Nordea Posts 1Q Net Profit Beat on Higher Net Interest Income, Fees

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By Dominic Chopping

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Nordea Bank Abp on Thursday posted a forecast-beating first-quarter net profit, driven by higher net interest income and fees.

The Helsinki-based bank posted a net profit attributable to shareholders of 244 million euros ($257.7 billion), compared with EUR762 million in the same period a year earlier. A poll of analysts by FactSet had forecast net profit of EUR140 million.

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Net interest income rose 7.9% to EUR1.31 billion, compared with the EUR1.27 billion forecast.

“We decided to exit our Russian operations in 2019 and have been winding down our business there since then,” said Chief Executive Frank Vang-Jensen. “This means that our direct exposure to Russia is very low.”

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

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 16.3% at the end of the quarter from 17.5% a year earlier.

Write to Dominic Chopping at [email protected]

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Credit: www.marketwatch.com /

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