Nordea reports higher than expected profits Tuesday, 24 January 2012
Banking group, Nordea reports an operating profit of 1.029 million Euros, or about Skr9.0 billion, for the fourth quarter of 2011. That compares with profit of 1.071 billion euros in the corresponding period the year before.
Analysts had, according to Reuters consensus, on average, expected an operating profit of 953 million euros.
The Board proposes a dividend of 0:26 euros per share, compared with the dividend last year of 0:29 euros per share.
AdvertisementThe proposed dividend will amount to 1.048 million euros, or Skr9.2 billion.
Net interest income rose to 1.427 billion euros from 1.365 billion euros. Net commission income fell to 588 million euros, from 618 million euros.
Total revenues amounted to 2.558 billion euros, compared to 2 507 million the same period the year before.
Costs amounted to EUR 1 266 million, compared to EUR 1 270 million a year earlier. Loan losses increased to EUR 263 million, from EUR 166 million.
"2011 was a turbulent year for countries and banks but also for many of our customers. 2012 looks to offer equal challenges. Nordea is prepared with large capital and good access to borrowing," writes CEO Christian Clausen in the year-end report.
Nordea has no direct exposure to the euro crisis but is affected, as all banks, indirectly by the troubled markets and new regulations, according to Clausen. Against this background, began last year, a savings program, which aimed to reduce costs in 2011 and keep them unchanged in the future.
"Savings measures are implemented according to plan and contribute to constant costs next year. The number of employees has been reduced by 1,100 FTEs since the second quarter of 2011, "writes Mr. Clausen.
By Scancomark.se Team
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