Nordea: Lower interest rates put pressure on deposit margins – President
2015-07-16 08:26
(SIX) Nordea's earnings were good during the quarter, although they were slightly lower than in the exceptional first quarter of this year, states CEO Christian Clausen in the interim report. Interest rates fell further, resulting in pressure on deposit margins, says Nordea chief. Lending margins declined somewhat during the quarter, as a result of lower mortgage margins in Norway. The Group's average Net interest margin decreased 3 basis points to 100 basis points. "Net interest income was largely unchanged thanks to a strong result in Group Treasury. Demand for mortgage loans was good, especially in Sweden and Norway, while demand from corporate customers decreased. There also continued the shift from loans to capital market financing, " Clausen state. Nordea's net interest income for the quarter was 1.309 billion euros, which was slightly stronger than the market expectation of 1.296 billion euros, according to an analyst survey by SIX News / Inquiry Financial. The strong trend in savings and investments continued to push up Nordea's fee and commission income. Net commission income of EUR 783 million was higher than analysts' expectation of 765 million euros. Customer activity in capital markets reduced according to Nordea more normal levels during the quarter. "Corporate customers and institutional customers have become more cautious because of macroeconomic uncertainty with Greece and the limited predictability, "says Clausen. Johan Lind, Tel: +46 8586164 48 mailto: johan.lind@six-group.se www.blogg.six.seSIXNews SIX News
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