Stock Exchange release
Nordea Mortgage Bank Plc: Half-year financial report January-June 2020
Nordea Mortgage Bank Plc's Half-year financial report and Alternative performance measures have been published. The documents are attached to this release and they are available on the Internet at http://www.nordea.com/en/investor-relations/reports-and-presentations/.
Only information having material influence on the value of securities is included in this stock exchange release.
Nordea Mortgage Bank Plc is a wholly owned subsidiary of Nordea Bank Abp, the listed parent company of the whole Nordea Group. This statutory half-year report covers the operations of the legal entity Nordea Mortgage Bank Plc. The half-year report of Nordea Bank Abp comprises the operations of the Nordea Group as a whole and gives the best overview of the Group.
Summary of the first half of 2020:
- The operating profit of Nordea Mortgage Bank amounted to EUR 64.2m
- Net interest income totalled EUR 113.5m
- Total operating income was EUR 108.3m
- Total operating expenses were EUR -31.2m
- Net loan losses totalled EUR -12.9m, increase mainly driven by the new approach triggered by COVID-19 where additional adjustments to model based provisions have been booked, containing management judgements on projected loan losses not yet covered by the IFRS 9 model (cyclical reserve) and identified issues in the IFRS 9 model to be later covered in model updates (structural reserve)
- Loans to the public amounted to EUR 27,613.3m
- Debt securities in issue totalled EUR 19,860.8m
- The size of the cover pool was EUR 22,330.1m and overcollateralization 12.5%
| Summary key figures |
Jan-Jun |
Jan-Jun |
Change |
Full year |
| |
2020 |
2019 |
% |
2019 |
| Net interest income, EURm |
113.5 |
104.7 |
8 |
219.7 |
| Total operating income, EURm |
108.3 |
94.7 |
14 |
212.8 |
| Total operating expenses, EURm |
-31.2 |
-36.9 |
-15 |
-68.3 |
| Profit before loan losses, EURm |
77.1 |
57.8 |
33 |
144.5 |
| Net loan losses, EURm |
-12.9 |
-1.7 |
|
10.3 |
| Operating profit, EURm |
64.2 |
56.1 |
14 |
154.8 |
| Loan loss ratio, annualised, bps |
1.3 |
1.3 |
0 |
-3.9 |
| Return on equity, % |
8.8 |
7.8 |
13 |
10.4 |
| Tier 1 capital ratio, % |
22.3 |
23.4 |
-5 |
23.5 |
| Total capital ratio, % |
26.7 |
28.2 |
-5 |
27.9 |
| Number of employees (full time equivalents) |
11 |
18 |
-39 |
18 |
Helsinki, 17 July 2020
Nordea Mortgage Bank Plc
Board of Directors
Additional information:
Jussi Pajala, Chief Executive Officer + 358 40 545 3859
Vesa Ruokokoski, Chief Financial Officer + 358 50 364 3251
Nordea Mortgage Bank Plc, Half-year financial report January-June 2020
http://www.rns-pdf.londonstockexchange.com/rns/3639T_1-2020-7-17.pdf
Nordea Mortgage Bank Plc, Alternative Performance Measures January-June 2020
http://www.rns-pdf.londonstockexchange.com/rns/3639T_2-2020-7-17.pdf
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
