The Nordic region's biggest financial group, Nordea Bank AB, on Wednesday posted a 5 percent drop in third-quarter net profit as higher loan losses and staff costs offset revenue gains.
It's ⁈llion profit compared with ⁈llion in the same three months last year. Most of it was due to a larger amount of bad loans and expenses related to its personnel.
Net interest income for the quarter _ its main source of revenue _ edged up slightly to ⁈illion, compared with ⁈llion a year ago, while net fee and commission income fell to ⁈llion from ⁈llion.
In its 2009 forecast, the bank, which is headquartered in Stockholm, said it expects its profit before loan losses, not including expected loss and standard tax, to be higher than in 2008. Cost growth is also expected to be at around the same level as the first nine months of the year.
Loan losses, it said, are forecast to remain more or less at the same level for the full year, "even though the risk of somewhat higher loan losses remains."