The European Banking Authority (EBA) today published its EU wide stress test of the banking system. The stress test confirms that Nordea has a strong balance sheet and profitability. Even in the adverse scenario, and including dividend payments in line with historical levels, Nordea remains profitable both in 2011 and 2012. The annual loan loss ratio does not exceed 0.8% per year in any scenario.
- This stress test confirms the results of previous tests. Nordea has a strong balance sheet and sustainable profitability. Even in the worst-case scenario Nordea remains profitable, says Christian Clausen, President and Group CEO of Nordea.
The Core Tier 1 capital ratio (including transition rules) is improving from 8.9% in 2010 to 9.5% in 2012 in the adverse stress scenario. Excluding transition rules the Core Tier 1 capital ratio changes from 10.3% in 2010 to 9.6% in 2012 in the adverse scenario.
The test was conducted by the EBA in cooperation with the Swedish Financial Supervisory Authority, the European Central Bank, the European Commission and the European Systemic Risk Board.
The EU wide stress test seeks to assess the resilience of European banks to severe shocks and their specific solvency to hypothetical stress events under certain restrictive conditions. Nordea was one of 91 participating European banks.
The stress test does not take into account future business strategies and management actions and is not a forecast of Nordea's profits.
For further information:
Jan Larsson, Head of Group Identity & Communications +46 8 614 7916 (or +46 70 593 34 12)
Erik Durhan Press Officer +46 72 728 17 10
EBA summary of results for Nordeaeba-summary-of-results-for-nordea-english (pdf, 503 KB)