Nordea Bank beats on Q3 operating profit

Credit: REUTERS/LEHTIKUVA

Nordea Bank reported on Friday a better-than-expected rise in third-quarter operating profit, as the Nordic region's biggest lender said its income growth was driven by increased levels of customer activity.

Adds CEO comment, details of results

HELSINKI, Oct 23 (Reuters) - Nordea Bank NDAFI.HE reported on Friday a better-than-expected rise in third-quarter operating profit, as the Nordic region's biggest lender said its income growth was driven by increased levels of customer activity.

Third-quarter operating profit rose to 1.09 billion euros ($1.29 billion) from a loss of 421 million a year ago, beating the mean forecast of 966 million profit seen by analysts according to Refinitiv data.

"Although uncertainty remains, the risk of a renewed severe downturn has decreased," Nordea Chief Executive Frank Vang-Jensen said in a statement.

Loan losses, a figure closely watched due to a slump in the pandemic-hit wider economy, were just 2 million euros, much better than a year-ago 331 million and much lower than the 76 million loss expected by analysts.

Net interest income, which includes income from mortgages, rose 6% to 1.14 billion euros from 1.08 billion a year ago, beating a Refinitiv estimate of 1.11 billion and reaching its highest growth rate since 2012, the bank said.

($1 = 0.8477 euros)

(Reporting by Anne Kauranen in Helsinki and Colm Fulton in Stockholm; Editing by Muralikumar Anantharaman)

((Colm.Fulton@thomsonreuters.com;))

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