Nordea Bank AB (publ) raised its dividend as it reported
"We also expect 2017 to be eventful, and we are well-prepared to deal with the challenges," the CEO said. The bank's board of directors proposed a dividend of 65 cents per share, up from 64 cents per share for 2015. The payout ratio was reduced to 70% from 71% a year earlier.
The bank reported fourth-quarter 2016 net profit of €1.10 billion, up from €848 million in the year-ago period. EPS for the quarter stood at 27 cents, compared to 21 cents a year earlier. The S&P Capital IQ consensus normalized EPS estimate for the quarter is 19 cents.
Net interest income for the quarter stood at approximately €1.21 billion, compared to €1.20 billion in the same period in 2015. Net fee and commission income rose to €867 million from €821 million.
Net loan losses for the period declined on a yearly basis to €129 million from €142 million.
For the full year 2016, net profit rose to €3.77 billion from €3.66 billion. ROE reached 12.3%, compared to 12.2% in 2015.
The bank's common equity Tier 1 capital ratio, excluding Basel I floor, was 18.4% as of Dec. 31, 2016, compared to 16.5% at 2015-end. Including Basel I floor, the CET1 ratio was 11.5% at the end of 2016, compared to 10.8% at the end of 2015.
Dividend payments are scheduled for March 27, with the record date set at March 20.