OREANDA-NEWS. May 11, 2009. Total income up 5%, excluding non-recurring items, from the fourth quarter and up 16% from the first quarter last year, strong result in Capital Markets and Treasury operations, reported the press-centre of Nordea.

Risk-adjusted profit up 21% from the fourth quarter, up 38% from the first quarter 2008

Cost/income ratio 48% (51%)

Unchanged outlook - but increased uncertainty on loan losses (full outlook on page 7)

Nordea continued to show strong income growth, total operating income was up 5%, excluding non-recurring items, and up 9% in local currencies compared to the fourth quarter 2008. Net interest income was up 3% in local currencies, driven by increased lending volumes and corporate lending margins, and despite significant pressure on deposit margins. Net fee and commission income remained weak, but is more than compensated by strong net gains/ losses both in the Capital Markets and Treasury operations. Costs increased in line with the full-year outlook. Despite continued high net loan losses, operating profit increased 20% to EUR 833m from the fourth quarter.

Lending to the public increased 3% during the quarter and deposits 1%. Nordea's close customer relations and strong balance sheet have enabled support to customers in the tough market conditions. The weakening economy has clearly impacted net loan losses and impaired loans and uncertainty on loan losses has increased. Net loan losses were EUR 356m, 54 basis points of total lending.

"I am satisfied that Nordea has once again achieved the combination of improved results and business growth, while standing by our core customers in difficult market conditions. Higher loan losses are inevitable when the economy is contracting at an unprecedented speed. With our strong capital base, further strengthened by the rights issue, we are able to maintain our position as one of the strongest banks in Europe", says Christian Clausen, President and Group CEO of Nordea.