Nordea gains market share

Nordea Finance reported a 12.6 percent increase in new business to 8.4 billion last year, helped by its best ever month in December 2010. Nordea Finance gained share across all its markets in 2010, with the Baltics showing the largest gain

Nordea Finance reported a 12.6 percent increase in new business to €8.4 billion last year, helped by its best ever month in December 2010.

The whole portfolio now stands at €14 billion. Nordea Finance gained share across all its markets in 2010, with the Baltics showing the largest gain. Market share across Estonia, Latvia and Lithuania is now around 25 percent.

Operating profit grew by 41 percent in the period. Nordea Finance attributed the positive performance in volume and profit to a general market recovery across the Nordics and Baltics; as well as the introduction of more services alongside funding; more international vendor finance partnerships; and working with parent bank Nordea to implement a single point of entry strategy for customers.

Credit losses decreased by more than 43 percent. Return on equity was 18.6 percent.

According to Nordea Group’s latest results, investment in finance leases rose during 2010, while the total carrying value of operating leases declined. Gross investment in finance leases at Nordea Finance rose by 8.24 percent to €6.95 billion for 2010. Net investment in finance leases (gross investments less unearned finance income) rose by 8.46 percent to €6.5 billion. The present value of future minimum finance lease payments receivable rose 8.62 percent to €6.44 billion.

Meanwhile, the carrying amount of equipment related to operating leases decreased by 13.7 percent to €82 million, down from €95 million in 2009. For operating leases, the future minimum payments receivable totalled €37 million, of which 92 percent, or €23 million, mature in the next three years.

Nordea Finance provides asset based financing as leasing, hire purchase and factoring, and offers sales to finance partners such as dealers, vendors and retailers. It is part of Nordea’s banking products division, also including account products and transaction products. Banking products is the largest of Nordea’s five divisions, contributing operating income of €5.16 billion, or 55 percent, of the group total.