Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q3 2024 Earnings Presentation
22 slides from Nordea Bank Abp's earnings presentation, 2024
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: Third-quarter highlights 2024
Third-quarter highlights 2024 Executive summary Continued income growth - Total income up 2%. Net interest income down 1%, net fee and commission income up 4% and net fair value result up 26% - Operating profit amounted to EUR 1.6bn Return on equity* 16.7% — 17.1% excluding US settlement — and earni
Slide 4: Key financials
Key financials Third-quarter results 2024 Income statement and key ratios Q324 Q323 Q3/03 Q224 Q3/Q2 EURm Net interest income 1,882 1,909 1% 1,904 1% Net fee and commission income 774 742 4% 795 -3% Net insurance result 60 63 -5% 63 -5% Net fair value result 284 225 26% 247 15% Other income 14 13 8%
Slide 5: Net interest income
Net interest income Stable volumes, lower deposit margins as expected Year-over-year bridge, EURm — — 5 ano a — 7 32 Pa Q323 Volumes Margins Deposit Treasury Other FX hedge related items Quarter-over-quarter bridge, EURm 1,904 —— 1,882 BO a 16 Ban 2 B = — Q224 Volumes Margins Deposit Treasury- Other
Slide 6: Net fee and commission income
Net fee and commission income Continued growth driven by higher savings and payment & card income Year-over-year bridge, EURm v 774 1 0 ~~ — 742 ail Ze — i Q323 Asset Brok.& Pay.& Lending Other FX Q324 mgmt. advisory cards Quarter-over-quarter bridge, EURm — b 3%) 795 8 27 = |__| a a 4774 |_ = Q224
Slide 7: Net fair value result
Net fair value result Higher business activity in customer areas Net fair value result, EURm 21 284 zs 247 225 35 6 f E 7 154 -47 —S— Q323 Q423 Q124 Q224 Q324 Hl Customer areas* Treasury & other** 1 Market-making operations 7 “Excluding fair value adjustments to loans held at fair value in Nordea Kr
Slide 8: Costs
Costs Costs in line with plan Year-over-year bridge, EURm 1,297 0 1,329 37 a : , 1194 43 -_ -_ _ Q323. —- Underlying Investments M&A FX Q324 US Q324 costs in technology integration settlement including & risk costs US management settlement Quarter-over-quarter bridge, EURm 1278 —— Q224 Underlying In
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 52 51 Individual Net collective Net loan losses Fair Value Total provisions provisions and write-offs Impaired (Stage 3) loans % 154 1.0 4 05 4 0.0 Q323 Q423 Q124 Q224 Q324 — Impairmen
Slide 10: Capital
Capital Lower CET1 ratio following retail models go-live CET1 capital ratio development, % 17.5 19 15.8 -0.6 08 01 “5 15 Q224 New retail Profit Dividend Capital Q324 Requirement models management HB CET1 requirement Capital policy buffer REA development, EURbn 154 141 139 139 139 Bp |e & 8 Q323 0423
Slide 11: Personal Banking
Personal Banking Stable income supported by continued increase in deposit volumes and savings growth Total income, EURm v Total income up 1% 1176 1183 1189 1176 1187 Net interest income down 1%, lower deposit margins Net fee and commission income up 5%, driven by savings 852 870 869 849 845 Deposit
Slide 12: Business Banking
Business Banking Solid income growth in slower markets Total income, EURm * Total income up 1% 1%) > * Net interest income down 3%, mainly from lower deposit 844 870 873 879 853 margins * Deposit volumes up 3% a os os 603 see + Net fee and commission income up 6%, driven by higher - = payment and sa
Slide 13: Large Corporates & Institutions
Large Corporates & Institutions Solid customer activity and income growth Total income, EURm 561 590 623 587 583 360 372 385 355 360 Lior | =129 —107 —116 Q323 Q423 Q124 Q224 Q324 Net interest income [ll Net fee and commission income Net fair value result and other Lending*, EURbn Total income up 4%
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: The preferred financial partner in the Nordics
2025: The preferred financial 2025 financial target partner in the Nordics Return on equity fa >15% y Assumes CET1 requirement of 15%, ry TT ‘ . ‘ Pt aN . includin nagement bu Rates assumed to norm | Uniquely well placed — Nordic diversification at scale * | Supported in 2025 by Ar | F , aS Cost-to-
Slide 16: Nordea
Nordea
Slide 17: Supplementary information: Capital excellence
Supplementary information Capital excellence Strong capital generation supporting returns Reiterating shareholder returns supported by strong capital generation EUR ~17-18bn Year Average quarterly capital generation, bp Share buy-backs 8 N 2017-2019 ~40 L's N Dividends** Ss a 2020-2022 ~50 Executed
Slide 18: Supplementary information: Net interest income sensitivity
Supplementary information Net interest income sensitivity Net interest income sensitivity to policy rate changes + Nilimpact largely driven by policy Sensitivity to +50bp parallel rate shift in policy rates*, EURm rates and pass-through - Actual pass-through to vary between account types and countri
Slide 19: Supplementary information: Credit portfolio real estate management industry
Supplementary information Credit portfolio — real estate management industry (REMI)* Well-diversified portfolio, high-quality lending Lending volumes stable Diversified across countries 32 31 32 Finland Q323. Q423,— Q124Q224 Q324 Mi cre MB RRE 26% Norway 90% of portfolio with low probability Diversi
Slide 20: Real estate portfolio LTV and ICR by country
• 67 64 63 63 64 54 45% - 51 51 50 51 35% 32% 22% 24% 9% 11% 9% 2% 1% 2% 7% • DK FI NO SE Total Current 20% value decline Current 0-40% LTV 51-60% LTV 71-80% LTV - 20% value decline 41-50% LTV 61-70% LTV >80% LTV - 3.1 3.0 2.9 • 2.7 50% 2.3 2.3 2.1 2.1 37% 1.9 31% 1.5 24% - 19% 16% 9% 6% 2% 5% 0% 1%
Slide 21: Stage distribution and impairment rate
50% RW floor • 8% 50% 6% 30% 6% 96% 94% 94% 94% 93% • 1% 5% 1% 6% 1% 6% 1% 6% 1% • 3% Q323 Q423 Q124 Q224 Q324 Q324 1-notch 2-notch 3-notch Impact Stage 1 Stage 2 Stage 3 • 90 51 60 51 57 57 52 63 47 • 36 Impairment rate Coverage ratio Q323 Q423 Q124 Q224 Q324
Slide 22: Supplementary credit data by quarter
• 19,469 19,092 18,541 13,988 16,207 • 2,234 2,457 2,343 2,585 2,857 • • Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224 Q324