Nordea’s results are falling sharply. The major bank sets aside NOK 7.4 billion for loan losses – NOK 1.32 billion is taken in Norway.
Nordea CEO Frank Vang-Jensen.
–Jonas Ekströmer / TT / TT NEWS AGENCY
Published:,
The Nordea Group must see results fall in the second quarter, after loan losses have risen sharply.
The major bank reports provisions for net loan losses of 698 million euros in the quarter, corresponding to 7.4 billion kroner, the quarterly report shows on Friday.
Analysts expected that the Nordea Group would make a provision for loan losses of 413 million euros, according to Infront.
Expect losses also in Norway
The Norwegian branch of the Nordic region’s largest bank must also set aside billions for corona losses.
For the Norwegian business, net provisions are made for losses of NOK 1.32 billion in the second quarter.
In Norway, Nordea is the second largest after DNB, measured in market share.
– We make provisions for future losses in light of the uncertainty associated with the Corona outbreak. There are many who experience challenges, also as a result of fluctuations in oil prices, and we work closely with customers to find good solutions, says Nordea Norway CEO Snorre Storset.
Sharp drop in earnings
Nordea had a profit after tax of EUR 243 million in the second quarter, down from a profit of EUR 681 million in the corresponding period last year.
Nordea’s net interest income landed at 1.09 billion euros in the quarter, compared to 1.07 billion in the second quarter last year.
Analysts who follow Nordea had expected that the major bank would present net interest income of 1.1 billion euros and a profit after tax of 390 million euros, according to Infront.
Net interest income is the difference between what the bank itself pays to borrow money and what customers pay when they borrow from the bank, and is the bank’s main source of income.
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