April 25, 2018 / 12:10 PM / a year ago

Nordea's Norway unit expects lending growth to accelerate

OSLO, April 25 (Reuters) - The Norwegian unit of Nordic bank Nordea expects a positive development in the coming quarters as the economy gathers pace, housing prices no longer fall and the loan loss situation improves, Oslo-based Chief Executive Snorre Storset told Reuters on Wednesday.

** Nordea reported Q1 results above market expectations on Wednesday, but said lower income meant that reaching the 2018 revenue guidance had become more challenging

** “We see a positive trend in the Norwegian economy; the correction in the housing market is over and we expect a positive development for Nordea in Norway in the coming quarters,” Storset said

** “We expect private loans to grow in line with the market,” Storset said, adding that competition in the mortgage market is tough and margins have come down after the recent rise in Nibor-rates

** “For businesses we expect a stronger growth later in the year as investments pick up,” he said

** “We have had a significant improvement in loan losses, and now we see a shift where some customers that have been through a tough restructuring are back on safe ground”

** “The worst is over in the offshore sector, but there is still risk related to this sector,” he said (Reporting by Camilla Knudsen, editing by Terje Solsvik)

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