Nordea Estonia continues stabile growth – the bank deposits’volume increased 56% compared to the previous year, profit grew by 21% i.e. to 48 million euros and the enterprise’s total income rose 5%, reported Nordea Estonia.
Nordea continues on a road of stabile and sustainable growth
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"Estonia`s success last year was rooted companies’flexibility, an economy evermore integrated with strong EU countries and investments in competitiveness and finding our distinctive specialties. As the biggest bank in the Nordic, we too have achieved very good annual results by growing our income in a stabile manner and efficient management,“ notes Vahur Kraft, Nordea Estonia CEO, summing up the financial year.
Thanks to sustainable income development and optimal cost level, Nordea Estonia have achieved best ever cost-income ratio (35%).
“I think the title of Best Bank in Western Europe, just recently attributed to us by the Financal Times, is a very strong label of quality for Nordea. The bank’s operational model is successful; we have stood out with stability and conservatism. Reliability is not only a key issue in Estonia but also in the global banking sector as a whole,“ commented Kraft.
Nordea Estonia’s volume of assets was 3.5 billion euros at the end of December. Nordea Estonia’s customer deposits made up almost 1.3 billion euros by the end of December. “We strengthened our position on the deposits’market and grew the volume of deposits by 56% in a year, thereby also balancing the deposits’ and loans’ ratio in our portfolio,“ said Kraft.
Nordea Estonia loan portfolio reached almost 3.1 billion euros at the end of December, and the leasing portfolio made up 564 million euros of it. Nordea Estonia companies’ loan and leasing portfolio was 1.9 billion euros at the end of December, having grown 11% compared to the first 12 months of the previous year. With this, Nordea Estonia holds second position on the companies’ loan market.
Private person’s loan and leasing portfolio grew 4% in yoy comparison and reached a billion euros at the end of December.
The credit portfolio quality is still the best on the market, the loan losses ratio out of the total portfolio was 0.16% during 2012.
Nordea Pensions Estonia AS managed pension funds’ volume rose 55% in 2012. Nordea pension funds were some of the few that gained customers in 2012, both in the second and third pension pilar.
Nordea Finance Estonia continued its profitable growth in 2012: the customer base grew by 12% and the leasing new sales rose 37%, to the level of 302 million euros. Active issuance of new leasing credit raised Nordea Finance Estonia’s new sales market share to 32 per cent and the leasing portfolio market share to 29 per cent. The pace of issuing new credit and credit portfolio growth was much quicker for Nordea Finance Estonia than the average on the Estonian leasing market. Growth in the number of customers and business volumes brought an 18 per cent growth in leasing revenue base and profitability.
In order to serve customers better, Nordea have created a new service unit – the E-office – targeted at prompt handling of customer requests that have come in via electronic channels.
A full overview of Nordea Group’s2012 IV quarter economic results: