Nordea: Nordea Lifts Guidance, Launches New Buyback

By Dominic Chopping Nordea Bank launched a new share buyback program and raised guidance as third-quarter earnings came in just ahead of expectations. The Helsinki-based bank said Thursday that it has decided on a share buyback of up 250 million euros, equivalent to $271.5 million, that will run from October until no later than the end of February 2025. Nordea posted net profit attributable to shareholders of 1.27 billion euros for the third quarter, down from 1.35 billion euros a year earlier, as net interest income slipped 1.4% to 1.88 billion euros. A poll of analysts by FactSet had forecast net profit of 1.22 billion euros and net interest income of 1.88 billion euros. Nordea said total income was higher, as net interest income fell slightly following policy rate reductions and fee and commission income grew. The Nordic mortgage and corporate lending markets remained slow, but demand for new loan promises increased as housing markets improved, it said. Nordea now targets a return on equity above 16% in 2024, from above 15% previously, and still expects a figure of above 15% in 2025, supported by a cost-to-income ratio of 44%-46% and an annual net loan loss ratio of around 10 basis points. Its common equity Tier-1 ratio was 15.8%, compared with 16.3% a year earlier. Write to Dominic Chopping at dominic.chopping@wsj.com (END) Dow Jones Newswires 10-17-24 0110ET