Increased net profit and business volumes for Nordea Bank Polska in 2009
2010-02-17
Nordea Bank Polska SA closed the year 2009 with a net profit of PLN 145.2m, 6.4% up on the previous year. In spite of tough market conditions, the bank increased its business volumes in the major market segments. Nordea Bank Polska’s balance sheet total grew 30% to over PLN 20bn.
Increased operating income
• Operating income reached PLN 593.4m in 2009 vs. PLN 487.1m earned in 2008, meaning a 21.8% increase.
The increase were achieved thanks to a major top-line growth of net interest income, net commission income and gains on fair value measurement of financial instruments and revaluation. Net interest income remained the most significant item of income, amounting to PLN 352.6m (17.5% up on 2008).
Operating expenses amounted to PLN 383.7m (PLN 307.8m, 24.7% up).
Costs were driven up by the expansion of the retail network and increased headcount, as well as the weakening of the zloty against the euro, contributing to an increase in the cost of rental and maintenance of the offices.
Higher income thanks to a bigger credit volume
• Profit before tax amounted to PLN 193.0m after four quarters of 2009, compared with PLN 177.2m recorded the year before (8.9%up).
• Profit after tax came to PLN 145.2m, (PLN 136.4m, 6.4% up).
• The key importance for the profit was an increase in business volumes, determining the growth in income, particularly in the mortgage business, as well as low interest expenses (which dropped 21.4% compared with 2008).
Growing credit, deposits and business volumes
• The bank’s balance sheet increased 29.7% from 15.7bn at the end of 2008 to PLN 20.4m at 31/12/2009.
• Compared with the end of 2008, the value of the credit portfolio grew more than 24% to PLN 17.0bn at 31/12/2009.
Nordea Bank Polska was particularly active in the mortgage lending business, both in Swiss francs (loans to customers grew 33% on 2008) as well as in the domestic currency (37% up). The bank’s portfolio of credit to the public sector increased by more than 50% among others Nordea´s participation in a syndicate providing financing to the Social Security Office (ZUS)
Deposits from customers grew 10.3% on 2008 to PLN 9.3bn in 2009. The increase was largely driven by deposits from the corporate and the public sector.
"In 2009, Nordea Bank Polska achieved very good financial results. While the economic slowdown prevailed, we saw a major increase in our total assets as well as total credits to corporate and retail customers. We also managed to better our net profit compared with 2008 even though we were investing heavily in the expansion of our retail network. Nordea Bank Polska also maintained an excellent quality of its credit portfolio, with non-performing loans below 1% of the total portfolio. A more active presence on the market and the growing number of offices fit well in our strategy of building a strong universal bank", said Włodzimierz Kiciński, President of Nordea Bank Polska.