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Nordea profits hike surprises analysts

Nordic banking giant Nordea on Wednesday reported a third quarter jump in profits of 14 percent, far in excess of analyst forecasts.

Nordea profits hike surprises analysts

Nordea reported a net figure of €709 million ($978 million), from €624 million at the same time last year, attributing the rise to an increase the number of wealthy clients and to a relatively stable economic climate.

Net banking income, the profit from the cost of attracting deposits and the price of lending it out, a key measure for retail banks, was almost steady, slipping 1.0 percent to €1.31 billion.

The outcome exceeded the figure expected by analysts polled by Dow Jones Newswires who had expected the net profit to fall by about 9.0 percent to €571 million and net banking income to fall by 2.0 percent.

Chief executive Christian Clausen said: “Nordea had a strong quarter, with record level income and one of our highest operating profits ever.”

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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”.