Breakdown of the fresh new quarter
Buyers team volumes from the record-large membership. Mortgage financing quantities improved of the 6%, year toward seasons, throughout the next quarter, backed by business growth over the Nordics. SME lending increased from the 6% and you may assets lower than government (AuM) improved of the 17%. Mortgage loans, SME financing and you can AuM reached the greatest accounts within the Nordea’s history.
Good profit progress, motivated because of the 10% upsurge in money and you can tight rates control. Fourth-quarter doing work earnings improved by the thirty-two%, 12 months to your year, so you can EUR step 1,281m. Full money was upwards 10%, driven by an excellent seven% increase in websites desire earnings and you can a good 16% upsurge in net payment and fee income. Websites reasonable value influence enhanced by the fourteen%. Will set you back was in fact according to the prior quarter but decreased because of the 10%, year for the seasons, because 4th quarter from 2020 is actually affected by outstanding prices things.
Proceeded good borrowing from the bank quality. Net financing losings and you can comparable net influence amounted in order to EUR 56m otherwise 7bp throughout the quarter, in contrast to 3bp about last quarter out of 2020. Realized websites financing losses stayed lowest, in keeping with past symptoms, as well as the costs to the one-fourth included bolstered terms getting a good small number of particular facts. The new administration reasoning boundary is actually unchanged at EUR 610m.
Cost-to-income proportion right down to 47% and go back to the collateral within 11.3%. Nordea’s rates-to-income proportion enhanced in order to 47% of 57% just last year about 4th one-fourth, supported by income growth and you will proceeded pricing overall performance. Come back into equity (RoE) is 11.3%. Money for every single share increased by forty-two% to help you EUR 0.twenty-six regarding EUR 0.18.
Bonus out-of approx. EUR 0.69* per show proposed to possess 2021 – CET1 proportion at 17.0%. Nordea’s Panel has advised a dividend around EUR 0.69* for every display to have 2021 – upwards 77% of EUR 0.39 to have 2020. This results in a 70% payout proportion, in accordance with Nordea’s dividend rules. This new CET1 ratio risen up to 17.0% out of sixteen.9% in the earlier quarter in fact it is now 6.8 commission activities above the regulating requirement. Nordea is purchased applying an efficient money design and you may commenced a great EUR 2bn show purchase-back program to your , 109m offers is payday loans online Washington repurchased at a cost off EUR step one,160m. Nordea has submitted a proper software on the ECB set for potential follow-with the display purchase-backs.
The fresh new economic address to possess 2025. Which have a great 2021 RoE of 11.2% and a cost-to-income proportion off 48%, Nordea has exceeded the full-year 2022 economic aim 1 year in advance of plan. Nordea’s the fresh new, full-12 months 2025 monetary address is actually an excellent RoE over thirteen%, supported by a repayment-to-money proportion off 45–47%. Getting 2022, Nordea wants an excellent RoE over 11%, backed by a repayment-to-earnings ratio from forty two–50%, even with financing getting development and higher regulatory will cost you, for instance the Swedish lender income tax. Nordea tend to keep a funds Segments Day to the 17 February so you can mention the financial address and you can preparations towards the brand new strategy several months in detail.
(For additional feedback, understand the Chief executive officer touch upon web page dos. For significance, pick web page 53 throughout the Q4 2021 report)
* Estimate amount in accordance with the projected quantity of offers that will get in material during the projected bonus choice time.
Ceo remark
We-all expected we could possibly manage to lay COVID at the rear of us from inside the 2021, regrettably the latest pandemic and also the related uncertainty continued. In general, even though, 2021 is guaranteeing, with several confident signs in the economy and you can community. In the years ahead, we would still face some setbacks out of the new trojan alternatives, however, our company is more knowledgeable and durable from inside the managing the switching activities.
To possess Nordea, 2021 try a profitable 12 months. I’m proud of how we provides developed since a financial – as well as the people. Our very own organization amounts became therefore we achieved industry offers across the Nordics. All of our mortgage credit expanded of the 6%, SME credit from the 6% and you will possessions significantly less than government (AuM) by 17%, reaching every-time-highest accounts. At the same time, i continued in order to make most readily useful customers experience. We increased our customer satisfaction scores and less customer complaints of the 9%. We are today getting 41% fewer grievances than simply three-years back.