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

Macroeconomic and geopolitical context

• European stability, including peace in Ukraine and Germany's fiscal package, seen as positive for banks and economic growth.

• Political and macroeconomic developments drive sentiment and business outlook.

Strategic priorities and financial targets

• Focus on concluding the current strategy period with a return on equity (ROE) above 15%.

• Emphasis on loan growth, income performance, cost management, and capital efficiency.

• Confident in being among Europe's top-performing banks if execution continues.

Capital management and distribution

• High capital requirements in Nordic markets, managed through active capital strategies.

• Securitization used as a tool, providing $5 billion REA relief, but not a strategic priority.

• Dividend payout ratio maintained at 60%-70%, with excess capital distributed via smaller, more frequent buybacks.

• Semi-annual dividend payments under consideration based on shareholder feedback.