Strong result despite market turmoil

2008-11-04

On 4 November took place the Nordea press conference concerning financial results of Nordea Bank Polska S.A. in the third quarter of 2008. In the third quarter, the net profit of Nordea Bank Poland reached PLN 35.3m with operating income topping PLN 126m.

Income growth in Q3 2008.

• In Q3 2008, operating income amounted to PLN 126.3m, compared with PLN 85.7m in Q3 2007 (47% up). On the year-to-date basis, the income reached PLN 344.5m (PLN 232m).
• Operating expenses for the period amounted PLN 81.5m, whereas this time last year they amounted to PLN 55.4m. The increased expenses are a consequence of the higher level of employment entailed by the dynamic expansion of the retail network. In 2008, the bank has opened 38 branch offices and by the end of the year it intends to open altogether 60. This means that in 2007 and 2008, Nordea Poland will have expanded its branch network by 100 offices and will eventually have a network of 142 offices .

Continued profit growth in Q3 2008.

• In Q3 2008, profit before tax exceeded PLN 45m, compared with PLN 31.5m for the corresponding period of 2007 (43% up).
• On the year-to-date basis, the profit approximated PLN 125m (PLN 66.8), meaning that the profit before tax has almost doubled.
• The after-tax profit for the period reached PLN 35.3m, nearly 39% up on PLN 25.4 recorded 12 months earlier.
• The after-tax profit YTD was a little bit below PLN 99m compared with PLN 51.8m after three quarters of 2007.

Increase in the credit and deposit portfolios as well as the bank’s business volume

• Compared with the end of Q3 2007 (PLN 7.7bn), the value of loans made by 30 September, 2008 grew more than 50% to PLN 11.7bn. Nordea Bank recorded the biggest increase in mortgage-backed housing loans – at the end of the quarter their balance sheet gross amount was above PLN 4.8bn.
• Total assets amounted to PLN 13.7bn at the end of Q3 2008, 54% up on Q3 2007 (close to PLN 8.9m).
• On the other side of the balance sheet, total liabilities grew 53% on Q3 2007 to nearly PLN 12.7bn (PLN 8.3bn).

“Nordea Bank Poland is expanding its retail network and is at the same time posting strong financial results. Despite the economic downturn on the world markets we have the highest YTD profit in our history. What is of particular value for us is that we have been able to bring the C/I ratio down. We have also come up with new attractive savings products for our customer – the Nordea Super Hit deposit and promotional 4-, 7- and 9-month deposits. We still offer our customers CHF-denominated mortgage loans on very attractive terms”, says Włodzimierz Kiciński, CEO.