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Best bank: Nordea Best debt house: Pohjola Bank Best equity house: BBVA Paraguay Best M&A house: BBVA Paraguay
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Finland’s largest bank, Nordea, has total assets almost three times larger than second-placed Pohjola Bank and has enjoyed another successful year, with lending increasing from €42.4 billion in 2006 to €47.5 billion in 2007 and deposits increasing from €26.4 billion to €30.4 billion over the same period. Nordea made good use of its strong funding base in Finland that, combined with an increased interest level, gave the bank double-digit income growth.
Despite higher loan losses – up from €28 million to €60 million – operating profit increased from €823 million in 2006 to €1 billion in 2007. Meanwhile, the bank managed to reduce its cost-to-income ratio from 48% to 44% and increase its risk-adjusted return on capital at risk (defined as risk-adjusted profit relative to economic capital) from 33% in 2006 to 38% in 2007.