Nordea Q3 opg profit up on firm sales growth; beats market expectations - UPDATE |
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Thu, 25 Oct 2007 07:29
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(Updating with outlook, further P&L details, costs)STOCKHOLM (Thomson Financial) - Nordea AB posted a third-quarter operating profit of 932 mln eur, up 8 pct from a year earlier, boosted by firm revenue growth which outpaced growth in costs.Market expectations were for an operating profit of 864 mln eur, according to a survey by SME Direkt.Total revenues rose 10 pct to 1.914 bln eur, beating market expectations of 1.875 bln eur, with net interest income rising 12 pct to 1.092 bln eur, versus market expectations of 1.071 bln skr, as total lending to the public rose 19 pct to 239 bln eur, and volume growth remained 'solid' in all segments.Nordea reiterated that total costs are expected to rise 6 pct in 2007, and that the gap between revenue and cost growth for the full year, including banking operations in Russia, is expected to be 2-3 pct. The effective tax rate for 2007 is expected to be approximately 20 pct.It said the quality of the credit portfolio remains strong.Net fee and commission income rose 7 pct to 531 mln eur, with lending-related commissions rising 21 pct, savings-related commissions rising 12 pct, and payment commissions rising 7 pct.Expenses rose 7 pct to 993 mln eur and staff costs rose by 8 pct. Expenses in Ogresbank represented 1 percentage point of the increase in total expenses.Deposits increased 13 pct to 135 bln eur.The cost-to-income ratio improved to 52 pct from 54 pct.hans.chumakonde@thomson.comhc/sal/hc/jrrCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Nordea Q3 opg up on firm revenue growth; beats market expectations 