Finland's Nordea Bank reports drop in Q3 net profit

Finnish financial institution Nordea Bank reported on Thursday that net profit fell 6% in its third quarter to €1.27 billion ($1.38 billion) from €1.35 billion ($1.47 billion) in the same period of last year.

Earnings per share were €0.36, down 5% from €0.38 a year ago.

Operating profit also declined 5% year-over-year to €1.63 billion. In the quarter, total operating income, however, grew 2% to €3.01 billion from the prior year's €2.95 billion, despite a 1% drop in net interest income to €1.88 billion, following policy rate reductions.

Net fee and commission income continued to grow, up 4%.

Looking ahead for fiscal 2024, Nordea now expects a return on equity of above 16%, compared to the previous outlook of above 15%. Further, the firm remains confident in its ability to deliver a return on equity of above 15% for 2025.

The company also announced plans to launch a new share buy-back programme of €250 million in October, which will be completed by the end of February 2025.

Separately, the bank announced certain key management changes, which will take effect as of January 1.

Martin Persson, current head of large corporates & institutions, has been appointed head of asset & wealth management. Petteri Änkila, current chief executive of Nordea Life & Pension, will now be head of large corporates & institutions. Meanwhile, Snorre Storset will step down as head of asset & wealth management after nine years.