Nordea Bank (NDA-SE) Morgan Stanley 21st Annual European Financials Conference summary

Macroeconomic and geopolitical outlook

• Political and geopolitical developments, such as potential peace in Ukraine and Germany's fiscal initiatives, are seen as positive for European stability and banks supporting the region.

• Greater political stability and economic recovery in key markets like Germany are expected to benefit Nordic banks and their clients.

Strategic priorities and financial targets

• The current year marks the conclusion of a multi-year strategy period, with a focus on delivering a return on equity (ROE) above 15%.

• Key levers for ROE include cost-income ratio, cost of risk, and capital efficiency, with ongoing efforts to maintain top performance in Europe.

• Execution on loan growth, income performance, and cost management remains central to achieving targets.

Capital management and distribution

• High capital requirements in Nordic markets are managed through active capital efficiency measures, including securitizations and selective acquisitions.

• Securitization transactions have provided $5 billion in risk-weighted asset relief, but are not a strategic priority.

• Dividend payout remains strong at 60%-70%, with buybacks expected to be smaller and more frequent.

• Consideration is ongoing for semi-annual dividend payments based on shareholder feedback.