First Quarter Report 2012

24-04-12 6:55 | Press release

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,

EURm
Q1 2012Q4 2011Ch.
%
Q1 2011Ch.
%
Net interest income1,4201,42701,3247
Total operating income2,5312,558-12,5101
Profit before loan losses1,2551,292-31,2451
Net loan losses-218-263-17-242-10
Loan loss ratio (ann.), bps263331
Operating profit1,0371,02911,0033
Risk-adjusted profit799815-27714
Diluted EPS, EUR0.190.190.18
Return on equity, %11.712.312.0

Currency rates used for DKK, NOK and SEK for the first quarter 2012 are for income statement items 7.44, 7.59 and 8.85 respectively.

For further information:
Christian Clausen, President and Group CEO, +46 8 614 7804
Fredrik Rystedt, Group CFO, +46 8 614 7812
Rodney Alfvén, Head of Investor Relations, +46 8 614 7880 (or +46 72 235 05 15)
Jan Larsson, Head of Group Identity & Communications, +46 8 614 7916 (or +46 70 593 34 12)

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