Writeup on the fresh new quarter
Customer company amounts in the number-higher membership. Mortgage financing amounts enhanced by six%, 12 months toward year, regarding the next one-fourth, supported by share of the market progress along side Nordics. SME credit became by the 6% and you will possessions below administration (AuM) improved from the 17%. Mortgage loans, SME credit and you can AuM reached the highest membership from inside the Nordea’s history.
Strong money growth, motivated from the ten% rise in income and you can tight prices control. Fourth-one-fourth functioning earnings improved by the 32%, 12 months to the 12 months, to help you EUR step 1,281m. Complete earnings is actually up 10%, driven of the a eight% upsurge in web appeal income and you may good 16% escalation in internet commission and you will percentage money. Online reasonable worth results enhanced by the fourteen%. Can cost you was indeed in line with the prior quarter however, reduced because of the 10%, 12 months towards 12 months, since the 4th quarter off 2020 is actually affected by exceptional cost points.
Continued strong borrowing from the bank quality. Websites mortgage loss and similar internet result amounted in order to EUR 56m otherwise 7bp about one-fourth, compared with 3bp about 4th one-fourth of 2020. Realised websites loan losings stayed low, consistent with early in the day episodes, plus the fees on the quarter integrated reinforced conditions to have an excellent small number of certain items. New government judgement boundary are undamaged during the EUR 610m.
Cost-to-earnings proportion right down to 47% and you may come back for the collateral during the eleven.3%. Nordea’s costs-to-earnings proportion improved to 47% off 57% last year about next quarter, supported by money growth and you can continued pricing performance. Return to your collateral (RoE) was 11.3%. Income per display improved from the forty-two% to help you EUR 0.26 from EUR 0.18.
Bonus of approx. EUR 0.69* for every display proposed to own 2021 – CET1 proportion on 17.0%. Nordea’s Board enjoys recommended a dividend around EUR 0.69* per display to own 2021 – upwards 77% regarding EUR 0.39 having 2020. Which usually means that a beneficial 70% payment ratio, relative to Nordea’s dividend policy. The latest CET1 ratio increased to 17.0% from 16.9% in the last quarter which can be now six.8 fee affairs above the regulatory needs. Nordea is dedicated to using a powerful resource structure and you can began an effective EUR 2bn share pick-back programme into , 109m shares was actually repurchased at a cost of EUR step one,160m. Nordea has recorded a proper app for the ECB in for potential follow-into the display purchase-backs.
Brand new economic address having 2025. With a beneficial 2021 RoE out of 11.2% and you may a payment-to-earnings ratio of forty eight%, Nordea enjoys surpassed its complete-year 2022 financial goals 1 year in advance of schedule. Nordea’s the newest, full-12 months 2025 financial address try good RoE above thirteen%, supported by an installment-to-income ratio regarding forty-five–47%. Getting 2022, Nordea expects good RoE over 11%, backed by a fees-to-earnings ratio away from 44–50%, even after funding to own development and better regulatory costs, including the Swedish financial taxation. Nordea usually hold a money Places Big date into the 17 March in order to explore the financial address and you may agreements to the the fresh means several months in detail.
(For additional feedback, comprehend the President touch upon page 2. For meanings, discover page 53 regarding Q4 2021 report)
* Approximate count in line with the projected amount of offers which can be in material within estimated bonus decision big date.
Chief executive officer review
We hoped we would be able to set COVID about all of us for the 2021, regrettably brand new pandemic and also the related suspicion continued. In general, even in the event, 2021 is actually promising, with lots of positive cues throughout the economy and you will society. In the years ahead, we would still face particular setbacks away from the newest trojan variants, however, we are more capable and long lasting when online installment loan Indiana you look at the controlling the altering activities.
To own Nordea, 2021 is a successful 12 months. I am proud of the way we has actually changed because a lender – also the people. Our very own organization quantities increased therefore gathered industry shares over the Nordics. All of our mortgage credit became from the six%, SME credit by the 6% and you can assets less than administration (AuM) by the 17%, getting most of the-time-highest membership. Meanwhile, i proceeded to manufacture greatest buyers knowledge. I increased our customer happiness scores and you can faster consumer issues of the 9%. We have been today receiving 41% a lot fewer complaints than simply 3 years ago.