Alexa
  • Directory of Taiwan

Nordea Q3 profit down 5 pct on loan losses

Nordea Q3 profit down 5 pct on loan losses

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 outweighed revenue gains.
The ⁈llion profit compared with ⁈llion in the same three months last year.
Still, investors welcomed the report as the loan losses were lower than expected and better than the previous quarter. Nordea's share rose just over 2 percent to 75.95 kronor ($10.98) in early morning trade in Stockholm.
Loan losses reached ⁈llion in the three-month period, up from the ⁈lion reported a year earlier but down from ⁈llion in the second quarter. Nordea said that most of the loan losses and bad loans stemmed from a larger number of smaller- and medium-sized clients rather than from a few large ones.
Net interest income _ its main source of revenue _ edged up slightly to ⁈illion in the quarter, from ⁈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 losses 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."
Kimmo Rama, an analyst at Evli Bank, called Nordea's third-quarter earnings "good overall," pointing particularly to the improvement in loan losses compared with the second quarter. "It's almost 30 percent below expectations and about 16 percent down on the previous quarter," he said, noting that that impaired loans are increasing at a slower pace than expected.
"Overall, it seems that the risk levels are slightly coming down, but it is fair to say that there remain uncertainty on the economic recovery," he said.


Updated : 2021-05-18 07:39 GMT+08:00