Nordea Shares Drop Amid Buyback Pause, Lower Third-quarter Profit

04:52 AM EDT, 10/15/2026 (MT Newswires) -- Shares in Nordea Bank (NDA-FI.HE, NDA-SE.ST, NDA-DK.CO) dipped on Thursday after the Nordic financial institution paused its stock buyback plan amid regulatory ambiguity and reported a smaller third-quarter net profit. Nordea is suspending share repurchases pending clarity on the European Central Bank's decision on risk exposure amount, according to the lender's third-quarter investor presentation. Recent ECB discussions on non-retail capital models point to a more conservative approach and higher REA requirements, Nordea said, noting that supervisory decisions are not expected before 2027. Its shares were down 6% in early trading on Thursday in Helsinki, Stockholm and Copenhagen. The bank disclosed the buyback suspension as it reported that attributable net profit for the three months ended Sept. 30 declined to 1.18 billion euros from 1.23 billion euros a year ago, while total operating income inched higher to 2.97 billion euros from 2.91 billion euros. Return on equity stood at 15.1% amid seasonally more subdued activity levels. The bank expects ROE of over 15% for 2026 and is aiming for the metric to be "significantly higher" in 2030. "Geopolitical uncertainty and volatility remain high. However, the global and Nordic economies continue to show resilience, supported by substantial investment in areas such as artificial intelligence, defence, infrastructure and energy transition," Nordea Bank President and Chief Executive Frank Vang-Jensen said. "We expect continued economic growth, solid export performance and gradually improving household consumption in our home markets, with growth now also picking up in Finland. At the same time, we are mindful of the recent sharp rises in forward interest rates and the potential for higher rates to affect consumer confidence in the months to come."