Nordea Bank Abp announces ECB approval of share buy-backs

Nordea Bank Abp
Inside Information
16 September 2021 at 14.45 EET

Nordea Bank Abp has received approval from the European Central Bank (ECB) for share buy-backs of up to EUR 2.0bn. A buy-back programme is expected to be initiated after the publication of the third quarter results 2021.

Nordea’s application to repurchase up to EUR 2.0bn of its own shares has been approved today by the ECB. A share buy-back programme is expected to be initiated after the release of the third quarter results 2021, which are published on 21 October. If the buy-back programme had been in place on 30 June 2021 it would have reduced the Group CET1 ratio by around 130bp. The programme and its implementation date are subject to a final decision by the Board of Directors.

Nordea is committed to its capital and dividend policy introduced in 2019, which includes pursuing an efficient capital structure and generating sustainable shareholder return to the benefit of all shareholders. Combined with the planned distribution of unpaid dividends for 2019-2020 also announced today the total shareholder capital distributions commencing in October 2021 are expected to amount to around EUR 4.9bn or EUR 1.2 per share.

Nordea targets a dividend payout ratio of 60-70% and intends to use share buy-backs as a tool to optimise its capital position. The ECB approval for the current share buy-backs is an important step in making share buy-backs an integral part of Nordea’s capital management practice.

In that context, Nordea is in dialogue with the ECB around a potential follow-on buy-back programme subject to a separate ECB approval, and expects to make a formal application in early 2022, within the Board of Directors’ authorisation from the Annual General Meeting on 24 March 2021.
 

For further information:

Matti Ahokas, Head of Investor Relations, +358 9 5300 8011
Group Communication, +358 10 416 8023 or press@nordea.com

The information provided in this stock exchange release is such that Nordea Bank Abp is required to disclose pursuant to the EU Market Abuse Regulation and was submitted for publication, through the agency of the contact persons set out above, at 14.45 EET on 16 September 2021.

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