In nine months, Nordea Bank Lithuania, a branch of the largest banking group in the Nordic and Baltic Sea region, earned 38.2 million of unaudited net profit, which is 7.8 per cent more than during the corresponding period last year.
Loan loss provisions at Nordea Bank Lithuania at the end of the 3rd quarter this year amounted to 19.5 million litas, which is 11.4 per cent less than in the same period last year.
As compared to the corresponding period last year, the total deposit portfolio went up by 23.9 per cent at the end of the 3rd quarter amounting to 3 billion litas in total. Deposits from natural persons grew by 23.8 per cent whereas compared to the same period last year, legal entities’ deposits increased by 23.9 per cent as of the 3rd quarter of this year.
”We notice that Nordea customers continue to deposit money actively. Thus whether in the nearest future this money enter the national economy or remains in the reserve will depend on how the Lithuanian economy will develop. Meanwhile we respond to our customers’ increased need for saving and do our best to offer them the best solutions at the time when deposit interest rates are rather low,” says Inga Skisaker, Nordea CEO for the Baltics. She notes that similar tendencies prevail in other Baltic states.
In late September the bank’s loan portfolio decreased by 7.8 per cent as compared to the same period last year and amounted to 7.1 billion litas. The portfolio of natural persons’ loans went down by 4.9 per cent and amounted to 2.9 billion litas, 2.5 billion litas of the total accounting for mortgage loans. At the end of the 3rd quarter, the portfolio of legal entities’ loans decreased by 9.6 per cent as compared to the same period last year amounting to 4.2 billion litas.
Delivery on income, costs and capital
CEO Christian Clausen’s comments on the results:
“Despite the current low-growth environment with low interest rates, Nordea’s income increased by 3% in local currencies (up 1% reported) compared to the third quarter 2012, primarily driven by savings-related income. Costs are down somewhat in local currencies (down 3% reported) and loan losses are down by 26% (28%), leading to a 15% (12%) increase in operating profit. We have welcomed 87,000 new relationship customers in the last 12 months and World Finance has named us the Best banking Group in the Nordics.
Core tier 1 ratio has improved by 2.2 %-points to 14.4% mainly due to strong capital generation and strict volume discipline. Cost efficiency continues to be high on the agenda and we see our initiatives delivering better than expected.
Credit quality continues to improve, especially in Shipping. Loan losses in the Group decreased to 20 basis points and impaired loans were largely unchanged.”
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