Nordea performs better on loans, fewer bad debts

STOCKHOLM – Nordea Bank Abp on Thursday posted higher than expected net profits for the fourth quarter thanks to higher loans and lower loan losses.

The Helsinki-based bank posted a net profit of 725 million euros ($ 872.2 million) compared to 753 million euros for the same period a year earlier. Analysts polled by FactSet expected a net profit of 699 million euros.

Net interest income amounted to 1.17 billion euros compared to 1.11 billion euros. Analysts had expected 1.17 billion euros. Loan losses fell from 102 million euros to 58 million euros.

Nordea said it is aiming for total costs for 2021 of less than € 4.6 billion and is making good progress towards meeting its 2022 financial target for a return on equity above 10% and a cost / cost ratio. 50% revenue.

Nordea’s Tier 1 common stock ratio – a key measure of financial strength – rose to 17.1% at the end of the quarter, from 16.3% a year earlier.

He proposed a dividend of 0.39 euro per share for 2020.

In addition, the Board of Directors will decide in February on the payment of EUR 0.07 as the first installment of the 2019 deferred dividend, with the balance of EUR 0.33 of the proposed 2019 dividend to be paid after September 2021.

Nordea has set itself the long-term goal of becoming a net zero emission bank by 2050 at the latest. It has set a medium-term goal of reducing the carbon emissions of its loan and investment portfolios by 40 to 50% by 2030.

Write to Dominic Chopping at [email protected]

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