,665

3,659

0

Net loan losses

-171

-186

-8

-236

-28

-555

-654

-15

Loan loss ratio (ann.), bps

20

22

27

22

26

Operating profit

1,021

1,048

-3

910

12

3,110

3,005

3

Risk-adjusted profit

823

853

-4

768

7

2,530

2,446

3

Diluted EPS (cont. oper.), EUR

0.19

0.20

0.17

0.58

0.56

Diluted EPS (total oper.), EUR

0.19

0.19

0.17

0.58

0.57

Return on equity, %

10.8

11.5

10.3

11.2

11.4


¹) Key figures for continued operations, following the agreement to divest the Polish banking, financing and life insurance operations.


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