IBOS member Nordea has announced that the bank’s net interest income in local currencies increased by 2% from Q3, as reported in its Q4 and YTD 2016 results.
Nordea reported a net interest income of €4,727m for the fourth quarter of 2016, and net results increased at four per cent in local currencies from 2015.
Capital generation remained strong and the CET1 ratio improved 50 bps to 18.4% compared to 17.9% in the previous quarter. As of Q4 2016, Retail Banking has been split into Personal Banking and Commercial and Business Banking, in order to get a clearer customer focus and adjust to the rapid changes in customer demands.
Casper von Koskull, Chief Executive Officer at Nordea, comments:
“2016 has probably been the most eventful year in the history of Nordea. On top of macro and regulatory challenges for the sector, Nordea has addressed significant media attention and started to implement a profound transformational change agenda. Two major achievements have been the creation of a new legal structure and launching a term deposit product on the new core banking platform.
Despite a challenging revenue situation in 2016, we have throughout the year improved our net interest margin; for 2016, the inflow to our Assets under Management reached an all-time high, and we have confirmed our leading Nordic position in corporate advisory operations. Cost performance and credit quality are in line with our guidance. Our CET1 ratio improved 190 bps in 2016 to 18.4%, and RoE was 11.5%1,2. Nordea’s Board of Directors proposes a dividend per share of EUR 0.65.”
Below are the highlights for YTD 2016 vs. YTD 2015:
- Net interest income EUR 4,727m, -5%; -3% in local currencies
- Total operating income EUR 9,754m, -2%; -1% in local currencies
- Total expenses EUR 4,886m, +4%; +5% in local currencies
- Profit before loan losses EUR 5,127m, -1%; 0% in local currencies
- Net loan losses EUR 502m, +5%; +9% in local currencies
- Operating profit EUR 4,366m, -9%; -8% in local currencies
- Common Equity Tier 1 capital ratio 18.4%, up from 16.5%
- Cost/income ratio 50%, up from 47%
- Loan loss ratio of 15 bps, up from 14 bps
- Return on equity 11.5%, down from 12.3%
- Diluted EPS EUR 0.93 vs. EUR 0.91
Access the full report, via Nordea’s website, here.