Nordea in the Baltic countries delivered EUR 23 million profits after provisions in the first quarter of 2016, a decrease by 15% y-o-y due to increase in provisions. Total income increased by 9% compared to the first quarter of 2015, all main income items contributing to the growth.
Despite the unfavourable interest rate environment, net interest income increased by 6% y-o-y, whereas net commission income went up by 14%. Total lending portfolio grew by 1%, amounting to EUR 8.1 billion. Total deposit portfolio increased by 10% as a result of the continuous focus on home-bank relationships.
“Nordea in Baltic region is successfully implementing business strategy set for 2016 with a strong focus on customer relations, digital developments, efficient balance sheet structure and profitability. We have moved forward with improving the availability of digital services for both private and corporate customers since customer demand for high-quality remote solutions continues to expand rapidly,” says Inga Skisaker, head of Nordea Banking Baltic countries. “In the beginning of 2016 we initiated several strategically important initiatives making it still easier and more convenient to bank with us and taking an important step towards truly remote customer experience. Not only Nordea became the first bank in Baltic region to launch online advisory branches and introduce remote meeting opportunities based on positive experience in Nordea Group, bank has also made the first step introducing an innovative and secure mobile authentication that during year 2016 will be provided to our customers across the whole Baltic region.”
Nordea Latvia reports operational profit of EUR 11.4 million
In the first quarter of 2016, Nordea in Latvia reported a stable growth of total income amounting to EUR 17.1 million, an increase by 3% year on year. Operating profit reached EUR 11.4 million, an increase by 3%. Net interest income showed a slight decrease due to still low interest rate environment, whereas the total net commission income reached EUR 2.9 million, an increase by 16% year-on-year. Total amount of deposits have increased by 28%, reaching 1.68 billion and mainly driven by higher activity in corporate customer’s segment. Total lending amounts show slight decrease, amounted to EUR 2.57 billion.
“Strong focus on customer relations remains our top priority further on and we see that despite increasing competitiveness in the market, our customers choose to bank with us due to individually tailored product offerings for corporate segment, innovative and up to date digital banking solutions and high level of customer service,” says Janis Buks, Head of Nordea bank in Latvia. “I am also proud that in the beginning of 2016 respectable financial magazine “Global Finance” named Nordea “Bank of the Year in Latvia”, based on three main criteria – company’s assets, business efficiency and strategic relations.”