Net profit that Nordea Bank generated in 2016 under IFRS amounted to Rub 4.23 bln, down Rub 400 mln against the year-ago period, the bank's management board chairman Mikhail Polyakov claimed at a press conference.
"We deliver good and stable profit. Nordea Group has showed a very high rate of return on equity, 11.5% is a very good figure. Meanwhile, we continue to pay out dividend, which is important for our customers," Polyakov emphasized.
In his opinion, despite the fact that some economic indicators in the country have improved, the market has not yet seen any stable growth trends. In these conditions, as Polyakov pointed out, Nordea Bank's main objectives are to maintain the strong credit portfolio quality and risk control.
As of January 1, 2017 Nordea Bank's assets decreased from Rub 407.68 bln as of January 1, 2016 to Rub 237.51 bln. As of the balance sheet date corporate loans amounted to Rub 146.53 bln compared to Rub 287.09 bln a year ago. Overall, as of January 1, 2017 the bank's credit portfolio totaled Rub 203.05 bln, or Rub 157 bln less than last year. Nordea Bank holds no NPLs.
Polyakov pointed out that the bank was prepared for a credit portfolio slump in 2016. According to him, interest and commission income helped the bank prop up net profit.
"2016 was a tough year for the bank. On the one hand, fortunately, the economy did not see big shocks. On the other hand, it is a challenge to turn a profit on a falling market," Polyakov said.
