Nordic Credit Rating (NCR) said today that Nordic consumer banks presented improved results for the second quarter of 2021. While risk-adjusted earnings and net interest margins continued to fall, the quarter also saw positive indications such as increasing loan growth, as well as declining loan loss provisions and Stage 3 non-performing loans.
"Growth is trending upwards, but increased competition, and in some instances a lower risk appetite, is affecting banks' margins," said NCR credit analyst Sean Cotten. "Growth is adding a higher share of performing loans for most banks, which are also reporting sales of nonperforming loans to debt collectors."
Nordic Credit Rating expects margin pressure on consumer loans to continue even as increased consumer spending drives up lending volumes.
If you have any questions, please contact:
Sean Cotten, chief rating officer, +46735600337, firstname.lastname@example.org
Geir Kristiansen, credit rating analyst, +4790784593, email@example.com