We have decided to buy Nordea Bank. The Swedish-Finnish bank is primarily active in Scandinavia and the Baltic region.

Due to the macroeconomic environment, we thought it would be exciting to buy a bank. Interest rates are being raised and the banks' margins may increase. At the same time, high capital buffers have now been built up and risks in the banking sector have been reduced.

In our view, the Baltic and Scandinavian markets spoke in favor of Nordea, as well as a high dividend yield > 7% and a low P/E ratio < 10. The payout ratio of around 70% is, in our view, reasonable for a financial institution.

The Baltic states in particular offer exciting growth prospects from which the bank could benefit.

What do you think of the decision?