The unaudited net profit of Nordea Bank Lietuva, Lithuania branch of the largest financial group in the Nordic and Baltic Sea region, Nordea, totalled LTL 26 million in the first six months this year and exceeded the last year’s profit for the respective period by 33.8 percent. Bank’s assets in the first quarter of this year have increased by 3.6 percent compared to the respective period in the previous year and amounted to LTL 9.3 billion at the end of the quarter.
In the first half-year, the bank’s total loan portfolio has decreased to LTL 7.3 billion compared to the same period in the previous year (4 percent decrease recorded). Loan market in business sector is not yet active enough, therefore, Nordea bank’s loan portfolio of legal entities has decreased by 3.5 percent in the first half this year compared to the first half of 2012 and amounted to LTL 4.4 billion. Respectively, loan portfolio of natural persons has decreased by 4.8 percent and amounted to LTL 2.9 billion. Mortgage loans amounted to LTL 2.5 billion in it.
The total deposit portfolio has increased by 24.7 percent in the first six months of this year compared to the respective period in the previous year, and its total value at the end of the half-year amounted to LTL 2.9 billion. The increase of the total portfolio was determined by the 24 percent increase of the natural persons’ deposit portfolio that amounted to LTL 770 million at the end of the quarter. The amount of legal entities’ deposits has increased by 25 percent in the first half-year compared to the same period in the previous year and amounted to LTL 2.2 billion.
“The strengthening of long-term relationships with existing bank customers will remain the main priority of the bank group and Nordea Bank Lietuva. We will also continue our investments in e-banking channels, as well as saving and investment products,” Inga Skisaker, General Manager at Nordea Bank Lietuva, has stated. According to the bank’s manager, Lithuanian economic situation gains strength, and the anticipatory growth of the country economy and revival of investments brings optimism that the activity of the banks will be favourable.
Nordea Bank Lietuva demonstrates consistent growth in all main areas of bank’s activity since 2007. Nordea financial services group is one of not many European banks retaining the high AA- rating assigned by the main credit rating agencies (Moodys and S&P), and it means that the bank is able to take appropriate care of its customers even in difficult market conditions.
Global Finance, the international business and financial magazine, has nominated Nordea bank as the Best Bank of 2013 in Lithuania. Nordea Group was named the Best Bank in the Nordic region, and, just as in Lithuania, Nordea was named the Best Bank of the country in Sweden, Finland, and Norway.
The financial markets magazine Euromoney has awarded Nordea with the title of Best Bank of 2013 in the Nordics and Baltics. Moreover, for the first time Nordea was awarded Best Investment Bank title in the region as well.
Nordea group Second Quarter Results 2013
Strengthened customer relations, flat costs and higher capital.
CEO Christian Clausen’s comments on the results:
“In the uncertain macroeconomic environment, we continue to deliver on our plan on income initiatives, cost efficiency and improved capital position. In the second quarter, 23,000 new relationship customers were welcomed to Nordea and we have reinforced our position as the leading corporate bank in the Nordics and Baltics.
The recently published Prospera survey shows that large companies in the Nordics rank us the best bank in the Nordics, which was confirmed by the Euromoney awards “Best Bank” and “Best Investment Bank” in the Nordics and Baltics.
Total expenses have been unchanged for 11 consecutive quarters. Core tier one capital ratio improved to 14.0% and the pro forma Basel III core tier 1 capital ratio is at least 14.0%.
We see a continued stabilisation of our credit quality. Loan losses declined to 22 basis points in the second quarter 2013. Loan losses in Denmark and shipping declined.”
Half year 2013 vs. Half year 2012 (Second quarter 2013 vs. First quarter 2013):
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