July 22 (Bloomberg) -- , the biggest Nordic lender by peddle value, lowered its earnings-growth prognosticate for the damned year after realize in the espouse billet declined 15 percent on diminish price return and higher costs. dropped to 692 million euros ($1.1 billion) from 816 million euros a year earlier, the Stockholm-based bank said today in a statement. That almost met the usual 694 million- euro assess of nine analysts surveyed by Bloomberg. Costs rose 6.4 percent to 1.07 billion euros on dilation in Poland and Sweden. Fee gain hew 5.5 percent to 518 million euros.
Nordea has so far managed to sidestep the worst of the banking moment that has led to $435 billion of writedowns at the world's largest pecuniary institutions. The bank generates most of its takings from retail operations in the Nordic province and has few risks tied to capital-market activities. Costs at the bank are rising in an distention program, the lender has said. ''The full-year make a killing charge is somewhat more careful than before, but this should not be a big surprise, and the advance losses were as expected,'' said , an analyst at Evli Bank, who has a ''reduce'' rating on Nordea. ''Nordea has a somewhat defensive problem paragon and shows the strengths of being a big bank across the Nordic region.'' Nordea 3.6 percent to 85.9 kronor in Stockholm trading, the steepest reject in more than three months.
The bank is down 20 percent this year. Revised Forecast The bank aims to increase its designated risk-adjusted profit, or operating advance excluding one-time items and including credit losses and taxes, by 2013. The companionship has said it needs norm annual crop of 10 percent to effect that. Nordea today revised its forewarn for risk-adjusted advantage rise for 2008 to 5 percent, from a one-time guestimate of between 5 percent and 10 percent.
Loan losses were 36 million euros in the quarter. ''We remain by our long-term economic targets although increasing macroeconomic uncertainty and variable fiscal markets put some inducement on the short-term evolution of risk- adjusted profit,'' Nordea Chief Executive Officer said in the statement. Nordea has some 1,100 branches, 29,000 employees and 10 million clients and in the Nordic countries, Russia, Poland and the Baltics. It gets only 15 percent of its profits from first-class markets, Deutsche Bank AG analyst has estimated.
Nordea still plans to take on 3,000 additional commonalty this year as it opens more offices in Poland and Sweden, Clausen said today. Denmark Expansion Nordea may also stretch its association in Denmark by acquiring the sprig network of , the Danish regional bank bailed out by the Nordic country's primary bank earlier this month, Clausen said at a conjunction with journalists in Stockholm today. Nordea is not partisan in the bank's assets, essentially its offices, said Clausen, a Danish national.
Roskilde was bailed out by Denmark's main bank, the beforehand such performance by Nationalbanken in 15 years, on July 11 following writedowns on loans to the resources toil after a real-estate deflate pushed Denmark into recession. Roskilde had writedowns on loans and guarantees of as much as 900 million kroner ($192 million) in the word go half of 2008, it has said. Danish organization prices will incline as much as 10 percent this year and next, Svenska Handelsbanken AB's Danish Chief Economist, , said July 1. Denmark's make home yield contracted 0.6 percent in the start with humanity and 0.2 percent in the fourth.
Nordea is itself ''adequately covered for the state we can foresee'' in terms of Denmark's declining essential landed estate industry, Chief Risk Officer Carl-Johan Granvik said. While smaller banks have been ''very aggressive'' with their lending to the Danish construction and natural status industry, Nordea has to a heavy-set magnitude ''kept out of that segment,'' said Granvik.
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