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Nordea cost cutting boosts profit

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Nordea cost cutting boosts profit
13:23 CEST+02:00
Swedish bank Nordea said on Wednesday its net profit grew by 13 percent to $1.068 billion in the third quarter, driven mainly by a drive to cut costs.

The net profit increase did not live up to the expectations of analysts interviewed by Dow Jones Newswires, who reckoned with $1.093 billion earnings for this quarter, compared to the same period of 2012.

Revenues during the quarter remained practically unchanged at $3.336 billion, a one-percent rise from a year earlier.

"For income, we have a maintained focus on attracting new customers, improving cross-selling and adjusting pricing," chief executive Christian Clausen said.

Cross-selling refers to the practice of selling new products to existing customers.

"We have conducted gross cost savings of around four percent since third quarter of 2012. This has been offsetting cost inflation, investments and regulatory costs," Clausen said.

"Given our outlook of a low growth environment, further efficiency improvement continues to be high on the agenda."

AFP/The Local/at

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