Finland · Delayed Price · Currency is EUR Nordea Bank Abp Earnings Call Transcripts
Fiscal Year 2026
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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 per share dividend, and re-elected the board. Shareholders debated climate policy and fossil fuel financing, but a proposal to restrict such activities was not adopted. Strategic focus remains on digital leadership and sustainability.
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Management remains focused on delivering ROE above 15% through disciplined cost control, capital efficiency, and targeted growth, especially in Sweden and Norway. Fee income and NII are expected to remain resilient, with ongoing investments in technology and risk management. Regulatory capital requirements and competition continue to shape strategic decisions.
Fiscal Year 2024
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Delivered strong 2024 results with income up 3% and return on equity at 16.7%. Completed a major Norwegian acquisition, grew assets under management by 11%, and improved cost efficiency. Targeting above 15% return on equity for 2025 and continued capital returns to shareholders.
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Q3 2024 saw strong profitability with ROE at 16.7%, stable business volumes, and income growth driven by savings and investments. Updated guidance expects full-year ROE above 16%, with continued capital returns and lower cost growth in 2025.
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Q2 2024 saw robust profitability with 17.9% ROE, strong income growth, and a CET1 ratio of 17.5%. Strategic investments and a major Norwegian acquisition are underway, with buybacks expected to resume in 2025. Full-year costs will rise slightly due to technology and risk investments.