Nordea Bank (NDA-SE) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered resilient profitability with Return on Equity at 15.4% and EPS at EUR 0.36, despite market volatility from Middle East conflict escalation.

• Operating profit rose 2% to EUR 1.6bn, supported by strong growth in corporate lending (+11%) and mortgage lending (+2%).

• Continued growth in lending, deposits, and assets under management, with strategic progress in Private Banking, Life & Pensions, and digital initiatives.

• Strategic initiatives included launching a unified Nordic corporate credit platform and scalable payments platform.

• Credit quality remained very strong; the COVID-era management judgement buffer was fully deployed.

Financial highlights

• Net interest income fell 4% year-over-year to EUR 1,759m; net fee and commission income grew 6% to EUR 842m.

• Net fair value result dropped 22% due to lower market making income amid sharp interest rate movements.

• Total operating income was EUR 2.91bn, down 2% year-over-year; operating profit EUR 1.63bn, up 2%.

• Operating expenses were flat year-over-year before FX; cost-to-income ratio at 45.5%.

• Assets under management increased 9% to EUR 464bn; retail deposits up 5%, corporate deposits up 2%.

Outlook and guidance

• 2026 outlook unchanged: Return on Equity expected above 15%, cost-to-income ratio around 45%.

• NII expected to gradually improve through 2026, driven by volume growth; margin pressure persists, especially in retail.

• Dividend payout policy remains at 60–70% of annual profit, with ongoing share buy-backs and planned mid-year dividend.

• No further large restructuring programs planned; cost reductions to come from ongoing efficiency and technology initiatives.

• 2030 targets: Return on Equity significantly higher than 15%, cost-to-income ratio of 40–42%.