Nordea Hypotek AB (OTCPK: NRDBY), a financial firm that offers corporate and private banking, mortgage, asset management, insurance, and loans service released its half-year results for 2022, on August 29, delivering a strong quarter overall. The operating profit decreased by 22.3% compared to the same period last year, mostly affected by net interest income deterioration, net results from financial items at fair value declined, increased operating expenses, and resolution fee increase. On the other hand, lending to the public increased by 3.5%, similarly lending to the retail market rose by 3.5% as well as lending to legal entities increased by 3.1%. Further, net loan losses amounted to SEK -29 million (~$2.72 million) for the period attributable to increased model-based loan provisions. Finally, operating expenses at the end of the period were SEK -2,472 million (~$0.23 million), mostly attributable to higher distribution costs and the new bank tax introduced in January 2022.
Strong quarter in a challenging environment
As the firm operates on the Swedish market and grants loans, primarily of a long-term nature, to households, sole business proprietors, municipalities, and other legal entities, it seems to be positioned well for the rate hiking environment with its formidable deposit position. Frank Vang-Jensen the president and CEO of the group, elaborated on the results in a Nordea interview, stating the strong points. Overall, the bank sees the transition from the expansive monetary policy to the now more restrictive one as a challenge that needs to be taken head-on, to create a solid foundation for future growth. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
