Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Debt Investor Presentation (2025)
39 slides from Nordea Bank Abp's debt investor presentation, 2025
Slide 1: Debt investor presentation Q2 2025
Debt investor presentation Q2 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: Table of contents
Table of contents 1. Quarterly update 5 2. Credit quality 12 3. Capital, liquidity and funding 17 4. ESG 29 5. Macroeconomy 34 3
Slide 4: The largest financial services group in the Nordics
Nordea today The largest financial services group in the Nordics Unique Nordic diversification and scale €637bn €6.5bn AA-/Aa3 Operating profit Assets Credit rating 2024 €335bn €437bn ~€44bn Assets under Loan portfolio management Market capitalisation ~30 000 EUR 0.94 EUR 0.11 Dividend per share Sha
Slide 5: 1. Quarterly update
1. Quarterly update Nordea
Slide 6: 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 7: 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 8: Net interest income sensitivity to policy rate changes
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 - Actual pass-through varying be
Slide 9: 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 10: 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 11: 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 12: 2. Credit quality
2. Credit quality Nordea
Slide 13: Well diversified pan-Nordic financial service provider
Credit portfolio Well diversified pan-Nordic financial service provider Corporate lending 0.6% Accomodation and leisure 0.7% Power production Household lending 23% 0.8% Consumer durables 0.9% Land transportation 33% 0.9% IT services 0.9% Fishing and aquaculture 1.0% Crops, plantations and hunting Le
Slide 14: 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 15: Continued resilience in strong credit portfolio
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 16,208 Stage 3 • Coverage
Slide 16: Well-diversified portfolio, high-quality lending
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 towards low- 39% risk custo
Slide 17: 3. Capital, liquidity and funding
3. Capital, liquidity and funding 17
Slide 18: 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 19: Strong capital position
Capital Strong capital position • CET1 capital ratio 15.6% - 1.9 percentage points above regulatory Capital position and requirements (%) requirement, corresponding to a CET1 buffer of EUR 3.0bn 2.1% 20.0% • CET1 requirement 1.9% 17.9% - On 26 June, the Finnish FSA decided to 0.4% reciprocate the No
Slide 20: Strong capital generation supporting returns
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 generation - Unchanged dividend
Slide 21: Strong balance sheet structure
Balance sheet Strong balance sheet structure Q2 2025 Other assets Other liabilities • Total assets EUR 637bn Q2 2025 Derivatives Derivatives - Strong balance sheet with Cash and balances Short-term funding with central banks Funding <1 year deposits as primary source of funding Liquid assets Liquidi
Slide 22: Strong liquidity position
Liquidity Strong liquidity position Liquidity buffer composition, EUR 122bn Currency split Asset split • Robust liquidity position - Liquidity coverage ratio (LCR) 163% 11% 13% - Net stable funding ratio (NSFR) 123.4% 32% SEK EUR 37% Level 1 cash & central bank 11% USD Level 1 excl. covered bonds 30
Slide 23: Nordea global issuance and strong ratings
Long term funding Nordea global issuance 8% 4% 3% 1% 2% 6% 2% 2% 4% Strong ratings 79% Nordea Bank Abp NOK 89% • Moody’s Aa3 (positive outlook) (EUR 22bn eq.) SEK • S&P AA- (stable outlook) 96% (EUR 37bn eq.) • Fitch AA- (stable outlook) DKK 8% 19% (EUR 53bn eq.) 23% 21% 18% 20% 23% 18% 12% 41% 35%
Slide 24: Solid funding operations
IFR Yankee Wholesale funding Bond of the Year - 2024 Solid funding operations Total wholesale funding, EUR 201bn 3% 4% 1% 5% Scandinavian covered bonds • Long-term issuance* 20% 7% EUR covered bonds - EUR 5.1bn issued during Q2 Green covered bonds 4% - EUR 2.5bn in covered bonds and EUR 2.6bn in sen
Slide 25: Enhanced focus on sustainable funding
IFR Sustainability at the core Sustainable Issuer of the Enhanced focus on sustainable funding Year - 2023 Nordea’s green bond asset portfolio • EUR 24.1bn assets available for green funding Green buildings - EUR 9.1bn in NBAbp green bond asset portfolio 6% 2% - EUR 15bn available assets for green c
Slide 26: Nordea covered bond operations
Covered bonds Nordea covered bond operations Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank Four aligned covered bond issuers with complementary roles Data as per Q1 Legislation Norwegian Swedish Danish Finnish Cover pool assets Norwegian residential Swedish residential Dan
Slide 27: Nordea recent benchmark transactions
Funding transactions Nordea recent benchmark transactions Issuer Type Currency Amount (m) FRN / Fixed Issue date Maturity date First call date Nordea Bank Senior non-preferred NOK 1,250 FRN Jun-25 Jun-30 Nordea Bank Senior non-preferred NOK 2,000 FRN Jun-25 Jun-28 Nordea Bank Senior non-preferred, G
Slide 28: MREL positions and requirements, EUR bn
Minimum requirements for own funds and eligible liabilities MREL positions and requirements, EUR bn Subordinated MREL – EUR 3.3bn above constraining requirement 4.3 8.8 of 27% of REA incl. combined buffer 3.3 requirement 14.4 Total MREL 50.6 – EUR 4.3bn above constraining requirement 42.8 of 31.9% o
Slide 29: 4. ESG
4.ESG Nordea
Slide 30: Our long-term sustainability objectives supported by short-term targets
Sustainability at the core Our long-term sustainability objectives supported by short-term targets Our sustainability objectives CO2 Become a net-zero emissions bank by 2050 at the latest Gender balance 40-50% 50% reduction in emissions across investment and lending portfolios reduction in emissions
Slide 31: Nordea is well on-track to reach its 2030 financed emissions target
Sustainability at the core Nordea is well on-track to reach its 2030 financed emissions target Portfolio-wide 2030 target for the lending portfolio Decarbonisation levers in the lending portfolio MtCO2e MtCO2e -36% -40-50% 23.1 25 23.1 20 0.8 14.8 0.7 14.8 6.0 13.9 15 3.1 1.5 0.2 10 5 0 Base year Ex
Slide 32: Continued progress on climate targets in our lending portfolio
Sustainability at the core Continued progress on climate targets in our lending portfolio 2024 progress 40-50% reduction in financed emissions in our lending portfolio by 20301 -36% Sector Sub-sector Emissions scope Metric Base year Baseline Target year Target Residential real Households and tenant-
Slide 33: We engage with our customers to drive sustainable growth
Sustainability at the core We engage with our customers to drive sustainable growth Green assets and sustainability-linked loans Sustainable finance facilitation1 Total volumes, EURbn Accumulated volumes, EURbn • Facilitated EUR 213bn in sustainable financing since 14.2% 13.0% 213 200 start of 2022
Slide 34: 5. Macroeconomy
5. Macroeconomy Nordea
Slide 35: Weathering the storm
Nordic economic development Weathering the storm GDP Unemployment rate GDP, % y/y, Economic Outlook May 2025 • The global economic outlook remains highly uncertain amid trade tensions and geopolitical risks. However, the Country 2023 2024 2025E 2026E Nordic economies are expected to weather the stor
Slide 36: On hold
Nordic economies On hold Policy rates Public balance/debt, % of GDP, 2025E (IMF) • The ECB, Danmarks Nationalbank, Norges Bank and Sveriges Riksbank lowered their policy rates by 0.25pp in June • The ECB and Sveriges Riksbank are expected to leave their policy rates unchanged at 2.00%, according to
Slide 37: Cautious consumers
Households Cautious consumers Household debt Household savings Private consumption • The elevated global uncertainty contributed to falling consumer confidence at the start of the year. The level has improved in recent months, albeit marginally, indicating continued caution among Nordic households •
Slide 38: Mixed developments
Housing markets Mixed developments Housing prices Households’ credit growth • Housing price developments have been mixed since the start of the year. Danish and Norwegian housing prices have fared better than those of their Nordic counterparts. Norwegian housing prices were up 5.1% year on year in J
Slide 39: Contacts
Contacts Investor Relations Ilkka Ottoila Juho-Pekka Jääskeläinen Randie Atto Rhawi Head of Investor Relations Head of Debt IR and Ratings Senior IR Officer Tel: +358 9 53 00 70 58 Tel: +358 9 53 00 64 35 Tel: +46 73 866 17 24 Ilkka.ottoila@nordea.com Mobile: +358 40 550 91 11 randie.atto.rhawi@nord