Report about the new quarter
Consumer business amounts at the listing-high account. Mortgage credit amounts enhanced by 6%, seasons to the season, throughout the next quarter, supported by business development across the Nordics. SME credit became by the six% and you can possessions lower than management (AuM) improved by 17%. Mortgage loans, SME lending and you can AuM reached the highest account for the Nordea’s background.
Solid cash growth, inspired because of the 10% boost in money and you will tight rates control. Fourth-quarter operating earnings improved of the 32%, 12 months to your seasons, to EUR step one,281m. Overall earnings was up 10%, motivated from the an effective eight% upsurge in net focus income and you will good 16% increase in internet commission and you may installment loans in Georgia fee money. Online fair really worth impact enhanced by the fourteen%. Will set you back were in line with the earlier one-fourth but diminished because of the 10%, seasons toward seasons, given that fourth one-fourth off 2020 is affected by exceptional rates factors.
Went on solid borrowing top quality. Online loan losings and you may similar online effects amounted so you can EUR 56m or 7bp in the one-fourth, weighed against 3bp on next quarter of 2020. Realized internet loan losings remained reduced, consistent with earlier in the day episodes, plus the charges to your quarter provided strengthened conditions to have an effective small number of particular factors. The new government judgement barrier was undamaged on EUR 610m.
Cost-to-income ratio right down to 47% and you will come back to your guarantee on 11.3%. Nordea’s rates-to-earnings proportion improved to help you 47% off 57% last year in the fourth one-fourth, supported by money development and you may proceeded prices show. Return toward security (RoE) is actually eleven.3%. Earnings for each and every share enhanced by the forty two% so you can EUR 0.twenty-six out-of EUR 0.18.
Dividend of approx. EUR 0.69* for every single show recommended to own 2021 – CET1 ratio on 17.0%. Nordea’s Board possess proposed a bonus of about EUR 0.69* per share having 2021 – upwards 77% away from EUR 0.39 for 2020. Which means an effective 70% payment proportion, relative to Nordea’s dividend plan. The new CET1 proportion risen to 17.0% out of 16.9% in the earlier one-fourth and that’s now six.8 commission factors over the regulatory requirements. Nordea is actually dedicated to applying a competent investment build and commenced good EUR 2bn display pick-straight back program on the , 109m shares was repurchased at a high price of EUR step 1,160m. Nordea features submitted a proper software on ECB set for potential realize-towards the share purchase-backs.
Brand new economic address for 2025. With an effective 2021 RoE away from eleven.2% and you may a fees-to-income proportion out-of forty eight%, Nordea has surpassed their full-year 2022 economic objectives one year just before agenda. Nordea’s this new, full-year 2025 financial address are a great RoE significantly more than thirteen%, supported by a cost-to-money ratio out-of forty-five–47%. To own 2022, Nordea needs good RoE significantly more than 11%, backed by a cost-to-money ratio away from forty-two–50%, even after resource to possess increases and better regulatory will set you back, such as the Swedish bank taxation. Nordea usually hold an investment Locations Go out with the 17 February in order to mention their monetary address and agreements on brand new method months in more detail.
(For additional feedback, understand the President discuss web page dos. To own meanings, discover page 53 throughout the Q4 2021 statement)
* Approximate amount based on the estimated number of offers that may be in matter on projected bonus choice big date.
President review
We-all wished we possibly may manage to lay COVID trailing all of us within the 2021, but unfortunately the fresh pandemic in addition to related suspicion went on. On the whole, even in the event, 2021 was encouraging, with quite a few confident cues throughout the economy and you will neighborhood. In the years ahead, we may nevertheless face specific setbacks out-of this new trojan versions, but we are more knowledgeable and you will durable when you look at the controlling the altering issues.
To possess Nordea, 2021 is actually a successful year. I am pleased with the way we keeps progressed while the a bank – plus our people. Our company amounts expanded and then we attained market shares over the Nordics. The home loan lending expanded of the 6%, SME credit by 6% and property significantly less than administration (AuM) of the 17%, getting together with the-time-highest membership. At the same time, i continued to create most readily useful customers experiences. I improved the customer care scores and you may faster customer issues from the 9%. Our company is today finding 41% less problems than just 3 years ago.