Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q3 2022 Earnings Presentation
19 slides from Nordea Bank Abp's earnings presentation, Oct 20, 2022
Slide 1: Third-quarter results 2022
Nordea ae f Third-quarter res
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management's current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance
Slide 3: Third-quarter highlights 2022
Third-quarter highlights 2022 Executive summary Corporate sector driving continued lending volume growth, despite economic slowdown - Mortgage volumes up 4% y/y and corporate lending up 12% y/y. Assets under management down 4% q/q Increased income and operating profit - Net interest income up 15%, n
Slide 4: Key financials
Key financials Third-quarter results 2022 come statement and key ratios 9322 Q321 93/03 Q222 93/02 Net interest income 1,407 1,226 15% 1,308 8% Net fee and commission income 816 870 -6% 838 -3% Net fair value result 264 224 18% 282 -6% Other income 14 24 16 Total operating income 2,501 2,344 7% 2,44
Slide 5: Net interest income
Net interest income Continued volume growth, deposit margins up Year-over-year bridge, EURm Qo Vee 1,407 73 422660020 Ze —_ Q321 Volumes Margins Other FX Q322 Quarter-over-quarter bridge, EURm 1,407 2mm 14 Woon 84 1308 19 0 aa —_ Q222 Volumes = Margins Other FX Day count Q322 Net interest income up
Slide 6: Net fee and commission income
Net fee and commission income Higher payment and card income partly offsetting lower asset management, brokerage and advisory income Year-over-year bridge, EURm 870 | 48 a a 816 2 5007 4 3 3) 5B Ze —_ Q321 Asset Brok.& Pay.& Lending Other FX Q322 mgmt. advisory cards Quarter-over-quarter bridge, EUR
Slide 7: Net fair value result
Net fair value result Continued high customer activity in volatile markets Net fair value result, EURm Continued high customer activity 295 in volatile markets 247 - Strong interest in FX and rates products. 224 ees + Market making up, driven by FX, rates and equity trading 195 Q321 Q421 Q222 Q322 H
Slide 8: Costs
Costs Cost increases due to higher investments, normalising activity and increased regulatory fees Year-over-year bridge, EURm y a 1,146 — 16 Tm 1098 39 Q321 Underlying costs Regulatory fees FX Q322 Quarter-over-quarter bridge, EURm — 1,146 1— | FX Q322 Costs including regulatory fees up 4% - Costs
Slide 9: Net loan losses and similar net result
Net loan losses and similar net result Strong credit quality amid weaker economic conditions Net loan losses and similar net result Q3 2022, EURm 58 Individual Modelled Net loan losses Nordea Kredit Total provisions collective fair value adj. and write-offs provisions Impaired (Stage 3) loans and PD
Slide 10: Capital
Capital Strong position; share buy-backs in progress CET1 capital ratio development, % 16.6 or ! 1 "05 62 0 15.8 <2.0 i a Q222 Profit Dividend Volumes Share Other Q322 Requirement accrual excl. deriv. buy-backs Capital policy buffer I CET1 requirement REA development, EURbn 153 154 152 151 149 Q321
Slide 11: Personal Banking
Personal Banking Increased mortgage market shares across Nordics and improved deposit margins 922 013 925 906 974 573 556 565 571 636 Q321 Q421 Q122 Q222 Q322 Net interest income Il Net fee and commission income Net fair value result and other Lending*, EURbn + Total income up 6% + Increased mortgag
Slide 12: Business Banking
Business Banking Strong income growth supported by higher interest rates Total income, EURm 635 681 714 709 737 396 AIT 440 ‘444 487 161 Q321 Q421 Qi22 Q222 Q322 Net interest income Il Net fee and commission income Net fair value result and other Lending*, EURbn + Total income up 16% + Lending volum
Slide 13: Large Corporates & Institutions
Large Corporates & Institutions High customer activity and significant lending growth in volatile markets Total income, EURm 530 541 433 454 508 267 263 228 247 = = = =90 87 134 165 =119 Q321 Q421 Q122 Q222 Q322 Net interest income Ill Net fee and commission income Net fair value result and other To
Slide 14: Assets under management, EURbn
• • • • • • Assets under management, EURbn -2pp 500 1,0 0,8 300 0,6 200 0,4 100 0,2 0 0,0
Slide 15: 2025 financial target
2025 financial target Return on equity Nordea 2025: The preferred financial partner in the Nordics | Creating the best omnichannel customer experience Supported in 2025 by _ . Cost-to-income ratio | Driving focused and profitable growth : | Increasing operational and capital efficiency F \ \ Loan lo
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Slide 17: Sweden Denmark Q423
• - - 4.0 3.0 • 2.0 Sweden Norway - 1.0 Denmark - ~ ~ Finland 0.0 - ~ -1.0 - Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423
Slide 18: Impairments and provisioning coverage
Appendix Impairments and provisioning coverage Strong and stable portfolio credit quality Stage 2 and 3 loans at amortised cost, EURm * Stage 3 impaired loans further reduced, to 0.88% from 0.96% in Q2 * Stage 2 loans up 4% q/q Stage 2 3,6 MM stage 3 * Coverage ratio for remaining Q321 Q421 Q122 Q22
Slide 19: Nordic economies
Appendix Nordic economies Nordic outlook dampened by higher inflation and interest rates Housing prices Latest GDP, unemployment and housing price changes 250 250 Index, 2007=100 Housing prices Index, 2007=100 , - , , 225 [3M moving average pon + Danish GDP up 0.9% q/q in Q2. Unemployment sideways a