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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