Nordea BankAB reported first-quarter group net profit attributable toshareholders of €782 million, down from €1.08 billion earned in the year-agoperiod.

EPS for the quarter stood at 19 cents, compared to 27 centsa year earlier.

"The business environment has been relatively stable atthe beginning of 2016, although turmoil on the financial markets, and evenlower interest rates, have put pressure on revenues," President and GroupCEO Casper von Koskull said.

Net interest income fell year over year to €1.17 billionfrom €1.25 billion. Net fee and commission income declined to €772 million fromthe year-ago €809 million.

The net result from items at fair value amounted to €332million, down from €627 million a year earlier.

Net loan losses decreased to €111 million from €122 millionin the first quarter of 2015. The bank expects some increases in loan lossprovisions in oil- and offshore-related loans, due to low oil prices.

ROE was 10.3%, down from 14.3% in the first quarter of 2015.

The group's Basel III common equity Tier 1 capital ratiostood at 16.7% at March-end, compared to 16.5% at the end of 2015 and 15.6% atMarch 31, 2015.

The bank intends to execute plans for the of its Norwegian, Danish andFinnish banking subsidiaries in early January 2017.