Nordea Bank (NDA-SE) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and full-year 2025 results with high profitability, return on equity at 14.4% for Q4 and 15.5% for the year, and increased business volumes despite muted consumer sentiment and geopolitical tensions.

• Achieved significant improvements in customer satisfaction and digitalization across all business areas.

• Maintained a strong, diversified balance sheet and capital position, supporting resilience amid uncertainty.

• Cost-to-income ratio excluding regulatory fees improved to 46.2% in Q4, reflecting active cost management.

• Strong capital generation enabled continued share buy-backs and increased dividend proposals.

Financial highlights

• Q4 return on equity was 14.4%, EPS rose to EUR 0.34; full-year EPS EUR 1.39.

• Corporate lending grew 8% year-on-year; mortgage lending up 1%; assets under management reached EUR 478bn, up 13% year-on-year.

• Net interest income decreased 5% year-on-year in Q4; net fee and commission income rose 3%; net fair value result up 28%.

• Q4 operating profit up 3% to EUR 1,513m; costs fell 3% year-on-year.

• CET1 ratio at 15.7%, 1.9 percentage points above regulatory requirement.

Outlook and guidance

• 2026 guidance: return on equity above 15%, cost-to-income ratio (excl. regulatory fees) around 45%.

• Long-term targets: ROE above 15% and cost-to-income ratio 40-42% by 2030.

• Board proposes a dividend of EUR 0.96 per share for 2025 and a mid-year 2026 dividend of ~50% of H1 net profit.

• Dividend payout policy remains at 60-70% of annual profit, with ongoing share buy-backs.

• Q1 2026 expected to be the trough for net interest income, with growth resuming as volumes increase.