Banks, Financial Services, Latvia
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Thursday, 25.04.2024, 07:02
H1 operating profit of Nordea Bank in Latvia at EUR 18 mln
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In the first half of this year, Nordea Bank in Latvia reported total income increase by 5% to EUR 35 mln, driven by higher customer activity in daily banking and growing interest towards hedging products.
Net interest income dropped by 6% year-on-year due to both negative interest rate environment and increased stability fee. Net commission income showed an increase by 14%.
Total lending in the first half of 2016 fell 4% year-on-year to EUR 2.56 bln. Corporate lending dropped 5% to EUR 1.64 bln, and household lending was EUR 0.92 bln at the end of June this year which is a reduction by 2% compared to the first six months of 2015.
The total deposit portfolio went up by 31% year-on-year, reaching EUR 1.91 bln in the first half of this year. Household deposits increased by 10% and corporate deposits rose by 41% compared to the first half of 2015.
“In the first half of 2016 we successfully continued delivering positive business results. We keep the focus on strengthening customer relations, providing variety of products and services that are especially beneficial for the current market situation. We see that our customers are more willing to think about their long-term well-being and are ready to take on more versatile investment opportunities,” said Janis Buks, the head of Nordea Bank in Latvia.
Nordea Bank in the Baltic countries reported operating profit of EUR 41 mln after provisions in the first half of 2016. ”Following our prudent risk policy a loan loss reservation related to corporate sector was made in the second quarter. As a result, operating profit decreased compared to last year”, the bank explained.
Total income in the Baltics increased by 12%, supported by all main income items and increased customer activity year-on-year. Despite negative interest rate environment total net interest income increased by 6%, whereas net commission income went up by 13% compared to the respective period of 2015. Total lending portfolio grew by 1%, whereas total deposit portfolio increased by 10%.
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