News Column

Fourth Quarter and Full Year Results 2013

January 28, 2014

CEO Christian Clausen’s comments on the results: “2013 was another year of low growth and interest rates declined to record-low levels. In this environment, we delivered a stable income level (in local currencies) and saw a continued inflow of relationship customers. For the 13th consecutive quarter, we have kept costs flat. Loan losses decreased by 17% and the operating profit increased by 3% (both in local currencies). The core tier 1 ratio has improved by 180 basis points to 14.9%, due to modest loan demand, strong capital generation and continued efficiencies. The Board of Directors proposes a dividend of EUR 0.43 per share ( EUR 0.34 ). We expect that the economic growth and the interest rates levels will stay low for a prolonged period of time. Thus, we expect that the loan demand and customer activity will be at a lower level than we foresaw last year when we announced our plans for the future relationship bank. As a consequence we will accelerate and expand our cost efficiency programme. This will enable us to adjust our capacity to the lower activity level and to maintain our position as a strong bank.” (For further viewpoints, see CEO comments, page 2) Full year 2013 vs. full year 2012 (Fourth quarter 2013 vs. Third quarter 2013)¹: · Total operating income -1%, in local currencies 0% (+2%) · Operating profit +2%, in local currencies 3% (-1%) · Core tier 1 capital ratio up to 14.9% from 13.1% (up from 14.4%) · Cost/income ratio unchanged at 51% (up to 52% from 51%) · Loan loss ratio of 21 basis points, down from 26 basis points (up to 21 bps from 20 bps) · Return on equity 11.0%, down from 11.6% (down to 10.5% from 10.8%) · Proposed dividend EUR 0.43 per share (last year EUR 0.34 per share) +-----------------------+-----+-----+---+-------+---+-----+-----+---+ |Summary key figures, | Q4| Q3|Ch.|Q4 2012|Ch.| 2013| 2012|Ch.| |continuing operations¹,| 2013| 2013| %| | %| | | %| |EURm | | | | | | | | | +-----------------------+-----+-----+---+-------+---+-----+-----+---+ |Net interest income |1,390|1,386| 0| 1,382| 1|5,525|5,563| -1| +-----------------------+-----+-----+---+-------+---+-----+-----+---+ |Total operating income |2,469|2,426| 2| 2,570| -4|9,891|9,998| -1| +-----------------------+-----+-----+---+-------+---+-----+-----+---+ |Profit before loan |1,186|1,192| -1| 1,275| -7|4,851|4,934| -2| |losses | | | | | | | | | +-----------------------+-----+-----+---+-------+---+-----+-----+---+ |Net loan losses | -180| -171| 5| -241|-25| -735| -895|-18| +-----------------------+-----+-----+---+-------+---+-----+-----+---+ |Loan loss ratio (ann.),| 21| 20| | 28| | 21| 26| | |bps | | | | | | | | | +-----------------------+-----+-----+---+-------+---+-----+-----+---+ |Operating profit |1,006|1,021| -1| 1,034| -3|4,116|4,039| 2| +-----------------------+-----+-----+---+-------+---+-----+-----+---+ |Risk-adjusted profit | 821| 823| 0| 867| -5|3,351|3,313| 1| +-----------------------+-----+-----+---+-------+---+-----+-----+---+ |Diluted EPS (cont. | 0.19| 0.19| | 0.21| | 0.77| 0.77| | |oper.), EUR | | | | | | | | | +-----------------------+-----+-----+---+-------+---+-----+-----+---+ |Diluted EPS (total | 0.19| 0.19| | 0.21| | 0.77| 0.78| | |oper.), EUR | | | | | | | | | +-----------------------+-----+-----+---+-------+---+-----+-----+---+ |Return on equity, % | 10.5| 10.8| | 11.9| | 11.0| 11.6| | +-----------------------+-----+-----+---+-------+---+-----+-----+---+ Currency rates used for DKK, NOK and SEK for the fourth quarter 2013 are for income statement items 7.46, 7.81 and 8.65 respectively. ¹) Key figures for continuing operations, following the agreement to divest the Polish banking, financing and life insurance operations. For further information: Christian Clausen , President and Group CEO, +46 8 614 7804 Torsten Hagen JØrgensen, Group CFO, +46 8 614 7814 Rodney AlfvÉn, Head of Investor Relations, +46 8 614 7880 (or +46 72 235 05 15) Claus Christensen , Head of Group Identity & Communications (acting), +45 33331279 (or +45 25248993) Go to IR Report pages ( http://www.nordea.com/804972.html ) This information was brought to you by Cision http://news.cision.com http://news.cision.com/nordea/r/fourth-quarter-and-full-year-results-2013,c9527751 The following files are available for download: http://mb.cision.com/Main/434/9527751/204158.pdf Fourth Quarter and Year-end Report 2013


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Source: Cision


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