Nordea Bank Abp reported first-quarter results Wednesday showing a 4% decline in net interest income to €1.76 billion ($2.1 billion), largely in line with analyst expectations of €1.74 billion. The Finnish lender offset the interest income drop through strong fee growth, with net fee and commissions income rising 6% year-over-year to €842 million, beating estimates.

Higher activity levels drove the fee income increase, boosting savings income along with payment and card fee revenue and lending fees. CEO Frank Vang-Jensen said strong growth in net fee and commission income helped offset an expected decrease in net interest income in the lower rate environment. The bank's adjusted net income for the quarter totaled €1.24 billion.

The results come as Nordea moves to slash costs through automation. Last month, the bank announced plans to cut as many as 1,500 jobs—roughly 5% of its workforce—through next year, citing artificial intelligence as a driver of efficiency. The workforce reduction supports Nordea's 2030 strategy centered on technology and data.