Baltic, Banks, Financial Services, Loan

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 01:42

Nordea in Latvia reports operating profit’s growth, but decline in Estonia in Q1

BC, Riga, 27.04.2016.Print version
During the first quarter of 2016, the Latvian branch of Nordea Bank generated EUR 11.4 million in operating profit, up 3% against the same period a year ago, the bank's representative Signe Lonerte told LETA. Nordea Eesti earned 5.1 million euros of operating profit in the first quarter of 2016, 57% less than last year.

Signe Lonerte said that the Latvian branch of Nordea Bank saw its revenue grow 3% year-on-year to EUR 17.1 million in the first three months of this year. Because of low interest rates, net interest income decreased by 3% to EUR 12.3 million, while total commissions revenues grew 16% to EUR 2.9 million.

 

Deposits at the Latvian branch of Nordea Bank increased by 28% to EUR 1.68 million at the end of March 2016, mostly thanks to activity in the corporate segment. Meanwhile, the bank's loan portfolio contracted by 1% to EUR 2.57 billion.

 

Nordea's operating profit in all three Baltic states came to EUR 23 million in the first quarter of 2016, dropping by 15% from the first quarter of 2015 as provisions grew.

 

The Latvian branch of Nordea Bank posted EUR 11 million in operating profit for the first quarter of 2015.

 

At the end of 2015, the Latvian branch of Nordea Bank was the fifth largest bank in Latvia by assets, according to the information from the Latvian Association of Commercial Banks.

 

Nordea Eesti, the Estonian unit of the Nordic financial group Nordea, earned 5.1 million euros of operating profit in the first quarter of 2016, 57% less than last year.

 

The fall in the operating profit was due to an increase in loan losses. Losses on loans amounted to 8.1 million euros compared to 400,000 euros in the first quarter of 2015. In accordance with the bank's conservative risk policy, loan loss provisions of the corporate customer segment were increased in the first quarter, Nordea said.

 

The total revenue of the bank increased 8% year on year to 20.3 million euros and net interest income grew 2% to 14.8 million euros. Net fee and commission income increased 14%, totaling 3.5 million euros.

 

The loan volume was unchanged in annual comparison at 3,32 billion euros. Deposits increased 12% to 1.61 million euros.

 

Nordea's Baltic revenues rose 9% year-on-year. Net interest income grew 6% and commissions revenues increased 14%.

 

Nordea Bank's loan portfolio in the Baltic states grew 1% to EUR 8.1 billion and deposits expanded 10%.






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