Nordea Bank Abp has decided to halt its share buyback program until at least next year, citing uncertainty surrounding a European Central Bank (ECB) review of its capital models. This announcement comes just a day after a Swedish competitor faced increased regulatory demands. The largest Nordic lender stated that the ECB will require more conservative model outputs for non-retail lending portfolios, with no final decision expected until 2027.
The bank also reported slightly weaker-than-expected third-quarter earnings, attributed to lower lending margins. This earnings miss follows broader industry trends as financial institutions grapple with tighter regulatory scrutiny and fluctuating economic conditions.