Nordea’s capital requirement for systemic risk to increase from 1 April 2024
Nordea Bank Abp
Stock exchange release – Other information disclosed according to the rules of the Exchange
30 March 2023 at 9.45 EET
Nordea’s Common Equity Tier 1 (CET1) requirement will increase by 100bp following the decision of the Finnish Financial Supervisory Authority (FSA) to impose a systemic risk buffer (SyRB) of 1.0% on banks in Finland. The decision will apply from 1 April 2024 and is not expected to impact Nordea’s capital return plans.
As communicated by the Finnish FSA in the macroprudential decision in December 2022, the Board of the Finnish FSA was preparing to make a decision on the activation of the SyRB in the first quarter of 2023. On 30 March 2023 the Finnish FSA published its decision to impose a SyRB of 1.0% to be applied by banks in Finland and to be met with CET1 capital.
The decision will apply from 1 April 2024 and, together with already decided changes to other macroprudential capital buffers, it will increase Nordea’s regulatory CET1 ratio requirement to approximately 13.0% as of that date. This means that the CET1 ratio requirement is in line with previous expectations.
As of the fourth quarter of 2022 Nordea’s CET1 ratio, adjusted pro forma for the deduction related to the recent approval of share buy-backs by the European Central Bank (ECB) and the restatement following the implementation of IFRS 17, was 15.7%, 2.7 percentage points in excess of the increased regulatory requirement as of 1 April 2024.
Nordea has a clear capital and dividend policy, which includes pursuing an efficient capital structure and generating sustainable shareholder returns to the benefit of all shareholders. The decision is not expected to impact Nordea’s capital return plans as previously communicated.
On 3 March 2023 Nordea announced approval from the ECB for further share buy-backs for EUR 1.0bn. The Board of Directors will decide on initiating this share buy-back programme in connection with the release of Nordea’s first-quarter results on 27 April 2023.
For further information:
Matti Ahokas, Head of Investor Relations, +358 9 5300 8011
Media inquiries, +358 10 416 8023 or press@nordea.com
The information provided in this stock exchange release was submitted for publication, through the agency of the contacts set out above, at 9.45 EET on 30 March 2023.