STOCKHOLM (AP) — Nordea AB's net profit fell by 3 percent to 771 million euros ($1 billion) in the second quarter — a period it says was characterized by an increase in financial market volatility.

The Nordic region's biggest banking group said Wednesday total operating income for the three-month period fell by 1 percent to 2.5 billion euros. Expenses were also 1 percent lower than in the same quarter last year.

Nordea CEO Christian Clausen said market uncertainty has grown following the Bank of Japan's monetary stimulus and growing expectations that the U.S. Federal Reserve will start scaling back its asset purchase program. Meanwhile, he says many economies continue to struggle.

However, he said Nordea is reaping the benefits from initiatives to recruit new customers and develop its products.