FILE PHOTO: The Nordea Bank AB logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren/File Photo
February 3, 2022
(Corrects to say 2022 RoE target updated to above 11% from 10% (not intact), paragraph 1)
HELSINKI (Reuters) -Helsinki-based Nordea Bank has set a new target of a return on equity (RoE) above 13% for 2025, it said on Thursday, while also updating its 2022 target of RoE to above 11% from 10%.
The Nordic region’s biggest lender reported better-than-expected net profit for the fourth quarter, as it saw both a boom in the mortgage market and growth of assets under management to continue.
“Our mortgage lending grew by 6%, SME (small and medium enterprise) lending by 6% and assets under management… by 17%, reaching all-time-high levels,” Chief Executive Frank Vang-Jensen said in a statement.
Fourth-quarter net profit rose to 1.02 billion euros ($1.15 billion) from 725 million a year ago, beating the mean forecast of 949.1 million seen by analysts, according to Refinitiv data.
Nordea’s board proposed a dividend of about 0.69 euros per share for 2021, up 77% from 0.39 euros per share for 2020, the company said.
(Reporting by Anne Kauranen; Editing by Clarence Fernandez and Shailesh Kuber)