Banking group Nordea Q2 net profit up 30 per cent

Jul 19, 2011, 11:17 GMT

Stockholm - Nordic banking group Nordea on Tuesday reported a 30 per cent increase in its second-quarter net profit on the back of lower loan losses and stable business in its home base.

The net profit in the quarter was 700 million euros (993 million dollars), compared to 539 million euros year-on-year.

The operating income was 2.3 billion euros, an 8 per cent increase compared to the same business period 2010.

The bank's share price was up 5 per cent in midday trading.

The loan losses of 118 million euros were about half of those reported in the preceding quarter and were 'at the lowest level since 2008,' chief executive Christian Clausen noted in a comment.

Nordea said it did not have sovereign debt exposure to Greece, Portugal, Ireland, Italy and Spain and that it passed a so-called stress test published last week by the European Banking Authority.

The bank said the economies in its Nordic home base had 'on the whole maintained good development' during the spring despite the turbulent global economy. The recovery continued in the Baltic region where it also operates.

Nordea was created in 2000 but traces it roots to 1997 when Merita Bank of Finland and Nordbanken of Sweden formed MeritaNordbanken. It has some 11 million customers and 1,400 branch offices.