Nordea Backs Guidance as Earnings Beat Expectations

By Dominic Chopping

Nordea Bank backed its guidance as first-quarter earnings beat expectations.

The Helsinki-based bank on Thursday posted net profit attributable to shareholders of 1.36 billion euros ($1.45 billion) for the first quarter, compared with EUR1.15 billion in the same period a year earlier, as net interest income rose 11% to EUR1.95 billion.

A poll of analysts by FactSet had forecast net profit of EUR1.2 billion and net interest income of EUR1.92 billion.

The bank said it saw a small increase in corporate lending in the quarter while mortgage lending volumes were unchanged as mortgage markets remained slow.

Costs decreased by 9% on the year due to substantially lower regulatory fees.

"Looking ahead, we remain committed to delivering market leading performance, supported by focused and profitable growth and improved capital efficiency through our well diversified business model," said Chief Executive Frank Vang-Jensen.

Nordea still targets a return on equity above 15% in 2024 and 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 17.2% compared with 15.7% a year earlier.

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

(END) Dow Jones Newswires

April 18, 2024 01:05 ET (05:05 GMT)

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