EQS-News

Nordea Mortgage Bank Plc: Annual Financial Report

EQS Group-News: Nordea Mortgage Bank Plc / Key word(s): Annual Results Nordea Mortgage Bank Plc: Annual Financial Report 01.03.2021 / 14:50 Stock Exchange release Nordea Mortgage Bank Plc: Annual Report 2020 Nordea Mortgage Bank Plc's Annual Report, Corporate Governance Report and Alternative performance measures have been published. The documents are attached to this release and they are available on the Internet at https://www.nordea.com/en/investor-relations/reports-and-presentations .... Only information having material influence on the value of securities is included in this press release. The Annual Report now published covers the operations of Nordea Mortgage Bank Plc in Finland. Nordea Mortgage Bank Plc is a subsidiary wholly owned by Nordea Bank Abp. The financial statements of Nordea Bank Abp comprise the operations of the Nordea Group as a whole and gives the best overview of the Group. Summary of the year 2020:

- The operating profit of Nordea Mortgage Bank amounted to EUR 144.6m

- Net interest income totalled EUR 235.6m

- Total operating income was EUR 226.1m

- Total operating expenses were EUR -66.1m

- Net loan losses totalled EUR -15.4m, increase mainly driven by the new approach triggered by COVID-19 where management judgements of EUR 7.1m have been booked in addition to model based provisions. The management judgement covers 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). Realised loan losses were EUR -3.2m

- Loans to the public increased 8% during the year and amounted to EUR 28,764.2m

- Debt securities in issue increased 23% during the year and amounted to EUR 19,750.8m

- The size of the cover pool was EUR 22,934.8m and overcollateralization 16.7%.

 

Summary of the key figures			Change
	2020	2019	%
Net interest income, EURm	235.6	219.7	7
Total operating income, EURm	226.1	212.8	6
Total operating expenses, EURm	-66.1	-68.3	-3
Profit before loan losses, EURm	160.0	144.5	11
Net loan losses, EURm	-15.4	10.3
Operating profit, EURm	144.6	154.8	-7
Loan loss ratio, annualised, bps	5.4	-3,9
Return on equity, %	9.9	10.4	-5
Tier 1 capital ratio, %	23.1	23.5	-2
Total capital ratio, %	27.4	27.9	-2
Number of employees (full time equivalents)	12	18	-33