Nordea Bank (NDA-SE) Q1 2025 earnings summary

Executive summary

• Delivered strong Q1 2025 results amid global uncertainty, with total income down 4% year-on-year but up 1% sequentially; return on equity reached 15.7%, and EPS was EUR 0.35.

• Maintained resilience through a diversified, pan-Nordic business model and prudent risk management.

• Mortgage lending grew 6% year-on-year, supported by the Danske Bank Norway acquisition; retail deposits up 7%, corporate deposits up 11%.

• Cost-to-income ratio with amortised resolution fees at 44.6%; net loan losses at EUR 13m (1bp), well below long-term expectations.

• CET1 ratio at 15.7%, 2 percentage points above regulatory requirements; EUR 250m share buy-back programme launched in March 2025.

Financial highlights

• Net interest income EUR 1,829m, down 6% year-on-year and 1% sequentially; net fee and commission income EUR 793m, up 4% year-on-year.

• Net insurance result EUR 54m, down 11% year-on-year; net fair value result EUR 289m, down 1% year-on-year, up 44% sequentially.

• Total operating income EUR 2,974m, down 4% year-on-year, up 1% sequentially; operating profit EUR 1,607m, down 9% year-on-year, up 10% sequentially.

• Assets under management up 9% year-on-year to EUR 425bn.

• Diluted EPS EUR 0.35, down 8% year-on-year, up 9% sequentially.

Outlook and guidance

• 2025 guidance unchanged: targeting return on equity above 15% and cost-to-income ratio of 44–46%.

• Full-year costs expected to increase by 2.0–2.5% in 2025, assuming constant FX rates.

• Dividend payout ratio policy of 60–70% of annual profit; ongoing share buy-back programme of up to EUR 250m to be completed by June 2025.

• Management buffer of 150bp above regulatory CET1 requirement.

• Expects continued volatility and dampened growth in the short term due to global economic uncertainty.