Nordea Good Results for 1H 2010
2010-08-04
In the first half of 2010, the operating profit of Nordea Bank Polska grew by 37% on the corresponding result for the first half of 2009. The net profit exceeded PLN 121.6m.
• After 6 months of 2010, the operating income of the Bank reached PLN 367.8m and was PLN 98.9m higher than in the corresponding period of 2009.
• The operating expenses amounted to PLN 205,7m, being 7.7% higher than in the first half of 2009 (PLN 190.9m). This slight increase was a consequence of an employment growth in the new branch offices and increased spending on the expansion of the retail network.
• The total assets grew 5% to PLN 21.4bn (PLN 20.4bn).
The results for the first half of 2010 show that Nordea Bank is doing really well on the market recovering from the economic meltdown.
Operating income increased again, driven by the growing volume of lending business and commission on guarantees, credit cards and agency sale of shares in investment funds.
Operating expenses reached PLN 205.7m, growing just 7.7% on the corresponding period of 2009 due to increased staffing and investments in the expansion of the branch network.
At the end of June 2010, the bank had 160 branch offices and more than 1,900 staff.
Operating profit soars
• In the first half of 2010, Nordea earned an operating profit of PLN 162.1m which compared with PLN 77.9m reported 12 months earlier means 108% increase.
• The net profit came to PLN 121.6m, which was 2.4 times higher and PLN 71.2m more than after I H of 2009.
The increase in the number of bank offices had a beneficial effect on the bank’s performance. The growth shows that the bank’s financial standing is solid and it has built a sound foundation fr rapid growth when the business climate improves.
Recovery of lending
• The credit portfolio amounted to PLN 18,188.5m, growing 6.5% compared with the end of 2009, driven by higher sales of mortgage loans. At the end of the first half of the year, Nordea was ranked third by the Polish Banks Association in terms of the volume of mortgage lending.
• Total deposits including interest reached PLN 8,682.9m at the end of June 2010, 6.2% lower than at the end of 2009. This was a consequence of a decrease in the public sector coupled with an increase in household and corporate deposits. The Nordea Spektrum account still enjoyed great popularity with customers as it enables them to pay nothing for credit transfers through the Internet and ensures free cash withdrawals from any cash machine in Poland.
„The results of the first half or 2010 confirm that Nordea is a fast-growing and increasingly important bank on the Polish market. Our total assets and profits are steadily growing and we are at the same time expanding our branch network. Our figures are comparable to those published by banks that are several times bigger than us. We are at the forefront of banks offerng mortgage loans and we finance new investments by Polish companies and self-governments. At the same time, we maintain an excellent quality of the credit portfolio, as our loan loss ratio is still below 1 per cent, which makes us stand out from other universal banks in Poland. We have an ambition to meet new challenges (acquiring deposits, reducing spreads) put forward by the competitive Polish market.”, says Włodzimierz Kiciński, president of Nordea Bank Polska.