Nordea Bank (NDA-SE) Investor presentation summary

Strategy update

• Exceeded 2025 targets: return on equity 15.5%, cost-to-income ratio 46%, CET1 ratio 15.7%, and €17.4bn in shareholder distributions.

• 2030 targets: maintain ROE above 15%, cost-to-income ratio 40-42%, and deliver EPS of ~€2.0.

• Growth driven by market momentum, targeted expansion in Sweden and Norway, digital savings, and small business offerings.

• Structural cost efficiencies through automation, digitalisation, and AI, aiming for cost growth below inflation.

• Focus on capital efficiency, with CET1 ratio around 15.5% and over €20bn in shareholder distributions planned for 2026-30.

Quarterly update

• Q1 2026 ROE at 15.4%, EPS €0.36, with solid growth in lending, deposits, and assets under management.

• Corporate lending up 11% y/y, mortgage lending up 2%, retail deposits up 5%, and AuM up 9%.

• Net interest income down 4% y/y due to lower margins, but fee and commission income up 6%.

• Expenses flat y/y (adjusted for FX), with strong cost management.

• Credit quality remains strong; management judgement buffer fully deployed, CET1 ratio at 15.7%.

Credit quality

• Well-diversified €354bn lending portfolio, with over half exposure to households and no sector concentrations.

• Net loan losses reversed by €99m in Q1 2026; stage 3 loans down to 0.96% of total.

• Real estate portfolio remains high quality, with 91% low-risk exposure and solid LTV and ICR metrics.

• 96% of real estate management industry portfolio in stage 1, with minimal impairment and strong coverage.