First Quarter Results 2014

CEO Christian Clausen’s comments on the results:

“In the beginning of 2014, activity picked up in our corporate advisory business and remains strong in the savings area, leading to an improvement in net fee and commission income of 13%. As we continue to see low lending demand and low interest rates, total income was largely unchanged compared to the first quarter 2013, although up 3% in local currencies. Operating profit increased by 6%, thanks to improved efficiency and better credit quality and the cost/income ratio decreased to 49% (51%). The fully loaded Basel III Common equity tier 1 capital ratio improved by 70 basis points to 14.6%.

 

In this low-growth environment, we continue to execute on our cost and capital efficiency programmes and capture business opportunities with our customers.”

 
First quarter 2014 vs. First quarter 2013 (First quarter 2014 vs. Fourth quarter 2013):

•  Total operating income unchanged, in local currencies +3% (+1%, in local currencies +2%)
• Operating profit +6%, in local currencies +10% (+10%, in local currencies +11%)
• Fully loaded Basel III Common equity tier 1 capital ratio 14.6%, up from 12.1%[1] (up from 13.9%[1])
• Cost/income ratio down to 49% from 51% (down from 52%)
• Loan loss ratio of 18 basis points, down from 23 basis points (down from 21 bps)
• Return on equity 11.4%, up from 11.1% (up from 10.5%)