Fourth Quarter and Full Year Results 2018

11.02.2019

Fourth Quarter and Full Year Results 2018

Nordea Bank Abp – Stock exchange release – Financial Statement Release

CEO Casper von Koskull’s comments on the results:
“2018 has been characterised by key deliveries in our transformation journey: Nordea is now a more focused, simpler and resilient bank – operating in the banking union – with a much improved risk and compliance platform following considerable investments. We are also delivering on the cost efficiency plans; credit quality remains strong and the balance sheet is robust. Thus, we are prepared to manage the bank successfully through the cycle.

At the same time, the results for 2018 are not where we want them to be, featuring a challenging revenue development; driven by margin pressure in household lending, muted volume growth, and pressure on savings and market making revenues. Towards the end of the year, margins stabilised, but the difficult market conditions in the fourth quarter further impacted our asset management and net fair value revenues negatively.

For 2019, our priorities are very clear. We are now well placed to intensify our client efforts and increase business momentum while at the same time continuing to drive structural cost efficiency. It is now all about execution.”

The Nordea Bank Board is going to propose a dividend per share of EUR 0.69.

Full year 2018 vs. Full year 2017 (Fourth quarter 2018 vs. Fourth quarter 2017)

  • Net interest income EUR 4,324m, -7%; -5% in local currencies (2%, 3% in local currencies)
  • Total operating income EUR 9,005m, -5%; -3% in local currencies (-6%, -4% in local currencies)
  • Total expenses EUR 4,879m, -4%; -2% in local currencies (2%, 3% in local currencies)
  • Profit before loan losses EUR 4,126m, -6%; -4% in local currencies (-17%, -16% in local currencies)
  • Net loan losses EUR 173m, -53%; -51% in local currencies (-58%, -57% in local currencies)
  • Operating profit EUR 3,953m, -1%; 1% in local currencies (-13%, -13% in local currencies)
  • Common Equity Tier 1 capital ratio 15.5% vs.19.5% (15.5% vs. 19.5%)
  • Cost/income ratio 54% vs. 54% (66% vs. 61%)
  • Loan loss ratio of 7bps vs. 12bps (5bps vs. 9bps)
  • Return on equity 9.7% vs 9.5% (6.1% vs. 7.7%)
  • Diluted EPS EUR 0.76 vs. EUR 0.75 (EUR 0.12 vs. EUR 0.15)

Exchange rates used for Q4 2018 for income statement items are for DKK 7.4533, NOK 9.6033 and SEK 10.2608.



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