Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — BofA 25th Annual Financials CEO Virtual Conference 2020
14 slides from Nordea Bank Abp's conference presentation, Sep 24, 2020
Slide 1: Investor presentation – BofA 25th Annual Financials CEO Virtual Conference 2020
Investor presentation – BofA 25th Annual Financials CEO Virtual Conference 2020 Frank Vang-Jensen, President and Group CEO
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: Today Nordea is the leading Nordic bank with strong market positions in all Nordic countries
Today Nordea is the leading Nordic bank with strong market positions in all Nordic countries and business areas 3 Full Year 2019 numbers
Slide 4: Three key priorities to make us truly competitive and improve our financial performance
Three key priorities to make us truly competitive and improve our financial performance Optimise Drive Create Great Operational Income Growth Customer Efficiency Initiatives Experiences Execution & Accountability A Strong and Personal Financial Partner 4
Slide 5: Nordea is committed to delivering on our financial targets
Nordea is committed to delivering on our financial targets Cost to income ratio in FY22 Return on equity in FY22 50% >10% Capital policy Dividend policy 60-70% pay-out of distributable 150-200 bps profits to shareholders management buffer Excess capital intended to be distributed above the regulator
Slide 6: Sustainable Banking – inspire and enable our customers to make sustainable choices
Sustainable Banking – inspire and enable our customers to make sustainable choices Nordea is fully committed to making the financial sector more sustainable Offering Risk Management Commitments Financing Investment • Board Operations and Sustainability • Co-Founders of UNEP FI Principles Committee a
Slide 7: Strong volume growth in both Personal Banking & Business Banking despite COVID-19, recovering AuM
Strong volume growth in both Personal Banking & Business Banking despite COVID-19, recovering AuM Personal Banking (PeB) lending*, EURbn Comments • Strong volume growth in both households and SMEs +4% 158 • Both PeB and BB up 4% compared to same quarter last year 154 156 • Strong mortgage volume gro
Slide 8: Large Corporates & Institutions – continues to execute on re-positioning plan
Large Corporates & Institutions – continues to execute on re-positioning plan New strategic direction for LC&I Comments • Cost takeout and optimisation of international footprint according to plan • Cost efficiency improves, cost to income ratio down to 44% (63% in Q219) • Reduction of low-return as
Slide 9: We continue to deliver on cost plan and build a strong cost culture
We continue to deliver on cost plan and build a strong cost culture Year over year bridge, EURm Comments -6% • Delivering on cost plan 1,180 • Staff costs down by 11% • New ways of working supporting cost reductions • Slightly lower IT spend in the quarter 121 1,108 20 1,088 49 Outlook • Costs for 2
Slide 10: Very strong capital position to support customers while maintaining dividend capacity
Very strong capital position to support customers while maintaining dividend capacity CET1 capital position and requirement, % Comments • Nordea one of the best capitalised banks in Europe 5.6 • CET1 capital ratio at 15.8% compared to the current 15.8 requirement of 10.2% 10.2 • Capital policy of 15
Slide 11: Nordea is one of the most conservative and forward-looking banks on asset quality in Europe
Nordea is one of the most conservative and forward-looking banks on asset quality in Europe • Our loan book is well-diversified and has strong underlying credit quality Diversified and de-risked • Credit portfolio significantly de-risked over the past years portfolio • Limited exposure to significan
Slide 12: COVID-19 accelerates trends in the banking sector – Nordea well positioned
COVID-19 accelerates trends in the banking sector – Nordea well positioned New ways of working – will be permanent to some extent Operations • >70% of staff working remotely – fully operational during crisis • Reviewing what learnings can be made – premises, travelling, outsourcing Acceleration of d
Slide 13: We deliver on our promises despite COVID-19
We deliver on our promises despite COVID-19 • We show strong momentum across business areas and countries despite COVID-19 ➢ High activity level and good business performance in challenging times ➢ Strong continued mortgage volume growth and higher market shares in all Nordic countries ➢ Strong net
Slide 14: Questions
Questions
Nordea Bank Abp — BofA 25th Annual Financials CEO Virtual Conference 2020 on 6ix