(Reuters) – Finnish lender Nordea Bank reported fourth-quarter operating earnings slightly above estimates on Thursday and said the Nordic mortgage and corporate lending markets remained slow amid declining interest rates and an improving housing market.
Operating profit rose 5% to 1.47 billion euros ($1.53 billion) for the quarter ended Dec. 31, compared with a mean forecast of 1.45 billion euros in an LSEG poll of analysts.
The bank’s net interest income fell 5% year on year to 1.85 billion euros, following policy rate reductions, against a poll forecast of 1.84 billion euros.
The Nordic region’s biggest lender said it expects return on equity to stay above 15% in 2025.
After benefiting from higher net interest income driven by interest rate hikes across the region, Nordea now faces a shifting landscape as central banks pivot to easing policies, with lower lending income and pressure on profitability from reduced rates on the horizon.
($1 = 0.9599 euros)
(Reporting by Jesus Calero, editing by Rashmi Aich)
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