OREANDA-NEWS. February 16, 2010. Nordea Bank Estonia, a part of the largest Nordic Banking group, ended 2009 with nearly EEK 20.2 million in profits. Compared to last year, the company’s income increased by 12%; operating profits went up by 14%, to EEK 513 million, reported the press-centre of Nordea Bank.

„Last year, we topped the market. As 2009 was a harsh year for everyone, our profit proves even more clearly that we have chosen the best growth strategy, allowing us to expand even in a receding market,” said Vahur Kraft, head of Nordea Bank Estonia. He added that among the three largest banks, Nordea increased its market share in almost all banking service categories.

„Share of economic environment related provisions in 2009 was the same as expected. Nordea’s loan losses continue to remain below the market average,” Kraft noted.

The quality of Nordea’s loan portfolio is indicated by the loan losses below the market average: 1.21% of the loan portfolio at the end of December.

At the end of December, the loan portfolio of the bank amounted to EEK 40.7 billion. At the end of the year, corporate loans made up nearly EEK 25 billion and private loans EEK 14.3 billion. In spite of the declining market, both portfolios grew by 3% year-on-year.

Like the Nordea loan portfolio, deposits of both retail and corporate customers kept on growing. At the end of December, the deposits of Nordea Estonia’s clients amounted to more than EEK 13 billion, demonstrating a growth by more than a third compared to the same time last year.

Nordea’s leasing company (Nordea Finance Estonia) ended the year with EEK 38 million in the red, however, gained the new sales market leader position in the Estonian leasing market. Nordea Finance Estonia’s portfolio amounted to EEK 6.3 billion at the end of the year. The provisions made up EEK 143 million, remaining significantly below the market average.

By the end of the year, the leasing market share of Nordea Finance Estonia (an independent business unit) had grown to 17.8%; its market share of new sales was 33%.

Another independent business unit, Nordea Life & Pensions, increased the share of knowledgeable clients with above-average incomes. The fact that 55% of Nordea pension funds’ clients decided to continue their payments to the II pillar funds in 2010 illustrates the confidence of the clients. According to the Estonian Central Depository of Securities, the weighted average yield of pension funds remained between 7.94–14.18% last year; during the same period, Nordea pension funds showed excellent yields between 12.95–20.83%.

In 2009, Nordea Bank invested in both its distribution network as well as product development. In October, the bank opened its new headquarters and branch office on Liivalaia Street; at the end of the year, we opened a branch office in the largest shopping centre in Estonia, in Rocca al Mare.

The joint ATM-network of Nordea and Sampo banks increased to 100 machines by the end of the year.

At the end of December, Nordea bank had 132 553 clients, 22 branch offices and 509 employees. By the end of 2009, the bank had issued 80 960 bank cards and had 82 854 online bank users.

By the end of the year, the assets of Nordea Estonian affiliate had grown by 6% compared to 2008, and amounted to EEK 48.5 billion. The assets of Nordea Group reached EUR 507.5 billion at the end of the year, making it by far the largest bank in the Nordics.

Like Nordea Estonia, the Nordea Group ended 2009 with a strong result – the Group’s income went up by 11% and risk-adjusted profit by 22% for the full year 2009. Nordea showed strong development in net interest income and net gains and moderate cost growth.

Nordea is the largest bank in the Nordic countries with over 10 million customers and nearly 1400 branch offices, and with 5.3 million e-customers holds a leading position in online banking. The prestigious business magazine Global Finance has selected Nordea Bank as the one of the most trustworthy banks in the world. Nordea Bank is the only one of Estonia’s financial institutions to be listed among the world’s top 25 most secure banks.

Overview of the Nordea Group’s results for 2009:
http://www.nordea.com/sitemod/upload/root/eu/interim/Q4_2009_UK.pdf.

Presentation of the Nordea Group’s results for 2009:
http://www.nordea.com/sitemod/upload/root/eu/interim/Media_analyst_presentation_Q409.pdf.