StockMarketWire.com - Nordea Bank Abp said that one-off items amounting to €1.3bn had a significant negative impact on its third quarter results, as it reported an operating loss of €421m.

The one-off items comprise an impairment charge for IT intangibles of €735m, a restructuring provision of €204m, an additional loan loss provision of €282m and an expense related to the sale of Luminor shares of €75m.

Total revenues in the third quarter are down 2% in local currencies.

Nordea Bank chief executive Frank Vang-Jensen said: 'In my new role as CEO, I have led a strategic review of the Bank and we have developed a new business plan to ensure stronger financial results meeting new financial targets.

'Our new plan will significantly improve Nordea's operating performance through strengthened customer focus and improved operational efficiency as well as cost reductions and income growth initiatives. For 2020, we expect to reach a cost base of below €4.7bn with planned continued net cost reductions beyond 2020.'

Nordea's new financial targets for 2022 are a return on equity above 10% and a cost to income ratio of 50%.




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