“After an exceptional start to the year, we saw in the second quarter a stabilisation of net interest income, a somewhat lower customer activity level in the capital markets, while the strong trend in the savings and investment operations continued, confirming the strong customer demand for our advisory expertise and products. For the first half of the year, total operating income grew 7% in local currencies, while costs in local currencies were down more than 1%, and consequently our cost to income ratio has improved more than 4%-points. Credit quality remains solid and loan losses are well below the 10-year average. The return on equity improved 2.1%-points to 13.7% and the CET1 ratio increased to 16.0%.
Our simplification programme and the work to build the Future Relationship Bank are well on track, with the launch of the first products on our new payment platform scheduled for the coming quarters. As part of the simplification of our bank we have initiated a dialogue with the authorities in the Nordic countries regarding simplifying our legal structure.”
First half year 2015 vs. First half year 2014 (Second quarter 2015 vs. Second quarter 2014)1:
- Total operating income +6%, in local currencies +7% (+4% in local currencies)
- Total expenses2 -3%, in local currencies -1% (-1% in local currencies)
- Operating profit2 +19%, in local currencies +21% (+12% in local currencies)
- Common equity tier 1 capital ratio 16.0%, up from 15.2% (up 80 bps from 15.2%)
- Cost/income ratio2 down to 45% from 49% (down 2%-points from 49%)
- Loan loss ratio of 13 basis points, down from 17 basis points (down 4 basis points to 12 basis points)
- Return on equity2 13.7%, up from 11.6% (up 1.2%-points to 13.1%)
- Diluted EPS (total operations) EUR 0.51 vs. EUR 0.38 (EUR 0.24 vs. EUR 0.17)
Exchange rates used for H1 2015 for income statement items are for DKK 7.46, NOK 8.65 and SEK 9.34, see also page 35
1) Key figures for continuing operations, following the divestment of the Polish banking, financing and life insurance operations.
2) Excluding restructuring cost in Q2 2014 of EUR 190m.
About Nordea Asset Management
Nordea Asset Management (AuM 191 bn EUR*), is part of the Nordea Group, the largest financial services group in Northern Europe (AuM 286 bn EUR*). The business area offers Global investors exposure to a broad range of investment funds via its active 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.
Its main product is the Nordea 1, SICAV, which encompasses a diverse spectrum of high quality products. Nordea 1, SICAV has constantly grown in terms of volume and has steadily gained in reputation. This growth is the result of the success of its active management of products belonging to the following asset classes: value stocks, growth stocks, theme-oriented funds and dedicated sector funds, as well as multi-asset strategies, long/short strategies, bond and money market funds.