Nordea Bank Abp

Latest Results (04.09.2025):

Nordea Bank Abp reported strong financial performance in its half-year 2025 results, demonstrating resilience and profitability despite ongoing economic uncertainties. The bank achieved an earnings per share of EUR 0.35 and maintained a healthy return on equity of 16.2%. Growth in lending and deposit volumes, coupled with exceptional credit quality, underscore Nordea's robust business model and strategic investments.

Strong Profitability

Nordea maintained high profitability with an earnings per share of EUR 0.35 and a return on equity of 16.2% for the half-year 2025. The cost-to-income ratio, including amortised resolution fees, was 46.1%, reflecting effective cost management despite a 4% increase in total operating expenses driven by strategic investments and inflationary pressures.

Resilient Total Income

Total operating income for the half-year was EUR 2.9 billion, a slight decrease of 4% year-on-year. Net interest income declined by 6% due to policy rate reductions, while net fee and commission income remained stable. Solid performance in net insurance and net fair value results contributed to overall income resilience.

Growth in Lending and Deposits

Lending volumes increased by 6% year-on-year, supported by organic growth in Sweden and acquisitions in Norway. Corporate lending also grew by 5%, reflecting Nordic companies' adaptation to the current economic environment. Retail and corporate deposits saw significant increases of 8% and 5%, respectively, with assets under management rising by 9% to EUR 437 billion.

Exceptional Credit Quality

Nordea reported exceptionally strong credit quality, with net loan losses amounting to a reversal of EUR 21 million. Lower provisioning requirements and a release from the management judgement buffer contributed to this positive outcome. Excluding this release, net loan losses were minimal, demonstrating the bank's robust credit portfolio.

Robust Capital Generation

The CET1 ratio stood at 15.6%, 1.9 percentage points above regulatory requirements, indicating a strong capital position. Nordea launched a new EUR 250 million share buy-back programme, reflecting confidence in its sustained capital generation and commitment to returning value to shareholders.

Unchanged 2025 Outlook

Nordea remains on track to deliver a return on equity above 15% for the full year 2025. The bank's diversified loan portfolio, strategic investments in technology and AI, and strong presence in the Nordic markets position it well to navigate economic cycles, support growth, and maintain high-quality earnings with low volatility.