Monday, March 2, 2015

Recent Buy

Today I bought 110 shares of Nordea Bank AB (NDA1V).

Nordea is traded at the stock exchanges of Stockholm (NDA), Helsinki (NDA1V) and Copenhagen (NDA). Nordea also have American Depository Receipts (ADR) available. Ticker (NDBAY) Exchange: OTC | Ratio: 1 Ordinary Share : 1 ADR
(The ADR ticker may be NRBAY instead of NDBAY, company website says ND but google finance displays it NR.)

Nordea in brief

Nordea is the largest financial services group in Northern Europe with a market capitalisation of approximately EUR 38.9bn, total assets of EUR 669.3bn and a Common Equity Tier 1 capital ratio of 15.7%.

Nordea has leading positions within corporate and institutional banking as well as retail banking and private banking. It is also the leading provider of life and pensions products in the Nordic countries. 

Nordea has the largest customer base of any financial services group in the Nordic region with approximately 10 million household customers and around 0.5 million corporate customers.

Dividend & Dividend Policy

Nordea pursues a policy of high dividends. The policy is that the total dividend payment will exceed 40% of the net profit for the year. Nordea will ensure competitive and predictable dividends.

*) ECB closing rate 8.9312 on 28th March 2014

Dividend Proposed for 2014 (Paid in 2015) is €0.62 compared to last years €0.43 it represents 44.18% increase. That dividend will bring the payout ration around 70% from current EPS of  €0.83 (diluted). The Company says on their annual report that:" The ambition for the dividend is to increase the payout ration in 2014 and 2015, while maintaining a strong capital base."
The ex-dividend date for the Nordea share is 20 March 2015 and payments are scheduled to made on 30 March 2015.

With current price of  €12.05 Nordea offers a dividend yield of 5.15%.

Financial Review 2014

Income Statement (Continuing operations)


Nordea is currently trading at €12.06 with P/E 14.14 | EPS €0.85 the share was around 50 cents cheaper about a month ago and it is currently trading close to 52 week high (€12.20) So it did not offer any discounts what comes to price. I had few others that I wanted to buy on my home market here in Finland but they all seemed just too expensive compared to Nordea Bank AB.  

This purchase will add €68.20 (76,48 USD) to my annual dividend income.

Haven't updated my portfolio for quite a while now so I will also update my portfolio page to represent these current changes.

Long Nordea

Any thoughts ?

photo: By cuteimage


  1. Good buy! I made a mistake when I sold my Nordea position, but I didn't want to own Nordea and also Sampo. Maybe I'll get on board next time Nordnet has similar offer.

    1. Will see how it goes! But i think its a good dividend stock, even with only dividend, 5% and above is not a bad return in my opinion.