News
Year-end Report 2007
2008-02-13
Strong result - based on growth strategy and prudent risk management
- Income EUR 7,886m (EUR 7,365m), up 8% on a comparable basis*
- Gap between income and cost growth of 2.0 %-points*
- Risk-adjusted profit EUR 2,417m (EUR 2,107m), up 15%
- Profit before loan losses EUR 3,820m (EUR 3,543m), up 11%*
- Positive net loan losses EUR 60m (positive EUR 257m)
- Net profit EUR 3,130m (EUR 3,153m), up 3% on a comparable basis*
- Return on equity 19.7% including non-recurring items (22.9%)
- Earnings per share EUR 1.20 including non-recurring items (EUR 1.21)
- Proposed dividend per share EUR 0.50, (EUR 0.49), corresponding to a dividend payment of EUR 1,297m
*) The growth figures are calculated on a comparable basis, excluding the income of EUR 120m from the deposit guarantee refund in Finland in 2007 and the income of EUR 199m from the divestment of International Moscow Bank (IMB) in 2006
Continued strong volume growth despite increasing uncertainty
- Total lending up 14%
- Corporate lending up 17%
- Total deposits up 12%, of which volumes in savings accounts up 21%
- Number of gold customers up 7%, number of Private Banking customers up 16%
- Successful execution of organic growth strategy in New European Markets
- Strong increase in capital market business with corporate segment
"I am very pleased with our very strong performance in 2007. As a result of a good team work, we continue to deliver on our growth strategy. We have invested significant amounts in our growth initiatives and at the same time delivered a record operating profit. This has been achieved through a balance between focus on growth and strict risk and cost management. Market turmoil in the second half of the year had only limited impact on Nordea, due to our prudent risk management culture and stable funding base.
Uncertainty has increased and 2008 looks more challenging. The growth outlook for the Nordic region is still relatively strong and we therefore continue with our planned investments in growth areas both in the Nordic region and in our New European Markets. If, however, the economic growth slows down more than anticipated, we will review the level of growth investments. I am confident that we also going forward will manage to combine growth with unchanged focus on risk and cost management", says Christian Clausen, President and Group CEO of Nordea.
The complete report including tables can be downloaded from the attached link. The report is also available on the Internet at www.nordea.com.