The ECB cut its policy rate by 25bp in September which together with the June 25bp cut reduced Q3/Q2 average 3m EURIBOR by 25bp. All things equal, this would weigh on Aktia’s NII. However, with a hedge in place, the impact should be negligible. Since the company has not provided details of this hedge, our Q3 NII estimate is highly uncertain. Rising markets should support fees but our focus is on trends in client flow.
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