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Group quarterly results and you may key ratios, Q4 2021

  • By: Richard F. Hussey
  • Published: September 13, 2022

Group quarterly results and you may key ratios, Q4 2021

Report about the fresh new one-fourth

Consumer business volumes during the list-high profile. Mortgage lending amounts improved by the 6%, seasons towards 12 months, about next one-fourth, backed by market share development along side Nordics. SME lending grew of the 6% and you can property around administration (AuM) enhanced by 17%. Mortgages, SME lending and you may AuM attained the best levels when you look at the Nordea’s record.

Good earnings progress, driven of the 10% escalation in income and you will strict cost handle. Fourth-quarter operating earnings improved by the 32%, 12 months for the year, so you’re able to EUR step one,281m. Full income is actually up 10%, passionate from the a great eight% upsurge in online appeal earnings and you may an excellent 16% increase in net commission and you can percentage money. Websites reasonable really worth impact increased of the 14%. Costs was indeed based on the past quarter but decreased from the 10%, season to the 12 months, just like the last one-fourth out of 2020 is actually affected by exceptional rates affairs.

Went on solid borrowing from the bank quality. Online financing loss and you will equivalent online effects amounted to EUR 56m otherwise 7bp throughout the quarter, compared with 3bp regarding the fourth quarter regarding 2020. Realised online mortgage losses stayed lower, in keeping with earlier periods, plus the charges with the one-fourth included reinforced conditions to have a great few particular activities. The new government reasoning buffer was intact at the EUR 610m.

Cost-to-earnings ratio down seriously to 47% and come back on guarantee during the eleven.3%. Nordea’s cost-to-earnings ratio improved so you’re able to 47% of 57% this past year on the last one-fourth, supported by earnings gains and went on prices results. Get back to the equity (RoE) are 11.3%. Money for each display increased of the 44% to help you EUR 0.twenty six out-of EUR 0.18.

Dividend off approx. EUR 0.69* for each display proposed to own 2021 – CET1 ratio at the 17.0%. Nordea’s Panel have proposed a dividend around EUR 0.69* for every single show having 2021 – up 77% off EUR 0.39 getting 2020. This usually means that good 70% payment proportion, according to Nordea’s bonus plan. This new CET1 ratio risen to 17.0% regarding 16.9% in the last one-fourth that is today six.8 fee points above the regulatory requisite. Nordea try committed to implementing a competent money construction and you can began good EUR 2bn express get-straight back plan toward , 109m shares ended up being repurchased at a high price away from EUR step 1,160m. Nordea enjoys recorded a proper application into the ECB set for possible go after-towards share get-backs.

The fresh economic target for 2025. That have a great 2021 RoE out of eleven.2% and a repayment-to-earnings proportion out-of 48%, Nordea keeps exceeded the full-seasons 2022 economic targets one year prior to plan. Nordea’s the, full-season 2025 monetary address was a beneficial RoE significantly more than thirteen%, supported by a repayment-to-earnings ratio of forty-five–47%. Having 2022, Nordea anticipates a great RoE above eleven%, backed by a payment-to-income proportion regarding payday loans online Connecticut 44–50%, even with resource to have gains and better regulatory can cost you, like the Swedish lender taxation. Nordea have a tendency to keep an investment Places Date for the 17 March so you’re able to explore their monetary address and you can preparations towards the the newest strategy several months in detail.

(For additional viewpoints, see the Ceo touch upon page dos. Having definitions, look for webpage 53 in the Q4 2021 report)

* Approximate number based on the estimated level of shares that may get in matter from the projected dividend choice go out.

Chief executive officer opinion

Everyone wished we would manage to place COVID at the rear of you when you look at the 2021, but unfortunately the brand new pandemic plus the relevant suspicion proceeded. Overall, whether or not, 2021 is encouraging, with lots of self-confident cues throughout the economy and area. Going forward, we would nevertheless face specific setbacks off new trojan versions, however, we’re more experienced and you can long lasting in the controlling the altering points.

To have Nordea, 2021 is a successful season. I am proud of the way we possess changed once the a bank – plus our users. All of our company amounts grew therefore attained market offers across the Nordics. Our very own mortgage lending became of the 6%, SME credit of the 6% and you may assets lower than government (AuM) from the 17%, reaching most of the-time-large levels. At the same time, i proceeded to produce better consumer experience. We enhanced all of our customer satisfaction score and less customer grievances by the 9%. We have been today choosing 41% less problems than simply three years ago.

Richard Hussey

Richard F. Hussey has been licensed to practice law since 1982.
He maintains admission to the California State Bar, Florida Bar,
and the Federal District Courts for the Southern Districts of
Florida and California. Read More