Solid quarter

 

CEO Christian Clausen's comment to the report:
"I am proud to present another strong quarter. Our relationship strategy and solid operating platform continue to deliver. Income is at record level. Both operating and risk-adjusted profit increased more than 10% from the first quarter last year.

 

European banks face large challenges with the costs of new regulation. Nordea is committed to take the necessary steps to maintain its position in the top league. In our New Normal plan, we will focus on increased ROE and take measures to increase capital and cost efficiency."

 

(For further viewpoints, see CEO comments, page 2)

 

 

First quarter 2011 vs first quarter 2010 (vs fourth quarter 2010):

  • Total income up 9% (0%)
  • Risk-adjusted profit up 14% (up 7%)
  • Number of Gold and Private Banking customers up 210,000 or 8%
    (up 47,000, a 6% growth rate)
  • Net loan losses 22 basis points, 31 basis points including a one-off Danish deposit guarantee fund provision (23 bps in the fourth quarter, 37 bps in the first quarter 2010)
  • Core tier 1 capital ratio 10.7% excluding transition rules (10.3% in the fourth quarter, 10.1% in the first quarter 2010)
  • Return on equity 12.0% (12.8% in the fourth quarter, 11.3% in the first quarter 2010)

 

Summary key figures, EURm Q1 2011 Q4 2010 Ch.% Q1 2010 Ch.%
Net interest income 1,324 1,365 -3 1,235 7
Total operating income 2,510 2,507 0 2,303 9
Profit before loan losses 1,245 1,237 1 1,139 9
Net loan losses -242 -166 46 -261 -7
Loan loss ratio annualised, bps 31 23   37  
Operating profit 1,003 1,071 -6 878 14
Risk-adjusted profit 771 721 7 678 14
Diluted earnings per share, EUR 0.18 0.19   0.16  
Return on equity, % 12.0 12.8   11.3  

 

 

For further information:
Christian Clausen, President and Group CEO, +46 8 614 7804
Fredrik Rystedt, Group CFO, +46 8 614 7812
Rodney Alfvén, Head of Investor Relations, +46 8 614 7880 (or +46 72 235 05 15)
Jan Larsson, Head of Group Identity & Communications, +46 8 614 7916 (or +46 70 593 34 12)

First Quarter Report 2011 PDF:
http://hugin.info/1151/R/1509951/444881.pdf


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Source: Nordea via Thomson Reuters ONE
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