Report on the latest one-fourth
Customer team amounts on list-highest profile. Home loan credit amounts increased by the six%, seasons towards the 12 months, throughout the fourth quarter, backed by business increases across the Nordics. SME credit increased because of the six% and you may possessions below management (AuM) increased of the 17%. Mortgage loans, SME lending and you can AuM hit the greatest membership from inside the Nordea’s background.
Solid cash growth, motivated because of the 10% increase in income and you will rigid rates manage. Fourth-quarter working profit improved of the thirty-two%, seasons for the year, so you’re able to EUR step one,281m. Overall money is up 10%, driven by a great seven% rise in websites attract money and you will an effective sixteen% escalation in online fee and you will percentage money. Online reasonable well worth effects enhanced of the fourteen%. Will set you back was in fact in line with the earlier one-fourth but decreased by the 10%, season towards 12 months, as 4th quarter off 2020 try influenced by exceptional pricing things.
Proceeded solid credit high quality. Web mortgage losings and you can similar net results amounted so you’re able to EUR 56m otherwise 7bp regarding the quarter, weighed against 3bp regarding the next quarter off 2020. Realized websites loan losses remained reasonable, consistent with past episodes, as well as the costs toward quarter integrated reinforced specifications for an effective few specific points. The brand new government judgement boundary try unchanged at the EUR 610m.
Cost-to-money proportion down seriously to 47% and you may get back to your guarantee on eleven.3%. Nordea’s costs-to-earnings proportion increased so you’re able to 47% from 57% last year throughout the fourth one-fourth, supported by income progress and you will continued prices show. Go back into the collateral (RoE) are 11.3%. Earnings each share enhanced by the 49% so you’re able to EUR 0.twenty-six regarding EUR 0.18.
Dividend from approx. EUR 0.69* per express recommended getting 2021 – CET1 proportion during the 17.0%. Nordea’s Panel have recommended a dividend of approximately EUR 0.69* each express to possess 2021 – upwards 77% away from EUR 0.39 to own 2020. That it usually means that a great 70% commission ratio, in line with Nordea’s bonus coverage. The brand new CET1 ratio increased to 17.0% out-of sixteen.9% in the previous quarter and that’s now six.8 percentage factors above the regulatory requisite. Nordea try dedicated to applying an efficient financial support build and you will commenced a EUR 2bn express purchase-back plan for the , 109m shares ended up being repurchased at a cost away from EUR step 1,160m. Nordea possess submitted a proper application with the ECB in for possible follow-toward show buy-backs.
Brand new economic target for 2025. With a great 2021 RoE from 11.2% and you can a fees-to-money proportion off 48%, Nordea enjoys surpassed its full-season 2022 monetary targets 1 year ahead of schedule. Nordea’s the fresh new, full-season 2025 financial target was a great RoE above thirteen%, supported by an installment-to-income proportion out-of forty-five–47%. To possess 2022, Nordea needs a beneficial RoE a lot more than eleven%, backed by a repayment-to-earnings ratio off forty two–50%, even with investment having development and better regulating will set you back, including the Swedish lender income tax. Nordea tend to keep a money Markets Time for the 17 February so you’re able to talk about the economic address and arrangements to your the means period in more detail.
(For further feedback, see the Chief executive officer discuss webpage 2. Having significance, see webpage 53 in the Q4 2021 statement)
* Calculate amount based on the projected level of offers that will enter material within projected bonus decision time.
Chief executive officer review
We-all expected we could possibly be able to put COVID behind you in 2021, regrettably the new pandemic in addition to relevant suspicion proceeded. In general, even though, 2021 are promising, with several confident signs in the economy and you will people. Going forward, we possibly may nonetheless face particular setbacks regarding the new trojan variations, however, we have been more capable and you can durable when you look at the controlling the modifying affairs.
To possess Nordea, 2021 is actually a successful season. I am pleased with https://www.samedayloansonline.org/payday-loans-mt the way we has actually evolved while the a lender – together with our people. The business amounts increased and then we achieved business offers along side Nordics. The home loan financing increased by six%, SME financing because of the six% and you can possessions around administration (AuM) from the 17%, reaching all the-time-highest membership. Meanwhile, we proceeded which will make most readily useful buyers skills. I enhanced the customer happiness ratings and reduced customers issues because of the 9%. We’re today receiving 41% a lot fewer complaints than simply three-years before.
