Results of Nordea Latvia Branch Office 2013

Nordea Bank concluded the year with a profit, attained a record high volume of deposits and successfully introduced the Euro

  • The total annual revenue amounted to 65 mill. EUR (45.5 mill. LVL) - a 3% increase in comparison to year 2012.
  • Total annual expenditure amounted to 31.6 mill. EUR (22.2 mill. LVL) - a 14% increase.
  • Profit before bad debt reserves amounted to 33.4 mill. EUR (23.4 mill. LVL) - a 6% decrease.
  • Bad debt reserves amounted to 28 mill. EUR (19.6 mill. LVL) - a 83% increase.
  • Operational profit amounted to 5.3 mill. EUR (3.7 mill. LVL) - a 74% decrease.
  • RaRoCar amounted to 7.1%, compared to 5% in 2012.
  • Risk-adjusted assets amount to 826 mill. EUR (278.4 mill. LVL) - a 10% decrease
  • The volume of the credit portfolio increased up to 2.57 bill. EUR (1.8 bill. LVL) -a 5% decrease in comparison to 2012 Q4
  • The volume of the deposit portfolio reached 1.33 bill. EUR (0.93 bill. LVL) -a 15% increase in comparison to 2012 Q4
  • New loans disbursed in 2013 amounted to 300 mill. EUR (210 mill. LVL) - a 9% increase

Head of Nordea Latvia Jānis Buks: "2013 was a challenging year, however, in general it has brought steady business results and we concluded the year with profit. Net interest income amounted to 47.8 mill. euros last year and this was a 12% increase compared to 2012, although the amount of the credit portfolio decreased. The amount of deposits exceeded the level of 1.3 billion euros at the end of the year, a 15% increase compared to 2012 and the highest result in the history of the bank. In 2013 we carried out the reassessment of the provision of the credit portfolio, which resulted in the increase of reserves for bad debts and liabilities. We have increased corporate revenue by 3%, improved the index of return on equity by 200 bp and we continue the expansion of our business as attested by a 9% increase in the conclusion of new and perspective business deals. However, a satisfied customer is the greatest success of the bank. This is attested by both data from the latest customer satisfaction survey and the awards received both on a global and the local scale. I am convinced that the daily work based upon corporate values secures excellent results. Therefore, I have set the efficient work by the Nordea team and outstanding customer service as our goal for this year with the aim of achieving success through joint effort."

* We would like to point out that the Profit and Loss Statement is based upon management accounting data according to the Guideline of Publishing Financial Results of Nordea Group.

** Information on the terms used in management accounting is available at the website of Nordea Bank www.nordea.com