The following is a summary of the Nordea Bank Abp (NRDBY) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Nordea Bank reported continuous improvement in Return on Equity (RoE), surpassing expectations set at the Capital Markets Day due to resilient income and disciplined costs.

• The bank forecasts to deliver a RoE of more than 13% by 2025.

• Nordea confirms loan losses are at normal levels, averaging around 10 basis points per year, as a result of robust credit quality and de-risking of their loan portfolio.

• The bank maintains a substantial provision buffer of almost €500 million to offset potential short-term macroeconomic pressures that could increase provision charges.

Business Progress:

• The bank's strategic focus has resulted in market share gains, improved operational and capital efficiency, and expansion in their low-risk credit lending.

• Nordea highlights their operational efficiency, digital solutions, and funding capabilities as key drivers for ongoing growth.

• Post the easing of COVID-19 payout restrictions, the bank acted swiftly with ECB's support to distribute excess capital, thereby enhancing their capital efficiency.

• The bank is pushing forward with significant investments in digital capabilities, financial crime prevention measures, and tech advancements.

• Nordea aims to extend its trend of market share expansion and plans to grow their lending moderately faster than the market.

• The bank intends to significantly lower resolution fees in 2024, hence generally maintaining their cost-to-income ratio.

More details: NORDEA BANK ABP SPON ADS EACH REP 1 ORD SHS IR

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