Nordea in the Baltic countries announced EUR 24.5 million in profits for the first quarter of 2017, an increase by 10% compared to the respective period in 2016.
“Nordea in the Baltics started 2017 with a solid financial performance. We have increased our capability in faster providing products and solutions that are adjusted to current market situation and customer needs. Furthermore, we have been actively developing areas in which we see a growth opportunity in the future. It is rewarding to see that despite geopolitical tensions, low interest rates and other factors putting pressure on banking sector, our total income the shows a moderate increase year on year, driven by growing customer demand towards daily banking services, including online advisory, various investment and pension products and risk management solutions,” says Inga Skisaker, Head of Banking Baltic countries.
The total income for Nordea in the Baltics went up by 2% y-o-y, reaching EUR 49.6 million. Total net interest income increased by 3%, whereas net commission income increased by 16% compared to the respective period in 2016. Total lending portfolio grew by 5%, amounting to EUR 8.5 billion, whereas total deposit portfolio increased by 16% y-o-y, amounting to EUR 5 billion.
“Delivering on bank’s strategy remains in strong focus – we continue improving our balance sheet structure by increasing capital efficiency and decreasing funding gap. We will continue selective lending and promoting versatile savings and investments opportunities to our home-bank customers. To strengthen our positions in online advisory we have made first significant steps ensuring convenient online banking for both private and corporate customer segments. We have introduced a new design and additional functionality to Nordea Mobile App and we keep advising our customers on secure and up to date netbank solutions by providing Nordea Codes. Recently we have launched modern Chat option for our customers in Lithuania, which we soon plan to expand across the Baltics. One of Nordea’s success stories, also highly recognized in the market, is online meetings – more than one third of our customer meetings are currently held online and 98% of our customers would recommend online meetings to others,” comments Inga Skisaker.
Lithuania
Nordea total income reached EUR 11.1 million in the first quarter of 2017 and was higher by 1% y-o-y. Net commission income increased by 42% y-o-y driven by daily banking operations. Operating profit amounted to EUR 4.8 million - 21% decrease due to increased investments in IT and compliance.
Deposits portfolio and current accounts increased by 31% reaching EUR 1.35 billion. The deposit growth was driven by 47% increase of corporate deposit volumes, whereas the total of household deposits remained unchanged, comparing to the same period last year.
*This financial report is based on management accounting data.
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