Nordea Bank - Group 2017 EU-wide Transparency Exercise Summary
Core Content
This document presents the results of the 2017 EU-wide Transparency Exercise for Nordea Bank - group, including information on own funds, capital ratios, leverage ratio, risk exposure amounts, and P&L (Profit and Loss) data. The information is provided for two reporting periods: As of 31/12/2016 and As of 30/06/2017. The data follows the regulatory framework of the Capital Requirements Regulation (CRR) and is structured according to the COREP (Capital Requirements Reporting) format.
Key Financial Indicators
Own Funds (Transitional Period)
| Item |
Description |
As of 31/12/2016 (EUR) |
As of 30/06/2017 (EUR) |
| A |
Own Funds |
32,904 |
31,844 |
| A.1 |
CET1 Capital (net of deductions) |
24,538 |
24,890 |
| A.1.1 |
CET1 Capital Instruments |
5,108 |
5,106 |
| A.1.2 |
Retained Earnings |
23,900 |
24,378 |
| A.1.3 |
Accumulated Other Comprehensive Income |
-97 |
-134 |
| A.1.4 |
Other Reserves |
0 |
0 |
| A.1.5 |
Funds for General Banking Risk |
0 |
0 |
| A.1.6 |
Minority Interest in CET1 Capital |
0 |
0 |
| A.1.7 |
Adjustments to CET1 due to prudential filters |
-449 |
-327 |
| A.1.8 |
Intangible Assets (including Goodwill) |
-3,435 |
-3,633 |
| A.1.9 |
DTAs that rely on future profitability |
0 |
0 |
| A.1.10 |
IRB shortfall of credit risk adjustments |
-212 |
-204 |
| A.1.11 |
Defined Benefit Pension Fund Assets |
-240 |
-262 |
| A.1.12 |
Reciprocal Cross Holdings in CET1 Capital |
0 |
0 |
| A.1.13 |
Excess Deduction from AT1 Items |
0 |
0 |
| A.1.14 |
Deductions related to assets with alternative risk weight |
0 |
0 |
| A.1.14.1 |
From Securitisation Positions |
0 |
0 |
| A.1.15 |
Holdings of CET1 Capital Instruments (non-significant) |
0 |
0 |
| A.1.16 |
Deductible DTAs that rely on future profitability |
0 |
0 |
| A.1.17 |
Holdings of CET1 Capital Instruments (significant) |
0 |
0 |
| A.1.18 |
Amount Exceeding 17.65% Threshold |
0 |
0 |
| A.1.19 |
Additional Deductions of CET1 Capital due to Article 3 CRR |
0 |
0 |
| A.2 |
Additional Tier 1 Capital |
3,017 |
2,855 |
| A.3 |
Tier 1 Capital |
27,555 |
27,746 |
| A.4 |
Tier 2 Capital |
5,349 |
4,098 |
Capital Ratios (Transitional Period)
| Item |
Description |
As of 31/12/2016 (%) |
As of 30/06/2017 (%) |
| C.1 |
CET1 Capital Ratio |
18.43% |
19.19% |
| C.2 |
Tier 1 Capital Ratio |
20.69% |
21.39% |
| C.3 |
Total Capital Ratio |
24.71% |
24.55% |
CET1 Capital (Fully Loaded)
| Item |
Description |
As of 31/12/2016 |
As of 30/06/2017 |
| D |
CET1 Capital (Fully Loaded) |
24,538 |
24,890 |
| E |
CET1 Capital Ratio (Fully Loaded) |
18.43% |
19.19% |
Leverage Ratio
| Item |
Description |
As of 31/12/2016 (EUR) |
As of 30/06/2017 (EUR) |
| A.1 |
Tier 1 Capital (Transitional) |
27,555 |
27,746 |
| C.1 |
Leverage Ratio (Transitional) |
5.0% |
4.7% |
| C.2 |
Leverage Ratio (Fully Phased-in) |
4.8% |
4.6% |
Risk Exposure Amounts
| Risk Type |
As of 31/12/2016 (EUR) |
As of 30/06/2017 (EUR) |
| Credit Risk |
107,512 |
106,058 |
| Securitisation Risk |
828 |
821 |
| Contributions to CCP Default Fund |
32 |
27 |
| Other Credit Risk |
106,652 |
105,210 |
| Market Risk (Position, FX, Commodities) |
4,474 |
3,386 |
| Total Risk Exposure Amount |
133,157 |
129,710 |
Profit and Loss (P&L)
| Item |
As of 31/12/2016 (EUR) |
As of 30/06/2017 (EUR) |
| Interest Income |
10,714 |
5,240 |
| Interest Expenses |
6,030 |
2,880 |
| Net Fee and Commission Income |
2,863 |
1,522 |
| Gains/Losses on Derecognition |
67 |
-41 |
| Gains/Losses on Trading Financial Assets |
1,279 |
688 |
| Gains/Losses on Fair Value through Profit or Loss |
73 |
23 |
| Gains/Losses from Hedge Accounting |
-11 |
32 |
| Exchange Differences |
-16 |
-112 |
| Net Other Operating Income/(Expenses) |
138 |
26 |
| Total Operating Income, Net |
9,139 |
4,543 |
| Administrative Expenses |
4,377 |
2,328 |
| Depreciation |
214 |
117 |
| Provisions or Reversal of Provisions |
23 |
30 |
| Profit or Loss Before Tax |
4,842 |
2,243 |
| Profit or Loss After Tax |
3,971 |
1,749 |
Credit Risk - Standardised Approach
| Item |
As of 31/12/2016 |
As of 30/06/2017 |
| Standardised Total |
115,846 |
23,099 |
Country-Specific Data (Sweden)
| Item |
As of 31/12/2016 |
As of 30/06/2017 |
| Standardised Total |
133,157 |
129,710 |
Country-Specific Data (Denmark)
| Item |
As of 31/12/2016 |
As of 30/06/2017 |
| Standardised Total |
133,157 |
129,710 |
Main Points
- Nordea Bank - group reports its financial data under the EU-wide Transparency Exercise for the year 2017.
- The own funds and capital ratios show a slight decline in absolute values but an increase in the CET1 capital ratio.
- Leverage ratios decreased slightly from 5.0% to 4.7% using the transitional definition of Tier 1 capital.
- Risk exposure amounts decreased overall from 133,157 mln EUR to 129,710 mln EUR, primarily due to reductions in credit and market risk.
- Profit and Loss (P&L) data indicates a significant decline in operating income, from 9,139 mln EUR to 4,543 mln EUR, with a corresponding drop in net profit after tax.
- The Standardised Approach for credit risk provides a breakdown of risk exposure by category and country (Sweden, Denmark), with a focus on credit conversion factors and risk mitigation techniques.
