AP News

Profits soar for Sweden's Nordea in Q3

STOCKHOLM (AP) — Nordea AB, the largest banking group in the Nordics, has posted a near 70 percent increase in third-quarter profits mainly thanks to higher household lending and a tighter rein on costs, but said loan losses keep growing, especially within shipping and the Danish housing market.

Wednesday's report showed a net profit of €686 million ($892 million), up from €404 million in the same quarter last year.

Net interest income, the bank's main source of income, grew to €1.44 billion from €1.38 billion, while loan losses more than doubled to €254 million from €112 million.

Nordea CEO Christian Clausen says that reflects effects the current macro situation is having on shipping.

The result disappointed market watchers and the share plunged almost 4 percent to 59.45 kronor ($9.05) in Stockholm trading.

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