Fourth Quarter and Full Year Results 2015

Blue Nordea logo
27-01-16 7:00 | Press release

CEO Casper von Koskull’s comments on the results:

“2015 was a challenging year with exceptionally low interest rates, geopolitical tensions and market turmoil. Under these market conditions we are pleased to report an increase in the income level of 3% in local currencies[2]. We also delivered a reduction in costs to EUR 4.7bn, in line with our target, and credit quality improved during the year. Consequently, operating profit improved by 7%[2]. The Common Equity Tier 1 ratio improved 80 bps to 16.5%. The Board proposes a dividend per share of EUR 0.64 compared to the actual dividend of EUR 0.62 per share for 2014.

The coming three years will be a transition period in which we will execute on our transformational change agenda in order to generate a truly digital bank. We will initiate certain key activities to manage the transition efficiently, which led to a restructuring charge of EUR 263m in the fourth quarter. Together with the investments in our core banking platform, the outcome of this transformational agenda will lead to a more efficient and straightforward structure and reduce administrative complexity to the benefit of our customers, employees and investors, and enable us to become truly “One Nordea”.

Full year 2015 vs. Full year 2014 (Fourth quarter 2015 vs. Fourth quarter 2014)[1]:

  • Net interest income EUR 5,110m, -7%, in local currencies -4% (-8%, -6% in local currencies)
  • Total operating income EUR 9,964m excl. non-recurring items[2], +1%[2], in local currencies +3%[2] (-2%[2], unchanged in local currencies[2])
  • Total operating expenses EUR 4,694m excluding non-recurring items[2], -4%[2], in local currencies -1%[2] (-2%[2], unchanged in local currencies[2])
  • Profit before loan losses EUR 5,270m excluding non-recurring items[2], +5%[2], in local currencies +7%[2] (-2%[2], unchanged in local currencies)
  • Net loan losses EUR 479m, -10%, -8% in local currencies (+10%, +12% in local currencies)
  • Operating profit EUR 4,791m excluding non-recurring items[2], +7%[2], in local currencies +9%[2] (-4%[2], in local currencies -2%[2])
  • Common equity tier 1 capital ratio 16.5%, up from 15.7%
  • Cost/income ratio down to 47.1%[2] from 49.3%[2] (up 0.2 %-points from 48.9%[2])
  • Loan loss ratio of 14 basis points, down from 15 basis points (up 2 basis points to 17 basis points)
  • Return on equity 12.3%[2], up from 11.5%[2] (down 0.3 %-points to 11.5%)
  • Diluted EPS (total operations) EUR 0.91 vs. EUR 0.83 (EUR 0.21 vs. EUR 0.22)
  • Proposed dividend per share of EUR 0.64 vs. actual dividend per share of EUR 0.62 for 2014

Exchange rates used for Q4 2015 for income statement items are for DKK 7.46, NOK 8.94 and SEK 9.35
] Key figures for continuing operations, following the divestment of the Polish banking, financing and life insurance operations.
] Excluding non-recurring items (Q2 2014: restructuring charge of EUR 190m, Q3 2014: gain from the divestment of Nets EUR 378m and impairment of intangible assets EUR 344m, Q4 2015: gain from divestment of Nordea’s merchant acquiring business to Nets of EUR 176m before tax and restructuring charge of EUR 263m)

For further information:
Casper von Koskull, President and Group CEO, +46 10 1571020
Torsten Hagen Jørgensen, Group COO, +45 5547 2200
Rodney Alfvén, Head of Investor Relations, +46 72 235 05 15
Claus Christensen, Head of Group Communications, +45 25248993

Latest interim results

The information provided in this press release is such that Nordea is required to disclose pursuant to the Swedish Financial Instruments Trading Act (1991:980) and/or the Swedish Securities Markets Act (2007:528).