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Nordea asset management revenues slip

NORDIC – Nordea has seen its asset management revenues edge down on a sequential basis – although institutional client assets are slightly higher.

The group said its institutional assets under management have risen 0.1 billion euros to 22.5 billion euros in the third quarter. Total assets under management have risen 2.1 billion euros to 125.7 billion euros.

Revenue at the firm’s asset management arm slipped one percent to 132 million euros from 134 million euros in the previous quarter – although the figure compares to 119 million euros a year ago.

“While management fees continued to develop in line with the rise in AUM, the subdued business activity affected transaction-related income negatively,” Nordea said in a release.

It said the “product result” at the division was down one percent at 57 million euros. Staff numbers at the unit have risen to 829 from 784 at the end of last year.

Overall, Nordea posted a net profit in the quarter of 398 million euros, down from the 664 million euros in the previous quarter - which included a real-estate gain of 300 million euros.

"It is satisfying that we have been able to increase our total income by three percent on a comparable basis in an intensely competitive environment with pressure on margins,” said chief executive Lars Nordström.

“Costs have continued to decline even further. Positive net loan losses for the second consecutive quarter underline the healthy shape of our credit portfolio."

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