Growth, Normalized Interest Rates, And Receding Losses Drive Nordic Banks' Return From The Crisis Feb 11

Standard & Poors, February 2011

Abstract
Nordic banks are set to benefit from a more benign economic environment as the Nordic countries enter a period of expansion following the recent crisis. Interest rates have begun rising and we expect them to continue to rise over the medium term. Normalized rates appear likely to drive stronger results for Nordic banks in 2011 and beyond. Credit losses, which have materially dented profitability over the past few years, will dwindle as asset quality improves and contribute to higher net earnings. Furthermore, we expect exposure to Estonia, Latvia, and Lithuania (the Baltic states) to support higher profits for banks with operations in these countries. However, structural risks remain and will continue to shape the longer-term prospects for Nordic banks. We...

Companies mentioned in this report are:
- Danske Bank A/S
- Skandinaviska Enskilda Banken AB (publ)
- Swedbank AB
- Svenska Handelsbanken AB
- DNB Bank ASA
- Nykredit Realkredit 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.

- Danske Bank A/S
- Skandinaviska Enskilda Banken AB (publ)
- Swedbank AB
- Svenska Handelsbanken AB
- DNB Bank ASA
- Nykredit Realkredit A/S

Customers who bought this item also bought

• The European University Libraries Directory 2013
• The European Foundations Directory 2013
• Border Security Market Assessment-EU Accession States
• Critical Infrastructure Security Market Assessment EU-Accession
• Defence & Aerospace (Nordic)
• The EU Defence Market: Industry and National Procurement
• International Country Risk Guide Annual
• European Manned Guarding Market
• Airport Passenger Screening Market Assessment EU-Accession States
• Specialised Anti-Corruption Institutions: Review of Models: Second Edition