Robust customer business, but financial turmoil affects results
CEO Christian Clausen's comment to the report:
"Despite one of the worst quarters in the financial markets ever, Nordea's
development is robust. Excluding short-term effects from the financial turmoil,
income grew from previous quarter. Costs decreased, adjusted for the
restructuring provision. Thus, effects from the turmoil on operating results are
limited.
Customer business volumes continue to grow with income and profit at high
levels. The result for the first nine months is up 5% from last year, excluding
the restructuring provision.
Nordea will continue with a more focused relationship strategy in order to
improve profitability. In line with the ambition to remain in the top league of
European banks, Nordea has replaced the previous financial targets with one: an
ROE of 15% in a normalised macroeconomic environment."
(For further viewpoints, see CEO comments, page 2)
January-September 2011 vs Jan-Sep 2010 (third quarter 2011 vs second quarter
2011):
* Total operating income up 2% (down 11%)
* Operating profit up 5% excluding restructuring costs (down 22%)
* Core tier 1 capital ratio 11.0% excluding transition rules, up from 10.4%
one year ago
(unchanged from 11.0% in the second quarter 2011)
* Return on equity 10.6%, excluding restructuring costs of EUR 171m, down from
11.0% first nine months 2010 (8.5% in third quarter 2011, down from 11.5%
second quarter)
* New financial target adopted for the coming years: to reach an ROE of 15% in
a normalised macroeconomic environment
+-------------------------------------------------------+-------+-------+---+
|Summary key figures, Q3 Q2 Ch. Q3 Ch.|Jan-Sep|Jan-Sep|Ch.|
|EURm 2011 2011 % 2010 %| 2011| 2010| %|
+-----------------------------+---------------+---------+-------+-------+---+
|Net interest income |1,379 1,326 4|1,310 5| 4,029| 3,794| 6|
| | | | | | |
|Total operating income |2,091 2,342 -11|2,363 -12| 6,943| 6,827| 2|
| | | | | | |
|Profit before loan losses | 678 1,067 -36|1,167 -42| 2,990| 3,281| -9|
| | | | | | |
|Net loan losses | -112 -118 -5| -207 -46| -472| -713|-34|
| | | | | | |
|Loan loss ratio (ann.), bps | 14 15 | 29 | 20| 34| |
| | | | | | |
|Operating profit | 566 949 -40| 960 -41| 2,518| 2,568| -2|
| | | | | | |
|Operating profit, adjusted | 737* -22| | 2,689*| | 5|
| | | | | | |
|Risk-adjusted profit | 485 643 -25| 707 -31| 1,899| 1,901| 0|
| | | | | | |
|Diluted EPS, EUR | 0.10 0.18 | 0.18 | 0.46| 0.47| |
| | | | | | |
|Return on equity, % | 6.5 11.5 | 12.2 | 10.0| 11.0| |
| | | | | | |
|Return on equity, adjusted, %| 8.5* | | 10.6*| | |
+-----------------------------+---------------+---------+-------+-------+---+
* Excluding restructuring provision in the third quarter of EUR 171m.
Currency rates used for DKK, NOK and SEK for 2011 are for income statement items
7.45, 7.81 and 9.01 respectively.
For further information:
Christian Clausen, President and Group CEO, +46 8 614 7804
Fredrik Rystedt, Group CFO, +46 8 614 7812
Rodney Alfvén, Head of Investor Relations, +46 8 614 7880 (or +46 72 235 05 15)
Jan Larsson, Head of Group Identity & Communications, +46 8 614 7916 (or
+46 70 593 34 12)
Go to IR Report pages
[HUG#1555900]
Third Quarter Report 2011
| Source: Nordea Bank AB (publ)
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