EUROPE – The wealth management arm of Nordic banking and financial services group Nordea saw assets under management (AUM) fall by €4.1bn due to the impact of increased volatility on the company’s risk assets over the second quarter.
The drop in AUM represented 1% of total assets, with net inflows of €2.9bn taking some of the bite out of a €7bn loss over the period, Nordea said.
The main contributors to inflows over the second quarter were Nordic Retail funds, with a net inflow of €900m, and Private Banking, with a net inflow of €1.1bn.
The Institutional Sales segment saw inflows of €800m over the period.
Wealth Management income was €385m, up 17% from the same quarter last year and 6% from the previous quarter.
Operating profit for the wealth management business was €188m, up 44% from the same quarter last year and 9% from the previous quarter.
Total expenses decreased 3% from the same quarter last year and were unchanged from the previous quarter due to a strict focus on costs across all business units, according to Nordea.
Life & Pensions’ closure of a branch in Lithuania will result in full-year cost savings of €1.5m in 2013, it said.
In other news, Swedish banking group SEB reported that rising long-term interest rates and declining stock markets had a negative impact on traditional portfolios during the second quarter.
Operating profit for SEB’s unit-linked business the first six months decreased by 14% compared with last year.
Unit-linked represents 63% of total income and 88% of sales.
Income from unit linked increased by 2%, whereas income from traditional and risk insurance decreased by 13%.
Total premium income relating to new and existing policies amounted to SEK15.5bn (€1.8bn), 13% higher than last year.
The improvement is primarily a result of strong growth at the company’s business in Ireland, it said.
In Sweden, Life continued to be one of the market leaders within the unit-linked segment.
However, operating profit decreased due to lower income from traditional and risk insurance.
The fund value related to the unit-linked segment amounted to SEK144bn, SEK12bn higher than a year ago and up SEK6bn over the first six months.
SEB reported SEK4bn in inflows over the first half of the year, bringing total assets under management amounted to SEK455bn.
No comments yet