Nordea reports increased profits
Wednesday, 23 October 2013
Nordic biggest bank, Nordea reports operating income for the third
quarter of 2013 of 1.021 million euros, against 910 euros same period a
Analysts had expected operating income of 1.038 billion euros,
according to Six Market Estimates compilation of 22 bank analysts'
After a quiet summer, economic activity has picked up lately, according to Nordea CEO Christian Clausen.
"We believe that the worst is over now and that the economic situation
will be better in the Nordic region in 2014, "writes Christian Clausen
in the bank's interim report.
Economic activity tends to be a bit sluggish in the third quarter, and
it was also this year, he said. Activity levels improved during the
latter part of the quarter, particularly in the business segment.
According to CEO Christian Clausen on the results, despite the
current low-growth environment with low interest rates, Nordea’s income
increased by 3percent in local currencies (up 1percent reported)
compared to the third quarter 2012, primarily driven by savings-related
income. Costs are down somewhat in local currencies (down 3percent
reported) and loan losses are down by 26percent (28 percent), leading
to a 15percent (12 percent) increase in operating profit. We have
welcomed 87,000 new relationship customers in the last 12 months and
World Finance has named us the Best banking Group in the Nordics.
Core tier 1 ratio has improved by 2.2 percent -points to 14.4percent
mainly due to strong capital generation and strict volume discipline.
Cost efficiency continues to be high on the agenda and we see our
initiatives delivering better than expected.
Credit quality continues to improve, especially in Shipping. Loan
losses in the Group decreased to 20 basis points and impaired loans
were largely unchanged.
Full reports could be accessed here
By Scancomark.com Team
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