Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Nordea sees massive fall in profts

Share this article

Nordea sees massive fall in profts
11:01 CET+01:00
Nordic banking giant Nordea has announced plans for a new 2.5 billion euro ($3.2 billion) share issue after the company reported a 25 percent drop in net profit on Tuesday.

The bank, the Nordic region's biggest lender, also said it would cut the dividend paid to holders of existing shares to 0.20 euros a share from 0.50 euros a year earlier, saving 500 million euros in cash.

"The capital-strengthening measures provide additional flexibility to selectively explore high-credit-quality business opportunities," chief executive Christian Clausen said.

The bank said its three biggest shareholders - the Swedish government, Sampo Oyj and Nordea funds - had together to subscribe to 49 percent of the issue.

JP Morgan and Merrill Lynch International have underwritten the remaining 51 percent.

Fourth-quarter net profit at the bank declined to 637 million euros from 847 million euros a year earlier, as loan losses rose to 320 million euros from 6 million euros.

The profit figure was in line with analyst forecasts according to a poll of 12 analysts conducted by Dow Jones Newswires/Factset.

Analysts had also suggested that Nordea's exposure to the struggling Danish and Norwegian corporate sectors, as well as its presence in the recession-hit Baltic states, would force it to raise fresh capital.

Get notified about breaking news on The Local

Share this article

From our sponsors

The ‘fairytale' boarding school nestled in a Swedish village

The words ‘boarding' and ‘school' often summon images of strict teachers, drab dormitories and downcast children. That image couldn't be further from reality at Sigtunaskolan Humanistiska Läroverket (SSHL), where boarders describe the ‘fairytale' school as a home away from home.

Advertisement