Sweden's Nordea overcomes loan losses in 2012

(AP) Banking group Nordea AB says it posted record profits in 2012 as a combination of cost-cutting measures and a larger customer base more than offset bigger loan losses.

The Nordic region's largest banking group says net profit rose 19 percent to 3.1 billion ($4.2billion) while net interest income, its largest source of revenues, rose 5 percent to nearly 5.6 billion.

The bank also says Wednesday that it had net loan losses of 933 million during the year, mainly due to volatility in the shipping industry and Danish housing market.

Nordea says the bank was able to post a higher profit than ever before thanks to a financial plan to cope with the increasing difficulties in European economies.