Nordea Mortgage Bank PLC Half-year financial report January-June 2019 (9484F)

TIDM43FX

RNS Number : 9484F

Nordea Mortgage Bank PLC

18 July 2019

Stock Exchange release

Nordea Mortgage Bank Plc: Half-year financial report January-June 2019

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 2019:

   --    The operating profit of Nordea Mortgage Bank amounted to EUR 56.1m 
   --    Net interest income totalled EUR 104.7m 
   --    Total operating income was EUR 94.7m 

-- Total operating expenses were EUR -36.9m, increase mainly explained by additional service fees related to the purchase of EUR 2.2bn loan portfolio from Nordea Bank Abp in June

   --    Net loan losses totalled EUR -1.7m 

-- Loans to the public increased 12% compared to year-end 2018 and amounted to EUR 25.9bn, increase mainly driven by the purchase of EUR 2.2bn loan portfolio in June

   --    Debt securities in issue decreased to EUR 16.2bn 

-- The size of the cover pool increased 10% compared to year-end 2018 and amounted to EUR 21.8bn, as a result of the purchase of EUR 2.2bn loan portfolio in June

 
 Summary key figures             Jan-Jun   Jan-Jun   Change   Full year 
                                    2019      2018        %        2018 
                                --------  --------  -------  ---------- 
 Net interest income, EURm         104.7     113.6       -8       219.8 
                                --------  --------  -------  ---------- 
 Total operating income, EURm       94.7     107.4      -12       208.5 
                                --------  --------  -------  ---------- 
 Total operating expenses, 
  EURm                             -36.9     -29.6       25       -54.1 
                                --------  --------  -------  ---------- 
 Profit before loan losses, 
  EURm                              57.8      77.8      -26       154.4 
                                --------  --------  -------  ---------- 
 Net loan losses, EURm              -1.7      -7.3      -77       -11.4 
                                --------  --------  -------  ---------- 
 Operating profit, EURm             56.1      70.5      -20       143.0 
                                --------  --------  -------  ---------- 
 Loan loss ratio, annualised, 
  bps                                1.3       6.2      -79         4.9 
                                --------  --------  -------  ---------- 
 Return on equity, %                 7.8       9.6      -19         9.6 
                                --------  --------  -------  ---------- 
 Tier 1 capital ratio, %            23.4      25.4       -8        24.1 
                                --------  --------  -------  ---------- 
 Total capital ratio, %             28.2      30.6       -8        29.1 
                                --------  --------  -------  ---------- 
 Number of employees (full 
  time equivalents)                   18        18        0          17 
                                --------  --------  -------  ---------- 
 

Helsinki, 18 July 2019

Nordea Mortgage Bank Plc

Board of Directors

For further information:

   Thomas Miller, Chief Executive Officer                     + 358 40 864 4554 
   Vesa Ruokokoski, Chief Financial Officer                  + 358 50 364 3251 

Link, Nordea Mortgage Bank Plc, Half-year financial report January-June 2019

http://www.rns-pdf.londonstockexchange.com/rns/9484F_1-2019-7-18.pdf

Link, Nordea Mortgage Bank Plc, Alternative Performance Measures January-June 2019

https://mb.cision.com/Public/16126/2865449/adec64211281997b.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 [e-mail] or visit www.rns.com.

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July 18, 2019 07:00 ET (11:00 GMT)