Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  NASDAQ OMX STOCKHOLM  >  Nordea Bank AB    NDA SEK   SE0000427361

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Strong Results for Swedish Banks

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/30/2013 | 12:06pm CET

STOCKHOLM--Two Swedish banks provided an optimistic start to the European banking sector's earnings season, posting better than expected fourth-quarter results and laying out plans to boost dividends.

Swedbank AB (SWED-A.SK) on Wednesday reported a more-than fourfold increase in net profit in the final three months of 2012 compared with the same period a year ago, while Nordea AB (>> Nordea Bank AB)--the largest Nordic bank by market capitalization--reported a 7% rise. The profit increases were due to a variety of factors, including higher commissions and net-interest income.

Both Stockholm-based institutions, however, continued to signal concern related to the underlying European economy and demand for credit.

Compared with the euro area, Sweden has remained a relative haven during the financial crisis as public finances have remained robust. Banks in Sweden face some of the toughest capital requirements in the western world and have maintained solid balance sheets.

In a statement, Swedbank Chief Executive Michael Wolf said that although the bank has "re-established robust profitability at the same time that we further reduced the risk level in the bank," the macroeconomic environment remains lackluster. "We...are planning for an environment with low interest rates and weak credit demand," Mr. Wolf said.

In the wake of its strong performance, Swedbank has boosted its payout policy to 75% of yearly profit from 50%, and proposed a dividend increase for 2012 to SEK9.90 per share from SEK5.30 for the previous year. Nordea, meanwhile, proposed a dividend per share of EUR0.34 for 2012, up from EUR0.26 the previous year.

Nordea's fourth-quarter net profit rose to 840 million euros ($1.13 billion), up from EUR785 million in the fourth quarter of 2011 and above analyst expectations for EUR781 million. Swedbank's net profit rose to SEK4.34 billion from SEK964 million a year earlier when the result was weighed by goodwill impairments, well above analysts' expectations for a SEK3.6 billion profit.

"Swedbank really steals the limelight today," analyst Mats Anderson at brokerage Cheuvreux said. "Profitability is solid and the raised dividend and payout policy are really good news." Nordea's earnings and dividend proposal were also better than expected though its trends were a bit more mixed than Swedbank's, with slightly disappointing net-interest income and cost development, he said.

Swedbank and Nordea are among the first banks in Europe to report fourth-quarter earnings. The next updates will come Thursday when two of the region's most important lenders, Spain's Banco Santander SA and Germany's Deutsche Bank AG, post full-year figures. The earnings reports are expected to shed light on whether prospects are looking up for a sector that has been under severe pressure during the euro-zone crisis. Nordic banks including SEB AB, Danske Bank A/S and DNB ASA will report in coming days.

Write to Gustav Sandstrom at gustav.sandstrom@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Stocks mentioned in the article : Nordea Bank AB
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NORDEA BANK AB
02/22 NORDEA BANK : New Head of Nordea in Denmark
02/20 NORDEA BANK : Nordic ABM - OBBK03 PRO - New bond issue to be listed on Nordic AB..
02/20 NORDEA BANK : Nordic ABM - SKBN09 PRO - New bond issue to be listed on Nordic AB..
02/17 NORDEA BANK : Financial Darwinism and the dawn of the Digital Banking Superstore
02/17 NORDEA BANK : Nordic ABM - SKBN09 PRO - New bond issue to be listed on Nordic AB..
02/17 NORDEA BANK : Nordic ABM - OBBK03 PRO - New bond issue to be listed on Nordic AB..
02/17 AFARAK PL : Financial statements review for 1 january - 31 december 2016
02/16 NORDEA BANK : Liv enters into cooperation with the Spiff savings app
02/15 NORDEA BANK : sets new course for sustainability
02/13 NORDEA BANK : Contemplated sale of shares in AcadeMedia AB (publ)
More news
Sector news : Banks - NEC
07:09aDJBDO UNIBANK : 2016 Net Profit at PHP26.1 Billion, Up 4% on Year
02/23DJNasdaq Slips as Biotechnology Shares Decline
02/23 UniCredit's 13 billion euro share issue almost fully subscribed
02/23DJUNICREDIT : Says EUR13 Billion Rights Issue Concluded Successfully
02/23DJNasdaq Slips as Biotechnology Shares Decline
More sector news : Banks - NEC
News from SeekingAlpha
02/15 SAMPO GROUP'S Q4 2016 RESULTS : Good Results But Still Overvalued
02/07 INFLATION IN EUROPE IS BACK : Winning And Losing Trades In Financials
01/30 This 6% Yielder Maintains Its Progressive Dividend Policy
01/26 Nordea Bank's (NRDEF) CEO Torsten Hagen Jorgensen on Q4 2016 Results - Earnin..
01/26 Nordea Bank AB reports FY results
Advertisement
Financials (€)
Sales 2017 10 062 M
EBIT 2017 4 973 M
Net income 2017 3 446 M
Debt 2017 -
Yield 2017 5,90%
P/E ratio 2017 13,22
P/E ratio 2018 12,37
Capi. / Sales 2017 4,56x
Capi. / Sales 2018 4,47x
Capitalization 45 877 M
More Financials
Chart NORDEA BANK AB
Duration : Period :
Nordea Bank AB Technical Analysis Chart | NDA SEK | SE0000427361 | 4-Traders
Full-screen chart
Technical analysis trends NORDEA BANK AB
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 23
Average target price 11,5 €
Spread / Average Target 2,2%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Casper W. von Koskull President & Group Chief Executive Officer
Björn Arne Christer Wahlroos Chairman
Torsten Hagen Jørgensen Group Chief Operating Officer, Deputy CEO & EVP
Heikki Esa Petteri Ilkka Group CFO, Head-Group Finance & Business Control
Lars-Göran Nordström Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
NORDEA BANK AB7.70%48 474
JPMORGAN CHASE & CO.5.53%325 837
WELLS FARGO & CO5.90%293 102
BANK OF AMERICA CORP12.17%249 205
INDUSTRIAL AND COMMRCL..6.58%242 237
CHINA CONSTRUCTION BAN..9.74%208 257
More Results