buy-backs are a tool to maintain an efficient capital structure and distribute excess capital. We received supervisory approval in September for a buy-back of up to EUR 2bn - and were among the first banks in Europe to do so. The Board has now decided to initiate the programme. We are also in dialogue with the ECB about a follow-up programme and expect to make a formal application in early 2022. Over the past few quarters we have consistently delivered on our key priorities: to create great customer experiences, drive income growth initiatives and optimise operational efficiency. This has led to a solid development in our financial performance, which in turn has enabled us to make decisive progress towards our 2022 financial targets. Given this progress, we are now preparing updates to our financial targets and business plan. We intend to publish new financial targets alongside our fourth-quarter and full-year results on 3 February 2022."
Frank Vang-Jensen President and Group CEO
Income statement
Q3 Q3 Chg Q2 Chg Jan-Sep Jan-Sep Chg
2021 2020 % 2021 % 2021 2020 %
EURm
Net interest income 1,226 1,146 7 1,232 0 3,670 3,346 10
Net fee and commission income 870 729 19 878 -1 2,575 2,167 19
Net result from items at fair value 224 257 -13 278 -19 872 683 28
Profit from associated undertakings and joint ventures accounted
for under the equity method 9 6 50 3 -2 -6 -67
Other operating income 15 17 -12 27 -44 67 57 18
Total operating income 2,344 2,155 9 2,418 -3 7,182 6,247 15
Staff costs -702 -686 2 -705 0 -2,089 -2,030 3
Other expenses -237 -245 -3 -262 -10 -985 -967 2
Depreciation, amortisation and impairment charges of tangible and
intangible assets -159 -158 1 -164 -3 -474 -428 11
Total operating expenses -1,098 -1,089 1 -1,131 -3 -3,548 -3,425 4
Profit before loan losses 1,246 1,066 17 1,287 -3 3,634 2,822 29
Net loan losses and similar net result 22 19 16 51 -57 21 -832 -103
Operating profit 1,268 1,085 17 1,338 -5 3,655 1,990 84
Income tax expense -267 -248 8 -313 -15 -841 -450 87
Net profit for the period 1,001 837 20 1,025 -2 2,814 1,540 83 Business volumes, key items^1
30 Sep 2021 30 Sep 2020 Chg % 30 Jun 2021 Chg %
EURbn
Loans to the public 342.6 320.5 7 338.4 1
Loans to the public, excl. repos/securities borrowing 319.5 298.0 7 317.2 1
Deposits and borrowings from the public 210.8 190.0 11 204.6 3
Deposits from the public, excl. repos/securities lending 202.1 183.7 10 196.2 3
Total assets 614.5 574.8 7 586.8 5
Assets under management 392.9 324.5 21 384.2 2
Equity 36.6 32.6 12 35.5 3 Ratios and key figures^2
Q3 Q3 Q2 Jan-Sep Jan-Sep
2021 2020 Chg % 2021 Chg % 2021 2020 Chg %
Diluted earnings per share, EUR 0.25 0.21 19 0.25 0 0.69 0.37 86
EPS, rolling 12 months up to period end, EUR 0.87 0.56 55 0.83 5 0.87 0.56 55
Share price^1, EUR 11.24 6.49 73 9.40 20 11.24 6.49 73
Equity per share^1, EUR 9.06 8.06 12 8.79 3 9.06 8.06 12
Potential shares outstanding^1, million 4,050 4,050 0 4,050 0 4,050 4,050 0
Weighted average number of diluted shares, million 4,042 4,040 0 4,041 0 4,041 4,039 0
Return on equity, % 11.3 10.6 11.9 10.9 6.5
Return on tangible equity, % 12.6 12.0 13.4 12.3 7.4
Return on risk exposure amount, % 2.6 2.2 2.7 2.4 1.3
Return on equity with amortised resolution fees, % 10.8 10.1 11.4 11.1 6.7
Cost-to-income ratio, % 47 51 47 49 55
Cost-to-income ratio with amortised resolution fees, % 49 53 49 49 54
Net loan loss ratio, incl. loans held at fair value, bp -3 -2 -6 -1 35
Common Equity Tier 1 capital ratio^1,3, % 16.9 16.4 18.0 16.9 16.4
Tier 1 capital ratio^1,3, % 18.9 18.2 19.5 18.9 18.2
Total capital ratio^1,3, % 21.0 19.9 21.3 21.0 19.9
Tier 1 capital^1,3, EURbn 28.8 27.4 5 29.6 -3 28.8 27.4 5
Risk exposure amount^1, EURbn 152.6 150.6 1 152.2 0 152.6 150.6 1
Return on capital at risk, % 17.2 13.9 17.7 16.2 8.2
Return on capital at risk with amortised resolution 16.4 13.2 17.0 16.4 8.4
fees, %
Number of employees (FTEs)^1 27,126 27,880 -3 27,510 -1 27,126 27,880 -3
Economic capital^1, EURbn 23.1 23.7 -2 23.2 0 23.1 23.7 -2 1. End of period. 2. See here for more detailed information regarding ratios and key figures defined as alternative performance measures. 3. Including the result for the period.
Outlook
Key priorities to meet 2022 financial targets Nordea's business plan focuses on three key priorities to meet its 2022 financial targets: 1) to optimise operational efficiency, 2) to drive income growth initiatives, and 3) to create great customer experiences.
Financial targets for 2022 Nordea's financial targets for 2022 are: . a return on equity above 10% . a cost-to-income ratio of 50%
Costs (operating expenses) Total costs for 2021 are expected to be around EUR 4.6bn.
Capital policy A management buffer of 150-200bp above the regulatory CET1 requirement, from 1 January 2021.
Dividend policy Nordea's dividend policy stipulates a dividend payout ratio of 60-70%, applicable to profit generated from 1 January 2021. Nordea will continuously assess the opportunity to use share buy-backs as a tool to distribute excess capital.
Credit quality Net loan losses in 2021 are expected to be significantly below the 2020 level.
http://www.rns-pdf.londonstockexchange.com/rns/7891P_1-2021-10-21.pdf
The entire report can be found on the below link on our website.
Nordea Group Q3 2021 Report
For further information: Frank Vang-Jensen, President and Group CEO, +358 503 821 391 Ian Smith, Group CFO, +45 5547 8372 Matti Ahokas, Head of Investor Relations, +358 405 759 178 Ulrika Romantschuk, Head of Brand, Communication and Marketing, +358 10 416 8023
The information provided in this stock exchange release was submitted for publication, through the agency of the contact persons set out above, at 07.30 EET (06.30 CET) on 21 October 2021.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
-----------------------------------------------------------------------------------------------------------------------
End of Media Release
-----------------------------------------------------------------------------------------------------------------------
Language: English
Company: Nordea Bank Abp
Smålandsgatan 17
105 71 Stockholm
Sweden
ISIN: CH0284415681
Valor: A1Z2TU
Listed: SIX Swiss Exchange
EQS News ID: 1242398
End of News EQS Group News Service
=------------ 1242398 2021-10-21
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1242398&application_name=news
(END) Dow Jones Newswires
October 21, 2021 03:00 ET (07:00 GMT)
