Nordea Bank Abp ( (NBNKF) ) has released its Q4 earnings. Here is a breakdown of the information Nordea Bank Abp presented to its investors.
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Nordea Bank Abp is a leading Nordic financial services group that operates as a universal bank, providing a range of banking and financial services including personal banking, business banking, and asset management. The company is listed on the Nasdaq Helsinki, Nasdaq Copenhagen, and Nasdaq Stockholm exchanges.
Nordea Bank Abp’s fourth-quarter and full-year financial results for 2024 highlighted continued income growth, with a 1% increase in total income for the quarter and a 3% increase for the full year. Although net interest income fell by 5% due to policy rate reductions, net fee and commission income rose by 8%, and the net fair value result saw a significant improvement of 31%. The bank’s operating profit for the quarter increased by 4% to EUR 1.5 billion.
Key financial metrics showed a solid return on equity of 14.3% for the quarter and 16.7% for the full year, indicating strong performance and resilience. Lending and deposit volumes increased, with mortgage lending growing by 6% year-on-year, largely driven by the acquisition of Danske Bank’s Norwegian personal customer and private banking business. The bank maintained a high-quality credit portfolio with net loan losses remaining below long-term expectations.
Nordea’s capital generation remained robust, with a Common Equity Tier 1 (CET1) ratio of 15.8%, exceeding regulatory requirements. The bank is continuing its share buy-back program, with plans to propose a dividend increase for 2024. Looking ahead, Nordea anticipates a return on equity of over 15% for 2025, supported by its diverse loan portfolio and strategic investments.
In conclusion, Nordea Bank Abp aims to maintain its strong financial performance and capitalize on opportunities for growth in the coming year. The bank’s management remains focused on supporting customers and delivering high-quality earnings, while continuing to distribute excess capital to shareholders.
