(RTTNews) – Nordea Bank Abp (NDA_DK.CO, NDA-DK.CO, NBNKF) reported Thursday slightly higher profit in the second quarter with increased operating income, despite ongoing market headwinds. Net interest income was lower than last year, while assets under management climbed.
The Nordic banking institution delivered net profit of 1.232 billion euros for the period, up 1 percent from 1.221 billion euros last year. Earnings per share reached 0.36 euros, representing a 3 percent increase from 0.35 euro a year ago.
The company said the results reflected strong performance and high profitability in a quarter where markets continued to be affected by the prolonged conflict in the Middle East.
Operating profit increased 1 percent year-over-year to 1.61 billion euros, while total operating income rose 4 percent to 3.032 billion euros from 2.911 billion euros last year.
Net interest income declined 1 percent year on year to 1.779 billion euros, while net fee and commission income demonstrated robust growth, increasing 11 percent year-over-year to 880 million euros. Savings income grew 13 percent, with gains across all fee categories.
The cost-to-income ratio improved to 44.0 percent, compared with 45.1 percent a year ago, reflecting operational efficiency gains.
Assets under management or AuM increased 16 percent year-over-year to 505 billion euros.
Further, Nordea’s Board has decided to distribute a mid-year dividend for 2026 amounting to 0.34 euro per share. The dividend record date is August 6 and the dividend payment date will be August 13 or as soon as possible thereafter.
Looking ahead for fiscal 2026, Nordea continues to expect a return on equity of greater than 15 percent, while cost-to-income ratio is now projected to be 44-45 percent, an update from previous guidance of around 45 percent.
Further ahead to 2030, the bank still targets a return on equity of greater than 15 percent throughout the period, significantly higher in 2030, and a cost-to-income ratio of 40-42 percent.
President and Group CEO Frank Vang-Jensen stated: “We go into the second half of the year with confidence. The business is performing very well and our strategy execution is on course, with visible progress across all initiatives. The Nordic economies are also showing their strength. We are seeing encouraging signs of increased corporate investment and activity across the region, and Nordea is well placed to support customers as they pursue new growth opportunities.”
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