Nordea profit beats estimates, launches €1.5 billion ($1.51 billion) buyback


By Dominic Chopping

Nordea Bank Abp on Monday posted a forecast-beating second-quarter net profit as growing lending volumes drove net interest income higher, and said it has decided to launch a new share buyback programme of up to 1.5 billion euro ($1.51 billion).

The Helsinki-based bank posted a net profit attributable to shareholders of EUR1.06 billion, compared with EUR1.03 billion in the same period a year earlier. A poll of analysts by FactSet had forecast net profit of EUR928 million.

Net interest income rose 6.2% to EUR1.31 billion, in line with the analysts forecast.

“Increased economic uncertainty, rising inflation and lower GDP forecasts will challenge our customers and broader society during the coming quarters,” said Chief Executive Frank Vang-Jensen.

“We are well placed to weather more difficult economic conditions and support our customers.”

Nordea backed its 2022 guidance, expecting a return on equity above 11%, supported by a cost-to-income ratio of 49%-50%.

It also maintained its full-year 2025 financial target of a return on equity above 13%, supported by a cost-to-income ratio of 45%-47%.

Nordea’s common equity Tier 1 ratio–a key measure of financial strength–was 16.6% at the end of the quarter from 18.0% a year earlier.

Write to Dominic Chopping at

This article was originally published by Read the original article here.

Previous articleJPMorgan lifted to hold from sell at Berenberg, because ‘good banks have bad years’
Next article: ‘They’ve owned these pets for years’: People are giving up family dogs they adopted long before the pandemic, mostly due to inflation, shelters say


Please enter your comment!
Please enter your name here