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Risk-adjusted profit
Nordea has introduced a target for risk-adjusted profit in order to signal the ambition to grow the business and thereby contribute to retaining high profitability. Risk-adjusted profit is based on Economic Profit less cost of equity. Risk-adjusted profit is adjusted for major non-recurring items. The target for Risk-adjusted profit is to double in 7 years, which implies an annual growth rate of on average 10%.
Growth in Risk-adjusted profit
| EURm |
2006A |
2007A |
2008A |
2009 |
2010 |
|---|---|---|---|---|---|
| Total income, excl. non-recurring items |
7,121 |
7,766 |
8,118 |
9,073 |
9,246 |
| Total operating expenses |
-3,822 |
-4,066 |
-4,338 |
-4,512 |
-4,816 |
| Expected losses |
-523 |
-615 |
-690 |
-796 |
-858 |
| Standard tax |
-819 |
-833 |
-811 |
-811 |
-950 |
| Risk-adjusted profit |
1,957 |
2,252 |
2,279 |
2,786 |
2,622 |
(Updated: March 2011)
