Category quarterly show and you will key ratios, Q4 2021

Breakdown of the latest quarter

Buyers business volumes at the number-large profile. Mortgage credit volumes improved from the six%, seasons for the year, on 4th quarter, supported by share of the market gains over the Nordics. SME lending grew by 6% and you may assets under administration (AuM) improved of the 17%. Mortgage loans, SME lending and you can AuM attained the greatest accounts into the Nordea’s history.

Strong money growth, passionate because of the ten% increase in money and you will rigid pricing handle. Fourth-one-fourth performing money increased of the thirty-two%, seasons on the seasons, so you can EUR step one,281m. Complete income try up 10%, passionate because of the a great eight% rise in online appeal earnings and you may an excellent sixteen% boost in net percentage and payment earnings. Net fair worthy of result increased of the 14%. Costs have been according to the early in the day one-fourth however, diminished of the 10%, 12 months to your seasons, because the 4th one-fourth of 2020 is influenced by exceptional prices facts.

Went on good borrowing quality. Internet financing losings and you may comparable internet effect amounted to EUR 56m or 7bp on quarter, compared to 3bp on last one-fourth from 2020 online installment loans Mississippi. Realized websites loan loss stayed reduced, in line with past periods, and also the charges toward quarter incorporated reinforced provisions to possess an effective few specific circumstances. The new management judgement buffer try unchanged at EUR 610m.

Cost-to-income proportion right down to 47% and you will go back toward equity in the eleven.3%. Nordea’s prices-to-earnings ratio improved so you’re able to 47% regarding 57% last year regarding the fourth one-fourth, supported by earnings development and you will proceeded prices overall performance. Go back into the security (RoE) was 11.3%. Income each display improved because of the 44% to EUR 0.26 off EUR 0.18.

Dividend out of approx. EUR 0.69* each show recommended for 2021 – CET1 proportion at the 17.0%. Nordea’s Board have proposed a dividend of approximately EUR 0.69* for each share to have 2021 – up 77% of EUR 0.39 to possess 2020. This means good 70% commission ratio, according to Nordea’s dividend coverage. The latest CET1 proportion risen to 17.0% away from 16.9% in the last quarter which can be now 6.8 commission products over the regulating specifications. Nordea is purchased applying a simple yet effective money build and you will commenced a beneficial EUR 2bn share pick-right back programme on , 109m shares was actually repurchased at a high price out-of EUR step one,160m. Nordea provides submitted a proper app with the ECB in for possible go after-on display purchase-backs.

The economic address getting 2025. Which have a good 2021 RoE out-of eleven.2% and a fees-to-income ratio off forty eight%, Nordea features surpassed the complete-year 2022 economic targets one year before schedule. Nordea’s brand new, full-12 months 2025 monetary target is a good RoE over thirteen%, supported by a fees-to-income ratio away from forty-five–47%. To possess 2022, Nordea expects an effective RoE a lot more than eleven%, supported by a payment-to-income ratio out-of 49–50%, even with money to have gains and higher regulating will cost you, such as the Swedish lender tax. Nordea will keep a funds Avenues Time towards 17 February to help you talk about the monetary target and you may arrangements towards the the means several months in more detail.

(For further viewpoints, see the President discuss page 2. To have definitions, get a hold of web page 53 on the Q4 2021 statement)

* Approximate number in line with the estimated level of offers that will enter situation at estimated dividend decision date.

President feedback

Each of us hoped we may manage to place COVID behind united states for the 2021, but unfortunately the new pandemic additionally the related suspicion continued. All in all, although, 2021 are encouraging, with many confident signs in the economy and you will people. Going forward, we may nevertheless face particular setbacks regarding brand new virus versions, however, we are more knowledgeable and you will long lasting for the managing the modifying circumstances.

To possess Nordea, 2021 is actually a successful 12 months. I am pleased with how exactly we enjoys changed as a financial – plus the people. All of our providers amounts became so we gathered industry offers along the Nordics. All of our home loan lending became from the six%, SME financing by the six% and you will possessions not as much as administration (AuM) from the 17%, reaching all of the-time-highest accounts. At the same time, i went on to produce best buyers knowledge. We increased all of our customer satisfaction score and you may less customers issues because of the 9%. We are today choosing 41% fewer problems than 3 years ago.

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