Nordea Bank Abp reported a second-quarter operating profit of 1.6 billion euros, a 5% drop from a year earlier, as lower interest rates weighed on its key lending income.
Net interest income, the revenue from loans minus what the bank pays on deposits, fell 6% to 1.8 billion euros, which the company attributed to policy rate reductions.
The result marks a shift from the strong interest income growth the bank reported in the year-ago period.
Despite the income dip, the Nordic lender's profitability remained high with a return on equity of 16.2%.
The bank's credit quality was exceptionally strong, according to the company, leading to a net loan loss reversal of 21 million euros for the quarter.
Lending volumes grew, with mortgages up 6% and corporate lending rising 5% from the previous year, the company said.
"In this environment, Nordea delivered another strong performance," said CEO Frank Vang-Jensen. "We grew business volumes and achieved high profitability, with a return on equity of 16.2%."
The bank maintained its full-year outlook for a return on equity above 15% and launched a new 250 million euro share buy-back program in June.
More from this issuer
Related coverage
Nordea Bank Abp on Wednesday unveiled an ambitious new strategy for 2026-2030, targeting higher profitability and over 20 billion euros in shareholder returns, driven by a focus on technology and artificial intelligence.
Nordea Bank Abp on Thursday reported a resilient third-quarter profit and announced a new 250 million euro share buy-back, as the Nordic lender prepares to unveil its next strategic plan in November.
Nordea Bank Abp on Thursday reported a third-quarter operating profit of 1.6 billion euros, as lending growth helped offset a decline in income from lower interest rates.
Nordea Bank Abp on Thursday reported a third-quarter operating profit of 1.6 billion euros, as growth in lending volumes was offset by a decline in interest income.