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 [email protected]
