Nordea Bank Abp - Half-year financial report
 
Summary of the quarter:

• Solid result − high activity resulted in revenues largely unchanged. Profit before loan losses was 4% higher than last year. Net interest income increased by 2%, supported by volume growth, especially in mortgages, in all countries. Net fair value result recovered, increasing 12%, mainly from improved trading activities. However, the lockdowns and market turbulence had a negative financial impact, primarily affecting net fee and commission income which declined by 9%. Costs decreased by 8%.

Nordea has agreed to acquire the occupational and individual pension portfolios from Frende Livsforsikring AS ("Frende") and intends to combine the business with its Norwegian insurance subsidiary Livforsikringsselskapet Nordea Liv Norge AS ("Nordea Liv"). As part of the transaction, Nordea Liv will also enter into a long-term agreement to distribute pension products with the Norwegian savings banks which own Frende.

Nordea Bank Abp - Stock exchange release - Other information disclosed according to the rules of the Exchange

The Board of Directors has decided to launch a Long Term Incentive Programme (LTIP) including the CEO and eight other members of the Group Leadership Team (GLT) in accordance with the remuneration policy for governing bodies adopted by the Annual General Meeting.

The outlook for the world economy remains bleak. The COVID-19 pandemic has evolved into the biggest health crisis in 100 years, and the draconian measures to curb the spread of infection have had enormous financial costs. While economic growth will soon be on the rise again as locked-down communities gradually reopen, it will likely be a long time before the economic scars have fully healed.