Awards for excellence 2006: Nordic and Baltic

Euromoney Awards for excellence 2006Denmark I Estonia I Finland I Iceland I Latvia I Lithuania I Norway I Sweden

In a period in which most of the region’s leading banks have enjoyed strong earnings growth and profitability, there is an easy methodology to selecting the best Nordic bank in 2006 and a slightly more controversial one.

The easy approach is to run with the house that has the most diversified franchise across the region – Nordea. And 2005 was another excellent year for Nordea, the best results in the bank’s history. Stripping out the effect of a one-off real estate gain of €300 million, operating profit increased by 25% to just north of €3 billion, while return on equity rose to 18% and total income increased by 7%. Ratings agencies liked what they saw, and in November S&P upgraded Nordea from A+ to AA- on the back of the bank’s “consistent strategy and profitability.”

A more controversial approach to nominating the best bank in the Nordic region in 2005 is to acknowledge the efforts of an organisation that has also delivered solid returns to its shareholders while successfully redefining its business model.