Nordea's Q3 earnings take 1.3 bln euro hit as new CEO takes over
Adds earnings details, context
HELSINKI, Oct 24 (Reuters) - Nordea Bank Abp NDAFI.HE, one of the Nordic region's biggest lenders, on Thursday reported its first quarterly earnings under a new chief executive, saying they were dragged down by surprise one-off charges totalling 1.3 billion euros ($1.45 billion).
The results come in a year which has seen Nordic bank shares tumble following a money-laundering scandal at Danske Bank A/S DANSKE.CO.
Nordea, which has also struggled with declining profitability, reported an operating loss for July-September at 421 million euros.
That compared with the average expected profit of 905 million in a Refinitiv poll of six analysts.
The bank blamed the loss in part on 1.3 billion euros worth of one-off items including an impairment charge for IT intangibles, a restructuring provision, an additional loan loss provision and an expense related to a share sale.
Several key executives, including the chief financial officer and chief operating officer, have left bank recently, marking the first moves under newly appointed CEO Frank Vang-Jensen.
Interest income, the bank's most-watched income line, fell 4% versus the same period a year prior to 1.08 billion euros.
Nordea also announced financial targets for 2022, with a return-on-equity target of above 10% and cost-to-income ratio of 50%.
Nordea said it targets a dividend of 0.4 euros for 2019. Analysts' average forecast stood at 0.47 euros in the poll.
($1 = 0.8980 euros)
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(Reporting by Anne Kauranen and Tarmo Virki; Editing by Christopher Cushing)
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