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Weekly Lists
March 2, 2018 www.intellinews.com I Page 30
bne:Banker
Estonia to probe Danske money laundering claims
Estonia's financial regulator will investigate Danske Bank over allegations made by the Danish and UK media that the bank’s branch in Estonia was involved in money laundering, the regulator said.
The Financial Supervision Authority said it had inspected
Danske Bank's business in Estonia in 2014 for possible money laundering and ordered changes in the way the bank handled non-resident clients. However, investigation results published earlier this week by Danish newspaper Berlingske and the
UK’s The Guardian suggested that the bank did not cooperate with the FSA at the time and withheld information on a non-resident company, Lantana Trade. The company was making suspicious operations and appeared linked to Russia’s top officials. “The possible misleading of financial supervisors during the monitoring procedure is a serious breach, if Danske Bank had additional information about this client that was not submitted at the on-site inspection,” the FSA said.
Erste Group, the third biggest bank in Central and Eastern Europe, reported 2017 profits up 4.1% to a record €1.31bn on February 28, helped by rising interest rates, fees and lending, and falling risk costs and bank taxes.
For the first time in several years Erste predicted a slight increase in net interest income in 2018, helped by rising interest rates and mid single digit loan growth, which, together with moderately increasing fee and commission income and falling costs, will deliver increased profits.
“We're very confident that we can finally see real top line growth, not much, but some, and we're also very confident that we will bring expenses down in 2018 from 2017 level,” CEO Andreas Treichl told a conference call with analysts.
Erste is targeting a return on tangible equity (ROTE) of more than 10% in 2018, after 11.5% in 2017.
Erste lifts 2017 net profits by 4% to €1.31bn