(Reuters) -Nordea, the Nordic region’s biggest bank, is targeting a return on equity of above 15% between 2026 and 2030, and significantly above that in 2030, it said in a statement ahead of its investor day on Wednesday.
Nordea will target profitable growth in each of its businesses, the bank said, with a special focus in Norway and Sweden, its biggest market.
The bank also said it expects a cost-to-income ratio of 40–42% in 2030, excluding regulatory fees.
It said the new targets would be supported by a 60–70% annual dividend payout ratio, and semi-annual dividend distributions, and more than 20 billion euros ($23 billion) in total shareholder distributions during 2026-30.
The bank’s interim dividend will be based upon 50% of its first-half profit for the financial year, it said.
Nordea’s shares fell around 3% in early trade in Helsinki, the worst performer on the Helsinki blue-chip index.
The bank said that it expects its core tier 1 ratio, a key measure of its financial strength, to about 15.5% throughout the five-year period.
($1 = 0.8575 euros)
(Reporting by Elviira Luoma in Gdansk, editing by Matt Scuffham)
