STOCKHOLM, Sweden, Feb. 19, 2003 (PRIMEZONE) -- Nordea (Other OTC:NRDAF) (Stockholm:NDA):
Improved results in the fourth quarter
- Operating profit up by 12%
- Total income increased 4%; higher net interest and commission
income
- Costs up 7% due to acquisition of LG Petro Bank and some
restructuring costs in combination with seasonal effects
- Loan losses maintained at a relatively low level
- Net profit up 67% to EUR 323m
Challenging market conditions in 2002
- Total income reduced by 4% and expenses increased by 2%
adjusted for Postgirot Bank
- Loan losses lower at EUR 261m or 0.19% of loans
- Earnings per share EUR 0.30 (EUR 0.53)
- Return on equity (excl. goodwill) 11.3% (19.2%)
- Proposed dividend of EUR 0.23 per share -- unchanged vs 2001
Improvements achieved-more to be done
- Reduced earnings volatility -- lower equity exposure & sale of
general insurance
- Capital efficiency improved -- maintained financial strength
despite loan growth and high proposed dividend payout
- Stable credit quality -- low loan losses & concentration on
Nordic customers
- Some cost initiatives taken -- cost improvement is top
priority in 2003
"Our 2002 results are acceptable under difficult market conditions, but still not satisfactory. However, we have started to see improvements as a consequence of the identification and focus on our short-term priorities. We have reduced the earnings volatility and income has been stable throughout the year. Risk-weighted assets were reduced despite increased lending, and even though loan losses have increased slightly in the fourth quarter, credit quality is satisfactory. Throughout the organisation, ongoing integration and continuous improvement are expected to ensure that costs will be unchanged in 2003 compared to 2002. In the present economic environment, profitability and capital efficiency come before growth, and increased cost efficiency will be the main focus area going forward," said Lars G. Nordstrom, Group CEO of Nordea.
Lars G. Nordstrom, Group Chief Executive Officer
A conference call with management will be arranged on February 19, 2003 at 5:00 p.m.(CET). (Please dial + 44 (0) 20 7162 0183, password Nordea, 10 minutes in advance.)
- This year-end report is available on the Internet. - A slide presentation is available on the Internet. For further information: Arne Liljedahl, Group CFO/EVP +46 8 614 7996 Sigurd Carlsen, Head of Investor +46 8 614 7852 (or +46 70 204 9878) Relations Erik Evren, Head of Group Media +46 8 614 8611 (or +46 70 946 5389) Relations Financial calendar: The Annual General Meeting will be held April 24 The interim report first quarter 2003 will be published May 7 The interim report second quarter 2003 will be published August 20 The interim report third quarter 2003 will be published October 29
The Nordea annual report will be available on www.nordea.com around March 3.
This report is published in four additional language versions; Danish, Finnish, Norwegian and Swedish. In the event of any inconsistencies between those language versions and this English version, the English version shall prevail.
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The following files are available for download:
www.waymaker.net/bitonline/2003/02/19/20030219BIT00340/wkr0001.doc The full year-end report www.waymaker.net/bitonline/2003/02/19/20030219BIT00340/wkr0002.pdf The full year-end report