ECB approves Nordea’s share buy-back application; Nordea to launch share buy-back programme of up to EUR 250 million

Nordea Bank Abp
Stock exchange release – Other information disclosed according to the rules of the Exchange
17 October 2024 at 7.15 EET

Nordea has received approval from the European Central Bank (ECB) for further share buy-backs of EUR 250 million, and Nordea’s Board of Directors has today in accordance with the authorisation granted by the 2024 Annual General Meeting decided on a share buy-back programme of up to EUR 250 million. The programme will commence on 21 October 2024 or as soon as possible after that date.

The purpose of the buy-backs is to maintain an efficient capital structure and improve shareholder returns by trimming Nordea’s capital. The programme will commence on 21 October 2024 or as soon as possible after that date and end no later than 28 February 2025.

Nordea has engaged a third-party broker to execute the buy-back programme. Based on irrevocable instructions, the broker will decide on the repurchases, including their timing, in full independence. All repurchases will be made in compliance with applicable price and volume limits and other applicable terms.

The key terms of the share buy-back programme include:

• Nordea may repurchase shares for the maximum amount of up to EUR 250 million based on and subject to the maximum number of 340,000,000 repurchased shares stated in the authorisation by the 2024 Annual General Meeting. At any given time, the number of own shares collectively held by Nordea and its subsidiaries may not exceed 10% of all the shares in Nordea.
• Nordea will repurchase the shares otherwise than in proportion to the shareholdings of its shareholders (directed repurchases).
• The shares will be repurchased in public trading in accordance with the Regulation (EU) 596/2014 and the Commission Delegated Regulation (EU) 2016/1052 (which together constitute the Safe Harbour regulation). The shares will be repurchased on Nasdaq Helsinki, Nasdaq Stockholm and Nasdaq Copenhagen.
• The price payable per share will be determined by the pricing obtainable on the relevant trading venue and in accordance with the authorisation granted by the 2024 Annual General Meeting.
• Nordea will not repurchase any shares in the United States or in respect of its American Depositary Receipts.
• Nordea will repurchase the shares using its unrestricted equity and record the repurchases as a deduction from retained earnings.
• The repurchased shares will be cancelled on a monthly basis.
• Nordea may suspend or terminate the programme before its scheduled end date. In such cases this will be announced in a stock exchange release.

Prior to commencement of the buy-back programme Nordea holds 3,513,966 treasury shares for remuneration purposes.

Nordea is focused on maintaining an efficient capital structure and will continue to distribute excess capital to shareholders in line with its capital and dividend policy. If the share buy-back programme had been in place on 30 September 2024, it would have reduced the Nordea Group CET1 ratio by approximately 15 bp.

For further information:

Ilkka Ottoila, Head of Investor Relations, +358 9 5300 7058
Media inquiries, +358 10 416 8023 or press@nordea.com

The information provided in this stock exchange release was submitted for publication, through the agency of the contact persons set out above, at 7.15 EET on 17 October 2024.
 

We are a universal bank with a 200-year history of supporting and growing the Nordic economies – enabling dreams and aspirations for a greater good. Every day, we work to support our customers’ financial development, delivering best-in-class omnichannel customer experiences and driving sustainable change. The Nordea share is listed on the Nasdaq Helsinki, Nasdaq Copenhagen and Nasdaq Stockholm exchanges. Read more about us at nordea.com.