Nordea Bank Abp Q2 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst : Sofie from JPMorgan. Just going back to LC&I, the volume growth was very strong, 16% year-on-year and even pretty strong on a quarter level, up 2%, but your NII was down quarter-on-quarter in LC&I and also your fees were down quarter-on-quarter in LC&I. So if you could maybe just talk about the margin pressure and also kind of lending fees because some of your competitors saw very, very strong lending fee increase. So yes, how do you think about those going forward? And then my second question would be on capital outlook is very strong Core Equity 1 in this quarter. Could you just remind us where we are on the IRB model approvals, if you expect any regulatory capital headwinds or tailwinds going forward? Kind of if we should expect more credit quality improvement driving lower risk credit assets going forward? And anything else we should take into consideration on the capital side?

Question: Martin Leitgeb - Goldman Sachs Group, Inc., Research Division - Analyst : Could I have one on capital return and one follow-up on asset quality? On capital return, I mean, congratulations for the pace of capital return throughout the year. And I was just wondering with the EUR 1.5 billion buyback announced today, pro forma Core Tier 1 ratio one could argue that's close to 15%. I was just wondering if you could comment on the outlook for potentially further buybacks or company distributions from here. Should we think the bulk of it is done? Or I think previously, you comment that when you announced the buyback that you're in discussion for follow-up buyback with the regulators, I was just wondering if that is the case as well at this point in time? And the second question is just one on asset quality. If you look at your loan book across the 4 core markets, I was just wondering which particular markets in terms of either geography or product or both are you particularly concerned or focused on as the economy slows down?