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NORDEA

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.

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”.