Nordea first quarter 2010 financial results

Nordea Group first quarter 2010 financial results

Strong result - higher income and lower loan losses

CEO Christian Clausen's comment to the report: "Nordea's first quarter result was significantly better than the previous quarter and also better than the strong first quarter last year. Total income increased and costs decreased from the previous quarter, resulting in an operating profit increase by close to 50%. Loan loss ratio fell to 37 basis points.

Nordea welcomed more than 12,500 new Gold and Private Banking customers each month in the first quarter. Customer satisfaction increases and we gain market shares in corporate and household lending as well as investment funds.

Net interest income held up well, due to strong customer-related performance, but is still subdued by the exceptionally low interest rates. To reach the ambitious targets for 2013, Nordea's focus is now on the prudent growth strategy and implementing the Group initiatives for growth, efficiency and a strong foundation."

First quarter vs fourth quarter:

• Total income up 7%
• Expenses decreased 5%
• Loan loss ratio 37 basis points (52 basis points)
• Operating profit up 48% and risk-adjusted profit up 27%
• Outlook. As previously stated, Nordea expects risk-adjusted profit to be lower in 2010 compared to 2009, due to lower income in Treasury and Markets. However, net loan losses in 2010 are likely to be lower than in 2009. Credit quality continues to stabilise, in line with the macroeconomic recovery. (For full outlook see www.nordea.com).

Learn more - www.nordea.com

Nordea Latvia first quarter 2010 financial results

Keeping active market position

• Net interest income 7,9 million (8,6 million lats in 2009 1st quarter), down 8,1% 
• Net fee and commission income 2,5 million lats (2,4 million lats), up 4,2%
• Total expenses 5,3 million lats (4,5 million lats), up 17,7% 
• Loan losses in 1st quarter 2010 12 million lats (total LVL 72,7 million)
• Operating profit/loss –7,6 million lats(5,6 million lats) 
• Net profit/loss –8,5 million lats (4,1 million lats)*  
• Total lending 2,0 billion lats (beginning of the year 2,1 billion lats), small decrease 2,6%
• Deposits and saving accounts 459 million lats (beginning of the year 494 million lats) down 11,3%

*The Latvian branch of Nordea Bank Finland does not have its own capital; therefore, the profit after taxes cannot be directly compared to the corresponding numbers of other commercial Latvian banks.

Valdis Siksnis, Manager of Nordea Bank:  “Economic recession continues to adversely influence the performance indicators of Latvian banks.” However, thanks to the previous pragmatic lending policy of the Nordea Bank and the current active position in the market, we continue to positively stand out with respect to the average indicators of the Latvian finance sector. Our lending portfolio is much more qualitative than the market average; hence the proportion of the loans with repayments delayed for more than 90 days is 7.1%, which, according to our estimates, is half as much as the market average. In conditions of a declining market we have been able to maintain the lending portfolio practically unchanged at the amount of 2 billion lats and continue to issue new loans both to private individuals as well as to corporate clients. This is evidenced also by our recent statement on our readiness to issue 100 million lats in housing loans this year. We are satisfied that during the last 12 months the amount of balances of current accounts has increased by 28%, which shows that ever more clients choose us as their main bank for everyday settlement of payments. By helping our clients find various solutions in conditions of recession we have achieved also further strengthening of our reputation.”