Nordea’s third quarter net profit exceeds expectations; Preparation of new objectives and business plan

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By Dominic Chopping

 

Nordea Bank Abp on Thursday reported better than expected third quarter net profit, driven by net interest income, commissions and loan loss reversals.

The Helsinki-based bank posted a net profit of 1.0 billion euros ($ 1.16 billion), up from 837 million euros in the same period a year earlier. A survey of analysts carried out by FactSet had forecast a net profit of 945 million euros.

Net interest income reached the consensus target of 1.23 billion euros against 1.15 billion euros.

The bank recorded € 22 million in write-backs of net loan losses and still expects net loan losses in 2021 to be well below the 2020 level.

Total costs in 2021 are expected to be around 4.6 billion euros.

Nordea said she plans to file a formal request for a follow-up share buyback program in early 2022, adding that she has made decisive progress towards her financial goals for 2022.

“Based on this progress, we are currently preparing updates to our financial goals and business plan,” said Managing Director Frank Vang-Jensen.

“We intend to release new financial targets alongside our fourth quarter and full year results.”

Nordea’s Tier 1 common stock ratio – a key measure of financial strength – rose to 16.9% at the end of the quarter, from 16.4% a year earlier.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

October 21, 2021 01:09 ET (05:09 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.


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