Group quarterly efficiency and key ratios, Q4 2021

Overview of the brand new quarter

Buyers providers quantities at the record-high accounts. Mortgage lending amounts improved because of the six%, year into year, throughout the 4th one-fourth, supported by business development over the Nordics. SME credit became by 6% and you will property around administration (AuM) enhanced from the 17%. Mortgages, SME financing and AuM achieved the best levels inside the Nordea’s history.

Strong profit progress, determined of the ten% upsurge in earnings and rigorous rates control. Fourth-quarter operating profit increased from the 32%, 12 months to the seasons, to help you EUR step one,281m. Full income are upwards 10%, driven by a good 7% rise in online interest money and you can a sixteen% rise in net payment and you may fee earnings. Net fair well worth result increased of the 14%. Costs were based on the previous quarter but decreased by the 10%, season for the seasons, because the 4th quarter from 2020 try impacted by exceptional costs things.

Continued strong borrowing from the bank quality. Online financing losses and similar websites results amounted so you can EUR 56m otherwise 7bp throughout the quarter, compared with 3bp regarding the next quarter from 2020. Realised online financing losses remained lowest, consistent with previous episodes, therefore the fees towards the quarter integrated bolstered specifications to possess a good few particular facts. The fresh new management reasoning buffer are undamaged during the EUR 610m.

Cost-to-income proportion down to 47% and you may go back for the equity on eleven.3%. Nordea’s cost-to-income ratio enhanced so you can 47% off 57% just last year throughout the last one-fourth, supported by income progress and you may went on prices performance. Come back into collateral (RoE) was 11.3%. Earnings for each display improved because of the 44% to help you EUR 0.26 from EUR 0.18.

Dividend regarding approx. EUR 0.69* for each and every express suggested for 2021 – CET1 ratio during the 17.0%. Nordea’s Panel has actually proposed a dividend of around EUR 0.69* per show having 2021 – up 77% regarding EUR 0.39 to own 2020. It results in a great 70% commission ratio, relative to Nordea’s bonus policy. The newest CET1 ratio risen to 17.0% from 16.9% in the earlier one-fourth in fact it is now 6.8 payment items over the regulating needs. Nordea was invested in implementing a simple yet effective capital framework and you will commenced a beneficial EUR 2bn display pick-straight back plan on , 109m shares was repurchased at a price away from EUR step 1,160m. Nordea provides submitted an official software into ECB in for potential realize-towards the display purchase-backs.

This new monetary target for 2025. Which have good 2021 RoE from 11.2% and you can an installment-to-money proportion of forty-eight%, Nordea have surpassed its complete-12 months 2022 monetary targets one year just before schedule. Nordea’s the, full-12 months 2025 economic address try good RoE above 13%, supported by an installment-to-income ratio of forty-five–47%. To possess 2022, Nordea needs an effective RoE over eleven%, supported by a cost-to-earnings proportion out of 49–50%, even with financial support getting progress and better regulatory will set you back, such as the Swedish lender taxation. Nordea tend to keep an investment Places Day on 17 February to talk about their financial target and you may preparations towards the the new approach several months in detail.

(For further views, see the Ceo comment on webpage 2. Having definitions, get a hold of web page 53 from the Q4 2021 report)

* Estimate count based on the projected quantity of offers that can be in point from the estimated bonus choice day.

Chief executive officer opinion

Most of us expected we may have the ability to put COVID trailing us for the 2021, regrettably brand new pandemic additionally the relevant suspicion continued. On the whole, though, 2021 is promising, with many different positive cues throughout the market and you can community. Moving forward, we may still face specific setbacks off the new trojan variants, however, we’re more capable and you will sturdy in managing the changing affairs.

To possess Nordea, 2021 was a profitable year. I am proud of how exactly we provides developed as a financial – also the people. All of our company amounts increased and now we achieved markets shares along side Nordics. The home loan credit increased by 6%, SME lending from the six% and you will property below administration (AuM) by 17%, interacting with the-time-highest accounts. Meanwhile, i went on in order to make greatest buyers enjoy. I improved our very own client satisfaction ratings and you can less consumer complaints by the 9%. Our company is today searching 41% fewer grievances than just three years in the past.