Fourth Quarter and Full Year Results 2013

29-01-14 7:00 | Press release

CEO Christian Clausen’s comments on the results:
“2013 was another year of low growth and interest rates declined to record-low levels. In this environment, we delivered a stable income level (in local currencies) and saw a continued inflow of relationship customers. For the 13th consecutive quarter, we have kept costs flat. Loan losses decreased by 17% and the operating profit increased by 3% (both in local currencies). The core tier 1 ratio has improved by 180 basis points to 14.9%, due to modest loan demand, strong capital generation and continued efficiencies. The Board of Directors proposes a dividend of EUR 0.43 per share (EUR 0.34).

We expect that the economic growth and the interest rates levels will stay low for a prolonged period of time. Thus, we expect that the loan demand and customer activity will be at a lower level than we foresaw last year when we announced our plans for the future relationship bank. As a consequence we will accelerate and expand our cost efficiency programme. This will enable us to adjust our capacity to the lower activity level and to maintain our position as a strong bank.”

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

Full year 2013 vs. full year 2012 (Fourth quarter 2013 vs. Third quarter 2013)¹:

  • Total operating income -1%, in local currencies 0% (+2%)
  • Operating profit +2%, in local currencies 3% (-1%)
  • Core tier 1 capital ratio up to 14.9% from 13.1% (up from 14.4%)
  • Cost/income ratio unchanged at 51% (up to 52% from 51%)
  • Loan loss ratio of 21 basis points, down from 26 basis points (up to 21 bps from 20 bps)
  • Return on equity 11.0%, down from 11.6% (down to 10.5% from 10.8%)
  • Proposed dividend EUR 0.43 per share (last year EUR 0.34 per share)
Summary key figures, continuing operations¹, EURmQ4
Q4 2012Ch.
Net interest income1,3901,38601,38215,5255,563-1
Total operating income2,4692,42622,570-49,8919,998-1
Profit before loan losses1,1861,192-11,275-74,8514,934-2
Net loan losses-180-1715-241-25-735-895-18
Loan loss ratio (ann.), bps2120 282126
Operating profit1,0061,021-11,034-34,1164,0392
Risk-adjusted profit8218230867-53,3513,3131
Diluted EPS (cont. oper.), EUR0.190.19 0.21 0.770.77 
Diluted EPS (total oper.), EUR0.190.19 0.21 0.770.78 
Return on equity, % 10.510.8 11.9 11.011.6 

Currency rates used for DKK, NOK and SEK for the fourth quarter 2013 are for income statement items 7.46, 7.81 and 8.65 respectively.
¹) Key figures for continuing 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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