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Nordea Bank (OTC) (NRDBY)
:NRDBY
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Nordea Bank Abp
(OTC:NRDBY)
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Select Model
Rating:73Outperform
Price Target:―
Nordea Bank Abp demonstrates solid financial performance with strong profitability and a stable balance sheet. The technical analysis shows positive but limited momentum, while the attractive valuation with a low P/E ratio and decent dividend yield adds to its appeal. The earnings call indicates resilience, yet highlights areas for improvement such as income and operating profit. These factors collectively place the stock in a favorable position with a score of 73.
Positive Factors
Strong Return on Equity
A strong return on equity indicates efficient use of shareholder capital and supports long-term profitability, enhancing investor confidence.
Increase in Assets Under Management
Growth in assets under management reflects successful client acquisition and retention, boosting revenue from management fees and enhancing market position.
Stable Credit Quality and Low Loan Losses
Stable credit quality and low loan losses indicate prudent risk management, ensuring financial stability and protecting against economic downturns.
Negative Factors
Decrease in Total Income
A decrease in total income can pressure profitability, especially if interest rates remain low, challenging revenue growth and operational efficiency.
Decline in Operating Profit
A decline in operating profit suggests challenges in cost management and revenue generation, potentially impacting long-term financial performance.
Cost Increase
Rising costs, even if due to strategic investments, can compress margins if not matched by proportional revenue growth, affecting profitability.
Nordea Bank Abp (NRDBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.45B
Dividend Yield5.38%
Average Volume (3M)10.75K
Price to Earnings (P/E)12.1
Beta (1Y)0.48
Revenue Growth-4.15%
EPS Growth-1.27%
CountryUS
Employees30,343
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.42
Shares Outstanding3,442,514,600
10 Day Avg. Volume0
30 Day Avg. Volume10,748
Financial Highlights & Ratios
PEG Ratio1.24
Price to Book (P/B)1.13
Price to Sales (P/S)3.05
P/FCF Ratio95.97
Enterprise Value/Market Cap5.49
Enterprise Value/Revenue18.25
Enterprise Value/Gross Profit39.34
Enterprise Value/Ebitda96.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nordea Bank Abp Business Overview & Revenue Model
Company DescriptionNordea Bank Abp is a leading financial services group in the Nordic region, providing a broad range of banking services to personal and corporate customers. Headquartered in Helsinki, Finland, Nordea operates across various sectors including retail banking, wholesale banking, wealth management, and insurance. The bank delivers its services through a comprehensive network of branches and digital platforms, aiming to provide innovative financial solutions tailored to meet the diverse needs of its clientele.
How the Company Makes MoneyNordea Bank Abp generates revenue through multiple streams, primarily from interest income on loans and advances to customers and institutions. The bank earns fees and commissions on services such as asset management, payment processing, and financial advisory services. Additionally, Nordea makes money from trading activities, including foreign exchange and securities trading. The bank's wealth management division contributes to earnings through investment management fees. Nordea also benefits from strategic partnerships and collaborations that enhance its product offerings and market reach. The bank focuses on digital banking solutions to improve operational efficiency and customer experience, which further drives profitability.
Nordea Bank Abp Earnings Call Summary
Earnings Call Date:Jul 17, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Positive
Nordea exhibited strong financial performance with a solid return on equity and growth in key areas like lending, deposits, and assets under management. Despite challenges such as a decline in net interest income and subdued equity market activity, the bank maintained a strong capital position and continued strategic investments. The highlights slightly outweigh the lowlights, reflecting a resilient performance in a volatile market environment.Q2-2025 Updates
Positive Updates
Strong Return on Equity
Nordea delivered a return on equity of 16.2% in Q2 2025, surpassing the full-year guidance of above 15%.
Growth in Lending and Deposits
Mortgage lending increased by 6% and retail deposits were up 8%, with corporate lending and deposits both increasing by 5% year-on-year.
Assets Under Management Growth
Assets under management grew by 9% to EUR 437 billion, demonstrating strong investment performance.
Strong Capital Position
CET1 ratio was 15.6%, which is 1.9 percentage points above the current regulatory requirement.
Net Loan Loss Reversal
Nordea released EUR 60 million from its management judgment buffer due to lower provisioning requirements, resulting in a net loan loss reversal of EUR 21 million.
Negative Updates
Decline in Net Interest Income
Net interest income decreased by 6% year-on-year and by 2% quarter-on-quarter, impacted by the lower policy rate environment.
Operating Profit Decrease
Operating profit was EUR 1.6 billion compared with EUR 1.7 billion a year ago, indicating a decrease despite quarter-on-quarter stability.
Cost Increases
Costs increased by 3% excluding foreign exchange effects, driven by strategic investments, including the Norwegian acquisition.
Challenges in Equity Markets
Equity markets activity was subdued due to macroeconomic uncertainty, impacting fee and commission income.
Company Guidance
In Nordea's second quarter of 2025 results presentation, the bank reported a robust performance despite volatile market conditions exacerbated by geopolitical tensions and higher U.S. trade tariffs. Key metrics for the quarter included a strong return on equity of 16.2%, supported by a 6% increase in mortgage lending and an 8% rise in retail deposits, particularly driven by growth in Norway and Sweden. Corporate lending and deposits also saw a year-on-year increase of 5%. Assets under management grew by 9% to EUR 437 billion. Despite a challenging interest rate environment, net interest income decreased by 6% year-on-year, while net fee and commission income remained stable. Operating profit was EUR 1.6 billion, with costs increasing by 3% due to strategic investments, including a Norwegian acquisition. The bank's CET1 ratio stood at 15.6%, providing a comfortable buffer above regulatory requirements. Nordea maintained its full-year guidance of a return on equity above 15% and anticipated continued growth, bolstered by lower inflation and interest rates.Nordea Bank Abp Financial Statement Overview
Summary
Nordea Bank Abp shows strong profitability with a consistent net profit margin and a notable increase in total revenue. However, there is a slight decline in EBIT margin and return on equity, and cash flow volatility poses potential risks. The balance sheet is solid with a high equity ratio and no total debt.Income Statement
Nordea Bank Abp shows strong profitability with a consistent net profit margin and a notable increase in total revenue over the past years. The gross profit margin for TTM (Trailing-Twelve-Months) is robust at 100%, indicating efficient cost management. While EBIT margin has declined slightly, the overall revenue growth trend is positive, portraying a healthy financial trajectory.87
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a high equity ratio of 4.64% for the TTM period, reflecting financial stability. Absence of total debt in the latest period boosts the debt-to-equity ratio. However, the return on equity has shown a slight decrease, highlighting areas for potential improvement.78
Positive
Cash Flow
Nordea Bank Abp demonstrates strong cash flow management, with a significant increase in free cash flow growth rate for the TTM period. The operating cash flow to net income ratio is favorable, suggesting effective cash conversion. However, high volatility in cash flow over the years poses potential risks.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.09B | 12.07B | 24.02B | 12.83B | 10.41B | 10.07B |
| Gross Profit | 8.86B | 12.07B | 11.74B | 9.68B | 9.66B | 8.49B |
| EBITDA | 3.61B | 0.00 | 6.95B | 5.35B | 5.54B | 3.52B |
| Net Income | 5.02B | 5.06B | 4.93B | 3.59B | 3.83B | 2.27B |
Balance Sheet | ||||||
| Total Assets | 760.89B | 623.36B | 584.70B | 594.84B | 570.35B | 552.16B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 50.64B | 52.53B | 62.70B | 47.90B | 39.20B |
| Total Debt | 291.74B | 197.31B | 191.05B | 190.28B | 183.79B | 182.48B |
| Total Liabilities | 723.86B | 590.92B | 553.48B | 563.44B | 536.85B | 518.42B |
| Stockholders Equity | 37.04B | 32.44B | 31.23B | 31.40B | 33.49B | 33.73B |
Cash Flow | ||||||
| Free Cash Flow | -8.40B | 383.00M | -6.97B | 21.57B | 17.17B | -1.83B |
| Operating Cash Flow | -7.84B | 906.00M | -6.47B | 21.98B | 17.59B | -1.34B |
| Investing Cash Flow | -2.97B | -2.92B | -535.00M | -629.00M | -380.00M | -1.01B |
| Financing Cash Flow | -3.45B | -2.35B | -4.01B | -6.58B | -4.93B | -2.65B |
Nordea Bank Abp Technical Analysis
Positive
17.66
Price Trends
17.33
Positive
16.57
Positive
15.23
Positive
Market Momentum
0.33
Negative
69.09
Neutral
79.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRDBY, the sentiment is Positive. The current price of 17.66 is below the 20-day moving average (MA) of 17.94, above the 50-day MA of 17.33, and above the 200-day MA of 15.23, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 69.09 is Neutral, neither overbought nor oversold. The STOCH value of 79.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRDBY.
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 | $84.19B | 12.40 | 11.69% | 3.77% | 2.91% | 33.77% | |
73 Outperform | $63.45B | 12.12 | 14.85% | 5.38% | -4.15% | -1.27% | |
71 Outperform | $76.57B | 17.39 | 7.85% | 3.24% | -20.94% | -18.71% | |
71 Outperform | $82.43B | 13.56 | 11.31% | 3.14% | 1.79% | 30.93% | |
69 Neutral | $73.28B | 9.82 | 19.90% | 9.77% | 11.82% | 3.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $88.64B | 13.45 | 9.14% | 2.36% | -2.84% | 25.48% |
* Financial Sector Average
NRDBY
Nordea Bank Abp
18.53
8.25
80.25%
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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.