Baltic, Banks, Financial Services, Loan

Amid an increasing use of day-to-day and investment banking services and growth in the loan portfolio, the bank's total revenue in Lithuania increased by 4% to 24.6 million euros, it said in a press release.

Nordea's Lithuanian loan portfolio grew by 6% over the past 12 months to reach 2.43 billion euros in late June, with business customers' loan portfolio up by 5% to 1.49 billion euros and private individuals' loan portfolio up by 6% to 0.94 billion euros.

Nordea's deposit portfolio in Lithuania totaled 1.27 billion euros in late June, an increase of 33% on the same time last year.

The group's total first-half operating profits in the Baltic countries rose by 19% year-on-year to 49 million euros.

Nordea Bank in Latvia closed the first half of this year with EUR 14.7 million in operational profit, while total revenues came to EUR 32.7 million, the bank reported.

The bank said that total commission income has increased by 16%, amounting to EUR 6.7 million, whereas net interest income, despite the negative interest rate environment and increased stability fee, has maintained existing levels year on year reaching EUR 24.4 million.

Total lending volumes have increased by 2%, from which lending to corporates have increased by 5%, whereas household lending shows a slight decrease. Household deposit volumes have remained in levels of the first half of 2016, however corporate deposits have decreased. Net loan losses have decreased by 84%.

“During the first half of 2017 Nordea bank in Latvia demonstrated solid business results. Although total operating profit declined compared to the respective period last year due to increased costs related to higher investments in Compliance area and stronger sales results in risk management products last year, we have fulfilled business targets set for 2017. Banking sector developments lately have been driven by two things in particular: digitalization and Compliance with stronger regulatory requirements. Delay in the first of those can cause loss of profitability and market share, whereas failures to comply with Compliance requirements can lead to greater consequences, including reputation risks. Nordea has been paying close attention and making efforts in both of these areas – for the last two years in particular Compliance has been a big part of our daily agenda,” said Janis Buks, Head of Nordea Bank in Latvia.

"As for digitalization, Nordea continues updating existing and introducing new digital solutions that are appreciated by our customers and make their daily banking much more convenient," he said.

In the first half of 2017 Nordea in the Baltic countries reported operating profit of EUR 49 million, a 19% growth year on year. Net interest income went up 3%, net fee and commission income increased by 13% driven by stronger sales of banking products, higher customer activity in daily banking services also supported by the growing usage of digital channels. Total income increased by 1% to EUR 103 million.

The income of the operation of the Nordea financial group in Estonia in the first half of 2017 totaled 45.2 million euros, 7% more than the year before, and profit of the bank totaled 22.8 million euros.

Household loan portfolio increased by 8% and corporate loan portfolio by 3% year over year. The size of the loan portfolio at the end of the period was 3.5 billion euros, marking an increase of 4% year over year, Nordea said.

The total deposits volume increased by 21% compared to the end of June 2016 to 1.9 billion euros. The sale of investment products grew by 119% on year.

Nordea's operating profit in the Baltic countries in the first six months of 2017 grew 19% year over year to 49 million euros.

Total net interest income increased by 3% and net commission income increased by 13%. Total income increased by one% to 103 million euros.

Deposits grew by 11% and the loan portfolio expanded by 4% year over year.

"In the first six months of 2017 Nordea continued successfully implementing its strategy in the Baltic countries, demonstrating good results when it comes to all strategic indicators," Inga Skisaker, head of Banking Baltic at Nordea, said.