Nordea: Fourth Quarter and Full Year Results 2012

Strong capital position, flat costs and growing income

STOCKHOLM, Sweden--()--Regulatory News:

CEO Christian Clausen’s comment to the results:

“In 2012, we had more customers, more capital and higher profit than ever before. We are ahead of the plan that was established in 2011. On that foundation, we will shape the future of Nordea, with closer customer relationships, unchanged costs and increased return on equity.

85,000 new relationship customers and more business with our customers have led to an increased income in the quarter and the year. The flat cost target was achieved in 2012. Despite lending growth of 3%, risk-weighted assets were reduced by 9%.

Return on equity increased in 2012 to 11.6% and the core tier 1 capital ratio increased to 13.1%. Dividend is proposed to be EUR 0.34, which corresponds to a payout-ratio of 44%, in line with our policy.”

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

Full year 2012 vs full year 2011 (fourth quarter 2012 vs third quarter 2012):

  • Total operating income up 8% (up 7%), operating profit up 11%* (up 15%)
  • Core tier 1 capital ratio up to 13.1% from 11.2% excl. transition rules (up from 12.2%)
  • Loan loss ratio 28 basis points, up from 23 basis points (down to 29 bps from 30 bps)
  • Assets under Management EUR 218bn, up 16% (up 4%)
  • Return on equity 11.6%, up from 11.1%* (up to 12.1% from 10.1%)
  • Proposed dividend EUR 0.34 (last year EUR 0.26)
  • Ambitious financial target and new capital policy established
Summary key figures,
EURm
  Q4
2012
  Q3
2012
  Ch.
%
  Q4
2011
  Ch.
%
  2012   2011   Ch.
%
Net interest income   1,429   1,441   -1   1,427   0   5,752   5,456   5
Total operating income   2,630   2,469   7   2,558   3   10,236   9,501   8
Profit before loan losses   1,303   1,176   11   1,292   1   5,050   4,282   18
Net loan losses   -244   -254   -4   -263   -7   -933   -735   27
Loan loss ratio (ann.), bps   29   30       33       28   23    
Operating profit   1,059   922   15   1,029   3   4,117   3,547   16
Operating profit, adjusted                           3,718*   11*
Risk-adjusted profit   846   749   13   815   4   3,245   2,714   20
Diluted EPS, EUR   0.21   0.17       0.19       0.78   0.65    
Return on equity, %   12.1   10.1       12.3       11.6   10.6    
Return on equity, adjusted, %                           11.1*    

* Excluding restructuring provision in the third quarter 2011 of EUR 171m.

Currency rates used for DKK, NOK and SEK for the fourth quarter 2012 are for income statement items 7.44, 7.48 and 8.71 respectively.

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Contacts

Nordea
President and Group CEO
Christian Clausen, +46 8 614 7804
or
Group CFO
Torsten Hagen Jørgensen, +46 8 614 7814
or
Head of Investor Relations
Rodney Alfvén, +46 8 614 7880 (or +46 72 235 05 15)
or
Head of Group Identity & Communications
Jan Larsson, +46 8 614 7916 (or +46 70 593 34 12)

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Contacts

Nordea
President and Group CEO
Christian Clausen, +46 8 614 7804
or
Group CFO
Torsten Hagen Jørgensen, +46 8 614 7814
or
Head of Investor Relations
Rodney Alfvén, +46 8 614 7880 (or +46 72 235 05 15)
or
Head of Group Identity & Communications
Jan Larsson, +46 8 614 7916 (or +46 70 593 34 12)