Nordea Results of the 1st Half of 2010

Nordea Group Results of the 1st Half of 2010

CEO Christian Clausen’s comment to the report:
”We have seen a positive development in our customer business with a record level of new Gold
and Private Banking customers and we have strengthened relationships with our large corporate
customers. Our market shares have increased and income in customer segments is up 9%.
The Group result is in line with our plans. Net interest income is holding up well despite the low
interest rate levels. Net fee and commission income has increased. The net result from items at
fair value has decreased from the high level in the first quarter.
We are especially pleased with the continued development of our relationship banking model
and our growth initiatives. Together, they lay a strong foundation for reaching our long-term
financial targets.”

Second quarter vs first quarter:

• Income from corporate customers up 10% and from household customers up 7%
• Number of Gold and Private Banking customers up by 73,000 or 2.6%
• Net loan losses down 28% to 26 basis points, excluding provisions for the Danish
  guarantee scheme, and the growth in impaired loans levelled out and a slight decrease
  was seen
• Operating profit down 17%, due to lower result from items at fair value
• Outlook. The outlook is improved regarding the Nordic macroeconomic development. Net loan losses in 2010 are now expected to be lower than in 2009. Credit quality continues to stabilise, in line with the economic recovery. Nordea continues to expect risk-adjusted profit to be lower in 2010 compared to 2009, due to lower income in Treasury and Markets.

*More detailed information about Nordea Results of the 1st Half of 2010 on website www.nordea.com

Nordea Latvia Branch Office Results of the 1st Half of 2010

There are positive trends evidencing that Nordea Latvia Branch could end the year with profit

• Net interest income in the first half of 2010 - LVL 16.6 million (LVL 13.8m in the 1st half of 2009), increase by 20.3%
• Net commission income in the first half of 2010 - LVL 5.1 million (LVL 5m in the 1st half of 2009), increase by 2% 
• Total costs in the first half of 2010 LVL  - LVL 10.1 million (LVL 9.3m in the 1st half of 2009), increase by 8.8%
• Accumulations / losses for bad loans in the first half of 2010 - LVL 21.2 million (LVL 21.8m in the 1st half of 2009), reduction by 2.8%
• Operational profit / losses in the second quarter of 2010 - LVL 2.1 million (LVL 5.2 m in the 2nd quarter of 2009), loss reduction by 60%
• Profit after taxes in the first half of 2010 - LVL 11.3 million (LVL 2.3m in the first half of 2009)*
• New corporate loans in the first half of 2010 - LVL 18 million (LVL 13m in the first half of 2009), increase by 38%
• New mortgage loans in the first half of 2010 – LVL 30 million (LVL 30.7 m in the first half of 2009) reduction by 2%
• Current account balance in the first half of 2010 - LVL 109 million (LVL 99 m in the beginning of the year), increase by 11%

*Nordea Bank Finland Latvia Branch  has no separate equity, therefore the position „profit after taxes” cannot be directly compared with the indicators of other commercial banks of Latvia. 

Nordea Latvia Branch Manager Valdis Siksnis: „The overall economic situation is getting more stable what is also reflected by the operating results of banks. The number of overdue loan payments is reducing and, as compared to the previous quarter, the accumulations for bad loans in the 2nd quarter have reduced by 36% by reaching 9.3 million lats what is the lowest indicator since the beginning of the previous year. Although we have suffered losses, the operational profit indicators have considerably improved. The operational losses amount to 2.1 million lats what is the best indicator of the year”.

„We are glad that despite the falling market, we continue to play an active role in the lending sector. Already in the first half of the year we have issued corporate loans in the amount of 18 million lats. Our target in private lending remains unchanged and this year we are looking forward to issue mortgage loans in the amount of 100 million lats.  We are happy of having issued new mortgage loans for the total amount of 30 million lats. Since the beginning of the year the balance of our current account has gone up by 11%, what serves as a proof that the number of customers having chosen us as their principal bank is increasing. All these tendencies make expect that Nordea Latvia Branch could end this year with profit”, told Valdis Siksnis.