Nordea Bank (NDA-SE) Q4 2024 earnings summary

Executive summary

• Achieved strong 2024 results with full-year income up 3% and return on equity at 16.7%, exceeding 16% for the second consecutive year.

• Q4 2024 total income grew 1% year-over-year, with net fee and commission income up 8% and net insurance result up 73%, while net interest income declined 5%.

• Operating profit increased 4% to EUR 1.5bn in Q4; full-year operating profit rose 3% to EUR 6.55bn.

• Completed acquisition of Danske Bank's Norwegian personal customer and private banking business, adding 235,000 customers and EUR 9bn in lending.

• Demonstrated resilience and profitability despite geopolitical tensions and a challenging macroeconomic environment.

Financial highlights

• Q4 2024 net interest income EUR 1,854m, down 5% year-over-year; net fee and commission income EUR 825m, up 8%.

• Net insurance result up 73% year-over-year; net fair value result up 31%.

• Total operating income for Q4 2024 EUR 2,955m, up 1% year-over-year; operating expenses up 1%.

• Assets under management grew 11% year-over-year to EUR 422bn.

• Net loan losses at EUR 54m or six basis points, well below the long-term average.

Outlook and guidance

• 2025 return on equity expected to remain above 15%.

• Cost-to-income ratio targeted at 44-46% for 2025; modest cost growth of 2% to 2.5% anticipated.

• Dividend payout ratio policy of 60-70% of annual profit; board proposes a dividend of EUR 0.94 per share for 2024, up from EUR 0.92 in 2023.

• Ongoing and planned share buy-back programs to distribute excess capital.

• Expecting increased lending market activity as rates decline.