Nordea, a Nordic-based financial services group, has reported 13% rise in net profit in the third quarter (Q3) of 2013 to 776m ($1.06bn) from 688m in the same period a year ago.
The company’s total revenue for the quarter increased 1% to 2.43bn from 2.41bn, while the net interest income was down by 1% to 1.38bn from 1.39bn in Q3 2012.
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Total operating income grew 1% to 2.42bn in Q3 2013, compared to 2.41bn in the corresponding period last year.
Operating profit increased from 910m in Q3 2012 to 1.02bn in 2013, an increase of 12%. The increase in operating profit was mainly due to decrease in costs and loan losses.
Nordea CEO Christian Clausen said despite the current low-growth environment with low interest rates, the company’s income increased by 3% in local currencies (up 1% reported) compared to the third quarter 2012, primarily driven by savings-related income.
"We have welcomed 87,000 new relationship customers in the last 12 months and World Finance has named us the Best banking Group in the Nordics," Clausen added.
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By GlobalData"Core tier 1 ratio has improved by 2.2%-points to 14.4% mainly due to strong capital generation and strict volume discipline. Cost efficiency continues to be high on the agenda and we see our initiatives delivering better than expected.
"Credit quality continues to improve, especially in Shipping. Loan losses in the Group decreased to 20 basis points and impaired loans were largely unchanged," Clausen concluded.
