Nordea Baltics reported EUR 98 million in profits for the 2016 financial year, an increase by 7% compared to 2015.
Total income went up by 9% y-o-y, mainly driven by increased sales of financial products arising from strong customer demand for risk management solutions. Net fee and commission income went up by 12% due to higher demand of daily banking services, growing number of transactions both in the household and corporate segments and stronger sales of investment and pension products. In 2016 Nordea has shown a balanced growth of lending volumes concentrating on bank’s target segments, while reducing the funding gap - total lending volumes have increased by 4% y-o-y, reaching EUR billion 8.4; whereas total deposits went up by 9% compared to previous year, amounted to EUR 4.8 billion. Total costs have increased by 5%, related to stronger focus on compliance and increased regulatory demands.
“Nordea in the Baltics delivered solid business result for 2016. Through strong focus on strategy implementation we continued delivering on main priority areas – reducing funding gap and working on improving capital efficiency. During the year we have substantially developed bank’s digital offering and online channels. Over 30% of Nordea’s customers in the Baltics prefer advisory services through online meetings. Nordea Codes, the unique and modern authentication method that we started offering to our customers last year, has been already used by approximately 50% of our active customers. We have just released an upgraded Nordea mobile app, which is another step towards creating outstanding digital customer experience that our customers appreciate,” comments Inga Skisaker, Head of Nordea Banking Baltic countries. “For 2017 we plan to continue with our main strategic initiatives, including building sustainable balance sheet structure, reducing funding gap and increasing bank’s accessibility online.”
Nordea Latvia financial results
Nordea in Latvia reported operating profit of EUR 38.7 million for the financial year 2016, an increase by 26% compared to 2015. Bank’s total income was EUR 72.1 million, an increase by 4% year on year. Net interest income has decreased by 8%, whereas the total commission income went up by 20%, reaching EUR 14 million.
The total deposit portfolio has grown by 19%, reaching total amount of EUR 1.83 billion, whereas total lending volumes reached EUR 2.63 billion.
"We are satisfied with our developments in 2016 in all of the bank’s business areas. We have put great efforts in improving and updating the bank’s digital channels, thus becoming more accessible to both our private and corporate customers. Nordea Online meeting, for example, is one great example for it – in 2016 we were the first bank in Latvia to launch online meetings that are now well appreciated among both private and corporate customer segments. We were the first bank to introduce alternative customer authentication and payment signing tool, the Nordea Codes app, which will allow our customers safe and convenient service when code cards cease to exist later in 2017. We also started issuing innovative contactless payment cards,” says Janis Buks, Head of Nordea bank in Latvia.
*This financial report is based on management accounting data.
For additional information contact:
Signe Lonerte, Head of Communication, Baltic States, phone: 6 700 5469, GSM: 29 116 146, signe.lonerte@nordea.com