The following is a summary of the Nordea Bank Abp (NRDBY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Nordea Bank Abp reported a first quarter return on equity of 18.1%, the highest since 2007.
The total income grew by 6% YoY mainly due to an 11% increase in net interest income.
Despite a decrease in net fair value, the net insurance return rose by 33%.
The bank reported a 19% YoY increase in operating profit.
Lending volumes were stable in the mortgage sector and increased by 2% in corporate lending.
Assets under management rose by 8% YoY and the CET1 ratio was 17.2% for the Q1.
Loan losses were modest at €33 million or 4 basis points for the quarter.
Business Progress:
Nordea Bank is set to strengthen its digital offerings as well as its tech foundations and financial crime prevention measures.
The bank plans to further integrate recent acquisitions in Norway and Denmark while expanding self-service options to improve customer experiences.
Nordea Bank was recognized for its leadership in sustainability.
Despite uncertain economic conditions, the bank is expected to exceed the return on equity of 15% for the full year 2024 and maintain strong profitability in 2025.
The bank is reducing exposure to commercial real estate and focusing on sound markets in corporate lending and mortgage outsourcing.
The bank is further expected to engage in smaller, more frequent buybacks and is on track to complete the acquisition of Danske Bank by the end of the year.
The bank plans to continue investing heavily in technology, digital offerings, ESG, and financial crime prevention.
More details: NORDEA BANK ABP SPON ADS EACH REP 1 ORD SHS IR
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