Strong performance in challenging markets

Frank Vang-Jensen

18-07-2022 07:00

In the second quarter we faced a changed economic environment. The war in Ukraine continued and higher inflation led to rising interest rates and lower expectations for economic growth. Consumer confidence weakened and financial markets were more volatile.

I’m therefore pleased to see that we have maintained our strong business momentum, improved customer satisfaction and continued to make further progress in line with our business plan and key priorities.

Our operating profit increased by 2% to EUR 1,361m, exceeding the record levels of the second quarter of 2021.

We grew our mortgage lending volumes by 6% and once again increased our market share across the Nordics. Activity slowed in the housing market due to economic uncertainty and the acceleration of interest rate hikes. However, customer demand remains at historically good levels.

The financial market downturn had a negative impact on assets under management, which were down 9% during the quarter, but our net inflows from savings remained positive.

On the corporate side, we experienced a significant increase in the demand for loans. Large corporate lending grew by 16% and SME lending by 7%.

Overall, Nordea performed well in the second quarter. Our capital position continues to be among the best in Europe and we progressed as planned in executing our business plan – making progress towards meeting our sustainability targets and becoming a true digital leader.

Going forward, higher interest rates will dampen economic activity, but this should also be seen as a healthy adjustment that gradually returns us to more normalised market conditions. Increased economic uncertainty, rising inflation and lower expectations for economic growth will challenge our customers and broader society during the coming quarters.

Nordea is well placed to weather more difficult economic conditions. We are ready to support our customers and will continue to make a positive contribution to the Nordic societies. That is our way forward.

Interim result
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