Nordea Bank concludes buyback program

Nordea Bank recently concluded its share repurchase program, in which they bought back 195,531 of their own shares with the ISIN (International Securities Identification Number) FI4000297767. These shares were repurchased across multiple public trading venues at an average price of EUR 10.10 per share, resulting in a total expenditure of EUR 1,974,892.08.

This repurchase program was initially announced in April 2023 and received authorisation at the Annual General Meeting later in the same year. It operated within the legal framework defined by Regulation No. 596/2014 of the European Parliament and Council of April 16, 2014 (MAR) and the Commission Delegated Regulation (EU) 2016/1052. These regulations govern the repurchase of company shares within the European Union.

The foreign exchange (FX) rates used for these transactions were SEK to EUR 11.6985 and DKK to EUR 7.4617, which were relevant for any currency conversions related to the share repurchase.

Following the completion of these transactions, Nordea Bank now possesses more than 11 million treasury shares, typically reserved for capital optimisation purposes. These shares can be employed for various purposes, including potential use in mergers, acquisitions, or to meet regulatory requirements. In addition to these treasury shares, the bank also holds nearly five million additional shares specifically earmarked for remuneration purposes. These dedicated shares may be utilised for employee stock compensation plans or other remuneration-related initiatives.

The announcement about the successful completion of the share repurchase program was made by Morgan Stanley Europe SE, acting on behalf of Nordea Bank. This suggests that Morgan Stanley played a role in facilitating or managing the repurchase program. Overall, share buy-back programs are a common financial strategy used by companies to return capital to shareholders, support their stock price, and optimise their capital structure. In this case, Nordea Bank’s program adhered to European Union regulations and aligned with their capital optimisation goals.