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Investing.com -- Nordea Bank (HE:NDAFI) posted a stronger-than-expected first-quarter operating profit on Wednesday, supported by higher income and a drop in both expenses and loan losses compared to the previous quarter.
Operating earnings came in at 1.61 billion euros, down 9% from a year earlier but up 10% from the fourth quarter. The result topped the 1.54 billion euro average forecast from analysts surveyed by LSEG.
Net interest income (NII) reached 1.83 billion euros, slightly ahead of expectations, as the bank benefited from continued strength in lending and deposit margins.
Nordea also reported a 1% decline in expenses, helped by lower regulatory fees. The cost-to-income ratio stood at 46%, reflecting continued efficiency in the bank’s operations.
“Nordea reported another solid result with pre-provision profits coming in 4% ahead of consensus,” Jefferies analysts commented in a post-earnings note.
“Fees were below while costs were better,” they added.
The Finnish lender reaffirmed its guidance for 2025, saying it still expects return on equity to remain above 15% for the year.
It continues to expect costs to increase by 2-2.5% vs 2024. Consensus currently forecasts 2.3% cost growth for 2025.
"We continue to see lower inflation and interest rates, which should support higher lending and investment activity when confidence returns," Nordea CEO Frank Vang-Jensen said in a statement.