Nordea issued approximately €4.7bn in long-term funding in the third quarter (excluding Danish covered bonds and subordinated notes) of which €3.2bn represented the issuance of Swedish and Norwegian covered bonds in domestic and international markets, according to the latest results released by the Swedish financial services group on October 26.
During the quarter, the group launched a US$1bn dual tranche senior unsecured issuance out of Nordea Bank AB, split by a $750m three-year fixed rate and a $250m three-year floating rate note. In September Nordea also issued €1bn 10NC five-year Tier 2 subordinated bond. Nordea's long-term funding portion of total funding was, at the end of the third quarter, approximately 82%.
As of September 30, 2016, according to the group's balance sheet, outstanding debt securities in issue stood at €191bn, up €3bn from the previous quarter, while deposits from credit institutions and deposits from the public registered at €58bn and €187bn, respectively.
Nordea is in the market share top three for each of the four Nordic markets, according to SRP data. In Sweden the bank issued 34 structured notes worth SEK1,010m (€102m) between January 1 and September 30, 2016, leading to a share of 10% of the Swedish market, behind Garantum (27%) and Swedbank (24%), while in Finland and Norway the bank had a share of 20% (€83m from 24 products) and 48% (€42m from 14 products), respectively.
In Denmark, Nordea tops the table with 66% of the market after selling DKK752m (€101m) across nine products during the first nine months of the year. Aktiebevis Europa 2019, a three-year medium-term note offering 244% in the rise of the Eurostoxx 50, which was available to both Danish retail and private investors, was the bank's best-selling product across the Nordic region in the period collecting sales of DKK129.56m.
'The third quarter was characterised by a stable environment with low volatility on financial markets but also continued low growth,' said Casper von Koskull (pictured), president and group chief executive officer (CEO), Nordea
Net interest income was down 4% in local currencies compared to the third quarter of 2015, but is up 1% from the previous quarter, and we continue to believe that the trough levels are now over, stated Von Koskull.
The group's fee and commission income was up 4% in local currencies compared to the third quarter of 2015, mainly driven by asset management, where revenues were up 13% on the back of higher volumes. In the third quarter, inflow was at an all-time high of €9.6bn or 13% of assets under management, annualised, the group reported.
Click the link to view the full Nordea third quarter results.
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