Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q1 2025 Earnings Presentation
23 slides from Nordea Bank Abp's earnings presentation, April 2025
Slide 1: First-quarter results 2025
First-quarter results 2025
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance
Slide 3: Operating environment
Operating environment Nordic countries well positioned to manage through periods of turmoil Strong fiscal positions providing stability and flexibility Nordic economies less reliant on goods exports A Fiscal balance B Debt, % of GDP Total exports of goods as % of GDP 15 100 Fiscal balance, % of GDP
Slide 4: Executive summary
First-quarter highlights 2025 Executive summary Continued growth in fees and commissions; total income resilient - Total income down 4%. Net interest income down 6%, net fee and commission income up 4% and net fair value result down 1% - Operating profit down 9% y/y, to EUR 1.6bn, up 10% q/q Return
Slide 5: Key financials
Key financials First-quarter results 2025 Income statement and key ratios Q125 Q124 Q1/Q1 Q424 Q1/Q4 EURm Net interest income 1,829 1,954 -6% 1,854 -1% Net fee and commission income 793 763 4% 825 -4% Net insurance result 54 61 -11% 69 -22% Net fair value result 289 291 -1% 201 44% Other income 9 16
Slide 6: Net interest income: higher business volumes, lower deposit margins as expected
Net interest income Higher business volumes, lower deposit margins as expected Year-over-year bridge, EURm • Net interest income down 6% y/y -6% 1,954 70 • Lending and deposits up 327 15 1,829 9 37 21 - Mortgages up 6% (stable excluding 121 Norwegian acquisition) - Corporate lending stable Q124 Volu
Slide 7: Net fee and commission income: continued growth, driven by savings
Net fee and commission income Continued growth, driven by savings Year-over-year bridge, EURm • Net fee and commission income +4% up 4% y/y 6 2 793 2 4 0 28 • Savings fee income up with higher 763 assets under management - AuM up 9%, to EUR 425bn Q124 Asset Brok. & Pay. & Lending Other FX Q125 - Net
Slide 8: Net fair value result: higher customer activity and strong market-making
Net fair value result Higher customer activity and strong market-making Net fair value result, EURm -1% • High customer risk management 289 activity, particularly in FX and 291 284 53 rates products 31 22 247 0 17 35 6 201 • Strong market-making, driven by 7 high activity and positive revaluations f
Slide 9: Costs stabilising in line with plan
Costs Costs stabilising in line with plan Year-over-year bridge, EURm +5% • Total costs up 5% y/y, driven by 4 10 1,354 47 3 investments and inflation 1,289 15 20 - 4pp of increase due to strategic investments in several key areas, including technology, data and AI, digital services and cyber securi
Slide 10: Net loan losses: strong credit quality
Net loan losses and similar net result Strong credit quality Net loan losses and similar net result, EURm • Low net loan losses and similar net result EUR 13m (1bp) - Stable quarter, with individual provisions 11 at low level -20 -13 - Slight increase in collective provisions, 20 42 -7 13 driven by
Slide 11: Capital: strong position; share buy-backs in progress
Capital Strong capital position; share buy-backs in progress CET1 capital ratio development, % • CET1 capital ratio 15.7% - 2.0 percentage points above regulatory requirement 15.8 0.8 -0.5 15.7 -0.2 -0.1 ~15 - EUR 0.4bn increase in CET1 capital, 1.5 mainly driven by profit net of dividend and FX eff
Slide 12: Personal Banking
Personal Banking Higher mortgage and deposit volumes; NCI growth countering lower deposit margins Total income, EURm -2% • Mortgage volumes up 6% and deposit volumes up 6% 1,189 1,177 1,188 1,173 1,167 • Total income down 2% • Net interest income down 4%; lower deposit margins 869 849 846 819 831 •
Slide 13: Business Banking
Business Banking Higher volumes; strong NCI partly offsetting NII impact from lower deposit margins Total income, EURm • Lending volumes up 1% and deposit volumes up 6% -4% • Total income down 4% 877 882 856 847 842 • Net interest income down 8%; lower deposit margins 613 603 588 571 563 • Net fee a
Slide 14: Large Corporates & Institutions
Large Corporates & Institutions High customer hedging activity and deposits limiting effect of lower rates and slow ECM/M&A Total income, EURm • Lending volumes down 1% and deposit volumes up 17% -3% • Total income down 3% 637 602 597 616 • Net interest income down 10% due to lower rates 562 368 332
Slide 15: Asset & Wealth Management
Asset & Wealth Management Strong net flows in both Nordic and international channels Total income, EURm • Assets under management up 9%, to EUR 425bn; lending up +1% 8% and deposits up 14% 339 349 337 346 343 • Nordic channels net inflows EUR 2.7bn during quarter 84 81 78 76 78 • International chann
Slide 16: 2025: The preferred financial partner in the Nordics
2025: The preferred financial 2025 financial target partner in the Nordics Return on equity >15% Assumes CET1 requirement of 15%, including management buffer Rates assumed to normalise at ~2% Unique Nordic diversification and scale Supported in 2025 by Cost-to-income ratio Profitable growth and high
Slide 17: Slide 17
Slide 18: Capital excellence: strong capital generation supporting returns
Supplementary information Capital excellence Strong capital generation supporting returns Shareholder returns supported by continued strong capital generation EUR ~17-18bn Year Average quarterly capital generation, bp • Capital return commitment reaffirmed Share buy-backs 2025 - Strong capital gener
Slide 19: Net interest income sensitivity
Supplementary information Net interest income sensitivity Net interest income sensitivity to policy rate changes Sensitivity to +50bp parallel shift in policy Deposit hedge – nominal volume, • NII impact largely driven by policy rates*, EURm EURbn rates and pass-through ~75–125 34 33 31 31 32 - Actu
Slide 20: Real estate credit portfolio: well-diversified, high-quality lending
Supplementary information Credit portfolio – real estate management industry (REMI)* Well-diversified portfolio, high-quality lending Lending volumes stable Diversified across countries • Well-diversified portfolio across 32 32 34 Finland Nordic markets 32 31 7 17% 6 6 6 6 Sweden • 90% of exposure t
Slide 21: Solid LTVs, resilient interest coverage, high occupancy
Supplementary information Credit portfolio – real estate management industry (REMI)* Solid LTVs, resilient interest coverage, high occupancy Solid LTV levels for all countries Majority of portfolio with low LTV • 87% of exposures with LTV below 60% 67 62 65 62 64 50% - In event of 20% decline in mar
Slide 22: Low levels of risk exposure
Supplementary information Credit portfolio – real estate management industry (REMI)* Low levels of risk exposure Strong credit quality, with 93% of IFRS 9 No REA impact even from 3-notch portfolio in stage 1 downgrade due to risk weight floors 50% RW floor • Continued strong credit quality 8% 50% 6%
Slide 23: Impairments and provisioning coverage
Supplementary information Impairments and provisioning coverage Continued resilience in strong credit portfolio • Stage 2 loans stable at 6% of Stage 2 and 3 loans at amortised cost, EURm total loans Stage 2 Stage 3 • Stage 3 loans stable at 1.04% of total loans 19,469 19,092 18,541 16,366 16,208 •