By Dominic Chopping


Nordea Bank backed its guidance as second-quarter earnings met expectations.

The Helsinki-based bank on Monday posted net profit attributable to shareholders of 1.3 billion euros ($1.42 billion) for the second quarter, compared with EUR1.34 billion in the same period a year earlier, as net interest income rose 4% to EUR1.9 billion.

A poll of analysts by FactSet had forecast net profit of EUR1.29 billion and net interest income of EUR1.92 billion.

Nordea said total income improved as net interest income and fee and commission income grew, while inflation and continued significant investments in technology, data and risk management resulted in a cost increase of 6%, in line with the bank's plan.

The Nordic mortgage and corporate lending markets remained slow, but retail and corporate deposit volumes increased, it said.

"Our results for the second quarter keep us on track to deliver strong profitability in 2024," 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 17.5% compared with 16.0% a year earlier.


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


(END) Dow Jones Newswires

07-15-24 0138ET