Higher revenues and better operating results in the fourth quarter of 2016 have given Nordea Bank Norway reason to believe in a recovery of part of the Norwegian economy.
In the fourth quarter, Nordea’s Norwegian division operating profit adjusted for non-recurring items in 1592 million, up 50 million from the same quarter in 2015.
Operating expenses increased by 27 million from the corresponding quarter last year, while operating income rose by 125 million.
– Norway is going through a major reorganization, and 2016 has been a tough year for many. We are pleased to deliver a stable performance in a challenging period. We are now clearing parts of the Norwegian economy, says CEO Snorre Storset at Nordea Bank Norway.
Another positive trend is that new provisions for loan losses decreased by 64 percent from the third quarter to the fourth quarter last year. In particular there was a decline in new provisions to group losses.
– Provisions for new losses reduced compared with earlier periods in 2016. But it is still challenging for industries offshore and parts of shipping, and the restructuring process will probably continue through 2017, says Storset.
Nordea Bank Norway ended in 2016 as a whole with a profit before loan losses of 7.767 million, down 6 million from 2015.
Source: NTB scanpix / Norway Today