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Outlook
Capital policy
A management buffer of 150-200 bps above the regulatory CET1 requirement, from 1 January 2020.
Credit quality
New: For the full year 2020, our projections point to total net loan losses below EUR 1bn corresponding to a loan loss level of less than 41 bps. In the first half of 2020, Nordea has reported total net loan losses of EUR 852m.
Previous: It is too early to give an outlook for loan losses, as the economic impact of the COVID-19 is still very uncertain.
Costs
In 2020, Nordea expects to reach a cost base of below EUR 4.7bn with planned continued net cost reductions beyond 2020.
(Last updated July 17th 2020)
Financial targets 2022
50%
Cost / income ratio in FY22
>10%
Return on equity in FY22
Dividend policy
Our dividend policy stipulates a dividend payout ratio of 60-70%, applicable to profit generated from 1 January 2020. Nordea will continuously assess the opportunity to use share buy-backs as a tool to distribute excess capital.