Nordea Bank Abp
Interim report (Q1 and Q3)
16 October 2025 at 7.30 EET
Summary of the quarter
Return on equity 15.8% - earnings per share EUR 0.36. Nordea's return on equity
was strong at 15.8% in the third quarter, reflecting another solid performance
and resilience despite muted sentiment due to ongoing geopolitical tensions. The
cost-to-income ratio with amortised resolution fees was 46.1% for the quarter,
and earnings per share were EUR 0.36.
Total income resilient. As expected, net interest income was down (-6%)
following further policy rate reductions. Net fee and commission income was up
5%, rebounding from the impact of the market volatility seen in the previous
quarter. Net insurance result grew by 10%, while net fair value result was down
compared with the unusually high level a year ago. Costs were flat, with stable
levels of strategic investment. Operating profit was EUR 1.6bn.
Lending growth picking up; continued growth in deposit volumes. Nordic mortgage
market growth showed early signs of picking up. Mortgage lending grew by 6% year
on year, driven by organic growth in Sweden and the contribution from the recent
acquisition in Norway. Corporate lending growth was strong, up 6%, as Nordic
companies increasingly adjusted to the new operating environment. Retail and
corporate deposit volumes increased by 8% and 1%, respectively. Assets under
management increased by 11%, to EUR 456bn, and Nordic net flows continued to be
strong in the quarter (EUR 4.4bn).
Continued strong credit quality, with net loan losses well below Nordea's long
-term expectation. Net loan losses and similar net result amounted to a reversal
of EUR 19m. Lower provisioning requirements, particularly in the Business
Banking portfolio, led to the release of EUR 50m from the management judgement
buffer, which now stands at EUR 291m. Excluding the release, net loan losses and
similar net result amounted to EUR 31m or 3bp.
Continued strong capital generation; new share buy-back programme. The CET1
ratio was 15.9% at the end of the quarter, 2.3 percentage points above the
current regulatory requirement. Nordea's strong capital position and continued
robust capital generation enable the Group to support lending growth and
continue its share buy-backs. Nordea will launch a new EUR 250m share buy-back
programme on or around 20 October, and expects to complete it before the end of
the year, with a related capital deduction of approximately 15bp in the fourth
quarter.
Outlook for 2025: well on track to deliver a return on equity of above 15%.
Nordea has a strong and resilient business model, with a very well-diversified
loan portfolio across the Nordic region. This enables the Group to support its
customers and deliver high-quality earnings, with high profitability and low
volatility, through the economic cycle. It also enables Nordea to continue to
generate capital, seek opportunities to deploy it to drive growth, and
distribute excess capital to shareholders in the form of share buy-backs.
(For further viewpoints, see the CEO comment. For definitions, see page 53 in
the Q3 2025 report.)
Group quarterly results and key ratios
+---------------------------+------+------+---+------+---+------+------+-----+
| EURm | Q3 | Q3 |Chg| Q2 |Chg| Jan | Jan |Chg %|
| | 2025 | 2024 | % | 2025 | % | -Sep | -Sep | |
| | | | | | | 2025 | 2024 | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Net interest income |1,775 |1,882 |-6 |1,798 |-1 |5,402 |5,740 |-6 |
+---------------------------+------+------+---+------+---+------+------+-----+
|Net fee and commission |811 |774 |5 |792 |2 |2,396 |2,332 |3 |
|income | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Net insurance result |66 |60 |10 |58 |14 |178 |184 |-3 |
+---------------------------+------+------+---+------+---+------+------+-----+
|Net fair value result |245 |284 |-14|254 |-4 |788 |822 |-4 |
+---------------------------+------+------+---+------+---+------+------+-----+
|Other income |13 |14 |-7 |9 |44 |31 |51 |-39 |
+---------------------------+------+------+---+------+---+------+------+-----+
|Total operating income |2,910 |3,014 |-3 |2,911 |0 |8,795 |9,129 |-4 |
+---------------------------+------+------+---+------+---+------+------+-----+
|Total operating expenses |-1,313|-1,311|0 |-1,314|0 |-3,928|-3,797|3 |
|excluding regulatory fees | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Total operating expenses |-1,332|-1,329|0 |-1,333|0 |-4,019|-3,896|3 |
| | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Profit before loan losses |1,578 |1,685 |-6 |1,578 |0 |4,776 |5,233 |-9 |
+---------------------------+------+------+---+------+---+------+------+-----+
|Net loan losses and similar|19 |-51 | |21 | |27 |-152 | |
|net result | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Operating profit |1,597 |1,634 |-2 |1,599 |0 |4,803 |5,081 |-5 |
+---------------------------+------+------+---+------+---+------+------+-----+
| | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Cost-to-income ratio |45.1 |43.5 | |45.1 | |44.7 |41.6 | |
|excluding regulatory fees, | | | | | | | | |
|% | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Cost-to-income ratio with |46.1 |44.5 | |46.1 | |45.6 |42.6 | |
|amortised resolution fees, | | | | | | | | |
|% | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Return on equity with |15.8 |16.7 | |16.2 | |15.9 |17.6 | |
|amortised resolution fees, | | | | | | | | |
|% | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Diluted earnings per share,|0.36 |0.36 |0 |0.35 |3 |1.06 |1.11 |-5 |
|EUR | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
CEO comment
The political shifts and rising global tensions we are seeing today remind us
that the world economy is finely balanced and the operating environment can
change quickly. Nevertheless, after the turbulent first few months of the year,
the third quarter felt more calm and settled.
Some of the uncertainty around tariffs receded when the new EU-US trade
agreement was struck. The Nordic economies also continued to benefit from lower
inflation and interest rates - conditions that helped lift confidence. During
the quarter, Nordic corporates signalled a renewed appetite to invest, which
translated into increased demand for lending. Household activity also showed
signs of picking up, though was still at muted levels, with our customers' main
focus on saving and strengthening their financial positions.
In the third quarter we delivered higher business volumes and solid results,
again demonstrating the strength and quality of our pan-Nordic business.
Profitability was high, with return on equity reaching 15.8%, in line with our
financial target. We have now delivered a return on equity of above 15% in 10
out of the past 11 quarters.
Mortgage lending increased by 6% year on year, driven by Norway and Sweden. We
grew retail deposits by 8%. Corporate lending picked up further, increasing by
6%, and deposits were up by 1%.
Total income amounted to EUR 2.9bn, a year-on-year decrease of 3%, as expected,
driven by the reductions in policy rates over the past year. Our net interest
income again proved resilient, supported by higher lending and deposit volumes
and our deposit hedge. Net fee and commission income recovered during the
quarter, rising by 5%, supported by higher capital markets activity after the
volatile spring and early summer.
Costs in the third quarter were stable year on year. As planned, our strategic
investments have levelled off and we continue to actively manage our costs
according to the operating environment as part of our strong cost culture. We
expect full-year operating expenses to be around EUR 5.4bn. The third-quarter
cost-to-income ratio was 46.1%. Operating profit was EUR 1.6bn.
Credit quality remains exceptionally strong. Net loan losses and similar net
result for the quarter amounted to a reversal of EUR 19m. Given the continued
strength of our credit portfolio, we released a further EUR 50m from our
management judgement buffer, which now stands at EUR 291m.
In Personal Banking we delivered solid business volumes, driven by higher levels
of customer activity, especially in savings and investments. Deposits increased
by 8% year on year and lending was up 5%. Customers continued to focus on
financial planning and actively sought our advice - and we were well equipped to
support them. Digital services activity remained high, and we saw a further
increase in demand for loan promises. Our standout performance in digital
banking earned us the title of best digital bank in the Nordics in Euromoney's
Awards for Excellence and multiple awards from Global Finance, including Best
Consumer Digital Bank and Best Mobile Banking App in all the Nordic countries.
In Business Banking we drove solid volume growth, with lending volumes up 5%
year on year, primarily in Sweden and Norway. Deposits were up 9%, with growth
across all Nordic countries. We continued to enhance our digital offering in
support of our ambition to become the leading digital bank for small and medium
-sized enterprises. For the third consecutive year, Nordea Business and the
mobile app won Global Finance's awards for Best Corporate Digital Bank and Best
Mobile Banking App in each of our four home markets.
In Large Corporates & Institutions we continued to use our Nordic scale and
strong balance sheet to support our customers with their investment and growth
plans. Lending growth was strong, with volumes up 6% year on year, reflecting
increased demand among Nordic businesses. Debt Capital Markets activity remained
high. Market conditions for Equity Capital Markets and Mergers & Acquisitions
were volatile but gradually improved, with several notable transactions
evidencing our broad financing and structuring capabilities.
In Asset & Wealth Management business momentum remained strong in our Nordic
channels, with net inflows of EUR 4.4bn, including EUR 1.5bn in Private Banking
and EUR 1.2bn in Life & Pension. Net flows in international channels amounted to
EUR 0.6bn, with net flows in the wholesale distribution channel continuing to
stabilise at EUR 0.4bn and net flows in International Institutions amounting to
EUR 0.2bn. We were pleased to see strong interest in our new fund that invests
in the drivers of Europe's transformation: energy resilience, reshoring, and
defence and cybersecurity. Assets under management increased by 11% year on
year, to EUR 456bn.
Our capital position is strong, supported by robust capital generation. Our CET1
ratio was 15.9% at the end of the third quarter. We will soon launch another EUR
250m share buy-back programme, reaffirming our focus on shareholder returns and
an efficient capital structure.
This was another very solid quarter for Nordea, and we remain well on track to
deliver a return on equity of above 15% for the full year. Our performance this
year clearly highlights the strength of our well-diversified business model and
structurally improved profitability. It also reflects the advantages of
operating in the strong and stable Nordic markets, home to globally competitive
businesses and a powerful entrepreneurial spirit.
We look forward to presenting our plans for the next strategy period at our
Capital Markets Day in London on 5 November. We will share the concrete steps we
are taking to build on our successful foundation, with continued focus on our
four home markets. These will enable us to drive above-market business growth
with improved cost efficiency through our Nordic scale, continue delivering
market-leading return on equity, and achieve superior earnings per share growth.
Frank Vang-Jensen
President and Group CEO
Outlook (unchanged)
Financial outlook for 2025
Nordea's financial outlook for 2025 is a return on equity of above 15%.
Capital policy
A management buffer of 150bp above the regulatory CET1 requirement.
Dividend policy
Nordea's dividend policy stipulates a dividend payout ratio of 60-70%,
applicable to profit for the financial year. Nordea will continuously assess the
opportunity to use share buy-backs as a tool to distribute excess capital.
Income statement
+-----------------------+------+------+---+------+---+------+------+---+
| EURm | Q3 | Q3 |Chg| Q2 |Chg| Jan | Jan |Chg|
| | 2025 | 2024 | % | 2025 | % | -Sep | -Sep | % |
| | | | | | | 2025 | 2024 | |
+-----------------------+------+------+---+------+---+------+------+---+
|Net interest income |1,775 |1,882 |-6 |1,798 |-1 |5,402 |5,740 |-6 |
+-----------------------+------+------+---+------+---+------+------+---+
|Net fee and commission |811 |774 |5 |792 |2 |2,396 |2,332 |3 |
|income | | | | | | | | |
+-----------------------+------+------+---+------+---+------+------+---+
|Net insurance result |66 |60 |10 |58 |14 |178 |184 |-3 |
+-----------------------+------+------+---+------+---+------+------+---+
|Net result from items |245 |284 |-14|254 |-4 |788 |822 |-4 |
|at fair value | | | | | | | | |
+-----------------------+------+------+---+------+---+------+------+---+
|Profit from associated |1 |4 |-75|-1 | |-3 |13 | |
|undertakings and joint | | | | | | | | |
|ventures accounted for | | | | | | | | |
|under the equity method| | | | | | | | |
+-----------------------+------+------+---+------+---+------+------+---+
|Other operating income |12 |10 |20 |10 |20 |34 |38 |-11|
+-----------------------+------+------+---+------+---+------+------+---+
|Total operating income |2,910 |3,014 |-3 |2,911 |0 |8,795 |9,129 |-4 |
+-----------------------+------+------+---+------+---+------+------+---+
|Staff costs |-806 |-779 |3 |-809 |0 |-2,407|-2,289|5 |
+-----------------------+------+------+---+------+---+------+------+---+
|Other expenses |-353 |-380 |-7 |-354 |0 |-1,066|-1,079|-1 |
+-----------------------+------+------+---+------+---+------+------+---+
|Regulatory fees |-19 |-18 |6 |-19 |0 |-92 |-99 |-7 |
+-----------------------+------+------+---+------+---+------+------+---+
|Depreciation, |-154 |-152 |1 |-151 |2 |-454 |-429 |6 |
|amortisation and | | | | | | | | |
|impairment | | | | | | | | |
|charges of tangible and| | | | | | | | |
|intangible assets | | | | | | | | |
+-----------------------+------+------+---+------+---+------+------+---+
|Total operating |-1,332|-1,329|0 |-1,333|0 |-4,019|-3,896|3 |
|expenses | | | | | | | | |
+-----------------------+------+------+---+------+---+------+------+---+
|Profit before loan |1,578 |1,685 |-6 |1,578 |0 |4,776 |5,233 |-9 |
|losses | | | | | | | | |
+-----------------------+------+------+---+------+---+------+------+---+
|Net loan losses and |19 |-51 | |21 | |27 |-152 | |
|similar net result | | | | | | | | |
+-----------------------+------+------+---+------+---+------+------+---+
|Operating profit |1,597 |1,634 |-2 |1,599 |0 |4,803 |5,081 |-5 |
+-----------------------+------+------+---+------+---+------+------+---+
|Income tax expense |-369 |-368 |0 |-378 |-2 |-1,120|-1,151|-3 |
+-----------------------+------+------+---+------+---+------+------+---+
|Net profit for the |1,228 |1,266 |-3 |1,221 |1 |3,683 |3,930 |-6 |
|period | | | | | | | | |
+-----------------------+------+------+---+------+---+------+------+---+
Business volumes, key items1
+----------------------------+-----------+-----------+------+-----------+------+
| EURbn |30 Sep 2025|30 Sep 2024|Chg. %|30 Jun 2025|Chg. %|
+----------------------------+-----------+-----------+------+-----------+------+
|Loans to the public |375.3 |348.9 |8 |368.0 |2 |
+----------------------------+-----------+-----------+------+-----------+------+
|Loans to the public, excl. |339.6 |319.3 |6 |335.2 |1 |
|repos/securities borrowing | | | | | |
+----------------------------+-----------+-----------+------+-----------+------+
|Deposits and borrowings from|226.0 |222.1 |2 |237.2 |-5 |
|the public | | | | | |
+----------------------------+-----------+-----------+------+-----------+------+
|Deposits from the public, |216.0 |206.9 |4 |218.5 |-1 |
|excl. repos/securities | | | | | |
|lending | | | | | |
+----------------------------+-----------+-----------+------+-----------+------+
|Total assets |647.6 |617.4 |5 |636.8 |2 |
+----------------------------+-----------+-----------+------+-----------+------+
|Assets under management |456.0 |412.4 |11 |437.1 |4 |
+----------------------------+-----------+-----------+------+-----------+------+
1. End of period.
Ratios and key figures1
+---------------------------+------+------+---+------+---+------+------+-----+
| | Q3 | Q3 |Chg| Q2 |Chg| Jan | Jan |Chg %|
| | 2025 | 2024 | % | 2025 | % | -Sep | -Sep | |
| | | | | | | 2025 | 2024 | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Diluted earnings per share,|0.36 |0.36 |0 |0.35 |3 |1.06 |1.11 |-5 |
|EUR | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|EPS, rolling 12 months up |1.39 |1.42 |-2 |1.39 |0 |1.39 |1.42 |-2 |
|to period end, EUR | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Share price2, EUR |13.98 |10.59 |32 |12.61 |11 |13.98 |10.59 |32 |
+---------------------------+------+------+---+------+---+------+------+-----+
|Equity per share2, EUR |9.16 |8.98 |2 |8.78 |4 |9.16 |8.98 |2 |
+---------------------------+------+------+---+------+---+------+------+-----+
|Potential shares |3,451 |3,506 |-2 |3,470 |-1 |3,451 |3,506 |-2 |
|outstanding2, million | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Weighted average number of |3,451 |3,503 |-1 |3,467 |0 |3,466 |3,508 |-1 |
|diluted shares, million | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Return on equity with |15.8 |16.7 | |16.2 | |15.9 |17.6 | |
|amortised resolution fees, | | | | | | | | |
|% | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Return on equity, % |15.9 |16.8 | |16.3 | |15.8 |17.5 | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Return on tangible equity, |18.3 |19.2 | |18.8 | |18.2 |20.1 | |
|% | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Return on risk exposure |3.1 |3.3 | |3.1 | |3.1 |3.4 | |
|amount, % | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Cost-to-income ratio |45.1 |43.5 | |45.1 | |44.7 |41.6 | |
|excluding regulatory fees, | | | | | | | | |
|% | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Cost-to-income ratio with |46.1 |44.5 | |46.1 | |45.6 |42.6 | |
|amortised resolution fees, | | | | | | | | |
|% | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Cost-to-income ratio, % |45.8 |44.1 | |45.8 | |45.7 |42.7 | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Net loan loss ratio, incl. |-2 |6 | |-2 | |-1 |6 | |
|loans held at fair value, | | | | | | | | |
|bp | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Common Equity Tier 1 |15.9 |15.8 | |15.6 | |15.9 |15.8 | |
|capital ratio2,3, % | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Tier 1 capital ratio2,3, % |18.5 |18.4 | |17.5 | |18.5 |18.4 | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Total capital ratio2,3, % |21.1 |20.9 | |20.0 | |21.1 |20.9 | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Tier 1 capital2,3, EURbn |29.4 |28.2 |4 |27.7 |6 |29.4 |28.2 |4 |
+---------------------------+------+------+---+------+---+------+------+-----+
|Risk exposure amount2, |158.4 |153.7 |3 |158.6 |0 |158.4 |153.7 |3 |
|EURbn | | | | | | | | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Net interest margin, % |1.59 |1.77 | |1.63 | |1.64 |1.79 | |
+---------------------------+------+------+---+------+---+------+------+-----+
|Number of employees (FTEs)2|29,386|29,895|-2 |29,844|-2 |29,386|29,895|-2 |
+---------------------------+------+------+---+------+---+------+------+-----+
|Equity2, EURbn |31.5 |31.5 |0 |30.4 |4 |31.5 |31.5 |0 |
+---------------------------+------+------+---+------+---+------+------+-----+
1. For more detailed information regarding ratios and key figures defined as
alternative performance measures, see https://www.nordea.com/en/investor
-relations/reports-and-presentations/group-interim-reports
2. End of period.
3. Includes the year-to-date result net of dividend deduction of 70% (the upper
range in Nordea´s dividend policy). With the deduction of the share buy-back
programme of EUR 250m that was announced by Nordea on 16 October 2025, the
Nordea Group´s CET1 ratio for the third quarter of 2025 would be 15.7%.
This release is a summary of Nordea's Q3 results for 2025. The complete report
is attached to this release and can also be found on our website via the link
below.
Nordea Group Q3 2025 Report (https://www.nordea.com/en/investor
-relations/reports-and-presentations/latest-interim-results/)
A webcast will be held on 16 October at 11.00 EET (10.00 CET), during which
Frank Vang-Jensen, President and Group CEO, will present the results. This will
be followed by a Q&A audio session for investors and analysts with Frank Vang
-Jensen, Ian Smith, Group CFO, and Ilkka Ottoila, Head of Investor Relations.
The event will be webcast live and the recording and presentation slides will be
posted on www.nordea.com/ir.
For further information:
Frank Vang-Jensen, President and Group CEO, +358 503 821391
Ian Smith, Group CFO, +455 547 8372
Ilkka Ottoila, Head of Investor Relations, +358 953 007 058
Ulrika Romantschuk, Head of Brand, Communication and Marketing, +358 10 416 8023
The information provided in this stock exchange release was submitted for
publication, through the agency of the contacts set out above, at 07.30 EET
(06.30 CET) on 16 October 2025.
We are a universal bank with a 200-year history of supporting and growing the
Nordic economies - enabling dreams and aspirations for a greater good. Every
day, we work to support our customers' financial development, delivering best-in
-class omnichannel customer experiences and driving sustainable change. The
Nordea share is listed on the Nasdaq Helsinki, Nasdaq Copenhagen and Nasdaq
Stockholm exchanges. Read more about us at nordea.com.