Fourth Quarter and Full Year Results 2013

CEO Christian Clausen’s comments on the results:

“2013 was another year of low growth and interest rates declined to record-low levels. In this environment, we delivered a stable income level (in local currencies) and saw a continued inflow of relationship customers. For the 13th consecutive quarter, we have kept costs flat. Loan losses decreased by 17% and the operating profit increased by 3% (both in local currencies). The core tier 1 ratio has improved by 180 basis points to 14.9%, due to modest loan demand, strong capital generation and continued efficiencies. The Board of Directors proposes a dividend of EUR 0.43 per share (EUR 0.34).

 

We expect that the economic growth and the interest rates levels will stay low for a prolonged period of time. Thus, we expect that the loan demand and customer activity will be at a lower level than we foresaw last year when we announced our plans for the future relationship bank. As a consequence we will accelerate and expand our cost efficiency programme. This will enable us to adjust our capacity to the lower activity level and to maintain our position as a strong bank.”

Full year 2013 vs. full year 2012 (Fourth quarter 2013 vs. Third quarter 2013)¹:

Total operating income -1%, in local currencies 0% (+2%)

• Operating profit +2%, in local currencies 3% (-1%)
  
• Core tier 1 capital ratio up to 14.9% from 13.1% (up from 14.4%)
  
• Cost/income ratio unchanged at 51% (up to 52% from 51%)
  
• Loan loss ratio of 21 basis points, down from 26 basis points (up to 21 bps from 20 bps)
  
• Return on equity 11.0%, down from 11.6% (down to 10.5% from 10.8%)
  
• Proposed dividend EUR 0.43 per share (last year EUR 0.34 per share)