EQS-News: Nordea Bank Abp: Third-quarter results 2021
We have entered a new phase of recovery from the pandemic and, as a bank, we have done so from a position of strength.
EQS Group-News: Nordea Bank Abp / Key word(s): 9 Month figures Nordea Bank Abp: Third-quarter results 2021 21.10.2021 / 09:00 Third-quarter results 2021 Nordea Bank Abp Summary of the quarter: Strong result, supported by quality income growth and good cost management. Operating profit increased by 17% to EUR 1,268m, mainly driven by a 9% increase in total income. Net interest income increased by 7% and net fee and commission income increased by 19%. Net fair value result decreased by 13% due to weaker trading conditions in the quarter. Costs increased by 1% due to the inclusion of Nordea Finance Equipment and exchange rate effects. Before these items, costs were down 1%, driven by good cost management. The full-year 2021 cost outlook is unchanged at around EUR 4.6bn. Strong credit quality with very low net loan losses. Net loan losses and similar net result amounted to a EUR 22m (3bp) reversal in the quarter, compared with a reversal of EUR 19m (2bp) in the third quarter of 2020. Realised net loan losses remained at very low levels. The management judgement buffer was kept unchanged. Cost efficiency and return on equity improving. Nordea's cost-to-income ratio improved to 49% from 53% a year ago, supported by quality income growth and continued cost discipline. Return on equity for the quarter was 10.8%, up from 10.1% a year ago. Earnings per share increased to EUR 0.25 from EUR 0.21. Unpaid dividends distributed to shareholders and share buy-back initiated. Nordea has paid out the remaining 2019-20 dividends (totalling EUR 0.72 per share) and is implementing a share buy-back of up to EUR 2bn, in line with its commitment to an efficient capital structure and sustainable shareholder returns. Due to the capital deduction associated with the buy-back, the CET1 ratio decreased to 16.9% from 18.0% in the second quarter. This is 6.7 percentage points above the current regulatory requirement. Excluding the deduction, the CET1 ratio increased by 20bp, quarter on quarter. New financial targets to be announced alongside fourth-quarter 2021 results. Nordea has progressed well towards its 2022 financial targets. Nordea plans to publish new targets alongside its 2021 full-year and fourth-quarter results on 3 February 2022. (For further viewpoints, see the CEO comment on page 2. For definitions, see page 54 in the Q3 2021 Report) Group quarterly results and key ratios, Q3 2021
CEO comment "In recent months we have witnessed many encouraging developments. Nordic societies have been reopening, enabling millions to resume a more normal way of life. We have entered a new phase of recovery from the pandemic and, as a bank, we have done so from a position of strength. Frank Vang-Jensen Income statement
Business volumes, key items1
Ratios and key figures2
1. End of period. Outlook Key priorities to meet 2022 financial targets Financial targets for 2022
Costs (operating expenses) Capital policy Dividend policy Credit quality http://www.rns-pdf.londonstockexchange.com/rns/7891P_1-2021-10-21.pdf The entire report can be found on the below link on our website. For further information: The information provided in this stock exchange release was submitted for publication, through the agency of the contact persons set out above, at 07.30 EET (06.30 CET) on 21 October 2021.
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End of Media Release |
Language: | English |
Company: | Nordea Bank Abp |
Smålandsgatan 17 | |
105 71 Stockholm | |
Sweden | |
ISIN: | CH0284415681 |
Valor: | A1Z2TU |
Listed: | SIX Swiss Exchange |
EQS News ID: | 1242398 |
End of News | EQS Group News Service |
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1242398 21.10.2021