Nordea reports fall in profits

Swedish-Finnish bank Nordea on Tuesday reported a 6 percent drop in net profits for the second quarter 2011, saying that improvements in banking activity had not compensated for a drop off in investments.

Nordea reports fall in profits

In the second quarter, net profit was €700 million ($987 million) from €742 million for the same period last year.

Net income was stable at €1.32 billion.

These results were slightly lower than analysts had expected. On average, they had estimated a net profit figure of 733 million and net income of €1.36 billion, as polled by Dow Jones Newswires.

The price of shares in Nordea edged up 0.7 percent in morning trading to 63.30 kronor in a slightly falling Stockholm market.

“The solid business momentum is maintained,” Nordea chief executive Christian Clausen said. “Loan losses are at the lowest level since 2008 and credit quality continues to improve.”

He said: “At the same time, the trading result decreased from last quarters high levels due to volatility in the financial markets.”

Losses on bad loans fell to €118 million from €242 million at the same time last year, and earnings from financial activities fell to €356 million from €544 million.

Nordea easily passed last week’s European Union stress test with an 11.0 percent capital requirement, well above the 5.0 percent needed.

The company said it had no exposure to sovereign debt from troubled eurozone countries such as Greece, Portugal and Ireland.

The company, which employs 34,200 people mainly in Scandanavia and Finland,

said it had taken measures to freeze spending this year.

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Brits in EU risk losing UK bank accounts ‘within weeks’

Some of Britain's biggest banks have begun contacting customers in European Union countries, warning them that their accounts will be closed down within weeks because the cost and complexity of operating without a continuation of pan-European banking rules is too much.

Brits in EU risk losing UK bank accounts 'within weeks'
Lloyds Bank expects to close at least 13,000 accounts. Photo: Lloyds Bank
According to a report in The Times, thousands of Britons who live in Europe face being stripped of their UK bank accounts and credit cards, because of the UK government's failure to agree rules for operating after Brexit. 
Each of the EU's 27 member states has different rules for cross-border bank accounts which will start to apply immediately the UK's transition period ends on 31st December 2020. 
“In some cases, continuing to serve customers would be incredibly complex, extremely expensive and very time-consuming, and simply would not make economic sense,” a source at one British bank told the newspaper. “This is passporting — this is the reality of Brexit.”
If a way is not found to continue pan-European banking rules, or passporting, UK banks will br breaking the law if they don't apply for new banking licenses in each European Union Country. 
Lloyds, Britain’s biggest banking group, began writing to customers in August, warning them that their bank accounts would  close down on December 31.
The bank estimates that 13,000 customers, including those based in Holland, Slovakia, Germany, Ireland, Italy and Portugal, would lose their accounts. 
“If customers have regular deposits into, or payments out of, their account, they will need to make other arrangements before their account is closed,” the bank said. 
Barclays and Coutts have also started contacting customers. 
“In light of the UK leaving the EU at the end of 2020, we continue to review the services we offer to customers within the European Economic Area (EEA), and any impacted customers will be contacted directly,” Barclays said in a statement. “The timings for account closure will depend on the type of product that a customer holds, but we will always give notice to customers.”
“In the event that no alternative to the European Economic Area passporting regime for financial services is agreed between the UK and EU, we have taken the difficult decision to withdraw from offering our services to clients who reside in the EEA,” Coutts said.