Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea — Q3 2023 Earnings Presentation
21 slides from Nordea Bank Abp's earnings presentation, 2023
Slide 1: Third-quarter results 2023
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 2023
Third-quarter highlights 2023 Executive summary Strong operating profit, driven by high income growth - Net interest income up 36%, net fee and commission income down 4% and net fair value result down 5% - Operating profit up 34% to EUR 1,725m Return on equity* 17.9% and earnings per share up 41% to
Slide 4: Key financials
Key financials Third-quarter results 2023 income statement and key ratios Q323 Q322 Q3/03 Q223 Q3/Q2 Net interest income 1,909 1,407 36% 1,831 4% Net fee and commission income 742 775 -4% 751 1% Net insurance result 63 38 66% 68 -7% Net fair value result 225 238 -5% 290 -22% Other income 13 14 1% 15
Slide 5: Net interest income
Net interest income Stable volumes, higher deposit margins Year-over-year bridge, EURm <=> 1 [ 208 gp 156 1,909 695 1,407 — — coal i Q322 Volumes Margins Deposit Treasury Other FX Q323 hedge -related items Quarter-over-quarter bridge, EURm <> ’ — 1,909 _. ; 33 13. Fe TR ze 1,831 coal — Q223. Volumes
Slide 6: Net fee and commission income
Net fee and commission income Stable income offset by negative FX effects Year-over-year bridge, EURm 775 pe 2 3 9 2 18 rs 37 a Q322 Asset Brok. & Pay.& Lending Other FX Q323 mgmt. advisory cards Quarter-over-quarter bridge, EURm 751 5 [ 13 L. a ne —— Q223 Asset Brok. & Pay.& Lending Other FX mgmt.
Slide 7: Net fair value result
Net fair value result Lower customer activity Net fair value result, EURm @& * Lower customer risk 396 management activity, mainly 345 driven by FX products 7 7 290 * Market-making stable 238. 62 os | 24 12 Q322 0422 Q123 Q223 Q323 Hl Customer areas* Treasury & other** 1 Market-making operations Nor
Slide 8: Costs
Costs Continued additional investments, positive jaws Year-over-year bridge, EURm y __ so 58 1,194 1,130 68 Bp a — - Q322 Underlying Additional = Regulatory FX Q323 costs tech and risk fees management investments Quarter-over-quarter bridge, EURm 1,205 7 4 Q223 Underlying costs FX Costs up 6%, drive
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 to * Total net loan result low at EUR pa 33 33m (4bp) - Low levels of both individual and collective provisions - No industry concentration Individual Collective Net loan losses Nordea
Slide 10: Capital
Capital Strong position; good progress on capital distributions CET1 capital ratio development, % 1.0 -0.7 16.0 01 16.3 <2.0 Q223 Profit Dividend Market Risk Q323 Requirement accrual Capital policy buffer I CET1 requirement REA development, EURbn 149 145 142 141 140 Q322 Q422 Q123 Q223 Q323 * CET1 c
Slide 11: Personal Banking
Personal Banking Income growing, driven by higher net interest income Total income, EURm 424% > * Total income up 24% 107 1115 1146 1188 «Net interest income up 37%, driven by improved deposit 958 margins 636 764 Bit 842 870 * Deposit volumes stable |g 200 PED: = 19 = 19 PED: + Mortgage volumes stab
Slide 12: Business Banking
Business Banking Continued income growth and low net loan losses Total income, EURm 864 862 ™ 813 834 ATT 548 573 612 632 Q322 422 a Q223 Q323 Net interest income © Net insurance result Il Net fee and commission income Net fair value result and other Lending*, EURbn + Total income up 20% + Net inter
Slide 13: Large Corporates & Institutions
Large Corporates & Institutions Continued business momentum and strong net interest income growth Total income, EURm 518 564 569 292 361 368 =120 =169 —193 99 i— so Q322 Q422 Q123 Q223 Q323 Net interest income Ill Net fee and commission income Net fair value result and other Lending*, EURbn 55 -3% m
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: Nordea: 2025 preferred financial partner in the Nordics
Nordea 2025: The preferred financial partner in the Nordics | Unchanged outlook for 2023 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 22% 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 3130, 30's 31 Q322 Q422) Q123. Q223. = Q323 Hl Commercial real estate MM Commercial residential real estate 91% of portfolio with low probability of default (P
Slide 20: RW floor and credit quality
50 RW floor • 8 50% - 6 30 6 • 97% 98% 98% 96% 96% • 1% 1% 1% 1% 1% 3% 2% 2% 3% 3% Q322 Q422 Q123 Q223 Q323 Q223 1-notch 2-notch 3-notch Impact • Stage 1 Stage 3 Stage 2 59 57 61 59 57 55 55 53 51 51 Impairment rate Coverage ratio Q322 Q422 Q123 Q223 Q323
Slide 21: Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422
• • • • Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323