Q3 2024 Nordea Bank Abp Earnings Call Transcript
Key Points
- Nordea Bank Abp (NRDBY) reported a strong return on equity of 16.7% for the third quarter, continuing its trend of exceeding 15% for the past eight quarters.
- Total income for Q3 increased by 2% year-on-year, driven by a 4% growth in net fee and commission income and a 26% increase in net fair value result.
- The bank maintained a strong capital position with a CET1 ratio of 15.8%, supporting shareholder returns through a new share buyback program.
- Asset under management grew by 15% year-on-year, reaching an all-time high of EUR 412 billion, indicating strong performance in savings and investments.
- Nordea Bank Abp (NRDBY) has successfully implemented new capital models for retail exposures, allowing for the resumption of share buybacks and demonstrating effective capital management.
- Net interest income decreased by 1% due to lower deposit margins, reflecting challenges in the current interest rate environment.
- Corporate lending volumes decreased by 1% for the quarter, indicating a slow lending market with customers focused on refinancing rather than new borrowing.
- Cost development increased by 9% compared to Q3 last year, driven by higher-than-normal inflation rates and strategic investments.
- The bank booked a EUR 32 million charge from the settlement of a regulatory investigation in the United States, impacting the cost-to-income ratio.
- International channels experienced a net outflow of EUR 1.8 billion, highlighting challenges in maintaining positive flows outside the Nordic markets.
Good morning and welcome to Nordea's third-quarter 2024 results presentation. I'm Ilkka Ottoila, Head of Investor Relations. Here in Helsinki, I'm joined by our President and CEO, Frank Vang-Jensen; and our Group CFO, Ian Smith. As usual, we'll start with the presentation by Frank, followed by Q&A session. Please remember to dial into the teleconference in order to ask your questions. With that, let's get going. Over to you, Frank.
Good morning. Today, we have published our results for the third quarter. This was another good performance from Nordea with profitability again at a high level. Returns on equity was 16.7%.
Business volumes were stable during the quarter and customer activity was good, especially in savings and investments. This supported a year-on-year increase in our income. Our return on equity has clearly exceeded 15% for the past eight quarters, which demonstrates the bank's
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