First Quarter Results 2016

27-04-16 7:00 | Press release

CEO Casper von Koskull’s comments on the results:

“The business environment has been relatively stable at the beginning of 2016, although turmoil on the financial markets, and even lower interest rates, have put pressure on revenues. Costs are under strict control and are developing according to plan, and loan losses were below the 10-year average of 16 basis points. Given the environment the result is acceptable. The Common Equity Tier 1 ratio increased to 16.7%.

In the past year we have significantly strengthened the functions and processes devoted to regulatory compliance. Since the requirements that Nordea must fulfil and the risks, to which we are exposed, are constantly changing, work on being compliant and improving risk management will be under constant development. However, all these efforts will only succeed if we continue to have a strong risk and compliance culture, in which values and ethical considerations are always an integral part of our business model. As CEO, I will take all actions necessary to ensure that we stay a safe and trusted partner.”

First quarter 2016 vs. First quarter 2015 (First quarter 2016 vs. Fourth quarter 2015)[1]:

  • Net interest income EUR 1,168m, -7%, -4% in local currencies (-3%, -2% in local currencies)
  • Total operating income[1] EUR 2,295m, -16%, -14% in local currencies (-7%, -7% in local currencies)
  • Total expenses[1] EUR 1,178m, -1%, unchanged in local currencies (-3%, -2% in local currencies)
  • Profit before loan losses[1] EUR 1,117m, -27%, -26% in local currencies (-11%, -11% in local currencies)
  • Net loan losses EUR 111m, -9%, -5% in local currencies (-22%, -20% in local currencies)
  • Operating profit[1] EUR 1,006m, -29%, -27% in local currencies (-10%, -9% in local currencies)
  • Common Equity Tier 1 capital ratio 16.7%, up from 15.6% (up 20 basis points from 16.5%)
  • Cost/income ratio[1] 51.3%, up from 43.7% (up 2.2 %-points from 49.1%)
  • Loan loss ratio of 13 basis points, down from 14 basis points (down 4 basis points from 17 basis points)
  • Return on equity[1] 10.3%, down from 14.3% (down 1.2 %-points from 11.5%)
  • Diluted EPS EUR 0.19 vs. EUR 0.27 (EUR 0.19 vs. EUR 0.21)

Exchange rates used for Q1 2016 for income statement items are for DKK 7.46, NOK 9.53 and SEK 9.32
[1] Excluding non-recurring items (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 10 157 1020             
Torsten Hagen Jørgensen, Group COO, +45 5547 2200
Rodney Alfvén, Head of Investor Relations, +46 72 235 05 15                
Emma Rheborg, Group Communications, +46 73 380 22 63

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).