Nordea FY20 Underlying Profit Down YoY on Higher Provisions, Efficiency Improves
Nordea Bank Abp (Nordea or the Bank) reported a net profit of EUR 2,265 million in 2020, increasing by 47% compared to 2019. Excluding one-off items each year (mainly EUR 559 million IT impairments and EUR 155 million restructuring expenses impacting 3Q 2019 results after taxes), underlying net profit decreased by 9% Year-on-Year (YoY). On a quarterly basis, net profit was EUR 725 million in 4Q 2020, down 3% YoY and 13% Quarter-on-Quarter (QoQ). The Bank reported a Return-on-Equity (ROE) of 7.1% in 2020, up from a statutory ROE of 5% in 2019 (underlying ROE was 8.2% in 2019), which is slightly lower than Nordic peers but above European peers. Nordea targets a ROE above 10% by 2022.
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