CEO Casper von Koskull’s comments on the results:

“Despite increasing geopolitical risks and imbalances in the economy, we continue to see synchronised growth in our home markets. Margins remain stable, although we have not seen the usual pick-up in demand for corporate advisory services after the summer. Costs developed according to plan and credit quality improved as expected. The CET 1 ratio was unchanged at 19.2% and the management buffer increased to 180 bps to its highest level ever.

 

We are almost two years into the transformation of Nordea. Since investments are starting to deliver, it is time to enter the next phase, in which we see that we can structurally bring down costs and increase efficiency. This transformation would not have been possible without our strong balance sheet and robust business model. In the coming years we will achieve economies of scale by taking our centres of excellence to the next level and create efficient and automated operations. To achieve this we also need to continue a cultural transformation into a purpose-led and values-guided organisation. This shift will help us become first among peers in customer satisfaction.”  

 

Third quarter 2017 vs. Third quarter 2016 (Third quarter 2017 vs. Second quarter 2017) 

 

• Net interest income $1,394 million (€1,185 million), +1%; +1% in local currencies (+1%, +1% in local currencies)
• Total operating income[1]  $2,792 million (€2,373 million), -4%; -4% in local currencies (-1%, -1% in local currencies)
• Total expenses $1,416 million (€1,204 million), +2%; +2% in local currencies (-7%, -7% in local currencies)
• Profit before loan losses $1,375 million (€1,169 million), -9%; -9% in local currencies (+5%, +5% in local currencies)
• Net loan losses $92 million (€79 million), -41%; -41% in local currencies (-25%, -24% in local currencies)
• Operating profit $1,282 million (€1,090 million), -5%; -5% in local currencies (+8%, +8% in local currencies)
• Common Equity Tier 1 capital ratio 19.2%, up from 17.9% (unchanged from 19.2%)
• Cost/income ratio 51% up from 48% (down 3%-points from 54%)
• Loan loss ratio of 10 bps, down from 16 bps (down 3 bps from 13 bps)
• Return on equity 10.5%, down from 11.6% (up 1.0%-points from 9.5%)