Finland’s Nordea on Monday said a rise in interest income had boosted its second-quarter core earnings, sending its shares more than 2% higher in early trading.
The bank’s April-June operating profit rose by 2% and net interest income by 6% from a year earlier, while net fee and commission income fell 5%.
“We can expect continued volatility and uncertainty in the coming quarters,” Chief Executive Frank Vang-Jensen said in a statement.
OP Markets analyst Antti Saari said he believed the current profit level was sustainable, even with a slowing economy, as increasing interest rates compensate for lower activity in credit demand and services.
“The positive impact of rate hikes in the interest income is not yet visible but it should start to show during the coming quarters,” Saari said.
Nordea’s second quarter operating profit rose to 1.36 billion euros ($1.37 billion), beating the 1.25 billion euro mean estimate of 7 analysts polled by Refinitiv.
($1 = 0.9911 euros)