Nordea Bank (OTC) (NRDBY)
OTHER OTC:NRDBY
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Nordea Bank Abp
(OTC:NRDBY)
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Rating:67Neutral
Price Target:
$20.50
â–²(7.27% Upside)
Action:DowngradedDate:04/23/26
The score is driven primarily by mixed financial quality: strong profitability and ROE are tempered by high leverage and notably inconsistent/negative recent cash flows. Support comes from maintained guidance and a broadly positive earnings call, plus constructive technical momentum and an appealing valuation with a high dividend yield.
Positive Factors
Profitability and capital position
Sustained mid‑teens ROE combined with a CET1 ratio well above regulatory minimum provides durable capacity to expand lending, absorb losses and continue shareholder returns. Strong profitability and capital buffers reduce the risk of forced deleveraging and support strategic investments over the next 2–6 months.
Negative Factors
High leverage
A ~6x debt‑to‑equity profile makes earnings and capital metrics highly sensitive to credit shocks and funding cost increases. Elevated leverage reduces capital flexibility, amplifies downside in stress scenarios and raises the bar for capital generation to sustainably lower systemic funding risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and capital position
Sustained mid‑teens ROE combined with a CET1 ratio well above regulatory minimum provides durable capacity to expand lending, absorb losses and continue shareholder returns. Strong profitability and capital buffers reduce the risk of forced deleveraging and support strategic investments over the next 2–6 months.
Read all positive factors
Nordea Bank Abp (NRDBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.60B
Dividend Yield5.3%
Average Volume (3M)187.71K
Price to Earnings (P/E)11.7
Beta (1Y)0.72
Revenue Growth1.62%
EPS Growth5.35%
CountryUS
Employees30,343
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.37
Shares Outstanding3,402,799,000
10 Day Avg. Volume82,619
30 Day Avg. Volume187,706
Financial Highlights & Ratios
PEG Ratio-3.32
Price to Book (P/B)1.72
Price to Sales (P/S)2.56
P/FCF Ratio-14.71
Enterprise Value/Market Cap3.49
Enterprise Value/Revenue9.88
Enterprise Value/Gross Profit25.30
Enterprise Value/Ebitda34.50
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.67
Revenue Forecast (FY)$14.02B
Nordea Bank Abp Business Overview & Revenue Model
Company Description
Nordea Bank Abp offers banking products and services in Sweden, Finland, Norway, Denmark, and internationally. It operates through Personal Banking, Business Banking, Large Corporates and Institutions, and Asset and Wealth Management segments. The...
How the Company Makes Money
Nordea primarily earns revenue from net interest income, net fee and commission income, and financial income/other income streams typical of a universal bank. Net interest income is generated from the spread between interest earned on interest-bea...
Nordea Bank Abp Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 20, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial picture: Nordea reported strong profitability (ROE 15.4%), healthy capital (CET1 15.7%), robust lending and AUM growth, resilient fee income and strong credit quality. Management maintained full‑year guidance and outlined a credible cost‑reduction program supported by AI and scale initiatives. Offsetting these positives were significant but described as isolated market‑making losses in March that reduced net fair value results and raised the Q1 cost-to-income slightly, continued pressure on net interest income from lower policy rates and short‑term geopolitical-driven market volatility. On balance, the strengths (growth, capital, fees, credit quality and strategic cost roadmap) materially outweigh the near‑term episodic challenges.Positive Updates
Strong profitability and capital position
Return on equity of 15.4% in Q1 2026; earnings per share EUR 0.36 (up from EUR 0.35). CET1 ratio of 15.7%, 1.9 percentage points above current regulatory requirements, supporting lending growth and shareholder distribution.
Negative Updates
Significant market‑making losses in March
Net fair value result down 22% year‑on‑year due to exceptional market‑making losses in March driven by a sharp increase in interest rate expectations amid Middle East volatility. Management described these as isolated one‑off losses that negatively impacted total income and the Q1 cost-to-income ratio.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong profitability and capital position
Return on equity of 15.4% in Q1 2026; earnings per share EUR 0.36 (up from EUR 0.35). CET1 ratio of 15.7%, 1.9 percentage points above current regulatory requirements, supporting lending growth and shareholder distribution.
Read all positive updates
Company Guidance
Nordea kept its full‑year 2026 guidance unchanged, reiterating expectations for return on equity >15% and a cost‑to‑income ratio of around 45%, after Q1 results showing ROE 15.4%, EPS EUR 0.36 (vs EUR 0.35), CET1 ratio 15.7% (1.9pp above requirement) and Q1 cost‑to‑income 45.5% (underlying <45%); key Q1 metrics included NIM 1.57% with the deposit hedge improving NII by EUR 55m, total income down 2%, net fee & commission income +6%, net fair value -22%, AUM +9% to EUR 464bn (Life & Pension AUM +10% to EUR 185bn), net flows: investment products +EUR 1bn, Life & Pension +EUR 1.7bn, Private Banking +EUR 1bn, corporate lending +11% (large corporates +14%), corporate deposits +2% (large corporates -5% YoY, +2% QoQ), mortgage lending +2%, retail deposits +5%, Business Banking lending +8% and deposits +8%; credit metrics: net loan losses a reversal of EUR 99m (excluding the surplus release net losses EUR 61m or 6 bps), management overlay reallocated EUR 116m to modeled provisions and EUR 160m released; costs were flat before FX (incl. FX +2%), restructuring costs of EUR 190m were booked as an item affecting comparability (excluded from the 2026 outlook) as part of initiatives affecting ~1,500 employees that should deliver at least EUR 150m pa from 2028 toward a EUR 600m gross (EUR 350m net) 2030 target, AGM approved EUR 0.96 dividend for 2025 and authorized a possible mid‑year dividend ~50% of H1 net profit, and capital return/buybacks remain on track following the earlier EUR 500m program.Nordea Bank Abp Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.47B | 21.83B | 12.07B | 24.02B | 12.83B | 10.41B |
| Gross Profit | 8.78B | 11.74B | 12.07B | 11.74B | 9.68B | 9.66B |
| EBITDA | 6.44B | 6.28B | 0.00 | 6.95B | 5.35B | 5.54B |
| Net Income | 4.70B | 4.84B | 5.06B | 4.93B | 3.59B | 3.83B |
Balance Sheet | ||||||
| Total Assets | 679.01B | 654.35B | 623.36B | 584.70B | 594.84B | 570.35B |
| Cash, Cash Equivalents and Short-Term Investments | 42.92B | 45.15B | 50.64B | 52.53B | 62.70B | 47.90B |
| Total Debt | 211.86B | 205.09B | 197.31B | 191.05B | 190.28B | 183.79B |
| Total Liabilities | 648.91B | 621.93B | 590.92B | 553.48B | 563.44B | 536.85B |
| Stockholders Equity | 30.09B | 32.42B | 32.44B | 31.23B | 31.40B | 33.49B |
Cash Flow | ||||||
| Free Cash Flow | -7.77B | -3.79B | 383.00M | -6.97B | 21.57B | 17.17B |
| Operating Cash Flow | -7.31B | -3.16B | 906.00M | -6.47B | 21.98B | 17.59B |
| Investing Cash Flow | -538.00M | -579.00M | -2.92B | -535.00M | -629.00M | -380.00M |
| Financing Cash Flow | -788.39M | -3.34B | -2.35B | -4.01B | -6.58B | -4.93B |
Nordea Bank Abp Technical Analysis
Positive
19.11
Price Trends
18.12
Positive
18.15
Positive
16.78
Positive
Market Momentum
0.31
Negative
60.81
Neutral
86.13
Negative
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 19.11 is above the 20-day moving average (MA) of 17.67, above the 50-day MA of 18.12, and above the 200-day MA of 16.78, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 60.81 is Neutral, neither overbought nor oversold. The STOCH value of 86.13 is Negative, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $96.25B | 9.08 | 21.64% | 9.77% | 22.96% | 6.95% | |
74 Outperform | $87.39B | 10.39 | 12.22% | 3.77% | 3.87% | 18.20% | |
71 Outperform | $89.03B | 12.15 | 11.98% | 3.11% | 3.51% | 21.52% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $63.60B | 11.69 | 15.13% | 5.30% | 1.62% | 5.35% | |
64 Neutral | $77.90B | 9.28 | 9.93% | 3.19% | -15.15% | 29.78% | |
57 Neutral | $104.05B | 10.79 | 9.73% | 2.31% | -8.02% | 22.45% |
* Financial Sector Average
NRDBY
Nordea Bank Abp
18.34
4.69
34.40%
ITUB
Itau Unibanco
8.47
2.93
52.78%
LYG
Lloyds Banking
5.24
1.59
43.72%
MFG
Mizuho Financial
8.41
3.51
71.63%
PNC
PNC Financial
218.04
57.73
36.01%
USB
US Bancorp
55.24
15.47
38.89%
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.