17.07.2014

Results of Nordea Group in the 2nd Quarter of year 2014

CEO Christian Clausen’s comments on the results: “The second quarter of 2014 was characterised by a continued inflow of customers and strong activity, particularly in our savings area and corporate advisory business. Income is holding up well, despite low lending demand, low interest rates and low volatility, and we continue to execute on our cost and capital efficiency programmes. Underlying costs are down in local currencies and cost to income ratio is 49%. The Common equity tier 1 capital ratio improved by 60 basis points to 15.2%. We are proud that still more households and corporates trust us with their banking business and savings. Our sector is transforming, with swiftly changing customer behaviour in the direction of using services and receiving advice online. We continue the work of adapting to the new demands to earn our customers’ trust as a relationship bank also in the future.”

First half year 2014 vs. First half year 2013 (Second quarter 2014 vs. First quarter 2014):

  • Total operating income -1%, in local currencies +2% (-2%)
  • Total expenses -4% excluding restructuring costs, in local currencies 0% (-3%)
  • Total expenses +4% including restructuring costs of EUR 190m in the second quarter (+12%)
  • Operating profit +7%, in local currencies +10% (+2%)
  • Common equity tier 1 capital ratio 15.2%, up from 13.1%² (up to 15.2% from 14.6%)
  • Cost/income ratio down to 49% from 51% (down 0.8 %-point to 49%)
  • Loan loss ratio of 17 basis points, down from 23 basis points (down to 16 bps from 18 bps)
  • Return on equity 11.7%, up from 11.3% (up to 12.0% from 11.4%)

 

Summary key figures continuing operations EURm Q2 2014 Q1 2014 ch % Q2 2013 ch % H1 2014 H1 2013 ch %
Net interest income 1.368 1.362 0 1.391 -2 2.730 2.749 -1
Total operating income 2.456 2.501 -2 2.490 -1 4.957 4.996 -1
Profit before loan losses 1.070 1.264 -15 1.234 -13 2.334 2.473 -6
Net loan losses -135 -158 -15 -186 -27 -293 -384 -24
Loan loss ratio (ann.), bps 16 18 22 17 23
Operating profit 935 1.106 -15 1.048 -11 2.041 2.089 -2
Diluted EPS (total oper.), EUR 876 880 0 853 3 1.756 1.707 3
Return on wquity, % 10.0 11.4 11.5 10.7 11.3