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 firstname.lastname@example.org; @AdamDowJones
(END) Dow Jones Newswires
October 26, 2017 01:43 ET (05:43 GMT)