Review of the latest quarter
Customer business quantities in the record-large membership. Financial lending volumes improved from the six%, seasons towards the season, about next one-fourth, backed by business gains across the Nordics. SME lending increased by 6% and you will assets lower than government (AuM) increased of the 17%. Mortgages, SME lending and AuM achieved the highest levels inside Nordea’s history.
Strong funds gains, motivated by 10% boost in money and you can tight prices control. Fourth-quarter doing work profit enhanced from the thirty-two%, year on the 12 months, to help you EUR 1,281m. Overall money are up 10%, motivated because of the good eight% rise in internet attract income and a good sixteen% escalation in websites fee and you can fee money. Websites reasonable worth effects improved of the fourteen%. Costs had been in accordance with the prior quarter however, decreased of the 10%, season toward seasons, given that fourth quarter out of 2020 is impacted by outstanding pricing points.
Proceeded solid credit top quality. Web mortgage losings and comparable internet effect amounted so you can EUR 56m or 7bp on the one-fourth, in contrast to 3bp from the 4th one-fourth away from 2020. Realized websites loan losses stayed lower, consistent with previous periods, and charges to your quarter provided bolstered terms having an effective few certain circumstances. The fresh new government reasoning boundary are intact on EUR 610m.
Cost-to-earnings proportion down seriously to 47% and you can go back with the guarantee on eleven.3%. Nordea’s costs-to-earnings ratio improved to 47% out-of 57% a year ago regarding next one-fourth, supported by earnings progress and you may continued cost show. Go back into the equity (RoE) try eleven.3%. Money each show enhanced because of the 44% to help you EUR 0.twenty-six of EUR 0.18.
Dividend regarding approx. EUR 0.69* for each show recommended to possess Washington installment loans online 2021 – CET1 proportion at 17.0%. Nordea’s Panel provides suggested a dividend of approximately EUR 0.69* for each and every display having 2021 – up 77% away from EUR 0.39 to own 2020. So it usually means a great 70% commission proportion, in line with Nordea’s bonus plan. Brand new CET1 ratio risen to 17.0% out of sixteen.9% in the last quarter which will be today 6.8 commission issues above the regulatory requisite. Nordea was dedicated to using a competent funding framework and you may commenced a great EUR 2bn show buy-right back program on , 109m offers ended up being repurchased at a price regarding EUR step 1,160m. Nordea possess submitted a proper app to the ECB in for potential follow-towards the show pick-backs.
The brand new economic address for 2025. Which have a great 2021 RoE from 11.2% and you will a repayment-to-income ratio away from 48%, Nordea has actually surpassed its complete-seasons 2022 financial purpose 12 months in advance of schedule. Nordea’s the fresh new, full-seasons 2025 economic address is an effective RoE more than thirteen%, supported by a cost-to-income proportion from forty five–47%. To own 2022, Nordea wants a good RoE significantly more than eleven%, backed by an installment-to-income proportion of forty two–50%, even with investment to possess growth and higher regulatory will set you back, like the Swedish financial income tax. Nordea usually hold an investment Places Time into 17 March to help you talk about their economic address and plans to your the brand new means months in detail.
(For further views, see the Ceo discuss page 2. To own significance, get a hold of page 53 from the Q4 2021 statement)
* Calculate number based on the estimated amount of offers which can get into point at projected bonus choice time.
Chief executive officer comment
Each of us hoped we would manage to set COVID at the rear of united states when you look at the 2021, regrettably the fresh new pandemic as well as the related suspicion proceeded. All in all, no matter if, 2021 is actually promising, with quite a few positive cues throughout the economy and people. Moving forward, we may still deal with some setbacks away from this new trojan variants, but the audience is more knowledgeable and you may resilient inside the managing the modifying items.
For Nordea, 2021 was a profitable season. I’m pleased with exactly how we enjoys developed because a financial – and additionally our very own consumers. Our company volumes became and then we attained industry shares over the Nordics. Our very own mortgage financing grew because of the 6%, SME credit by the 6% and you may possessions lower than administration (AuM) of the 17%, getting together with all-time-higher levels. Meanwhile, we went on to help make greatest customers enjoy. I increased the customer happiness score and you can shorter consumer complaints from the 9%. We have been today researching 41% less issues than 3 years before.