Sluggish Revenues And Still-High Impairments Are Likely To Keep Nordic Banks' Earnings Low In 2010 Mar 10

Standard & Poors, March 2010

Abstract
The severe economic recession of the past 18 months in our view put significant pressure on most Nordic banks' asset quality and earnings in 2009. Standard & Poor's Ratings Services expects that improved economic perspectives for the Nordic countries and the three Baltic republics are likely to ease that pressure somewhat in 2010. However, we note that reported loan losses from exposures in Baltic countries have been relatively high, significantly impairing the earnings of those banks most exposed to these markets. We now believe that loan losses in the Baltic countries may have peaked in 2009, but are likely to remain elevated in 2010. Furthermore, we believe lower revenues could also pressure Nordic banks' earnings in 2010. We expect that...

Companies mentioned in this report are:
- Norway (Kingdom of)
- Sweden (Kingdom of)
- Swedish Export Credit Corp.
- Danske Bank A/S
- Eksportfinans ASA
- Skandinaviska Enskilda Banken AB (publ)
- Swedbank AB
- Pohjola Bank PLC
- Svenska Handelsbanken AB
- DNB Bank ASA
- Nykredit Realkredit A/S
- SBAB Bank AB
- Landshypotek AB
- Nordea Bank AB
- Jyske Bank A/S
- Lansforsakringar Bank
- Storebrand Bank ASA
- Nykredit Bank A/S

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Norway (Kingdom of)
- Sweden (Kingdom of)
- Swedish Export Credit Corp.
- Danske Bank A/S
- Eksportfinans ASA
- Skandinaviska Enskilda Banken AB (publ)
- Swedbank AB
- Pohjola Bank PLC
- Svenska Handelsbanken AB
- DNB Bank ASA
- Nykredit Realkredit A/S
- SBAB Bank AB
- Landshypotek AB
- Nordea Bank AB
- Jyske Bank A/S
- Lansforsakringar Bank
- Storebrand Bank ASA
- Nykredit Bank A/S

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