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Nordea delivered according to expectation in the second quarter

Wednesday, 17 July 2013
Big Bank Nordea's revenues and profits were roughly as expected in the second quarter. Nordic region's biggest bank Nordea made an operating profit of Skr9.1 billion during the second quarter of 2013. That was higher than what the analysts who monitor the company had expected. Expectations was for Skr 8.9 billion.

Half year 2013 vs. Half year 2012 (Second quarter 2013 vs. First quarter 2013)

Total operating income unchanged (down 1%)
Operating profit unchanged (up 1%)
Core tier 1 capital ratio up to 14.0% from 11.8% (up from 13.2%)
Cost/income ratio up to 51% (down to 50%)
Loan loss ratio of 23 basis points, down from 24 basis points (down to 22 basis points)
Return on equity 11.3%, down from 12.1% (up to 11.5% from 11.1%)

Source: Nordea

Profit after tax, that is, the money that can be distributed to the owners, however, were in line with prior tips.

Net interest income, that is, the difference between the bank's borrowing costs and what customers will pay for their loans, landed at Skr12.2 billion, which was approximately as expected.

According to management, the bank currently has a capital buffer of 14 per cent according to Basel 3 proposal. Their aim is to make European banks more resilient in financial crises.

CEO Christian Clausen in a comment said of the result that “In the uncertain macroeconomic environment, we continue to deliver on our plan on income initiatives, cost efficiency and improved capital position. In the second quarter, 23,000 new relationship customers were welcomed to Nordea and we have reinforced our position as the leading corporate bank in the Nordics and Baltics."

Read more about the Nordea's second quarter report from Nordea

By Scancomark.com Team