Nordea Bank Abp ( (NBNKF) ) has released its Q1 earnings. Here is a breakdown of the information Nordea Bank Abp presented to its investors.
Nordea Bank Abp is a leading financial services group in the Nordic region, offering a wide range of banking services including personal banking, business banking, and wealth management. The company is known for its strong market presence and strategic investments in technology and digital services.
In the first quarter of 2025, Nordea reported a resilient financial performance despite a challenging economic environment. The bank’s total income decreased by 4% year-on-year due to lower policy rates, but showed a slight increase of 1% compared to the previous quarter. Operating profit was down 9% year-on-year but improved by 10% quarter-on-quarter, reaching EUR 1.6 billion.
Key highlights from the quarter include a 6% growth in mortgage lending, driven by the acquisition of Danske Bank’s Norwegian personal customer and private banking business. The bank also saw a 7% increase in retail deposits and an 11% rise in corporate deposits. Nordea maintained strong credit quality, with net loan losses well below long-term expectations, and continued its share buy-back program.
Nordea’s return on equity remained robust at 15.7%, and earnings per share stood at EUR 0.35. The bank’s strategic investments in technology and digital services contributed to a 5% increase in operating expenses. The CET1 ratio was stable at 15.7%, reflecting strong capital generation and regulatory compliance.
Looking ahead, Nordea’s management remains confident in achieving a return on equity above 15% for the full year 2025. The bank’s diversified loan portfolio and strong capital position are expected to support continued growth and shareholder returns through share buy-backs and dividends.