Fourth Quarter and Full Year Results 2013
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, continuing operations¹, EURm | Q4 2013 |
Q3 2013 |
Ch. % |
Q4 2012 | Ch. % |
2013 | 2012 | Ch. % |
| 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 losses | 1,186 | 1,192 | -1 | 1,275 | -7 | 4,851 | 4,934 | -2 |
| Net loan losses | -180 | -171 | 5 | -241 | -25 | -735 | -895 | -18 |
| Loan loss ratio (ann.), bps | 21 | 20 | 28 | 21 | 26 | |||
| 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. oper.), EUR | 0.19 | 0.19 | 0.21 | 0.77 | 0.77 | |||
| Diluted EPS (total oper.), EUR | 0.19 | 0.19 | 0.21 | 0.77 | 0.78 | |||
| 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)
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