20.07.2016 .

Nordea in the Baltics earns EUR 41 million in the first half of 2016

Nordea Baltic countries reported operating profit of EUR 41 million after provisions in the first half of 2016. Total income increased by 12%, supported by all main income items and increased customer activity year on year.

Despite negative interest rate environment total net interest income increased by 6%, whereas net commission income went up by 13% comparing to the respective period of 2015. Total lending portfolio grew by 1%, whereas total deposit portfolio increased by 10%. Following our prudent risk policy a loan loss reservation related to corporate sector was made in the second quarter. As a result operating profit decreased comparing to last year.

“Overall levels of wealth continue to increase, showing the fastest growth during past five years in the Baltic region and thereby a stronger potential for more investments opportunities. Growing number of savings and investment operations as well as daily customer transactions confirm the constantly increasing customer activity and demand for our advisory expertise and products. Due to unfavorable interest rate environment and rather vulnerable economic situation, total demand for hedging products remains strong. Given our customer’s interest towards more advanced and integrated into daily banking online advisory solutions, we will continue combining high level branch services with online access,” says Inga Skisaker, Head of Banking Baltic countries. 

Nordea bank in Latvia reports operational profit of 18 million

In the first half-year of 2016, Nordea in Latvia reported total income increase by 5% amounting to EUR 35 million, driven by higher customer activity in daily banking and growing interest towards hedging products. Net interest income dropped by 6% year on year due to both negative interest rate environment and increased stability fee. Net commission income showed and increase by 14%. Operating profit after provisions reached EUR 18 million.

Total lending volumes showed a decrease, whereas the total deposit portfolio went up by 31% year on year, reaching EUR 1.91 billion. Household segment portfolio increased by 10%, whereas corporate deposit volumes - by 41%, comparing to the respective period.

“In the first half of we successfully continue to delivering positive business results. We keep focus on strengthening customer relations, providing variety of products and services that are especially beneficial for the current market situation. We see that our customers are more willing to think about their long-term well-being and are ready to take on more versatile investment opportunities,” says Janis Buks, Head of Nordea Bank in Latvia. “Another acknowledgment I am especially proud of is the recent “Gold” nomination by the Sustainability Index 2016, confirming that the bank is not only doing well in business, but is devoted for responsible and sustainable business.”

Additional information:
Signe Lonerte, Head of Communication Baltic countries, Nordea Latvia, tel.: 6 700 5469, mob.: 29 116 146, signe.lonerte@nordea.com