By Dominic Chopping
Helsinki-based Nordea Bank has announced its plans to increase its dividend and strive for higher income growth this year. The bank reported a net profit of 1.11 billion euros ($1.19 billion) for the fourth quarter, with a 19% rise in net interest income to 1.95 billion euros. These figures were slightly below the analyst predictions of 1.2 billion euros in net profit and 1.94 billion euros in net interest income.
Despite the strong lending levels observed in the last quarter, Nordea had to write off intangible assets worth 177 million euros due to changes in the treatment of development costs associated with digital services.
Looking ahead, Nordea aims for a return on equity above 15% in both 2024 and 2025, supported by a cost-to-income ratio between 44% and 46%, as well as an annual net loan loss ratio of around 10 basis points. Its common equity Tier 1 ratio currently stands at 17.0%, up from 16.4% last year.
