19.07.2017 .

Nordea in the Baltic countries announces EUR 49 million of profits in the first half of 2017

In the first half of 2017 Nordea in the Baltic countries reported operating profit of EUR 49 million, a 19% growth year on year. Net interest income went up 3%, net fee and commission income increased by 13% driven by stronger sales of banking products, higher customer activity in daily banking services also supported by the growing usage of digital channels. Total income increased by 1% to EUR 103 million.

Due to stronger home-bank relationships total deposit volumes have shown higher increase, by 11% year or year, whereas total lending portfolio grew up by 4%.

“During the first six months of 2017 Nordea Baltic countries has successfully delivered on strategy strongly contributing to all strategic targets - improving funding gap, increasing capital efficiency and activating our home-bank customer base. As a result of higher customer activity and stronger focus on home-bank customers, we see a stable increase in total deposit volumes. Also, overall demand towards investment products and offerings shows an increase compared to the respective period last year. Reflecting changing customer needs, Nordea keeps delivering improvements in digital area, ensuring more convenient and efficient daily banking solutions to all customer segments. For example, we have now expanded Nordea Online advisory for corporate customers. Also, the new secure authentication tools Nordea Codes, the first fingerprint-ID in the Baltics, corporate web portal with the online account opening solution, and continuous upgrades in Nordea Mobile app have been very positively received by our customers,” says Inga Skisaker, Head of Banking Baltic countries.

Nordea in Lithuania announces profit of EUR 12.3 million in H1 2017

Total income of Nordea in Lithuania has reached EUR 24.6 million in the first half of 2017. The growth of income by 4%, compared to the respective period in 2016, was supported by increasing usage of daily banking products and the overall interest towards investment products. In the first six month of 2017, Nordea in Lithuania reported EUR 12.3 million operating profit.
Nordea's total deposit portfolio in Lithuania grew by 33% compared to the respective period in 2016, amounting to EUR 1.27 billion. Corporate customer deposit portfolio increased by 53%, reaching EUR 0.94 billion compared to 2016, whereas household deposit portfolio shows a slight decrease by 3% over the same period in 2016, amounting to EUR 0.33 billion.
Total lending portfolio went up by 6% compared to H1 2016 and amounted to EUR 2.43 billion. Lending to corporates amounted to EUR 1.49 billion, whereas the household lending portfolio – EUR 0.94 billion. Corporate lending portfolio increased by 5% in the first half of 2017 compared to the same period last year while household lending portfolio increased by 6%.

Nordea in Latvia reports profit of EUR 14.7 million in H1 2017
Nordea in Latvia reported operating profit of EUR 14.7 million for the first six month of 2017. Total income has reached EUR 32.7 million. Total commission income has increased by 16%, amounting to EUR 6.7 million, whereas net interest income, despite the negative interest rate environment and increased stability fee, has maintained existing levels year on year reaching EUR 24.4 million.

Total lending volumes have increased by 2%, from which lending to corporates have increased by 5%, whereas household lending shows a slight decrease. Household deposit volumes have remained in levels of 1H 2016, however corporate deposits have decreased. Net loan losses have decreased by 84%.

“During the first half of 2017 Nordea bank in Latvia demonstrated solid business results. Although total operating profit declined compared to the respective period last year due to increased costs related to higher investments in Compliance area and stronger sales results in risk management products last year, we have fulfilled business targets set for 2017. Banking sector developments lately have been driven by two things in particular: digitalization and Compliance with stronger regulatory requirements. Delay in the first of those can cause loss of profitability and market share, whereas failures to comply with Compliance requirements can lead to greater consequences, including reputation risks. Nordea has been paying close attention and making efforts in both of these areas – for the last two years in particular Compliance has been a big part of our daily agenda,” says Janis Buks, Head of Nordea Bank in Latvia. “As for digitalization, Nordea continues updating existing and introducing new digital solutions that are appreciated by our customers and make their daily banking much more convenient.”

Nordea Estonia 2017 HY1 results

In HY1 2017, Nordea earned EUR 45.2 million in revenues; up by 7% y/y. Nordea Estonia’s profits in HY1 were EUR 22.8 million.

The stable revenue and profit growth was supported by the continued active efforts in both household and corporate loan and leasing markets, as well as active use of banking products by home bank customers.

The household loan portfolio grew by 8% year on year and loans to corporate customers by 3%. By the end of HY1, the total loan portfolio amounted to EUR 3.5 billion, up by 4% y/y. Total deposit portfolio increased by 21% year on year, amounting to EUR 1.9 billion. Customers’ growing interest in savings and investments products has increased their 6-month sales by 119% compared to the same period last year.

According to the recently published Nordea economic outlook, Estonian growth is becoming more broad-based on the back of export income and investment. The growth of Estonian industrial production in HY1 was one of the fastest in Europe. Head of Nordea Estonia Gerd Müller noted that it was nice seeing a forecast of increasing export demand, which, together with the increasing workload of production facilities is supporting increase in private sector investments. “Real estate market remains lively and household savings that continue to grow at a high pace (9% y/y), have notably increased customers’ interest in the investment products that we are actively offering,” Gerd Müller commented on the general economic trends. „Nordea is also actively continuing to bring convenient and simple digital solutions to our customers. Since spring 2017, Nordea has been offering the secure and convenient Nordea Codes App for logging on to Netbank. We are glad to see that customers have swiftly taken to the new authentication solution. In addition, we are the first bank in Estonia to offer fingerprint authentication in our Netbank.” „In the beginning of June, Nordea launched a new web-based solution for corporate customers, enabling convenient online opening of accounts. This will cut the timed needed to open an account by at least a half, which is an important time saver for companies,” Müller added.

According to him, meetings with and advising of household and corporate customers online is also part of a growing trend. Already today, 30% of Nordea’s advisory meetings with household customers are web-based.

For additional information contact:
Signe Lonerte, Head of Communication, Baltic States, phone: 6 700 5469, GSM: 29 116 146, signe.lonerte@nordea.com