Nordea Q2 Net Profit Down, Net Interest Income Up; Expects To Meet FY22 Targets
(RTTNews) - Nordea Bank Abp (NRDEF.PK) reported Friday that its second-quarter net profit declined 64 percent to 243 million euros from last year's 681 million euros.
Earnings per share were 0.06 euro, down 65 percent from 0.17 euro a year ago.
Operating profit was 306 million euros, down 66 percent from last year, significantly impacted by loan loss provisions.
Profit before loan losses, however, grew 4 percent to 1.004 billion euros.
Net interest income increased 2% to 1.09 billion euros from 1.07 billion euros a year ago. It was supported by volume growth, especially in mortgages, in all countries.
Net fair value result recovered, increasing 12%, mainly from improved trading activities. Net fee and commission income declined 9% as the lockdowns and market turbulence had a negative financial impact.
Total operating income fell 2 percent from last year to 2.09 billion euros.
Nordea said it entered the COVID-19 pandemic with a strong financial position, which is maintained.
Further, the company has updated macro-economic scenarios, analysed the impact of the economic downturn and concluded a thorough review of the loan book. As a result, Nordea also updated the credit quality outlook and estimates total net loan losses for the full year 2020 to be below 1 billion euros.
Frank Vang-Jensen, President and Group CEO, said, "The COVID-19 pandemic has created challenges for businesses, and it is too early to conclude on the longer-term consequences of the crisis. However, we remain committed to our plan and are ready to act to ensure we meet both our three key priorities and financial targets for 2022."
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