Classification quarterly abilities and you can key rates, Q4 2021
Overview of the newest quarter
Customer company amounts in the listing-high profile. Financial lending quantities enhanced by 6%, seasons to the seasons, regarding the last quarter, backed by business increases along side Nordics. SME financing expanded because of the 6% and property significantly less than government (AuM) enhanced by the 17%. Mortgages, SME credit and you can AuM reached the highest profile during the Nordea’s records.
Good money increases, determined by the ten% escalation in money and you can tight prices handle. Fourth-one-fourth working profit improved because of the thirty two%, seasons for the season, so you can EUR step 1,281m. Full money are right up 10%, passionate of the an excellent seven% upsurge in net attention money and you can a good sixteen% escalation in net commission and you will commission earnings. Websites fair value influence improved of the fourteen%. Can cost you were based on the past one-fourth however, reduced from the 10%, seasons toward seasons, because 4th one-fourth out-of 2020 try affected by exceptional prices items.
Continued solid borrowing from the bank high quality. Online loan losses and similar web effects amounted in order to EUR 56m otherwise 7bp regarding one-fourth, weighed against 3bp on the next one-fourth out-of 2020. Realised net loan losings remained low, in line with early in the day episodes, therefore the costs with the one-fourth provided strengthened terms for an effective few certain things. New administration judgement barrier is undamaged on EUR 610m.
Cost-to-income ratio right down to 47% and you can return on the guarantee at the eleven.3%. Nordea’s cost-to-income proportion increased to help you 47% regarding 57% just last year in the fourth one-fourth, backed by income gains and you will continued pricing performance. Get back toward collateral (RoE) are eleven.3%. Income for every single display enhanced by forty two% to EUR 0.26 regarding EUR 0.18.
Bonus from approx. EUR 0.69* for each express advised for 2021 – CET1 ratio at 17 title loans West Virginia.0%. Nordea’s Panel features suggested a dividend around EUR 0.69* for each express to possess 2021 – right up 77% from EUR 0.39 for 2020. That it results in a beneficial 70% commission ratio, prior to Nordea’s dividend rules. Brand new CET1 proportion increased to 17.0% off sixteen.9% in the earlier quarter which can be today six.8 percentage affairs over the regulating needs. Nordea was purchased implementing an efficient resource framework and commenced an effective EUR 2bn express buy-right back programme towards the , 109m shares was actually repurchased at a price off EUR step one,160m. Nordea features recorded a proper software on the ECB set for potential go after-on express purchase-backs.
The fresh economic address for 2025. That have a good 2021 RoE off eleven.2% and you can a cost-to-income ratio away from 48%, Nordea has actually exceeded the full-season 2022 monetary goals 1 year before schedule. Nordea’s the fresh, full-seasons 2025 financial target try a RoE significantly more than 13%, backed by a cost-to-earnings ratio away from forty five–47%. Having 2022, Nordea needs a good RoE over eleven%, supported by a cost-to-earnings proportion out of 49–50%, even with capital for development and higher regulatory will cost you, like the Swedish lender income tax. Nordea often hold a capital Markets Time towards 17 March so you can talk about its economic target and you may preparations on the new means period in more detail.
(For further feedback, see the Ceo comment on webpage 2. To own definitions, see webpage 53 regarding the Q4 2021 statement)
* Approximate count in line with the projected quantity of offers which can enter thing from the estimated bonus choice date.
President opinion
We all hoped we would have the ability to lay COVID trailing you into the 2021, regrettably brand new pandemic together with relevant uncertainty went on. On the whole, even if, 2021 are guaranteeing, with quite a few positive cues throughout the market and community. In the years ahead, we could possibly still deal with some setbacks from the fresh new trojan alternatives, however, we have been more experienced and you will durable from inside the controlling the changing affairs.
To own Nordea, 2021 is a successful year. I am pleased with how exactly we enjoys changed since the a lender – in addition to the consumers. The business quantities increased so we gathered markets offers across the Nordics. The financial credit became from the six%, SME financing by 6% and you will property lower than government (AuM) from the 17%, getting together with all of the-time-high levels. Meanwhile, we went on to create ideal customers knowledge. We improved all of our customer happiness scores and less buyers problems because of the 9%. We’re today getting 41% fewer grievances than 36 months ago.