Strong start of the year
* Total income up 5%, excluding non-recurring items, from the fourth
quarter and up 16% from the first quarter last year, strong result
in Capital Markets and Treasury operations
* Risk-adjusted profit up 21% from the fourth quarter, up 38% from
the first quarter 2008
* Cost/income ratio 48% (51%)
* Unchanged outlook - but increased uncertainty on loan losses (full
outlook on page 7)
Nordea continued to show strong income growth, total operating income
was up 5%, excluding non-recurring items, and up 9% in local
currencies compared to the fourth quarter 2008. Net interest income
was up 3% in local currencies, driven by increased lending volumes
and corporate lending margins, and despite significant pressure on
deposit margins. Net fee and commission income remained weak, but is
more than compensated by strong net gains/ losses both in the Capital
Markets and Treasury operations. Costs increased in line with the
full-year outlook. Despite continued high net loan losses, operating
profit increased 20% to EUR 833m from the fourth quarter.
Lending to the public increased 3% during the quarter and deposits
1%. Nordea's close customer relations and strong balance sheet have
enabled support to customers in the tough market conditions. The
weakening economy has clearly impacted net loan losses and impaired
loans and uncertainty on loan losses has increased. Net loan losses
were EUR 356m, 54 basis points of total lending."I am satisfied that Nordea has once again achieved the combination
of improved results and business growth, while standing by our core
customers in difficult market conditions. Higher loan losses are
inevitable when the economy is contracting at an unprecedented speed.
With our strong capital base, further strengthened by the rights
issue, we are able to maintain our position as one of the strongest
banks in Europe", says Christian Clausen, President and Group CEO of
Nordea.
+-------------------------------------------------------------------+
| Summary key | Q1 | Q4 2008 | Change, | Q1 | Change, |
| figures, EURm | 2009 | | % | 2008 | % |
|---------------------+-------+---------+---------+-------+---------|
| Total operating | | | | | |
| income | 2,279 | 2,166¹ | 5 | 1,961 | 16 |
|---------------------+-------+---------+---------+-------+---------|
| Profit before loan | | | | | |
| losses | 1,189 | 1,016¹ | 17 | 906 | 31 |
|---------------------+-------+---------+---------+-------+---------|
| Net loan losses | 356 | 320 | 11 | 21 | |
|---------------------+-------+---------+---------+-------+---------|
| Loan loss ratio | | | | | |
| annualised, basis | | | | | |
| points | 54 | 52 | | 3 | |
|---------------------+-------+---------+---------+-------+---------|
| Operating profit | 833 | 696¹ | 20 | 885 | -6 |
|---------------------+-------+---------+---------+-------+---------|
| Risk-adjusted | | | | | |
| profit | 747 | 619 | 21 | 541 | 38 |
|---------------------+-------+---------+---------+-------+---------|
| Diluted earnings | | | | | |
| per share, EUR | 0.19 | 0.19 | | 0.20 | |
|---------------------+-------+---------+---------+-------+---------|
| Return on equity, % | 13.9 | 14.4 | | 15.8 | |
+-------------------------------------------------------------------+
¹ Excluding the non-recurring gain from the sale of NCSD in the
fourth quarter 2008.
For further information:
Christian Clausen, President and Group CEO +46 8 614 7804
Fredrik Rystedt, Group CFO/EVP +46 8 614 7812
Johan Ekwall, Head of Investor Relations +46 8 614 7852, +46 70 607
9269
Helena Östman, Chief Press Officer Sweden +46 8 614 8464, +46 70 200
4050
Quarterly Report January - March 2009
| Source: Nordea Bank AB (publ)
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