“The business environment has been relatively stable at the beginning of 2016, although turmoil on the financial markets, and even lower interest rates, have put pressure on revenues. Costs are under strict control and are developing according to plan, and loan losses were below the 10-year average of 16 basis points. Given the environment the result is acceptable. The Common Equity Tier 1 ratio increased to 16.7%.
In the past year we have significantly strengthened the functions and processes devoted to regulatory compliance. Since the requirements that Nordea must fulfil and the risks, to which we are exposed, are constantly changing, work on being compliant and improving risk management will be under constant development. However, all these efforts will only succeed if we continue to have a strong risk and compliance culture, in which values and ethical considerations are always an integral part of our business model. As CEO, I will take all actions necessary to ensure that we stay a safe and trusted partner.”
First quarter 2016 vs. First quarter 2015 (First quarter 2016 vs. Fourth quarter 2015):
- Net interest income EUR 1,168m, -7%, -4% in local currencies (-3%, -2% in local currencies)
- Total operating income EUR 2,295m, -16%, -14% in local currencies (-7%, -7% in local currencies)
- Total expenses EUR 1,178m, -1%, unchanged in local currencies (-3%, -2% in local currencies)
- Profit before loan losses EUR 1,117m, -27%, -26% in local currencies (-11%, -11% in local currencies)
- Net loan losses EUR 111m, -9%, -5% in local currencies (-22%, -20% in local currencies)
- Operating profit EUR 1,006m, -29%, -27% in local currencies (-10%, -9% in local currencies)
- Common Equity Tier 1 capital ratio 16.7%, up from 15.6% (up 20 basis points from 16.5%)
- Cost/income ratio 51.3%, up from 43.7% (up 2.2 %-points from 49.1%)
- Loan loss ratio of 13 basis points, down from 14 basis points (down 4 basis points from 17 basis points)
- Return on equity 10.3%, down from 14.3% (down 1.2 %-points from 11.5%)
- Diluted EPS EUR 0.19 vs. EUR 0.27 (EUR 0.19 vs. EUR 0.21)
Exchange rates used for Q1 2016 for income statement items are for DKK 7.46, NOK 9.53 and SEK 9.32
 Excluding non-recurring items (Q4 2015: gain from divestment of Nordea’s merchant acquiring business to Nets of EUR 176m before tax and restructuring charge of EUR 263m).
About Nordea Asset Management
Nordea Asset Management (AuM 189 bn EUR*), is part of the Nordea Group, the largest financial services group in Northern Europe (AuM 288 bn EUR*). NAM offers European and global investors exposure to a broad set of investment funds. We serve a wide range of clients and distributors which include banks, asset managers, independent financial advisors and insurance companies.
Nordea Asset Management has a presence in Cologne, Copenhagen, Frankfurt, Helsinki, London, Luxembourg, Madrid, Milan, New York, Oslo, Paris, Sao Paulo, Singapore, Stockholm, Vienna and Zurich. Nordea’s local presence goes hand in hand with the objective of being accessible and offering the best service to clients.
Nordea’s success is based on a sustainable and unique multi-boutique approach that combines the expertise of specialized internal boutiques with exclusive external competences allowing us to deliver alpha in a stable way for the benefit of our clients. NAM solutions cover all asset classes from fixed income and equity to multi asset solutions, and manage local and European as well as US, global and emerging market products.
*Source: Nordea, 31.12.2015
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