Second Quarter Results 2013

17-07-13 7:00 | Press release

Strengthened customer relations, flat costs and higher capital

CEO Christian Clausen’s comments on the results:
“In the uncertain macroeconomic environment, we continue to deliver on our plan on income initiatives, cost efficiency and improved capital position. In the second quarter, 23,000 new relationship customers were welcomed to Nordea and we have reinforced our position as the leading corporate bank in the Nordics and Baltics.

The recently published Prospera survey shows that large companies in the Nordics rank us the best bank in the Nordics, which was confirmed by the Euromoney awards “Best Bank” and “Best Investment Bank” in the Nordics and Baltics.

Total expenses have been unchanged for 11 consecutive quarters. Core tier one capital ratio improved to 14.0% and the pro forma Basel III core tier 1 capital ratio is at least 14.0%.

We see a continued stabilisation of our credit quality. Loan losses declined to 22 basis points in the second quarter 2013. Loan losses in Denmark and shipping declined.”

(For further viewpoints, see CEO comments, page 2)

Half year 2013 vs. Half year 2012 (Second quarter 2013 vs. First quarter 2013)¹:

  • Total operating income unchanged (down 1%)
  • Operating profit unchanged (up 1%)
  • Core tier 1 capital ratio up to 14.0% from 11.8% (up from 13.2%)
  • Cost/income ratio up to 51% (down to 50%)
  • Loan loss ratio of 23 basis points, down from 24 basis points (down to 22 basis points)
  • Return on equity 11.3%, down from 12.1% (up to 11.5% from 11.1%)
Summary key figures, continued operations¹, EURmQ2
2013
Q1
2013
Ch.
%
Q2
2012
Ch.
%
H1
2013
H1
2012
Ch.
%
Net interest income1,3911,35821,415-22,7492,788-1
Total operating income2,4902,506-12,546-24,9965,0160
Profit before loan losses1,2341,23901,287-42,4732,513-2
Net loan losses-186-198-6-203-8-384-418-8
Loan loss ratio (ann.), bps2223242324
Operating profit1,0481,04111,084-32,0892,0950
Risk-adjusted profit8538540867-21,7071,6782
Diluted EPS (cont. oper.), EUR0.200.190.200.390.39
Diluted EPS (total oper.), EUR0.190.200.210.390.40
Return on equity, %11.511.112.511.312.1

Currency rates used for DKK, NOK and SEK for the second quarter 2013 are for income statement items 7.46, 7.48 and 8.50 respectively.
¹) Key figures for continued operations, following the agreement to divest the Polish banking, financing and life insurance operations.

For further information:
Christian Clausen, President and Group CEO, +46 8 614 7804
Torsten Hagen Jørgensen, Group CFO, +46 8 614 7814
Rodney Alfvén, Head of Investor Relations, +46 8 614 7880 (or +46 72 235 05 15)
Claus Christensen, Head of Group Identity & Communications (acting), +45 33331279 (or +45 25248993)

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