Banking group Nordea fourth quarter net profit up 2 per cent

Jan 24, 2012, 12:04 GMT

Stockholm - Nordic banking group Nordea on Tuesday reported a 2-per-cent rise in fourth quarter net profit, despite higher loan losses in the business period, and said it was bracing for tougher times.

Net profit in the quarter was 786 million euros (1 billion dollars), compared to 770 million euros year-on-year.

The operating income for the period increased 2 per cent to 2.5 billion euros.

The group's loan losses in the quarter were 263 million euros, compared to 166 million euros year-on-year, and were attributed to 'the slowdown of the global economy and the European downturn,' chief executive Christian Clausen said in a comment.

Nordea said that, while it was not exposed to the eurozone crisis, it was 'affected by volatile markets and regulatory challenges,' which included higher capital requirements.

A proposal to lower the dividend to 0.26 euros per share, compared to 0.29 euros in 2010, was seen as part of efforts to increase its own capital.

The group employed about 33,000 people after shedding 1,100 jobs.

Nordea was created in 2000, emerging from the 1997 merger of the Merita Bank of Finland and Nordbanken of Sweden. It has some 11 million customers and 1,400 branch offices.