Nordea reports a second quarter that was characterized by high volatility in both the bond and equity markets, though client activity levels slowed down towards the end of the quarter.
It writes CEO Christian Clausen Interim Report.
Revenues amounted to 2.523 billion euros in the second quarter, which was 2 percent higher than SME Direkt consensus. Christian Clausen says that revenues were good during the quarter, although they were slightly lower than in the exceptional first quarter.
Interest rates fell further, which put pressure on deposit margins. Lending margins declined somewhat during the quarter, due to 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 performance in Group Treasury.
The demand for mortgages was good, especially in Sweden and Norway, while demand from corporate customers decreased.
“There, continued shift from loans to capital market financing, “writes Christian Clausen.
The strong trend in savings and investments continued to push up fee and commission income.
The influx of new relationship customers amounted to 22,000 during the quarter.
Customer activity in capital markets reduced to more normal levels.
“Business customers and institutional customers have become more cautious due to the macroeconomic uncertainty with Greece and the limited predictability” writes Christian Clausen.
Costs are developing according to plan, and the cost / income ratio improved to 47.0 percent, compared with 49.3 percent a year ago.
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