CEO Christian Clausen’s comments on the results: “We are in 2014 delivering a robust result with stable revenues, decreased costs and improved credit quality leading to a 9%[1] increase in operating profit. This is despite a challenging environment with low growth, low rates and increased geopolitical tensions. We have seen a record high flow of assets of EUR 18.6bn and improving market shares in the savings area. In the corporate area we have further consolidated our position being ranked as the leading bank for large corporates in the Nordics by Greenwich as well as number one in Nordic Equities by Prospera. Our capital position has continued to improve during 2014 mainly due to a strong capital generation corresponding to 2.1% of REA pre dividend. The Board of Directors proposes a dividend of EUR 0.62 per share (EUR 0.43). Common Equity Tier 1 capital ratio improved by 1.8 %-points to 15.7%. For 2015 we are prepared for another year with low growth and low interest rates, and continued changed customer behaviour. Thus, we will deliver on our cost and capital efficiency plans to secure our strong financial foundation. We will continue to develop our services to meet the changing needs from our customers and invest in our IT platform to secure that we also long term provide even more personalised and convenient solutions for our customers.” (For further viewpoints, see CEO comments, page 2) Full year 2014 vs. Full year 2013 (Fourth quarter vs. Third quarter 2014)[2]: · Total operating income unchanged excl. non-recurring items[2], in local currencies +2%[2] (+6%[2], in local currencies +7%[2]) · Total expenses -4%[2], in local currencies -1%[2] (+5%[2], in local currencies +6%[2]) · Operating profit +9%[2], in local currencies +12%[2] (+6%[2], in local currencies +7%[2]) · Common equity tier 1 capital ratio 15.7%, up from 13.9%[3] (up to 15.7% from 15.6%) · Cost/income ratio down to 49.1%[2] from 51% (down 0.5% to 48.8%[2]) · Loan loss ratio of 15 basis points, down from 21 basis points (up 3 bps to 15 bps) · Return on equity 11.6%[2], up from 11.0% (up to 11.8%[2] from 11.2%[2]) · Proposed dividend EUR 0.62 per share, up from EUR 0.43 per share +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Summary key | Q4| Q3|ch|loc.| Q4| ch|loc.| 2014| 2013| ch|loc.| |figures, | 2014| 2014| %|curr| 2013| %|curr| | | %|curr| |continuing | | | | | | | | | | | | |operations[4], | | | | | | | | | | | | |EURm | | | | | | | | | | | | +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Net interest |1,356|1,396|-3| -1|1,390| -2| 1| 5,482|5,525| -1| 2| |income | | | | | | | | | | | | +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Total operating |2,513|2,377| 6| 7|2,469| 2| 4| 9,847|9,891| 0| 2| |income[2] | | | | | | | | | | | | +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Total operating |2,513|2,754|-9| -8|2,469| 2| 4|10,224|9,891| 3| 6| |income | | | | | | | | | | | | +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Profit before |1,286|1,205| 7| 8|1,186| 8| 11| 5,015|4,851| 3| 6| |loan losses[2] | | | | | | | | | | | | +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Net loan losses | -129| -112|15| | -180|-28| -27| -534| -735|-27| -26| | | | | | | | | | | | | | +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Operating |1,157|1,093| 6| 7|1,006| 15| 18| 4,481|4,116| 9| 12| |profit[2] | | | | | | | | | | | | +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Operating profit|1,157|1,126| 3| 4|1,006| 15| 18| 4,324|4,116| 5| 8| +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Diluted EPS | 0.22| 0.23| | | 0.19| | | 0.83| 0.77| | | |(total oper.), | | | | | | | | | | | | |EUR | | | | | | | | | | | | +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Diluted EPS | 0.22| 0.30| | | 0.19| | | 0.89| 0.77| | | |(basis for | | | | | | | | | | | | |dividend | | | | | | | | | | | | |distribution[5],| | | | | | | | | | | | |total oper.), | | | | | | | | | | | | |EUR | | | | | | | | | | | | +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Return on | 11.8| 11.2| | | 10.5| | | 11.6| 11.0| | | |equity[2], % | | | | | | | | | | | | +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ |Return on | 11.8| 12.8| | | 10.5| | | 11.5| 11.0| | | |equity, % | | | | | | | | | | | | +----------------+-----+-----+--+----+-----+---+----+------+-----+---+----+ Exchange rates used for Q4 2014 for income statement items are for DKK 7.45, NOK 8.36 and SEK 9.10, see also Note 1. [1] In reported currency and excluding non-recurring items – capital gain of EUR 378m and charge for impairment of intangible assets of EUR 344m in Q3 2014 and restructuring costs of EUR 190m in Q2 2014. [2] Excluding non-recurring income and cost items in Q2 and Q3 2014, see footnote [1]). [3] Previously estimated Basel III CET1 ratio. [4] Key figures for continuing operations, following the divestment of the Polish banking, financing and life insurance operations. [5] Diluted EPS, basis for dividend distribution, is excluding impairment of intangible assets in Q3 2014. For further information: Christian Clausen, President and Group CEO, +46 8 614 7804 Rodney Alfvén, Head of Investor Relations, +46 72 235 05 15 Torsten Hagen Jørgensen, Group CFO, +45 5547 2200 Claus Christensen, Head of Group Communications, +45 25248993 The information provided in this press release is such that Nordea is required to disclose pursuant to the Swedish Financial Instruments Trading Act (1991:980) and/or the Swedish Securities Markets Act (2007:528). Go to IR Report pages (http://www.nordea.com/804972.html)
Fourth Quarter and Full Year Results 2014
| Source: Nordea Bank AB (publ)
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