We have now been executing our business plan for a year and a half, and are well on track to meet our financial targets for 2022. We are determined to continuously improve our performance by focusing on our three key priorities: to create great customer experiences, drive income growth initiatives and optimise operational efficiency. We will also continue to integrate sustainability into our business strategy and take the necessary steps to become a net-zero emissions bank by 2050 at the latest.
I am confident that we are moving towards brighter times and steadily beating the virus. Nordea will enter the post-pandemic future in a position of strength. Our direction is clear: to be a strong and personal financial partner, a more profitable bank, and a safe and trusted contributor to society."
Frank Vang-Jensen
President and Group CEO
Income statement
Q1 Q1 Chg % Q4 Chg %
2021 2020 2020
EURm
Net interest income 1,212 1,109 9 1,169 4
Net fee and commission income 827 765 8 792 4
Net result from items at fair value 370 110 217 71
Profit from associated undertakings and joint ventures accounted for under the equity
method -14 -2 5
Other operating income 25 20 25 36 -31
Total operating income 2,420 2,002 21 2,219 9
Staff costs -682 -699 -2 -722 -6
Other expenses -486 -419 16 -319 52
Depreciation, amortisation and impairment charges of tangible and intangible assets -151 -130 16 -177 -15
Total operating expenses -1,319 -1,248 6 -1,218 8
Profit before loan losses 1,101 754 46 1,001 10
Net loan losses and similar net result -52 -155 -66 -28 86
Operating profit 1,049 599 75 973 8
Income tax expense -261 -139 88 -248 5
Net profit for the period 788 460 71 725 9 Business volumes, key items^1
31 Mar 2021 31 Mar 2020 Chg % 31 Dec 2020 Chg %
EURbn
Loans to the public 333.6 324.3 3 329.8 1
Loans to the public, excl. repos 320.3 295.4 8 317.6 1
Deposits and borrowings from the public 198.2 174.0 14 183.4 8
Deposits from the public, excl. repos 194.5 169.2 15 182.1 7
Total assets 591.1 600.4 -2 552.2 7
Assets under management 371.7 280.4 33 353.8 5
Equity 34.5 31.5 10 33.7 2 Ratios and key figures^2
Q1 2021 Q1 2020 Chg % Q4 2020 Chg %
Diluted earnings per share, EUR 0.19 0.11 73 0.18 6
EPS, rolling 12 months up to period end, EUR 0.64 0.38 68 0.55 16
Share price^1, EUR 8.41 5.13 64 6.67 26
Equity per share^1, EUR 8.53 7.79 9 8.35 2
Potential shares outstanding^1, million 4,050 4,050 0 4,050 0
Weighted average number of diluted shares, million 4,040 4,038 0 4,039 0
Return on equity, % 9.4 5.9 8.9
Return on tangible equity, % 10.6 6.6 10.0
Return on risk exposure amount, % 2.0 1.2 1.9
Return on equity with amortised resolution fees, % 11.0 6.9 8.4
Cost-to-income ratio, % 55 62 55
Cost-to-income ratio with amortised resolution fees, % 48 57 57
Net loan loss ratio, amortised cost, bp 6 19 3
Common Equity Tier 1 capital ratio^1,3, % 17.5 16.0 17.1
Tier 1 capital ratio^1,3, % 19.2 17.8 18.7
Total capital ratio^1,3, % 20.9 20.2 20.5
Tier 1 capital^1,3, EURbn 29.6 27.1 9 29.1 2
Risk exposure amount^1, EURbn 154 152 1 155 -1
Return on capital at risk, % 13.6 7.2 12.1
Return on capital at risk with amortised resolution fees, % 15.8 8.4 11.5
Number of employees (FTEs)^1 27,800 28,292 -2 28,051 -1
Economic capital^1, EURbn 23.4 25.8 -9 23.5 -1 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 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 below 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.
http://www.rns-pdf.londonstockexchange.com/rns/0403X_1-2021-4-29.pdf
The entire report can be found on the below link on our website.
Nordea Group Q1 2021 Report
For further information: Frank Vang-Jensen, President and Group CEO, +358 Ian Smith, Group CFO, +45 5547 8372 503 821 391 Matti Ahokas, Head of Investor Relations, +358 405 Ulrika Romantschuk, Head of Brand, Communication and Marketing, 759 178 +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 29 April 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: 1190289
End of News EQS Group News Service
=------------ 1190289 2021-04-29
Image link:
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1190289&application_name=news(END) Dow Jones Newswires
April 29, 2021 02:51 ET (06:51 GMT)
