Nordea surprises market with strong report

Nordic banking giant Nordea has reported third quarter profits that far exceeded market expectations, defying predictions of a massive fall in earnings.

Nordea surprises market with strong report

Nordea said that net profit in the three months to September fell by four percent from the figure 12 months earlier to €626 million ($927 million), compared with analyst forecasts for a drop of nearly 40 percent.

“The general level of risk has fallen but uncertainty about the strength of the recovery remains high,” chief executive Christian Clausen said in a statement.

“The macro-economic trends in Nordea’s markets and the rise in bad debt has stabilised,” Clausen added.

Nordea said bad loans rose nine percent in the third quarter compared with the three months to June but this was significantly less than in previous quarters.

For 2009, the bank said it expected higher profits when adjusted for risk compared with 2008.

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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”.