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.
The Nordic lender's profitability remained strong with a return on equity of 15.8%, though this was down from 16.7% in the same period last year.
Net interest income, a key measure of bank profitability, fell 6% to 1.78 billion euros, which the company attributed to policy rate reductions.
However, net fee and commission income rose 5% to 811 million euros, rebounding from the previous quarter, the bank said.
The bank saw lending growth pick up, with both mortgage and corporate lending increasing by 6% year-on-year.
Credit quality was a bright spot, with the bank booking a net loan loss reversal of 19 million euros, compared to a 51 million euro loss a year earlier.
"Credit quality remains exceptionally strong," CEO Frank Vang-Jensen said in a statement.
Nordea also announced it will launch a new 250 million euro share buy-back program on or around Oct. 20.
The company said it remains on track to deliver a return on equity of above 15% for the full year.
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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.
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