Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Debt Investor Presentation (February 2021)
14 slides from Nordea Bank Abp's debt investor presentation, February 2021
Slide 1: Video debt investor presentation Q4 and full-year 2020
Video debt investor presentation Q4 and full-year 2020
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: Starting time for each section
Starting time for each section Starts at Page Presenter 1. Nordea Q4 results 0.50 min 4 Randie Atto, Debt Investor Relations Officer 2. Credit quality and Sustainability 4.10 min 7 Andreas Larsson, Head of Debt IR 3. Capital position 7.00 min 9 Petra Mellor, Head of Bank Debt 4. Funding, liquidity a
Slide 4: Executive summary
Executive summary ➢ Continued strong growth in customer business volumes in all countries ➢ Operating profit up 11% y/y, driven by income growth, and return on equity at 8.4%* ➢ Costs in line with guidance – new cost outlook for 2021 ➢ Strong credit quality – total net loan losses and similar net re
Slide 5: Revenues – strong growth in net interest income and net fee and commission income
Revenues – strong growth in net interest income and net fee and commission income Net interest income, EURm Comments year over year 6% • Net interest income up 6% 1,108 1,109 1,091 1,146 1,169 • Volume growth and higher market shares in mortgages in all countries • Positive SME lending development,
Slide 6: Costs – underlying costs down according to plan; additional items in Q4
Costs – underlying costs down according to plan; additional items in Q4 Year-over-year bridge, EURm Comments +3% • Costs up 3% y/y; underlying costs down 3%, 1,218 29 1 excluding FX 1,179 35 39 1,140 15 • Costs higher in quarter due to integration of Nordea Finance Equipment (NFE), one-off IT impair
Slide 7: Net loan losses and similar net result – full-year losses in line with guidance
Net loan losses and similar net result – full-year losses in line with guidance Net loan losses and similar net result Q420, EURm Comments • Net loan losses and similar net result EUR 28m* -35 58 -30 • Total net losses for 2020 in line with guidance of 0 below EUR 1bn 93 28 • Projected impact of COV
Slide 8: Sustainability focus across the group
Sustainability focus across the group Sustainability business development 2020 Acknowledgements for our sustainability work • Corporate Knights (top 100) sustainable companies in the world Number of customers Total AuM in ESG that have been advised in products • Nordea Asset Management in the top 10
Slide 9: Capital – significant buffer to capital requirements
Capital – significant buffer to capital requirements Capital position and requirements Comments • CET1 capital ratio 17.1%, 6.9 percentage points 6.0% above regulatory requirement** 6.9% • CET1 buffer of 6.9 percentage points corresponds to EUR 10.7bn 14.5% • CET1 requirement lowered by ~2.9 percent
Slide 10: Capital – very strong capital position to support customers and pay dividends
Capital – very strong capital position to support customers and pay dividends CET1 capital ratio development, % Comments 0.2 -0.1 0.2 0.1 -0.3 0.8 1.9 • CET1 capital ratio 17.1%, 6.9 percentage points 6.9* above regulatory requirement* 16.4 17.1 • Risk exposure amount up EUR 5bn to EUR 155bn, 10.2 d
Slide 11: Liquidity – solid position and well-functioning funding markets
Liquidity – solid position and well-functioning funding markets Deposits*, EURbn Comments 172 169 174 188 190 183 • Robust liquidity position 165 • Liquidity buffer over EUR 88bn 97 99 90 83 77 88 79 • Liquidity coverage ratio (LCR) of 158% • EU net stable funding ratio (NSFR) of 110.3% 89 87 91 86
Slide 12: Solid funding operations
Solid funding operations Long-term issuance volumes 2020* Strong funding position further improved EURm AT1 T2 Senior non-preferred Senior preferred*** Covered 5 000 • Long- and short-term funding outstanding at EUR 181bn 4 500 4 000 • EUR 23.4bn long term debt issued during 2020, of which 3 500 EUR
Slide 13: Nordic economic development – resilient economies rebounding
Nordic economic development – resilient economies rebounding House prices Nordics – among best performing countries during COVID-19 • Nordics experienced increases in GDP in the third quarter • Strong rebound in sight by the end of 2021 • Nordics well-equipped to handle the long-term consequences of
Slide 14: Contacts
Contacts Investor Relations Matti Ahokas Andreas Larsson Randie Atto Maria Caneman (maternity leave) Head of Investor Relations Head of Debt Investor Relations Debt IR Officer Senior Debt IR Officer Mobile: +358 40 575 91 78 Mobile: +46 709 707 555 Mobile: +46 738 66 17 24 Mobile: +46 768 24 92 18 T
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