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Nordea Bank Abp
(OTC:NRDBY)
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Rating:70Outperform
Price Target:
$21.50
â–²(9.36% Upside)
Action:Upgraded
Date:07/17/26
The score is driven primarily by solid profitability and a positive earnings update (ROE and efficiency guidance, strong credit metrics and capital), supported by reasonable valuation with an attractive dividend and constructive technical trends. The main constraints are high balance-sheet leverage and historically volatile cash flows, plus near-term NII/margin pressure and less visibility on buybacks.
Positive Factors
Strong ROE & Profitability
Consistently high return on equity and healthy net margins indicate durable earnings power and efficient capital use. This supports sustained dividend capacity and internal capital generation, enabling the bank to fund growth and absorb cyclical shocks without relying excessively on external capital.
Negative Factors
High balance-sheet leverage
Elevated leverage means equity is a thin cushion versus assets, increasing sensitivity to funding costs and credit shocks. In adverse cycles this amplifies capital volatility, constrains strategic flexibility and may force more conservative lending or higher capital retention to protect regulatory ratios.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong ROE & Profitability
Consistently high return on equity and healthy net margins indicate durable earnings power and efficient capital use. This supports sustained dividend capacity and internal capital generation, enabling the bank to fund growth and absorb cyclical shocks without relying excessively on external capital.
Read all positive factors
Nordea Bank Abp (NRDBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.50B
Dividend Yield7.46%
Average Volume (3M)187.71K
Price to Earnings (P/E)12.6
Beta (1Y)0.68
Revenue Growth8.98%
EPS Growth6.87%
CountryUS
Employees28,989
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.38
Shares Outstanding3,402,799,000
10 Day Avg. Volume82,619
30 Day Avg. Volume187,706
Financial Highlights & Ratios
PEG Ratio-3.34
Price to Book (P/B)1.72
Price to Sales (P/S)2.56
P/FCF Ratio-14.71
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.66
Revenue Forecast (FY)$13.81B
Nordea Bank Abp Business Overview & Revenue Model
Company Description
Nordea Bank Abp is a financial institution offering a comprehensive suite of banking products and services. The bank operates across Sweden, Finland, Norway, and Denmark, maintaining an international footprint. Its business is structured into four...
How the Company Makes Money
Nordea makes money primarily through a mix of net interest income, net fee and commission income, and other financial income from market-related activities. Net interest income is generated by earning interest on loans (e.g., mortgages, consumer l...
Nordea Bank Abp Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive performance: strong income growth (fees and net fair value), record AUM, robust lending and deposit growth, controlled costs and excellent credit metrics underpin a healthy operational momentum. Near‑term headwinds include margin pressure in NII, volatility in international AUM (notably ESG exposure), some country‑specific credit/mix nuances, and modest cost headwinds (wage inflation and new VAT in Norway). Management is prioritizing organic growth and disciplined capital deployment which tempers near‑term buyback visibility but supports longer‑term EPS accretion.Positive Updates
Strong profitability and returns
Return on equity of 15.9% in Q2 2026; earnings per share EUR 0.36, up 3% year‑on‑year.
Negative Updates
Net interest income and margin pressure
Net interest income down 1% year‑on‑year (but +1% quarter‑on‑quarter); net interest margin at 1.54% in Q2 vs 1.57% in Q1. Management highlighted competitive mortgage pricing pressure in retail markets.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong profitability and returns
Return on equity of 15.9% in Q2 2026; earnings per share EUR 0.36, up 3% year‑on‑year.
Read all positive updates
Company Guidance
Nordea updated its full‑year 2026 guidance, reaffirming a return on equity above 15% while improving the expected cost‑to‑income ratio to 44%–45% (Q2 RoE was 15.9% and Q2 cost‑to‑income 44%); management reiterated the 2030 target cost‑to‑income of 40%–42% and a dividend policy of 60%–70% payout (mid‑year dividend EUR 0.34 per share in August, ~50% of H1 profit), and said capital deployment will prioritise profitable growth over buybacks while maintaining a CET1 ratio comfortably above requirements (Q2 CET1 15.7%, ~1.9pp above requirement and management buffer targeted around 150bps). Other forward‑looking metrics reiterated were net loan losses expected to be contained around the long‑term ~10 bps (Q2 was 6 bps / EUR 61m) and net fair‑value income run‑rate of roughly EUR 1 billion annually.Nordea Bank Abp Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
64
Positive
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.33B | 21.83B | 25.55B | 24.02B | 12.83B | 10.41B |
| Gross Profit | 13.44B | 11.74B | 12.07B | 11.74B | 9.68B | 9.66B |
| EBITDA | 6.63B | 6.53B | 0.00 | 6.95B | 5.35B | 5.54B |
| Net Income | 4.71B | 4.84B | 5.06B | 4.93B | 3.59B | 3.83B |
Balance Sheet | ||||||
| Total Assets | 712.39B | 654.35B | 623.36B | 584.70B | 594.59B | 570.35B |
| Cash, Cash Equivalents and Short-Term Investments | 47.13B | 45.15B | 50.64B | 52.53B | 62.70B | 47.90B |
| Total Debt | 219.89B | 205.09B | 197.31B | 191.05B | 190.28B | 183.79B |
| Total Liabilities | 681.25B | 621.93B | 590.92B | 553.48B | 563.88B | 536.85B |
| Stockholders Equity | 31.14B | 32.42B | 32.44B | 31.23B | 30.84B | 33.49B |
Cash Flow | ||||||
| Free Cash Flow | 7.11B | -3.79B | 383.00M | -6.97B | 21.57B | 17.17B |
| Operating Cash Flow | 7.53B | -3.16B | 906.00M | -6.47B | 21.98B | 17.59B |
| Investing Cash Flow | -598.00M | -579.00M | -2.92B | -535.00M | -629.00M | -380.00M |
| Financing Cash Flow | -2.48B | -3.34B | -2.35B | -4.01B | -6.58B | -4.93B |
Nordea Bank Abp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $101.93B | 13.06 | 12.49% | 3.25% | 2.39% | 19.99% | |
76 Outperform | $102.52B | 14.13 | 12.34% | 2.83% | 5.73% | 24.15% | |
70 Outperform | $68.50B | 12.63 | 15.07% | 5.59% | 8.98% | 6.87% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $85.32B | 11.08 | 21.64% | 7.10% | 7.53% | 17.25% | |
66 Neutral | $132.17B | 15.37 | 12.28% | 1.73% | 2.65% | 54.00% | |
62 Neutral | $90.62B | 14.29 | 11.05% | 3.26% | -13.48% | 25.29% |
* Financial Sector Average
NRDBY
Nordea Bank Abp
20.19
5.01
33.05%
ITUB
Itau Unibanco
7.40
1.12
17.76%
LYG
Lloyds Banking
6.21
1.84
42.17%
MFG
Mizuho Financial
10.87
4.25
64.20%
PNC
PNC Financial
256.97
71.08
38.24%
USB
US Bancorp
65.42
21.08
47.54%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.