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IBOS member Nordea releases its Q1 2018 financial results, with a total operating profit of 1,070m Euros.

In Q1 2018, Nordea delivered on its cost reductions, as its credit quality is the strongest since 2007 and the bank’s capital ratios have never been higher.

Total revenues decreased four per cent in local currencies compared to Q1 2017, however increased four per cent in local currencies compared to Q4 2017.

Credit quality remained solid with stable net rating migration in the first quarter among both the retail portfolio and the corporate portfolio.

On 15 March 2018, Nordea’s shareholders approved the redomiciliation of the parent company from Sweden to Finland with a large majority of 95.8 per cent of the votes. Nordea’s investment in strengthening compliance is delivering stronger control of financial crime risks, with the introduction of more rigorous standards, KYC quality assurance processes and sanctions screening capability.

Below are the financial highlights for Q1 2018, in comparison to Q1 2017:

  • Net interest income EUR 1,053m, -12%; -9% in local currencies
  • Total operating income EUR 2,315m, -6%; -4% in local currencies
  • Total expenses EUR 1,205m, -3%; -1% in local currencies
  • Profit before loan losses EUR 1,110m, -9%; -7% in local currencies
  • Net loan losses EUR 40m, -65%; -63% in local currencies
  • Operating profit EUR 1,070m, -3%; -1% in local currencies
  • Common Equity Tier 1 capital ratio 19.8%, up from 18.8%
  • Cost/income ratio 52% up from 51%
  • Loan loss ratio of 7 bps, down from 14 bps
  • Return on equity 10.0%, down from 10.3%
  • Diluted EPS EUR 0.20 vs. EUR 0.21


Read the full report via Nordea here.