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NORDEA

Nordea profits up

Swedish-Finnish bank Nordea has said it made operating profits of €1.79 billion for the second quarter. The figure is an increase on the same period last year, when it made profits of €1.57 billion.

The bank’s income rose 8 percent to €3.54 billion. Earnings per share were €0.54, up 20 percent on the first quarter of 2005.

The company declared that it had experienced profitable growth in all business areas. The number of core customers was up 6 percent, consumer lending was up 10 percent and the number of credit cards was up 30 percent.

The company said that the execution of its growth plans in Sweden, Poland and the Baltic countries was progressing.

“The strength of the Nordea business model and the execution of our growth strategy is consistently paying off and has, despite the capital market turbulence, resulted in a return on equity of 21.2% for the first half year of 2006 – well above our financial target,” said Lars G Nordström, CEO of Nordea.

BANK

Police to investigate Nordea bank over money laundering

Danish police will investigate the Swedish bank Nordea after a year-long probe by regulators into money laundering led to "criticism" of its procedures, the bank said Friday.

Police to investigate Nordea bank over money laundering
Photo: Marcus Ericsson / TT

Detectives will examine how money laundering rules were followed at the bank's Danish subsidiary and could result in “sanctions”, Nordea said in a statement.

“We realize that we initially underestimated the complexity and the time it takes to change our procedures,” said Nordea chief executive Casper von Koskull.

The bank added that 850 Nordea employees are currently involved in the fight against money laundering which the bank plans to increase to 1,150 by the end of the year.

In May 2015 the bank was fined 50 million kronor (€5.4 million euros) – the maximum possible – by Swedish regulators who accused Nordea of “not following money laundering rules for several years” and failing to “evaluate the risks of (doing business with) certain clients”.