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Nordea Bank expands share buyback, treasury holds over 6 million shares

EditorPollock Mondal
Published 22/11/2023, 08:10
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HELSINKI - Nordea Bank Abp (OTC:NRDBY) has been actively pursuing its share repurchase program, as confirmed by recent transactions and treasury updates. On Tuesday, the bank completed a series of buy-backs across multiple European exchanges, including XHEL and CEUX, at an average price of EUR 10.34 per share. This move is part of a broader initiative that began on April 26th and involves an aggregate expenditure of EUR 3.14 million.

The latest acquisition has contributed to the bank's treasury holdings, which now include over one million shares aimed at capital optimization and nearly five million shares earmarked for employee incentive schemes. These figures come after a corrective statement issued on Monday clarified previous misreporting regarding the share distribution between financial structuring and remuneration purposes.

Nordea's aggressive buy-back strategy falls under the legislative frameworks of MAR and EU Delegated Regulation, following the authorization from April's Annual General Meeting (AGM) to engage in a EUR 1 billion repurchase program. The bank's continued investment in its own shares reflects a commitment to capital efficiency and shareholder value, while also providing a substantial pool for rewarding its employees.

The correction made on Monday, facilitated by Morgan Stanley (NYSE:MS) Europe SE, rectified the initial disclosure error from the day before, ensuring transparency and accuracy in the bank's reporting of its treasury activities. As the market observes Nordea's strategic maneuvers, its treasury accounts now reflect a significant holding that supports both capital structure enhancements and employee incentives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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