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NORDEA

Nordea beats expectations in strong third quarter

Nordic banking group Nordea posted Thursday a 13 percent rise in third quarter net profit to €761 million ($1.08 billion dollars), beating analysts' forecasts amid strong business volumes.

Nordea’s total operating income rose to €1.91 billion, up 10 percent from the same quarter a year ago and exceeding analysts expectations of 1.87 billion.

“Nordea’s organic growth strategy consistently delivers strong results. Total income and the number of customers in prioritized segments as well as business volumes continue to increase according to our growth plans,” Nordea chief executive Christian Clausen said in a statement.

He said the strategy “consistently pays off”, even during the recent turbulence on financial markets.

“Despite this remaining uncertainty, Nordea confirms its financial outlook for the full year 2007,” he added.

Clausen said the “gap between growth in income and costs continues to meet our expectations and there is therefore no change in the full-year outlook.”

He said he expected the gap to be around two to three percentage points.

Total operating expenses rose by seven percent in the third quarter, for a total of €2.99 billion for the January-September period.

Nordea said it expected expenses to grow by around six percent for the full year.

The Nordea share was up by 1.50 percent at 108 kronor in midday trade on

the Stockholm stock exchange.

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”.