Third Quarter Results 2017

Stock exchange releases | 26-10-2017 07:00

CEO Casper von Koskull’s comments on the results:

“Despite increasing geopolitical risks and imbalances in the economy, we continue to see synchronised growth in our home markets. Margins remain stable, although we have not seen the usual pick-up in demand for corporate advisory services after the summer. Costs developed according to plan and credit quality improved as expected. The CET 1 ratio was unchanged at 19.2% and the management buffer increased to 180 bps to its highest level ever.

We are almost two years into the transformation of Nordea. Since investments are starting to deliver, it is time to enter the next phase, in which we see that we can structurally bring down costs and increase efficiency. This transformation would not have been possible without our strong balance sheet and robust business model. In the coming years we will achieve economies of scale by taking our centres of excellence to the next level and create efficient and automated operations. To achieve this we also need to continue a cultural transformation into a purpose-led and values-guided organisation. This shift will help us become first among peers in customer satisfaction.”  

Third quarter 2017 vs. Third quarter 2016 (Third quarter 2017 vs. Second quarter 2017) 

  • Net interest income EUR 1,185m, +1%; +1% in local currencies (+1%, +1% in local currencies)
  • Total operating income[1] EUR 2,373m, -4%; -4% in local currencies (-1%, -1% in local currencies)
  • Total expenses EUR 1,204m, +2%; +2% in local currencies (-7%, -7% in local currencies)
  • Profit before loan losses EUR 1,169m, -9%; -9% in local currencies (+5%, +5% in local currencies)
  • Net loan losses EUR 79m, -41%; -41% in local currencies (-25%, -24% in local currencies)
  • Operating profit[1] EUR 1,090m, -5%; -5% in local currencies (+8%, +8% in local currencies)
  • Common Equity Tier 1 capital ratio 19.2%, up from 17.9% (unchanged from 19.2%)
  • Cost/income ratio[1] 51% up from 48% (down 3%-points from 54%)
  • Loan loss ratio of 10 bps, down from 16 bps (down 3 bps from 13 bps)
  • Return on equity[1] 10.5%, down from 11.6% (up 1.0%-points from 9.5%)
  • Diluted EPS[1] EUR 0.21 vs. EUR 0.22 (EUR 0.21 vs. EUR 0.18)

Exchange rates used for Q3 2017 for income statement items are for DKK 7.4373, NOK 9.2361 and SEK 9.5833.
[1] Excl. non-recurring items in Q2 2016: gain related to Visa Inc.’s acquisition of Visa Europe amounting to EUR 151m net of tax.

For further information:

Casper von Koskull, President and Group CEO, +46 10 157 1020   
Rodney Alfvén, Head of Investor Relations, +46 72 235 05 15    
Torsten Hagen Jørgensen, Deputy CEO and Group COO, +45 5547 2200           
Sara Helweg-Larsen, Head of Group Communications,
+45 2214 0000

Latest interim results
The information in this press release is such, which Nordea Bank AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 07.00 CET on 26 October 2017.