Nordea: Operating profit up 30% in the first nine months of 2005

Interim Report Third Quarter 2005

• Operating profit EUR 2,300m (EUR 2,068m in the first nine months of 2004), up 30% when excluding real estate gain of EUR 300m last year.
• Total income increased by 9% to EUR 4,877m (EUR 4,481m) – Net interest income up 6%.
• Total expenses largely unchanged at EUR 2,712m (EUR 2,676m).
• Positive net loan losses of EUR 130m (EUR –37m).
• Net profit at EUR 1,763m (EUR 1,302m excluding real-estate gain).
• Earnings per share EUR 0.66 (EUR 0.57).
• Return on equity 18.6% compared to 14.5% excluding real-estate gain last year.
• Repurchase of own shares up to a maximum of 2% of outstanding shares.

Strong development in the third quarter

• Volume growth continued in the quarter.
• Operating profit at EUR 728m (EUR 884m in Q2 2005) – continued growth but lower loan loss reversals and lower investment result compared to strong second quarter.
• Total income EUR 1,601m (EUR 1,694m).
• Total expenses EUR 896m (EUR 914m).
• Positive net loan losses for the sixth consecutive quarter.
• Net profit EUR 563m (EUR 705m).
• Operating profit up 24% compared to Q3 2004.

Continued strong growth in business volumes

• Consumer lending up 15% year-on-year.
• Lending to small and medium-sized corporates increased by 15%.
• Mortgage lending to personal customers up 13%.
• Assets under management increased by 17% to EUR 147bn.
• Net written premiums in Life increased by 15%.
• Successful launch of home equity concept in all Nordic markets.
• Core customers up 9% and relaunch of customers programme.

"We deliver strong performance in the first nine months of 2005 with a return on equity ahead of target. Total income is up by 9%, and despite a significantly increased activity level, we have managed to keep costs largely unchanged. Business volumes continue to grow strongly and going forward we will continue to capture profitable growth opportunities while maintaining strict risk and cost management," says Lars G Nordström, President and Group CEO of Nordea.

The full report