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Profit for Nordea – allocates billions for expected money laundering

Top Finnish bank Nordea posted operating profit of 621 million euros in the first quarter of 2019. On average, analysts had expected an operating profit of 730 million euros, according to a compilation of 19 analyst forecasts from Infront Data.

In early April, Nordea announced that, as of this year, the bank will fully charge settlement rates during the first quarter.

On Tuesday it was The time has come Nordea to show their numbers for the first quarter of 2019. Net interest income totaled EUR 1,056 million, which was below the analysts' forecast of EUR 1,122 million, according to the Infront Data compilation.

"Compared with the previous quarter, reported revenues remained broadly unchanged, while revenues excluding items that affect comparability increased by 4%. Reported costs increased 5%, but adjusted for settlement rates during this quarter and excluding items that affect comparability, they decreased by 7%, "writes Casper von Koskull, CEO of Nordea, in the report.

Nordea's total costs totaled EUR 1,452 million during the quarter, compared to EUR 1,372 million in the same quarter of 2018. Excluding items that affect comparability, expenses totaled EUR 1,357 million.

The report shows Nordea also incurred a cost of Euro 95 million during the quarter, corresponding to 1,010 million Swedish crowns, related to a provision for ongoing money laundering cases.

During the quarter, an intense debate was under way on several issues related to the fight against money laundering. It is a very complex and broad social issue, and we take our responsibility very seriously. We have previously stated that we expect fines in Denmark for our previously weak anti-money laundering processes and routines, and therefore we make a provision of € 95 million for cases related to money laundering, "says Casper von Koskull.

"Having invested more than 700 million euros to strengthen our work in risk management and compliance in the period 2016-2018, we are convinced that our regulatory compliance platform now has superior quality, which makes us a safe and reliable partner" , he continues.

Nordea Total Revenue amounted to € 2,115 million in the first quarter, in line with analysts' forecast of € 2,115 million. In the same quarter last year, the number reached 2,378 million euros.

Fee income was EUR 737 million, up from analysts' forecast of EUR 720 million, according to the Infront Data compilation.

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