Third Quarter Report 2012

Stock exchange releases | 24-10-2012 07:00

CEO Christian Clausen’s comment to the report:
“65,000 new household relationship customers and a further strengthening of relations with corporate customers have led to the highest ever income and operating profit in the first nine months of a year, despite the low interest rates.

We continue to increase efficiency in line with our New Normal plan. Expenses remained flat and the core tier 1 capital ratio increased to 12.2%. We are fully compliant with liquidity requirements and have excellent access to the international funding markets.

Income was lower than last quarter, but has never before been this high in a third quarter. For the first three quarters of the year, income increased by 10% and operating profit by 14%.”

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

January-September 2012 vs Jan-Sep 2011 (third quarter 2012 vs second quarter 2012):

  • Total operating income up 10% (down 5%)
  • Operating profit up 14%* (down 16%)
  • Core tier 1 capital ratio up to 12.2% from 11.0% excl. transition rules (up from 11.8%)
  • Cost/income ratio down to 51% from 54%* (up to 52% from 50%)
  • Loan loss ratio up to 27 basis points from 20 basis points (up to 30 bps from 26 bps)
  • Return on equity 11.4%, up from 10.6%* (down to 10.1% from 12.5%)
Summary key figures,
EURm
Q3
2012
Q2
2012
Ch.
%
Q3
2011
Ch.
%
Jan-Sep
2012
Jan-Sep
2011
Ch.
%
Net interest income 1,441 1,462 -1 1,379 4 4,323 4,029 7
Total operating income 2,469 2,606 -5 2,091 18 7,606 6,943 10
Profit before loan losses 1,176 1,316 -11 678 73 3,747 2,990 25
Net loan losses -254 -217 17 -112 127 -689 -472 46
Loan loss ratio (ann.), bps 30 26 14 27 20
Operating profit 922 1,099 -16 566 63 3,058 2,518 21
Operating profit, adjusted 737* 25 2,689* 14
Risk-adjusted profit 749 851 -12 485 54 2,399 1,899 26
Diluted EPS, EUR 0.17 0.21 0.10 0.57 0.46
Return on equity, % 10.1 12.5 6.5 11.4 10.0
Return on equity, adjusted, % 8.5* 10.6*

* Excluding restructuring provision in the third quarter 2011 of EUR 171m.
Currency rates used for DKK, NOK and SEK for the third quarter 2012 are for income statement items 7.44, 7.51 and 8.73 respectively.

For further information:
Christian Clausen, President and Group CEO, +46 8 614 7804
Fredrik Rystedt, Group CFO, +46 8 614 7812
Rodney Alfvén, Head of Investor Relations, +46 8 614 7880 (or +46 72 235 05 15)
Jan Larsson, Head of Group Identity & Communications, +46 8 614 7916 (or +46 70 593 34 12)

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