Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q2 2022 Earnings Presentation
20 slides from Nordea Bank Abp's earnings presentation, 2022
Slide 1: Nordea
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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 2022
Second-quarter highlights 2022 Executive summary Continued growth in lending volumes, strong performance in corporate sector - Mortgage volumes up 6% y/y, SME lending up 7% y/y and large corporate lending up 16% y/y. Assets under management down 9% q/q Higher income and increased operating profit de
Slide 4: Key financials
Key financials Second-quarter results 2022 come statement and key ratios Q222 Q271 Q2/Q2 Q122* Q2/Q1 Net interest income 1,308 1,232 6% 1,308 0% Net fee and commission income 838 878 -5% 870 -4% Net fair value result 282 278 1% 295 -4% Other income 16 30 17 Total operating income 2,444 2,418 1% 2,49
Slide 5: Net interest income
Net interest income Continued strong volume growth, lower lending margins Year-over-year bridge, EURm ——— 2 tga Bo 1,308 88 1,232 00 Ze —_ Q221 Volumes Margins Other FX Q222 Quarter-over-quarter bridge, EURm 1,308 63 1,308 Q122 Volumes = Margins Other FX Day count Q222 Net interest income up 6% Stro
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 878 _ 6 zs fy i 8 1 — lH fa. 838 | = Q221 Asset Brok.& Pay.& Lending Other FX Q222 mgmt. advisory cards Quarter-over-quarter bridge, EURm @
Slide 7: Net fair value result
Net fair value result High customer activity driving net fair value result Net fair value result, EURm &> + High customer activity | - Strong interest in FX and rates 278 products a 247 33 43 * Gains related to restructuring of Offshore portfolio * Market-making subdued — challenging market conditio
Slide 8: Costs
Costs Underlying costs stable Year-over-year bridge, EURm | @ t 8 1,139 1,131 w a 1 1 Q221 Underlying costs Regulatory fees FX Q222 Quarter-over-quarter bridge, EURm | 8 _- — = an pe. 1,139 Q122 Underlying — Regulatory fees FX Q222 costs Costs up 1% from Swedish bank tax - Costs excluding regulatory
Slide 9: Net loan losses and similar net result
Net loan losses and similar net result Net reversals and lower non-performing loans Net loan losses and similar net result Q2 2022, EURm 5 - 56 Individual Modelled Net loan MJ release Nordea Kredit Total provisions collective losses fair value adj. and write-offs — provisions Stage 3 loans and PD of
Slide 10: Capital
Capital Strong position; new share buy-back launched CET1 capital ratio development, % 16.3 o7 01 01 16.6 -0.5 -0.1 =— I Ba Q122 Profit Dividend Volumes Credit Other Q222 Requirement accrual excl. deriv. quality > Capital policy buffer Hl CET1 requirement REA development, EURbn 154 152 153 152 B 151
Slide 11: Personal Banking
Personal Banking Strong growth in mortgage lending volumes and increased funding costs Total income, EURm Total income excluding one-offs up 1% Increased mortgage market shares across Nordics 9 | 931 922 913 925 906 Strong volume growth and higher deposit margins partly 571 offset by mortgage margin
Slide 12: Business Banking
Business Banking Continued strong income growth driven by high customer activity Total income, EURm —ap > * Total income up 10% 682 715 710 * Lending volumes up 7%, driven by Sweden and Norway 644 635 ong nS * Strong growth in net fair value result, driven by high 405 395 416 customer demand for FX
Slide 13: Large Corporates & Institutions
Large Corporates & Institutions Very strong lending growth and high customer activity in volatile markets Total income, EURm + Total income up 7% -G>- 541 + Net interest income up 13% and lending volumes up 16% 505 434 454 529 * Commission income lower following weaker capital markets = a 267 262 +
Slide 14: Assets under management, EURbn
• • • • • Assets under management, EURbn +1pp 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 | Raising the bar on financial performance Supported in 2025 by Driving best-in-class omnichannel customer ‘ Cost-to-income ratio experiences and further value creation for shareholders . Loan losses |
Slide 16: Nordea
Nordea
Slide 17: Impairments and provisioning coverage
Appendix Impairments and provisioning coverage Continued strong credit quality Stage 2 and 3 loans at amortised cost, EURm Gl Stage 2 , MM Stage 3 Q221 Q321 Q421 Q122 Q222 Coverage ratio, % 48 10 46 44 45 46 45 4 43483 a2 42 ° 42 40 3Y 6 3) 36 37 34 35 34 34 32 31 31 34 4 36 34 2 =< Stage 3 2 — Stag
Slide 18: Real estate management industry (REMI)
Appendix Real estate management industry (REMI) Low relative exposure and well-diversified REMI portfolio REMI as % of total lending, Q1 2022 reports* 28 16 R 13 Peer A Peer B 16 13 Peer C MM REMI total Ml REMI Sweden REMI geographic diversification Peer C Peer B Hl sweden Ml Other Nordic 18 + exclu
Slide 19: Real estate management industry (REMI)
Appendix Real estate management industry (REMI) Well diversified with high quality Distribution of REMI property types, EUR 30bn* Hotels 3% Industrial Logistics 8% Office Other 19% 10% Retail Residential 19 * excluding tenant owners’ associations (TOA) Distribution of REMI by probability of default
Slide 20: Nordic economies
Appendix Nordic economies Nordic economies are cooling down Housing prices 250 index, 2007=100 Housing prices 205 [2” moving average 200 175 150 125 Finland = 100 = B Denmark Unemployment rate 10 % Unemployment —Sweden — Norway — Denmark —Finland aNwWhUONGDO 07°08 09° 10° 11°12" 13°14 15 16° 17°18 1