The money house showed an operating profit of 1.09 billion euros, after a loss of 421 million euros in the same quarter of the previous year.
(Photo: Reuters)
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Helsinki The largest Scandinavian bank benefited in the third quarter from growing lending and the disappearance of burdens from bad loans. Nordea reported an operating profit of 1.09 billion euros, after a loss of 421 million euros in the same quarter of the previous year.
While bad loans burdened the balance sheet with 331 million euros in the same period last year, Nordea was able to release two million euros in provision this time. “Although the uncertainty remains, the risk of another deep downturn has decreased,” said Nordea boss Frank Vang-Jensen.
Nevertheless, he reiterated the forecast of one billion euros in loan defaults in the current year. Thanks to the unexpectedly high profit, the Nordea share rose at times by more than four percent.
The industry index also climbed by 2.5 percent at times. “In addition, between the lines of the quarterly reports published so far, you can read that the classic lending business is doing comparatively well,” says a stockbroker. “Although there are provisions for bad loans, it will probably not be as catastrophic as initially feared.”
So did the Swedish rivals Commercial banks and Swedbank benefited from lower provisions for bad loans in the third quarter.
More: Swedish banks again in the focus of regulators.
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