Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q2 2023 Earnings Presentation
22 slides from Nordea Bank Abp's earnings presentation, 2023
Slide 1: Nordea
Nordea
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: Second-quarter highlights 2023
Second-quarter highlights 2023 Executive summary High income growth and strong operating profit - Net interest income up 40%, net fee and commission income down 6% and net fair value result up 14% - Operating profit up 26% to EUR 1,718m Return on equity* 18.4% and earnings per share up 32% to EUR 0.
Slide 4: Key financials
Key financials Second-quarter results 2023 income statement and key ratios Q223 Q222 Q2/Q2 Q123 Q2/Q1 Net interest income 1,831 1,308 40% 1,765 4% Net fee and commission income 751 797 -6% 765 -2% Net insurance result 68 53 28% 46 48% Net fair value result 290 254 14% 345 -16% Other income 15 16 0 T
Slide 5: Net interest income
Net interest income Stable volumes, higher deposit margins Year-over-year bridge, EURm y a 145 1,831 588 1308 3 Ze —__ Q222 Volumes Margins Other FX Q223 Quarter-over-quarter bridge, EURm 29 55 1,831 85 Q123 Volumes Margins Other FX Q223 Net interest income up 40% Continued growth in corporate lendi
Slide 6: Net fee and commission income
Net fee and commission income Lower asset management and lending income Year-over-year bridge, EURm N Q222 Asset Brok.& Pay.& Lending Other mgmt. advisory cards Quarter-over-quarter bridge, EURm FX N Q123 Asset Brok.& Pay.& Lending Other mgmt. advisory cards Net fee and commission income down 6% Sav
Slide 7: Net fair value result
Net fair value result Sustained high levels of customer activity Net fair value result, EURm 396 345 N7 7 290 254 Fen 0 238 45 62 = ae 3 26 17 12 Q222 Q322 Q422 Q123 Q223 Hl Customer areas* Treasury & other** 1 Market-making operations 6 Excludes fair value adjustments to loans held at fair value in
Slide 8: Costs
Costs Continued additional investments Year-over-year bridge, EURm | 60 4—- 3. 1,205 * Costs up 7%, driven by W422 7 investments and inflation a 1 - Continued additional investments to protect against financial crime, Q222 Underlying Additional Regulatory fees FX Q223 strengthen cyber security and c
Slide 9: Net loan losses and similar net result
Net loan losses and similar net result Continued strong credit quality Net loan losses and similar net result, EURm Total net loan result low at EUR 38. 32m (4bp) 32 8 - Low levels of both individual and collective provisions - EUR 6m FV gain from Danish mortgages Individual Collective Net loan loss
Slide 10: Capital
Capital Strong position; additional share buy-back launched CET1 capital ratio development, % 0.9 -0.7 15.7 i | 0.1 04 16.0 <2.0 Q123 Profit Dividend Volumes Other Q223 Requirement accrual excl. deriv. Capital policy buffer I CET1 requirement REA development, EURbn 151 149 145 142 140 Q222 Q322 Q422
Slide 11: Personal Banking
Personal Banking Stable business volumes and higher net interest income Total income, EURm ____—_ ap * Total income up 29% 1076 15 1146 + Net interest income up 47%, driven by higher deposit volumes and improved deposit margins Deposit volumes up 1% PEG): PED PED: Es: PES. * Mortgage volumes stable
Slide 12: Business Banking
Business Banking Good business momentum with continued volume growth Total income, EURm 842 872 700 726 &71 439 481 596 $81 cc 57 2 1 151 43 Q222 Q322 422 Q123 Q223 Net interest income 1) Net insurance result Il Net fee and commission income Net fair value result and other Lending*, EURbn _ aD + Tot
Slide 13: Large Corporates & Institutions
Large Corporates & Institutions Significant net interest income growth and high levels of customer activity Total income, EURm 547 515 559 348 268 289 oe 356 Pa i3 P1065 | Poi | =166 ~=120 =168 2) =m. Q222 Q322 Q422 Q123 Q223 Net interest income Ill Net fee and commission income Net fair value resul
Slide 14: Assets under management, EURbn
• • • • • • Assets under management, EURbn 500 1,0 0,8 300 0,6 200 0,4 100 0,2 0 0,0
Slide 15: Updated outlook for 2023
Nordea 2025: The preferred financial partner in the Nordics Updated outlook for 2023: return on equity comfortably above 15% Reassessing long-term financial target for 2025 — update in conjunction with fourth-quarter report
Slide 16: Nordea
Nordea
Slide 17: Supplementary information: Nordea today
Supplementary information Nordea today Very well-diversified pan-Nordic financial service provider with stable and sustainable returns Income and loan portfolio very well spread across Nordic countries, currencies, business areas and industries* 6% 1 24% 27%, P Operating Lending Income 23% 20% e Swe
Slide 18: Sweden Norway Denmark
• - - • - 5.0 - 4.0 - 3.0 - 2.0 Sweden Norway • 1.0 Denmark Finland ~ 0.0 ~ - -1.0 - Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q424
Slide 19: Real estate management industry (REMI)
Supplementary information Real estate management industry (REMI)* Well-diversified portfolio, high-quality lending Lending volumes stable 30 30 31 30 30 Q222) Q322) = Q422) —-Q123,— Q223 Hl Commercial real estate MM Commercial residential real estate 91% of portfolio with low probability of default
Slide 20: RW floor Q222 Q322
49 RW floor • 50% 8 - 6 30 5 97% 97% 98% 97% 96% • • 1% 1% 1% 1% 1% 3% 3% 2% 2% 3% Q222 Q322 Q422 Q123 Q223 Q223 1-notch 2-notch 3-notch Impact Stage 1 Stage 2 Stage 3 • 60 59 61 61 59 55 55 57 51 53 Impairment rate (bp) Coverage ratio (%) Q222 Q322 Q422 Q123 Q223
Slide 21: DK FI NO
• 68% 65% 62% 61% 63% 53% 56% 52% 55% 53% 45% 49% - 27% 23% 17% 8% 8% 7% 4% 4% 4% 0% DK FI NO SE Total Current 20% value decline • Current 20% value decline 0–40% LTV 51–60% LTV 71–80% LTV 41–50% LTV 61–70% LTV >80% LTV - - 4.4 4.4 4.1 4.0 45% 3.1 37% 2.1 2.0 2.0 2.0 2.0 26% 26% 29% • 19% 9% - 6% 3%
Slide 22: Impairments and provisioning coverage
Supplementary information Impairments and provisioning coverage Strong and stable portfolio credit quality Stage 2 and 3 loans at amortised cost, EURm I Stage 2 6 2 MM Stage 3 Q222 322 422 Q123 9223 Coverage ratio, % 48 " 46 44 4 aN oe =~ 44 43 ° 44 42 42 42 42 40 ° 38 34 35 34 34 % 32 31 31 31 30 3