Nordea Bank 3Q Net Interest Income Rises amid Home-Market Growth

By Adam ClarkFeaturesDow Jones Newswires

Nordea Bank AB (NDA.SK) reported Thursday that its net interest income rose slightly in the third quarter of 2017 with synchronized growth in its home markets, although its profit-before-loan losses fell.

The Sweden-based financial services company generated net interest income of EUR1.19 billion for the quarter, up 1% from the year before. However, total operating income came to EUR2.37 billion, down 4%.

Continue Reading Below

Profit before loan losses came to EUR1.17 billion, down 9% from the year before, but up by 5% from the preceding quarter. Net loan losses amounted to EUR79 million, reduced by 41% from the year before.

Nordea Bank made an operating profit for the quarter of EUR1.09 billion, down 5% from the year before. Its return on equity came to 10.5%, compared to 11.6% the preceding year.

At the end of the period, the bank's common equity tier 1 capital ratio stood at 19.2%, unchanged from the prior quarter. Its cost-to-income ratio improved to 51% from 54% over the quarter.

Chief Executive Casper von Koskull said Nordea's margins remain stable, although it has not seen the usual pick-up in demand for corporate advisory services after the summer. Costs and credit quality in the quarter were as planned, the CEO said, adding that Nordea is now entering a phase of bringing down structural costs.

Write to Adam Clark at; @AdamDowJones

(END) Dow Jones Newswires

October 26, 2017 01:43 ET (05:43 GMT)