Contacter Bordier
Disclaimer
Informations Légales
Plan du site
Rechercher ...
...........................
DE
ES
The release of Q2 2010 earnings has reassured us over the Nordea model’s resilience. Its recurring results and the management’s more confident stance on the sustainable nature of the improvement of credit quality are undeniable advantages. The share is trading at a 12% premium against the sector. This is justified by its superior fundamentals. PLUS code confirmed.
Data announced for Q2 are very robust and of good quality. Recurring items proved better than expected, despite the relative disappointment of unfavourable trading figures for this quarter. The risk cost continues to fall and the management is proving increasingly positive about the sustainable nature of this trend while lending has picked up again in the Nordic countries. Technically, Nordea may not be the ideal candidate for a stock market recovery, but the fundamentals leave nothing to be desired. PLUS code confirmed.
Following the publication of slightly disappointing figures for Q4, Nordea is once again exceeding market expectations for Q1 2010. The net result was 40% above expectations, with revenues of good quality, expenditure well under control and a favourable environment in terms of risk costs. Its defensive but dynamic profile, teamed with better than average financial strength, continues to merit a premium against the sector. PLUS code maintained.
Nordea continues to be a bank with a defensive profile thanks to the diversification of its loan portfolio, strong shareholders’ equity and a substantial liquidity. The new strategic plan now in force will enable the company to maintain this growth profile with controlled risk which has been its distinguishing feature up to now. The only false note is still the valuation premium which takes on board some, but only some, of these plus points.
Q4 results announced by Nordea were very reasonable, but proved somewhat disappointing measured against the high expectations. There are no false notes in these results and the prudent prospects forecast for 2010 had been largely anticipated by the consensus. Admittedly, something more was expected of a share which is trading at a premium on the sector, but this premium is still justified. The current background of tighter regulation will place Nordea’s strong points — higher solvency and liquidity — in a still more favourable light. PLUS code confirmed.
With spectacular but temporary earnings racked up by its investment banks, Nordea highlights the consistency of its growth in recurring earnings. Once again the group exceeds expectations and with results of very high quality. Despite its solvency ratio, which is one of the highest in the sector, and its ability to increase revenue while cutting costs, the market still underestimates Nordea.
Nordea remains a bank with a defensive profile thanks to the diversification of its loan portfolio and strong shareholders’ equity. In addition, the Swedish bank is still a robust growth driver which, paradoxically enough, has emerged strengthened from the crisis (+33% risk-adjusted profit in the 1st half of 2009, against last year). The only downside is the valuation premium which takes these positive features on board, but only to a limited extent.
Nordea confirmed in Q2 the good trend of the first quarter. Operating profit (€818million) was well above expectations, boosted by trading results. Above and beyond this however the great majority of signals remain green, including a robust commercial dynamic, very high solvency and a controlled cost of risk. The premium at which Nordea is trading does not perhaps make it THE candidate in the event of a strong stock market rally, but in the longer term the bank confirms its status as a winner in Nordic countries.
2009 has got off to a good start in the Nordic countries with Nordea’s result 48% above expectations for the first quarter. The operating profit was admittedly boosted by trading gains, which will be hard to reproduce, but the trend on the fundamentals is also very positive. Revenues continue to increase without any negative impact on profitability and the group’s solvency has become a reference following a successful capital increase.
The group’s defensive profile has been strengthened by the 2008 financial year from which it has emerged relatively unscathed and fit for 2009. The capital increase was more in the nature of a “bonus” than a real necessity at this level of capitalization. However, some Nordic banks still remember their domestic crisis of 1992. That makes them particularly cautious.
Nordea has published good results for 2008, accompanied by a soundly structured capital increase. Market fears over deterioration of the Nordic economies are legitimate but the group has proved that the situation in those countries is no worse than anywhere else if you have the benefit of a diversified and good portfolio. In this regard, prospects for 2009 are encouraging without, however, giving grounds for excessive optimism. At this stage, we continue to appreciate the relatively defensive qualities of Nordea.
Results published by Nordea for Q3 2008 are 6% above consensus. The bank has confirmed its defensive character in a crisis environment and remains adequately capitalized. This comfortable position will enable it to win market shares during the next few quarters. Nordea is trading at a 10% premium against the sector; we regard this as perfectly justified in view of its greater resilience. We confirm our PLUS code on this share.
The resilience of Nordea in face of the profit crisis means that it will remain better placed than its competitors in coming quarters. The group benefits from good geographical diversification and excellent management. The medium-term disposal (possibly in 2010) of the Swedish state’s participation (19.9%) is likely to be a further catalyst for the share.
Nordea has published Q2 2008 results in line with expectations. The figures are essentially reassuring if not inspiring, but in the present economic environment few banks can boast 2% higher revenue on an annualized basis and profit growth (+1%) for the quarter. The resilience of Nordea's profit figures means that it will remain generally better placed than its competitors in coming quarters.
Results (adjusted) published by Nordea for Q1 2008 are in line with expectations. Revenue growth (+5% like for like) reflects the prudent risk management strategy (with the emphasis on liquidity), despite the difficult market environment. Limited exposure to the US property market and to risky loans in general will enable it to survive the crisis on the financial markets without too much damage. Nordea still benefits from a strong balance sheet, a diversified portfolio with limited risk and substantial liquidity. PLUS code
Nordea has published strong annual results for 2007, generally better than expected. Income growth (+8%, comparable basis) reflects the group’s expansion strategy together with prudent risk management. The restricted exposure (direct or indirect) to the US sub-prime market, together with insignificant group exposure to structured lending products, have enabled Nordea to navigate the financial market crisis without too much damage. Nordea still has a strong balance sheet, a diversified portfolio with limited risk and substantial liquidity. PLUS code maintained.
Nordea has published better than expected results. Taxation is favourable and provisions are constantly being written back. The management confirms its financial objective of a 2% to 3% margin between costs and earnings. This share remains an attractive investment because of its exposure to the Nordic countries which are likely to continue to show higher growth than the rest of the euro zone. Moreover, the recurring rumour of a sale of the Swedish State interest (19%) adds a speculative aspect to this share.
Nordea has published good results for Q4. The asset quality remains excellent and does not seem to be worsening. The distribution of a 40% payout also confirms the management’s confidence for the year 2007. The objective of a 3% to 4% difference between income and costs is feasible. Nordea should continue to benefit from the sound health of the Nordic economies with good revenue diversification in this region and a strong management.
Nordea has published excellent results for Q3 2006, well above consensus (y/y): net banking revenues are up 21% at EUR 1.93 billion with the net profit 55% higher at EUR 872 million. Given the good results announced, excellent asset quality, the dividend yield of around 4% and the valuation which remains attractive (PER of 10.6x ’07e versus 11.6x for the sector), our PLUS code is confirmed.
The results are disappointing mainly because of the pressures exerted on interest rate margins in a low rate environment. However, credit volumes are growing strongly. Even if fundamentals remain excellent, the share should track the shortterm sectoral trend. The catalysts should begin to have an impact in the second half of the year with the cancellation of Nordea’s proprietary shares and the start of a new share buyback programme. The valuation remains attractive at 10.6x against 10.9x for the sector with a 4% dividend yield expected for 2005. PLUS code maintained.
Nordea should continue to benefit from economic growth which is expected to be higher than that of the Euroland countries in 2005. Excellent cost control combined with a share buy back programme which is likely to be announced on 23 February 2005 are supporting the share price. Finally, the valuation is attractive with a PER 05e of 10.5x against a sector at 11.6x.
version française