Nordea sets financial targets for 2016-2018

At today’s Capital Markets Day in London, Nordea will update the market about
its continued work to shape the future relationship bank and its financial
targets for 2016-2018.
CEO Christian Clausen’s comments:
- We have over the past years successfully delivered on our 2015 plan, building
capital and restoring sustainable returns to meet new requirements from
regulators.  We now have a strong foundation for creating our business model for
the future – the future relationship bank.
- Cost and capital efficiency remains an integral part of our business model,
enabling us to free up resources for investments in the future and to deliver
attractive and stable returns in the current low growth environment. We invest
in our simplification initiative, creating a more scalable, resilient and agile
platform for Nordea. This will enable us to take our relationship bank into the
future and integrate a fully digital experience in the relationships with our 11
million customers. In addition, we invest in our risk and compliance functions
to strengthen our position as a safe and trusted partner and in continuing to
build stronger competencies in our growth areas, says Christian Clausen,
President and Group CEO.
Nordea will update the market about the below targets for 2016-2018, which have
been decided upon by the Board of Directors.
The financial targets for 2016-2018 have been set as follows:
- Less than 1% average annual cost increase (CAGR)[1]
- Dividend payout ratio of at least 75%
- Return on equity (RoE) above the Nordic peer average[2]
- Risk exposure amount (REA) to be largely unchanged
- A capital policy that states that the CET1 capital ratio should include a
management buffer of 50-150 bps above the regulatory requirement
This is in total expected to imply an annual total dividend growth (CAGR) of
more than 10%.
Financial targets 2016 to 2018 are based on currently known regulatory
requirements
[1] Excl. FX and performance related salaries. (Based on a cost base of approx.
EUR 4.7bn in 2015 of which approximately EUR 100m relates to an unexpected
increase in performance related salaries and further costs to meet regulatory
requirements in 2015).
[2] Weighted to reflect Nordea’s Nordic geographical mix.
At today’s Capital Markets Day, Nordea will present its strategic direction, the
financial initiatives and targets, risk management and the three business areas.
The event will be held today Wednesday 27 May 2015 9.00-12.00 UK time at The
Berkeley, Wilton Place, Knightsbridge, London. The event will be webcast live
and the presentation slides will be posted on www.nordea.com/ir.
For further information:
Rodney Alfvén, Head of Investor Relations, +46 (0) 722350515
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).