Fourth Quarter and Full Year Results 2013

Stock exchange releases | 29-01-2014 07:00

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, EURm Q4
2013
Q3
2013
Ch.
%
Q4 2012 Ch.
%
2013 2012 Ch.
%
Net interest income 1,390 1,386 0 1,382 1 5,525 5,563 -1
Total operating income 2,469 2,426 2 2,570 -4 9,891 9,998 -1
Profit before loan losses 1,186 1,192 -1 1,275 -7 4,851 4,934 -2
Net loan losses -180 -171 5 -241 -25 -735 -895 -18
Loan loss ratio (ann.), bps 21 20   28 21 26
Operating profit 1,006 1,021 -1 1,034 -3 4,116 4,039 2
Risk-adjusted profit 821 823 0 867 -5 3,351 3,313 1
Diluted EPS (cont. oper.), EUR 0.19 0.19   0.21   0.77 0.77  
Diluted EPS (total oper.), EUR 0.19 0.19   0.21   0.77 0.78  
Return on equity, % 10.5 10.8   11.9   11.0 11.6  

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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