Nordea realized a good Q2 with total income slightly above consensus as NII was boosted by good lending growth, while there were also positive surprises on costs and LLPs. Targets were maintained although management gave a more positive outlook on the impact of rate hikes on NII. Capital generation was positive after dividend accruals over the quarter, leading to a still-huge excess capital situation which will likely be distributed through further buybacks by management.

18 Jul 2022
A good Q2 marked by high volume growth and strong capital buildup

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A good Q2 marked by high volume growth and strong capital buildup
Nordea realized a good Q2 with total income slightly above consensus as NII was boosted by good lending growth, while there were also positive surprises on costs and LLPs. Targets were maintained although management gave a more positive outlook on the impact of rate hikes on NII. Capital generation was positive after dividend accruals over the quarter, leading to a still-huge excess capital situation which will likely be distributed through further buybacks by management.