Nordea Bank: Drop in Profit Caused by Growing Exchange Rate

UrBC, Moscow, July 19, 2011. Nordea Bank came up with a performance report for the first half of 2011. The bank’s capital rose by 7.6% against the first half of 2010 and reached 29.59bn RUR; the bank’s assets increased by 25.4% and came to 198.63bn RUR.

In the second quarter of the year, the bank’s consolidated lending portfolio amounted to 157.15bn RUR, which was 7.7% more than in the second quarter of 2010.

Nordea Bank’s net profit came to 1.36bn RUR. The company explains a decrease in profit (compared with a year earlier) has to do with a number of factors: a drop in interest rates and in the interest margin, the growing ruble rate (the better part of the lending portfolio is contained in foreign currency), and the declining securities portfolio profits.


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