Nordea reports strong Q3 results

Nordea Bank on Friday reported strong results of the third quarter (Q3) this year, noting that its technological changes are now paying off, reported Xinhua.

According to a press release issued by Nordea, its operating profit in July-September of 2020 was 1.1 billion euros, indicating a 24 percent increase compared with 875 million euros in the same period of last year.

In addition, Nordea's net loan losses for Q3 2020 were close to zero, the group stated. In Q2 of 2020 it had recorded notable loan losses, some in anticipation.

Frank Vang-Jensen, president and chief executive officer (CEO) of Nordea, said in the press release that the efforts of Nordea to improve cost efficiency continued to pay off. While such technological changes still continue, the bank has reduced complexity in operations, reduced its staff last year and uses fewer outside consultants.

Antti Saari, an analyst of the OP Financial Group told Finnish language business daily Kauppalehti that all Nordic banks have seen less losses now, as Q3 was not as bad as expected.

Anni Lassila, an analyst of Finnish language newspaper Helsingin Sanomat noted a strong growth in deposits has been a phenomenon in Finland during the COVID-19 epidemic. Consumers and businesses cut back consumption and saved. Both Nordea and the OP earlier this week gave a 13 percent increase in overall deposits compared with 2019. In Nordea, business deposits grew by even 20 percent, Lassila noted.

Nordea Bank operates in Finland, Sweden, Norway and Denmark, and is one of the largest banks in the Nordic area.