Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q2 2025 Earnings Presentation
22 slides from Nordea Bank Abp's earnings presentation, Jul 17, 2025
Slide 1: Half-year results 2025
Half-year 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: Executive summary
Second-quarter highlights 2025 Executive summary Strong performance and high profitability in volatile markets - Return on equity* 16.2% and earnings per share EUR 0.35 Return to growth in corporate lending; continued growth in mortgage and deposit volumes and assets under management - Mortgage lend
Slide 4: Second-quarter results 2025: Key financials
Key financials Second-quarter results 2025 Income statement and key ratios Q225 Q224 Q2/Q2 Q125 Q2/Q1 EURm Net interest income 1,798 1,904 -6% 1,829 -2% Net fee and commission income 792 795 0% 793 0% Net insurance result 58 63 -8% 54 7% Net fair value result 254 247 3% 289 -12% Other income 9 21 -5
Slide 5: Higher business volumes, lower margins as expected
Net interest income Higher business volumes, lower margins as expected Year-over-year bridge, EURm • Net interest income down 6% -6% y/y, as expected 1,904 90 1,798 382 16 25 • Lending and deposit growth 18 127 - Mortgages up 6% (1% excluding Norwegian acquisition) Q224 Volumes Margins Deposit Treas
Slide 6: Fees impacted by market volatility early in quarter
Net fee and commission income Fees impacted by market volatility early in quarter Year-over-year bridge, EURm 0% • Net fee and commission income 795 stable 1 792 10 9 17 13 • Savings fee income stable 4 - AuM up 9%, to EUR 437bn - Net flows in Nordic channels (86% of Q224 Asset Brok. & Pay. & Lendin
Slide 7: Continued high customer activity
Net fair value result Continued high customer activity Net fair value result, EURm* +3% • High activity in customer risk 284 289 management, particularly in FX 254 and rates products 247 77 86 53 54 • Higher treasury result offset by 201 lower market-making, impacted 30 by volatility due to tariff u
Slide 8: Costs in line with plan
Costs Costs in line with plan Year-over-year bridge, EURm +4% • Total costs up 3% y/y (excl. FX), 1,333 driven by strategic investments 17 7 17 and inflation 1,278 15 14 - More than half of increase due to strategic initiatives, including Norwegian acquisition and Q224 Underlying Norwegian Technolog
Slide 9: Exceptionally strong credit quality
Net loan losses and similar net result Exceptionally strong credit quality Net loan losses and similar net result, EURm • Net loan losses and similar net result -11 reversal of EUR 21m (2bp) 56 - Low individual provisions and write-offs, -60 driven by corporate customers, with no specific industry c
Slide 10: Strong capital position; share buy-backs ongoing
Capital Strong capital position; share buy-backs ongoing • CET1 capital ratio 15.6% CET1 capital ratio development, % - 1.9pp above regulatory requirement - CET1 capital ratio 7bp lower, mainly due to launch of new share buy-back 15.7 0.8 -0.5 15.6 programme and increased corporate -0.2 -0.2 ~15 len
Slide 11: Personal Banking: Volume growth and fee income offset lower deposit margins
Personal Banking Volume growth and fee income largely offset impact of lower deposit margins Total income, EURm -2% 1 188 • Mortgage volumes up 6% and deposit volumes up 7% 1 177 1 173 1 167 1 156 • Net interest income down 4% – lower deposit margins 849 846 819 831 814 • Net fee and commission inco
Slide 12: Business Banking: Solid volume growth; headwind from lower margins
Business Banking Solid volume growth; headwind from lower margins Total income, EURm -6% • Lending volumes up 4% and deposit volumes up 10% 882 856 847 842 831 • Net interest income down 8% – lower deposit margins 603 588 571 563 • Net fee and commission income stable; growth in lending 553 and savi
Slide 13: Large Corporates & Institutions: Lending growth; income lower
Large Corporates & Institutions Lending volume growth; income lower, driven by rate reductions Total income, EURm • Lending volumes up 6%, adjusted for FX, and deposit -8% volumes largely stable 602 597 562 616 • Net interest income down 11% due to lower rates 554 • Net fee and commission income dow
Slide 14: Asset & Wealth Management: Solid customer acquisition in Private Banking
Asset & Wealth Management Solid customer acquisition in Private Banking Total income, EURm • Solid customer acquisition, with net flows of EUR 2bn in -6% Private Banking, driven by Finland and Sweden 349 337 346 343 329 • Flows in higher margin wholesale distribution stabilising 81 78 76 78 73 • Ass
Slide 15: 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
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Slide 17: 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 18: Net interest income sensitivity to policy rate changes
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 33 31 31 32 33 - Actu
Slide 19: Well-diversified portfolio, 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 34 35 Finland Nordic markets 31 32 32 7 7 17% 6 6 6 Sweden • 90% of exposure t
Slide 20: 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 21: Low levels of risk exposure
Supplementary information Credit portfolio – real estate management industry (REMI)* Low levels of risk exposure Strong credit quality, with 94% of IFRS 9 Minimal REA impact even from 3-notch portfolio in stage 1 downgrade due to risk weight floors 51% RW floor • Continued strong credit quality 8% 5
Slide 22: Continued resilience in strong credit portfolio
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 3 loans slightly up at 1.09% Stage 2 of total loans (1.04% Q125) 19,092 18,541 16,207 16,366