Nordea Bank’s net income rose by 2.8% to €1.05bn ($1.06bn) in Q2 2022. This was driven principally by increased net interest income which grew 6.2% to €1.3bn ($1.32bn), on the back of higher interest rates and a continued growth in lending volumes. Nordea also profited from a €56mn ($56.7mn) release of provisions compared to €51m ($51.7mn) a year ago. Notably, mortgage, SME and large corporate lending volumes all grew by 6%, 7% and 16% respectively. In Q2 2022, the Nordic bank distributed €4.5bn ($4.56bn) back to its shareholders through dividends and a share repurchase program. The Group CEO, Frank Vang-Jensen added that they have received regulatory approval for another round of share buy-backs worth €1.5bn ($1.52bn) in the next quarter. Nordea holds a CET1 ratio of 16.6% as of Q2 2022 vs 18% one year prior. Despite the decrease in the CET1 ratio, it is still comfortably above regulatory requirements by 630bp.
Nordea Bank’s 6.625% Perps are trading 0.21 points higher at 95.9 cents to the dollar, yielding 7.93%.
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