CEO Christian Clausen’s comments on the results: “The second quarter of 2014 was characterised by a continued inflow of customers and strong activity, particularly in our savings area and corporate advisory business. Income is holding up well, despite low lending demand, low interest rates and low volatility, and we continue to execute on our cost and capital efficiency programmes. Underlying costs are down in local currencies and cost to income ratio is 49%. The Common equity tier 1 capital ratio improved by 60 basis points to 15.2%. We are proud that still more households and corporates trust us with their banking business and savings. Our sector is transforming, with swiftly changing customer behaviour in the direction of using services and receiving advice online. We continue the work of adapting to the new demands to earn our customers’ trust as a relationship bank also in the future.” (For further viewpoints, see CEO comments, page 2) First half year 2014 vs. First half year 2013 (Second quarter 2014 vs. First quarter 2014)¹: · Total operating income -1%, in local currencies +2% (-2%) · Total expenses -4% excluding restructuring costs, in local currencies 0% ( -3%) · Total expenses +4% including restructuring costs of EUR 190m in the second quarter (+12%) · Operating profit +7%¹, in local currencies +10%¹ (+2%¹) · Common equity tier 1 capital ratio 15.2%, up from 13.1%² (up to 15.2% from 14.6%) · Cost/income ratio down to 49%¹ from 51% (down 0.8 %-point to 49%¹) · Loan loss ratio of 17 basis points, down from 23 basis points (down to 16 bps from 18 bps) · Return on equity 11.7%¹, up from 11.3% (up to 12.0%¹ from 11.4%) +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Summary key | Q2| Q1| ch| Q2| ch|loc.curr| H1| H1| ch|loc.curr| |figures, | 2014| 2014| %| 2013| %| Q2/Q2 %| 2014| 2013| %| H1/H1 %| |continuing | | | | | | | | | | | |operations³,| | | | | | | | | | | |EURm | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Net interest|1,368|1,362| 0|1,391| -2| 1|2,730|2,749| -1| 3| |income | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Total |2,456|2,501| -2|2,490| -1| 1|4,957|4,996| -1| 2| |operating | | | | | | | | | | | |income | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Profit |1,070|1,264|-15|1,234|-13| -11|2,334|2,473| -6| -3| |before loan | | | | | | | | | | | |losses | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Net loan | -135| -158|-15| -186|-27| -26| -293| -384|-24| -22| |losses | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Loan loss | 16| 18| | 22| | | 17| 23| | | |ratio | | | | | | | | | | | |(ann.), | | | | | | | | | | | |bps | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Operating |1,125|1,106| 2|1,048| 7| 10|2,231|2,089| 7| 10| |profit¹ | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Operating | 935|1,106|-15|1,048|-11| -8|2,041|2,089| -2| 1| |profit | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Risk | 876| 880| 0| 853| 3| 6|1,756|1,707| 3| 6| |-adjusted | | | | | | | | | | | |profit¹ | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Diluted EPS | 0.18| 0.21| | 0.20| | | 0.39| 0.39| | | |(cont. | | | | | | | | | | | |oper.), EUR | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Diluted EPS | 0.17| 0.21| | 0.19| | | 0.38| 0.39| | | |(total | | | | | | | | | | | |oper.), EUR | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Return on | 12.0| 11.4| | 11.5| | | 11.7| 11.3| | | |equity¹, % | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ |Return on | 10.0| 11.4| | 11.5| | | 10.7| 11.3| | | |equity, % | | | | | | | | | | | +------------+-----+-----+---+-----+---+--------+-----+-----+---+--------+ Exchange rates used for Q2 2014 for income statement items are for DKK 7.46, NOK 8.28 and SEK 8.96, see also Note 1. Net impact from currency fluctuations between Q2 2014 and Q1 2014 was insignificant. ¹) Excluding restructuring costs in Q2 2014 of EUR 190m. ²) Previously estimated CET1 ratio. ³) Key figures for continuing operations, following the divestment of the Polish banking, financing and life insurance operations. For further information: Christian Clausen, President and Group CEO, +46 8 614 7804 Torsten Hagen Jørgensen, Group CFO, +46 8 614 7814 Rodney Alfvén, Head of Investor Relations, +46 72 235 05 15 Claus Christensen, Head of Group Identity & Communications, +45 25248993 Go to IR Report pages (http://www.nordea.com/Investor+Relations/Financial+reports/Interim+report s /804972.html) 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).
Second Quarter Results 2014
| Source: Nordea Bank AB (publ)
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