Nordea Bank Abp (NRDEF.PK) announced on Thursday that its net profit for the third quarter experienced a 6% decline, amounting to 1.27 billion euros, compared to 1.35 billion euros in the same period last year. Earnings per share dropped by 5%, standing at 0.36 euro as opposed to last year's 0.38 euro. Similarly, the bank's operating profit saw a 5% year-over-year decrease to 1.63 billion euros.
Despite these declines, total operating income for the quarter increased by 2% to reach 3.01 billion euros, up from 2.95 billion euros in the previous year. This growth occurred despite a 1% decrease in net interest income, which fell to 1.88 billion euros, attributable to reductions in policy rates. Nevertheless, net fee and commission income rose by 4%.
Looking towards fiscal 2024, Nordea projects a return on equity exceeding 16%, an upward revision from the previously anticipated figure of over 15%. The company also maintains confidence in achieving a return on equity exceeding 15% for the year 2025.
Additionally, Nordea announced plans to initiate a new share buy-back program valued at 250 million euros starting in October, with the aim of completing it by February 2025.
On another note, Nordea Bank revealed upcoming key management alterations, effective January 1, 2025. Martin Persson, who currently serves as Head of Large Corporates & Institutions, has been appointed as the Head of Asset & Wealth Management. Petteri Änkila, presently the CEO of Nordea Life & Pension, will assume the role of Head of Large Corporates & Institutions. Meanwhile, Snorre Storset will be stepping down from his position as Head of Asset & Wealth Management after a tenure of nine years.
