TIDM43FX

RNS Number : 3639T

Nordea Mortgage Bank PLC

17 July 2020

Stock Exchange release

Nordea Mortgage Bank Plc: Half-year financial report January-June 2020

N ordea Mortgage Bank Plc's Half-year financial report and Alternative performance measures have been published. The documents are attached to this release and they are available on the Internet at http://www.nordea.com/en/investor-relations/reports-and-presentations/ .

Only information having material influence on the value of securities is included in this stock exchange release.

Nordea Mortgage Bank Plc is a wholly owned subsidiary of Nordea Bank Abp, the listed parent company of the whole Nordea Group. This statutory half-year report covers the operations of the legal entity Nordea Mortgage Bank Plc. The half-year report of Nordea Bank Abp comprises the operations of the Nordea Group as a whole and gives the best overview of the Group.

Summary of the first half of 2020:

   --    The operating profit of Nordea Mortgage Bank amounted to EUR 64.2m 
   --    Net interest income totalled EUR 113.5m 
   --    Total operating income was EUR 108.3m 
   --    Total operating expenses were EUR -31.2m

-- Net loan losses totalled EUR -12.9m, increase mainly driven by the new approach triggered by COVID-19 where additional adjustments to model based provisions have been booked, containing management judgements on projected loan losses not yet covered by the IFRS 9 model (cyclical reserve) and identified issues in the IFRS 9 model to be later covered in model updates (structural reserve)

   --    Loans to the public amounted to EUR 27,613.3m 
   --    Debt securities in issue totalled EUR 19,860.8m 
   --    The size of the cover pool was EUR 22,330.1m and overcollateralization 12.5% 
 
 Summary key figures             Jan-Jun   Jan-Jun   Change   Full year 
                                    2020      2019        %        2019 
                                --------  --------  -------  ---------- 
 Net interest income, EURm         113.5     104.7        8       219.7 
                                --------  --------  -------  ---------- 
 Total operating income, EURm      108.3      94.7       14       212.8 
                                --------  --------  -------  ---------- 
 Total operating expenses, 
  EURm                             -31.2     -36.9      -15       -68.3 
                                --------  --------  -------  ---------- 
 Profit before loan losses, 
  EURm                              77.1      57.8       33       144.5 
                                --------  --------  -------  ---------- 
 Net loan losses, EURm             -12.9      -1.7                 10.3 
                                --------  --------  -------  ---------- 
 Operating profit, EURm             64.2      56.1       14       154.8 
                                --------  --------  -------  ---------- 
 Loan loss ratio, annualised, 
  bps                                1.3       1.3        0        -3.9 
                                --------  --------  -------  ---------- 
 Return on equity, %                 8.8       7.8       13        10.4 
                                --------  --------  -------  ---------- 
 Tier 1 capital ratio, %            22.3      23.4       -5        23.5 
                                --------  --------  -------  ---------- 
 Total capital ratio, %             26.7      28.2       -5        27.9 
                                --------  --------  -------  ---------- 
 Number of employees (full 
  time equivalents)                   11        18      -39          18 
                                --------  --------  -------  ----------

Helsinki, 17 July 2020

Nordea Mortgage Bank Plc

Board of Directors

Additional information:

   Jussi Pajala, Chief Executive Officer                          + 358 40 545 3859 
   Vesa Ruokokoski, Chief Financial Officer                  + 358 50 364 3251

Nordea Mortgage Bank Plc, Half-year financial report January-June 2020

http://www.rns-pdf.londonstockexchange.com/rns/3639T_1-2020-7-17.pdf

Nordea Mortgage Bank Plc, Alternative Performance Measures January-June 2020

http://www.rns-pdf.londonstockexchange.com/rns/3639T_2-2020-7-17.pdf

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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