Nordea in the Baltics earns EUR 41 million in the first half of 2016
2016-07-20
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.
Lithuania:
In the first half-year of 2016, Nordea bank in Lithuania reported total income increase by 9% amounting to EUR 23.6 million on year. Net interest income showed an increase by 4%, whereas net commission income grew by 10%. After the unusually low loan losses in the first half of 2015 the provisions are back to the normal level this year in relation with reservations for potential future losses. As a result, operating profit shows a decline, yet concluding the financial period with positive profit of EUR 11.1 million. Total lending volumes increased by 6% year on year, including 8% and 3% growth in corporate and household loans, whereas total deposit portfolio shows a decline.
