Class every quarter overall performance and you can secret rates, Q4 2021

Summary of the fresh quarter

Buyers organization quantities during the record-high accounts. Financial financing amounts improved by six%, seasons on year, regarding next quarter, backed by share of the market progress along side Nordics. SME financing increased because of the six% and you can property less than government (AuM) improved by 17%. Mortgages, SME credit and you may AuM achieved the greatest account in the Nordea’s record.

Good earnings increases, determined by 10% escalation in earnings and you can strict prices control. Fourth-one-fourth performing funds enhanced because of the thirty two%, 12 months into the year, to help you EUR step one,281m. Complete money is up 10%, inspired by a beneficial 7% rise in online desire earnings and a beneficial sixteen% escalation in internet fee and you will payment earnings. Online reasonable well worth influence enhanced by the 14%. Costs was basically based on the early in the day one-fourth but reduced by 10%, 12 months on 12 months, because fourth one-fourth from 2020 is actually impacted by exceptional rates points.

Continued strong credit top quality. Net mortgage losings and you can comparable online impact amounted to EUR 56m otherwise 7bp regarding the one-fourth, weighed against 3bp regarding the 4th one-fourth out of 2020. Realised websites loan losses remained reasonable, in keeping with early in the day attacks, while the fees with the quarter integrated bolstered arrangements to possess good few specific points. The fresh new management reasoning boundary is unchanged at EUR 610m.

Cost-to-money proportion down seriously to 47% and you can get back into collateral at 11.3%. Nordea’s prices-to-money ratio increased in order to 47% out-of 57% just last year regarding next quarter, supported by earnings gains and you can proceeded pricing abilities. Get back on guarantee (RoE) try 11.3%. Money for each share enhanced by 44% so you can EUR 0.twenty-six away from EUR 0.18.

Bonus from approx. EUR 0.69* for each and every share proposed to possess 2021 – CET1 proportion at 17.0%. Nordea’s Panel enjoys suggested a bonus of approximately EUR 0.69* each share for 2021 – upwards 77% out of EUR 0.39 for 2020. That it usually means that a great 70% payout proportion, relative to Nordea’s bonus policy. The fresh CET1 proportion increased to 17.0% from sixteen.9% in the last one-fourth which is now 6.8 commission things over the regulatory needs. Nordea is actually purchased using an effective financing structure and began a great EUR 2bn display pick-right back program with the , 109m shares had been repurchased at a high price out-of EUR step 1,160m. Nordea features registered an official application towards ECB set for prospective realize-on express purchase-backs.

The new economic address to own 2025. Having a great 2021 RoE of 11.2% and you may a repayment-to-earnings ratio out-of forty-eight%, Nordea keeps surpassed their full-year 2022 monetary targets 1 year before plan. Nordea’s the latest, full-seasons 2025 economic target was an excellent RoE over 13%, supported by a repayment-to-earnings ratio of 45–47%. To own 2022, Nordea anticipates a good RoE more than eleven%, backed by a repayment-to-earnings ratio out-of 44–50%, despite money to possess gains and higher regulatory will set you back, like the Swedish lender tax. Nordea will hold a money Markets Day into 17 February to help you talk about the economic target and you may agreements to your new method period in more detail.

(For additional opinions, see the Chief executive officer comment on page 2. payday loan New Jersey Having significance, look for webpage 53 on Q4 2021 report)

* Estimate amount in accordance with the projected number of shares that can get into situation within projected bonus decision big date.

President review

All of us hoped we could possibly be able to put COVID at the rear of you for the 2021, but unfortunately the newest pandemic and related uncertainty proceeded. On the whole, although, 2021 is actually encouraging, with many different self-confident cues in the economy and you will community. Moving forward, we might still face certain setbacks off the brand new trojan variants, however, we are more knowledgeable and you can long lasting for the managing the modifying issues.

Getting Nordea, 2021 is actually a successful seasons. I am pleased with how we has actually advanced because a bank – along with the users. Our very own organization quantities expanded so we gathered business offers along the Nordics. Our very own mortgage financing expanded by the 6%, SME credit because of the six% and you may assets lower than government (AuM) because of the 17%, reaching all-time-large accounts. Meanwhile, i proceeded to create most useful buyers event. We increased our very own customer happiness scores and you may less customer complaints of the 9%. Our company is now searching 41% a lot fewer problems than three years in the past.