Q2 2024 Nordea Bank Abp Earnings Call Transcript
Key Points
- Nordea Bank Abp (NRDBY) reported a strong return on equity of 17.9% for Q2 2024, maintaining a high level of profitability.
- The bank achieved a 3% year-on-year increase in total income, driven by a 4% rise in net interest income and a 6% increase in net fee and commission income.
- Assets under management grew by 10% year-on-year to EUR 400 billion, supported by positive net flows in Nordic channels.
- The bank's CET1 ratio stood at 17.5%, indicating a strong capital position.
- Nordea Bank Abp (NRDBY) is making significant investments in technology, data, AI, and financial crime prevention, which are expected to enhance resilience and growth.
- Net insurance result decreased by 7% year-on-year, and net fair value result was down 15% compared to the previous year.
- Corporate lending volumes decreased by 1% year-on-year, reflecting a slow lending market.
- The bank experienced net loan losses of EUR 68 million, driven by provisions for a few corporate client exposures.
- International channels saw negative net flows of EUR 1.4 billion, mainly due to wholesale distribution.
- Cost development increased by 6% compared to the same quarter last year, with a significant portion attributed to investments and integration costs from the Norway acquisition.
Good morning, and welcome to Nordea's half-year 2024 results presentation. I'm Ilkka Ottoila, Head of Investor Relations. Here in Helsinki, I'm joined by our President and CEO, Frank Vang-Jensen; and our Group CFO, Ian Smith.
Today, we'll start with a presentation by Frank followed by a Q&A session. Please remember to dial in to the teleconference in order to ask your questions.
With that, let's get going. Over to you, Frank.
Good morning. Today, we have published our results for the second quarter of 2024.
It was another strong quarter for Nordea. Our return on equity was 17.9% in the quarter and 18% for the first half of the year, a level of profitability that puts us among the best performing banks in the industry. During Q2, we also delivered year-on-year growth on our two largest income lines, supported by a higher net interest
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