Total income went up by 9% y-o-y, mainly driven by increased sales of financial products arising from strong customer demand for risk management solutions. Net fee and commission income went up by 12% due to higher demand of daily banking services, growing number of transactions both in the household and corporate segments and stronger sales of investment and pension products. In 2016 Nordea has shown a balanced growth of lending volumes concentrating on bank’s target segments, while reducing the funding gap - total lending volumes have increased by 4% y-o-y, reaching EUR billion 8.4; whereas total deposits went up by 9% compared to previous year, amounted to EUR 4.8 billion. Total costs have increased by 5%, related to stronger focus on compliance and increased regulatory demands.
“Nordea in the Baltics delivered solid business result for 2016. Through strong focus on strategy implementation we continued delivering on main priority areas – reducing funding gap and working on improving capital efficiency. During the year we have substantially developed bank’s digital offering and online channels. Over 30% of Nordea’s customers in the Baltics prefer advisory services through online meetings. Nordea Codes, the unique and modern authentication method that we started offering to our customers last year, has been already used by approximately 50% of our active customers. We have just released an upgraded Nordea mobile app, which is another step towards creating outstanding digital customer experience that our customers appreciate,” comments Inga Skisaker, Head of Nordea Banking Baltic countries. “For 2017 we plan to continue with our main strategic initiatives, including building sustainable balance sheet structure, reducing funding gap and increasing bank’s accessibility online.”
Lithuania
In 2016, Nordea in Lithuania reported operating profit of EUR 22.3 million, an increase by 4% year on year. Net interest income remained stable, reaching EUR 34.3 million; net commission income increased by 6%.
Total deposit portfolio decreased to EUR 1.2 billion. Total lending volumes increased by 6% year on year, including 6% and 5% growth in corporate and household loans respectively. The mortgage loan portfolio increased by 3% reaching EUR 0.8 billion.
*This financial report is based on management accounting data.
For Nordea Group results, please click here.
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