Morgan Stanley Expects Nordea Q2 Net Profit to Fall Short of Expectations
Nordea Bank's (NDA-FI.HE, NDA-DK.CO, NDA-SE.ST) net profit for the three months ended June 30 is anticipated to come in 2% lower than market forecasts, Morgan Stanley said in a July 10 European earnings preview report. The research firm expects the group's net profit to reach 1.17 billion euros in the second quarter, down 4% on a yearly basis and below the Visible Alpha consensus of 1.20 billion euros. Net interest income is forecast to decline 1% year over year, while net fee and commission income is projected to rise 9%. "On capital, we incorporate the EBA operational risk update, which is expected to reduce the CET1 ratio by c.10-15bps.We also reflect the interim dividend payment expected in August (around 13 August), equivalent to 50% of 1H26 net profit. Overall, we are broadly in line with consensus on revenues and costs for Q2, leaving our PPOP estimates largely unchanged and close to market expectations," analysts said. "We assume c.EUR250m of buyback accruals in Q2, compared with Visible Alpha consensus of c.EUR225m." The research firm has an overweight rating on the stock. Nordea is due to publish its latest quarterly results on Thursday.
Nordea Bank's (NDA-FI.HE, NDA-DK.CO, NDA-SE.ST) net profit for the three months ended June 30 is anticipated to come in 2% lower than market forecasts, Morgan Stanley said in a July 10 European earnings preview report.
The research firm expects the group's net profit to reach 1.17 billion euros in the second quarter, down 4% on a yearly basis and below the Visible Alpha consensus of 1.20 billion euros.
Net interest income is forecast to decline 1% year over year, while net fee and commission income is projected to rise 9%. "On capital, we incorporate the EBA operational risk update, which is expected to reduce the CET1 ratio by c.10-15bps.We also reflect the interim dividend payment expected in August (around 13 August), equivalent to 50% of 1H26 net profit.
Overall, we are broadly in line with consensus on revenues and costs for Q2, leaving our PPOP estimates largely unchanged and close to market expectations," analysts said. "We assume c.EUR250m of buyback accruals in Q2, compared with Visible Alpha consensus of c.EUR225m." The research firm has an overweight rating on the stock.
Nordea is due to publish its latest quarterly results on Thursday.