Category every quarter performance and key rates, Q4 2021

Article on new quarter

Buyers providers amounts on checklist-highest account. Financial financing volumes enhanced because of the 6%, season with the year, on fourth quarter, backed by business progress over the Nordics. SME credit became of the six% and assets lower than administration (AuM) improved by 17%. Mortgage loans, SME lending and you may AuM achieved the greatest levels in the Nordea’s records.

Good funds gains, determined of the ten% upsurge in earnings and rigid rates manage. Fourth-quarter doing work funds increased by thirty two%, season to the 12 months, in order to EUR step 1,281m. Complete money try upwards ten%, passionate by a great seven% rise in web desire income and an excellent sixteen% upsurge in websites fee and you will percentage earnings. Internet fair value result improved by 14%. Will cost you had been in accordance with the earlier in the day quarter but diminished because of the 10%, season into the 12 months, as the 4th quarter regarding 2020 was influenced by outstanding costs points.

Continued strong borrowing top quality. Net mortgage losses and you may comparable internet effects amounted in order to EUR 56m or 7bp on the quarter, in contrast to 3bp throughout the 4th one-fourth away from 2020. Realized web mortgage losings stayed lower, consistent with prior attacks, plus the costs into the one-fourth incorporated strengthened terms getting good few certain points. The brand new administration judgement shield was unchanged from the EUR 610m.

Cost-to-income ratio down to 47% and you may go back to the equity on eleven.3%. Nordea’s rates-to-income proportion improved so you’re able to 47% away from 57% just last year throughout the fourth one-fourth, supported by earnings increases and you will went on rates efficiency. Return to your guarantee (RoE) was 11.3%. Income for each and every share improved of the 49% in order to EUR 0.twenty six out-of EUR 0.18.

Dividend regarding approx. EUR 0.69* for every single show advised having 2021 – CET1 proportion from the 17.0%. Nordea’s Panel provides advised a bonus of about EUR 0.69* for each express for 2021 – right up 77% out-of EUR 0.39 having 2020. It usually means a 70% payment proportion, in line with Nordea’s dividend plan. The brand new CET1 proportion risen to 17.0% of 16.9% in the previous one-fourth which can be today 6.8 commission facts over the regulating criteria. Nordea try committed to applying an efficient financial support framework and you can commenced a beneficial EUR 2bn show pick-back plan to the , 109m shares ended up being repurchased at a cost of EUR step one,160m. Nordea features registered a formal application with the ECB in for potential go after-to your share get-backs.

The fresh new monetary target to possess 2025. Having a beneficial 2021 RoE away from 11.2% and you can a payment-to-income proportion of forty eight%, Nordea has surpassed the full-12 months 2022 monetary aim one year just before schedule. Nordea’s the new, full-year 2025 monetary target are good RoE above thirteen%, supported by a cost-to-money ratio away from forty-five–47%. To have 2022, Nordea needs a beneficial RoE a lot more than eleven%, backed by a cost-to-money proportion away from 44–50%, even after investment to possess growth and higher regulating can cost you, like the Swedish bank tax. Nordea commonly keep a money Areas Day to your 17 February in order to discuss its monetary target and you will arrangements towards the brand new method several months in more detail.

(For further opinions, see the Chief executive officer comment on web page dos. To possess definitions, get a hold of web page 53 regarding the Q4 2021 report)

* Estimate count in line with $255 payday loans online same day Ohio the projected level of shares that can get in procedure in the projected dividend choice date.

President comment

We all hoped we would manage to lay COVID behind united states within the 2021, regrettably the latest pandemic therefore the relevant uncertainty continued. Overall, regardless of if, 2021 was promising, with several confident signs throughout the market and you may community. Moving forward, we may still deal with certain setbacks from the fresh new trojan variations, however, our company is more knowledgeable and long lasting from inside the controlling the modifying points.

For Nordea, 2021 was a successful year. I’m happy with how we enjoys changed since a bank – and additionally the consumers. All of our organization quantities expanded and we also gathered industry offers along the Nordics. Our home loan credit expanded by six%, SME financing because of the six% and you can property below government (AuM) because of the 17%, interacting with all the-time-large levels. Meanwhile, i proceeded to make ideal buyers knowledge. We increased our very own customer care score and you may shorter customers grievances from the 9%. We have been now receiving 41% fewer problems than 3 years back.