New York, January 24 (FinanceEnquiry.com) - The fourth-quarter operating profit of the biggest bank by value of the Nordic region, Nordea Bank, topped forecasts mainly due to strong trading results. However, it suffered greater-than-expected credit losses as a result of trouble areas in Denmark and shipping.

Sensing tough times ahead, Nordea dropped its dividend by 10 percent from the previous year to 0.26 euro. The executive chairman of Nordea, one of Europe’s top lenders, said that 2011 had seen a turbulent period for states, banks and most customers. He added that 2012 will be equally challenging.
Nordea is perceived to be increasingly vulnerable to the shipping sector, which is suffering from overcapacity, and to the future of Denmark, which might be on the verge of a second recession in less than a year.

Nordea’s operating profit dropped 4 percent to 1.03 billion euros, against a forecast of 953 million euro. Its shares went up 1.6 percent, outpacing a 0.5 percent drop in the broader European banking index.

Credit losses were a little higher and the dividend was down 10 percent. Although Swedish banks have been considered safe during the European debt crisis, they might start losing their charm as the region starts to slow down. Net losses in the fourth quarter of the bank were 263 million euros against an expected 152 million euros.