Finland · Delayed Price · Currency is EUR Nordea Bank Abp Earnings Call Transcripts
Fiscal Year 2026
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Strong Q2 2026 results with income above EUR 3 billion, robust growth in savings, investments, and lending, and improved cost efficiency. Return on equity reached 15.9%, cost-to-income ratio improved to 44%, and capital position remains solid. Guidance for 2026 was raised, reflecting confidence in continued profitable growth.
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Q2 NII is expected to be slightly up from Q1, with margin pressure persisting, especially in Norway due to repricing lags. CET1 ratio remains strong, though a regulatory adjustment will reduce it by 10-15bps. Loan losses are set to normalize, and the board will decide on a mid-year dividend.
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Q1 2026 delivered strong profitability and business growth, with Return on Equity at 15.4% and robust lending and deposit increases across segments. Despite market volatility and one-off trading losses, the outlook for 2026 remains unchanged, with continued focus on cost efficiency and digital initiatives.
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Market volatility and geopolitical uncertainty are pressuring trading income, AUM, and capital markets activity. Q1 NII is expected to be the lowest quarter, with gradual recovery and cost benefits from restructuring initiatives anticipated over 2026–2027.
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Management outlined a five-year strategy focused on digital leadership, efficiency, and growth in key Nordic markets, targeting a cost-to-income ratio improvement and sustained ROE above 15%. AI and technology investments are central, with strong capital returns and disciplined M&A planned.
Fiscal Year 2025
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Strong Q4 and 2025 results featured high profitability, robust capital, and improved customer satisfaction, with record AUM and continued cost discipline. 2026 guidance targets ROE above 15% and a cost-to-income ratio around 45%, amid ongoing margin pressure and competitive Nordic markets.
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Q4 NII is expected to decline amid margin pressure and minor FX tailwinds, while loan losses are likely to rise to long-term averages. CET1 capital will be impacted by a new share buyback and regulatory changes, with restructuring charges deferred to 2026.
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Ambitious 2030 targets include ROE above 15%, cost-to-income ratio of 40%-42%, and EUR 2 EPS, driven by focused growth in six areas, digital transformation, and Nordic scale efficiencies. Cost growth is capped at 2% CAGR, with strong capital returns and a new interim dividend policy.
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Q3 2025 saw robust results with a 15.8% return on equity, strong lending and deposit growth, and stable costs. Asset quality remained high, CET1 ratio reached 15.9%, and a new EUR 250 million share buyback was announced. Outlook for 2025 remains positive with targets reaffirmed.
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Nordic policy rates and FX movements are pressuring income, while cost growth is moderating and capital ratios remain strong. Dividend policy is unchanged, with interim dividends still hypothetical, and management is focused on cost discipline and shareholder engagement.
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No new bank taxes are expected in Denmark or Norway, and 2025 financial targets remain on track. Net interest income is stable, with market share gains in Sweden and a focus on efficiency and cost control. Asset quality is robust, and capital will be deployed in acquisitions or returned to shareholders.
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Global economic uncertainty has eased, with U.S. tariffs raising inflation risks and slowing growth, while Europe is set for recovery driven by fiscal expansion. Nordic economies are expected to synchronize as Sweden and Finland rebound, and financial markets remain calm despite potential risks.
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Q2 2025 saw robust lending, deposit, and AUM growth despite volatile markets, with ROE at 16.2% and strong credit quality. Guidance for full-year ROE above 15% and cost growth of 2%-2.5% is maintained, supported by strategic investments and capital strength.
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Q2 pre-close call highlighted lower policy rates, margin pressure from competitive mortgage pricing, and continued uncertainty impacting capital markets activity. Costs are guided to rise modestly, with stable credit quality and ongoing buybacks as the preferred capital deployment tool.
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Q1 2025 saw robust profitability and growth in business volumes despite global uncertainty, with return on equity at 15.7% and strong capital ratios. Net interest income and total income declined year-on-year, but fee income and assets under management grew, supported by strategic investments and prudent risk management.
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The AGM reviewed strong financial results, approved a EUR 0.94 dividend per share, and re-elected the board. Shareholders debated fossil fuel policies, but proposals for stricter restrictions were not adopted. Strategic focus remains on digital leadership, sustainability, and Nordic growth.
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Management remains focused on delivering above 15% ROE, supported by resilient NII, strong fee income growth, and disciplined cost control. Strategic priorities include organic growth in Sweden and Norway, ongoing technology investments, and leveraging Nordic scale for efficiency. Regulatory and competitive pressures are addressed through active capital management and service excellence.
Fiscal Year 2024
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Strong Q4 and full year 2024 results with income up 3% and return on equity above 16%. Acquisition in Norway boosted market share and customer base, while cost efficiency and capital strength supported higher dividends and ongoing buybacks. CET1 ratio at 15.8%.
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Q3 2024 saw robust profitability with return on equity at 16.7% and stable business volumes. Income growth was driven by higher fee and commission income, while net interest income was resilient despite margin pressure. Share buybacks resume, and full-year ROE is expected above 16%.
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Q2 2024 saw robust profitability with 17.9% ROE, 4% net interest income growth, and strong capital generation (CET1 17.5%). Segment performance was solid across all areas, with continued investments in technology and risk management. Buybacks are expected to resume in early 2025.