By Dominic Chopping
Nordea Bank Abp on Thursday presented an updated business plan, strategic priorities and financial targets ahead of its capital markets day later in the day.
The Helsinki-based bank said strategic priorities through 2025 include delivering its omnichannel customer experiences, both digital and in-person, while focusing on expert advice and customer support.
Investments will focus on organic growth and in areas such as digitalization, data, and sales and service capabilities, while continuing to optimize the business portfolio and effectively manage the capital base, it said. -he adds.
Over the 2022-25 period, Nordea said it expects to maintain its strong capital generation, enabling growth in business volumes, potential acquisitions and “significant” distributions to shareholders.
The bank maintains its 2022 target of a return on equity above 11% and a cost-income ratio of 49% to 50%, but said it is now targeting a return on equity above 13% by the end of 2025, supported by a cost/income ratio of 45% to 47%.
The bank’s financial targets for 2025 are based on a loan volume growth forecast of around 4% between 2021 and 2025, savings assets growth of 4% to 6%, total cost increase of 1% 2% and revenue growth about 2 percentage points higher than cost growth. , it said.
After seeing strong growth in digital business activity over the past two years, Chief Executive Frank Vang-Jensen said the bank would invest more in digital leadership, seeking at least 20% digital active customers by more by 2025.
“We are building comprehensive self-service functionality for all day-to-day banking needs and plan to double the number of products and services available by 2025,” he said.
“We are also expanding our digital offering for enterprise customers.”
Nordea has previously pledged to reduce carbon emissions from its lending and investment portfolios by 40-50% by 2030 and to become a net zero emissions bank by 2050.
On Thursday, the bank set new sustainability goals for 2025, including to facilitate more than 200 billion euros ($227.5 billion) in sustainable finance, to double the share of net zero committed assets under management and to ensure that 90% of exposure to large corporate clients in climate-sensitive sectors is subject to transition plans.
It will also seek to ensure that 80% of the top 200 issuers in Nordea Asset Management’s portfolios are aligned with the Paris Agreement or subject to active engagement to align, and that each gender is at least 40% represented in the three main leaders. combined levels.
Write to Dominic Chopping at [email protected]