Nordea EN English Dansk Norsk Suomi Svenska Share buy-backs Breadcrumb Home Investors Share Share buy-backs Nordea’s capital and dividend policy includes both dividends and buy-backs as tools for capital distribution to shareholders. Our aim is to pay out 60-70% of the profit of the financial year to shareholders. In addition, buy-backs are intended to be used for distributing excess capital to our shareholders. Currently, we have excess capital that also impacts our profitability. Being able to distribute excess capital to our shareholders is an important factor in improving our return on equity in particular. In September 2021, Nordea received approval from the European Central Bank (ECB) for share buy-backs of up to EUR 2 billion – a recognition of Nordea’s strong capital position and strong business performance. The ECB approval for the current share buy-backs is an important step in making share buy-backs an integral part of Nordea’s capital management practice. In that context, Nordea is in dialogue with the ECB around a potential follow-on buy-back programme. Related links Nordea cancels repurchased shares Nordea repurchases shares in accelerated bookbuild Nordea announces commencement of share buy-back programme Nordea Bank Abp announces ECB approval of share buy-backs Frequently asked questions about share buy-backs What is a share buy-back and why are you doing it? A share buy-back means that a company purchases its own shares back from its shareholders. It is a way for the company to return capital to shareholders, and thus similar to a dividend. What is the difference between a dividend pay-out and a share buy-back? From the perspective of Nordea’s capital and dividend policy, they are used for different reasons. Our aim is to pay out 60-70% of the profit of the financial year to shareholders as dividend. This is different to buy-backs, which are intended to be used for distributing excess capital to our shareholders. Does executing buy-backs mean that you think Nordea's shares are undervalued? We don’t comment on the value of our shares. The reason for undertaking the share buyback is to distribute excess capital to shareholders. Why don't you pay all of the money back to shareholders through dividends? Our dividend policy stipulates a payout ratio of 60-70% of profit of the financial year to shareholders. When it comes to excess capital, which we currently clearly have, the policy is to distribute that to shareholders through buy-backs. Share buy-back announcements See all share buy-backs About us Who we are Nordea in society Corporate governance Investors Nordea in figures Reports & presentations Share News & insights Press room Economic Outlook Blogs Careers Vacant positions Join us Locations Sustainability Sustainability at Nordea Sustainable Choice Reports Our services Corporates & institutions Small & medium businesses Personal customers Contact us General terms Privacy policy Cookies Accessibility Site feedback Nordea Bank © 2021 Nordea’s use of cookies Dansk Norsk Suomi Svenska Nordea uses own cookies as well as cookies from third parties. Cookies are used to enhance your online experience and to remember your preferences, for example language. Cookies are also used to analyse web traffic and to show you targeted ads in our own and third parties’ online media. We ask for your consent to use such cookies, except for necessary cookies which are needed to run our website. If you click on “Settings” below, you are able to decide which cookies you want to consent to. By clicking “Accept all cookies” you consent to all cookies from Nordea and our third-party collaborators. You can change or withdraw your consent at any time. You can read more about the use of cookies and how you can withdraw your consent in our cookie policy. Accept all cookies Settings