Retail banking boosts Nordea earnings

Nordic banking group Nordea announced better-than-expected second quarter results on Thursday, boosted by its activities in retail banking.

The group, one of the biggest in northern Europe, recorded a net profit of 816 million euros, an increase of 10.3 percent on an annual basis.

Nordea reported a second quarter operating profit of 978 million euros, and total revenues of 1.957 billion euros (2.702 billion dollars), while market expectations were for 887 million and 1.901 billion euros respectively.

In early morning trade Nordea was up 0.98 percent at 113.20 kronor, while the OMX Stockholm index was up 0.58 percent at 423.87 points.

“Our organic growth strategy consistently delivers strong results,”

Christian Clausen, President and Group CEO of Nordea said in a statement:

“Total income and the number of customers in prioritised segments as well as our business volumes continue to increase according to our growth plan.”

“The gap between growth in income and costs has widened in the second quarter, indicating that we are on track to meet our full year target of 3-4 percentage points excluding banking operations in Russia,” he said.

In the second quarter the bank’s main retail banking activities saw a 9.2 percent increase in total revenues to 1.381 billion euros and its operating profit increase by 11.9 percent to 713 million euros.