Nordea Q2 profit falls 66% as loan losses mount

Credit: REUTERS/LEHTIKUVA

Adds details on loan losses

July 17 (Reuters) - Nordea Bank NDAFI.HE reported a 66% fall in second-quarter operating profit on Friday, hit by an increase in loan-loss provisions due to the coronavirus pandemic.

Operating profit fell to 306 million euros ($348 million) from 900 million euros a year earlier, missing an average analyst forecast of 885 million euros in a Refinitiv poll.

The Nordic region's biggest lender said it had updated the credit quality outlook and estimated total net loan losses for the full year 2020 to be below 1 billion euros. In 2019, the bank reported net loan losses, minus one-off items, of 254 million euros.

In addition to 310 million euros underlying loan losses for the quarter, coming in particular from provisions in the oil, gas and offshore sector, Nordea said it increased the management judgement buffer by 388 million euros.

"Nordea deems this proactive approach to be prudent and provides predictability, given the current economic uncertainty," it said.

($1 = 0.8783 euros)

(Reporting by Tarmo Virki in Tallinn; Editing by Tom Hogue and Subhranshu Sahu)

((tarmo.virki@thomsonreuters.com; +3725644562;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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