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Nordea Bank Abp (NRDBY)
OTHER OTC:NRDBY
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Nordea Bank Abp
(OTC:NRDBY)
Rating:73Outperform
Price Target:―
Nordea Bank Abp (NRDBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$49.10B
Dividend Yield7.4%
Average Volume (3M)7.45K
Price to Earnings (P/E)9.5
Beta (1Y)0.49
Revenue Growth4.26%
EPS Growth-3.82%
CountryUS
Employees30,343
SectorFinancial
Sector Strength76
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.37
Shares Outstanding3,469,876,000
10 Day Avg. Volume0
30 Day Avg. Volume7,452
Financial Highlights & Ratios
PEG Ratio9.92
Price to Book (P/B)1.22
Price to Sales (P/S)0.00
P/FCF Ratio1.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Nordea Bank Abp Business Overview & Revenue Model
Company DescriptionNordea 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 Personal Banking segment provides various financial services to household customers through internet and mobile banking, over the phone, online meetings, and branch offices. The Business Banking segment offers payments, cash management, cards, working capital management, and finance solutions to corporate and personal customers. The Large Corporates and Institutions segment provides financing, cash management and payment, investment banking, and securities services, as well as capital market products to corporate and institutional customers. The Asset and Wealth Management segment offers investment, savings, and risk management solutions to high net worth individuals and institutional investors. This segment also offers life and pensions products and services. The company was founded in 1820 and is headquartered in Helsinki, Finland.
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:Apr 16, 2025
(Q1-2025)
| % Change Since: 12.36%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
Nordea demonstrates resilience with a strong return on equity and growth in assets under management and deposits. However, challenges include a decline in total income and operating profit, as well as cost increases. While the highlights show strength in asset management and credit quality, the financial environment remains uncertain, leading to potential future challenges.Q1-2025 Updates
Positive Updates
Strong Return on Equity
Nordea reported a return on equity of 15.7%, consistent with their financial target set three years ago.
Increase in Assets Under Management
Assets under management grew by 9% year-on-year to EUR 425 billion, with net flows strongly positive at EUR 6.6 billion.
Corporate Deposits Growth
Corporate deposits increased by 11% year-on-year, reflecting strong liquidity positions among customers.
Positive Net Fee and Commission Income
Net fee and commission income grew by 4% year-on-year, driven by higher savings income and increased card and payments activity.
Stable Credit Quality and Low Loan Losses
Credit and asset quality remained strong with net loan losses significantly below long-term expectations at EUR 13 million or 1 basis point.
Solid Performance in Asset and Wealth Management
Strong net flows of EUR 3.9 billion in international channels and a 9% increase in assets under management.
Negative Updates
Decrease in Total Income
Total income decreased by 4% year-on-year, primarily due to lower interest rates.
Decline in Operating Profit
Operating profit was down 9% year-on-year, despite a 10% increase quarter-on-quarter.
Challenges in Large Corporates and Institutions
Lower customer activity in equity capital markets and M&A, with income down 3% and return on allocated equity at 18% compared to 19% a year ago.
Cost Increase
Cost increased by 5% year-on-year, with strategic investments accounting for 4 percentage points of the increase.
Decrease in Net Interest Margin
Net interest margin was 1.70%, down from 1.83% a year ago, reflecting the impact of lower interest rates.
Company Guidance
In the first quarter of 2025, Nordea demonstrated strong financial performance despite global economic uncertainty. The bank's return on equity remained robust at 15.7%, aligning with its long-term target. Key financial metrics included a 6% year-on-year increase in mortgage lending volumes, primarily due to the acquisition of Danske Bank's Norwegian personal customer and private banking business, and a 7% rise in retail deposits. Corporate deposits saw an 11% increase, while assets under management grew by 9% to EUR 425 billion. Operating profit stood at EUR 1.6 billion, reflecting a 9% year-on-year decline but a 10% increase quarter-on-quarter. Nordea's cost-to-income ratio was well within the target range at 44.6%, supported by strategic investments that drove a 5% increase in costs. The bank maintained strong credit quality, with net loan losses at EUR 13 million or 1 basis point, significantly below long-term expectations. Additionally, Nordea's CET1 ratio was 15.7%, 2 percentage points above regulatory requirements. Despite a slight year-on-year decline in total income due to lower interest rates, net fee and commission income grew by 4%. The bank's guidance for 2025 remains unchanged, with an anticipated return on equity above 15% for the full year.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 | ||||
| 8.52B | 12.07B | 11.74B | 9.75B | 9.68B | 8.49B | Gross Profit |
| 8.52B | 12.07B | 11.90B | 9.75B | 9.68B | 8.49B | EBIT |
| 4.72B | 6.75B | 6.88B | 7.92B | 4.94B | 2.96B | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 2.24B | 5.06B | 4.93B | 3.59B | 3.83B | 2.27B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 62.70B | 50.64B | 51.36B | 62.70B | 49.89B | 39.20B | Total Assets |
| 594.84B | 623.36B | 584.70B | 594.84B | 570.35B | 552.16B | Total Debt |
| 190.28B | 0.00 | 188.27B | 190.28B | 183.66B | 182.48B | Net Debt |
| 127.58B | -50.64B | -52.53B | 127.58B | 133.77B | 143.28B | Total Liabilities |
| 563.44B | 590.92B | 553.48B | 563.44B | 536.85B | 518.42B | Stockholders Equity |
| 31.40B | 32.44B | 31.23B | 31.40B | 33.49B | 33.73B |
| Cash Flow | Free Cash Flow | ||||
| -1.83B | 383.00M | -6.97B | 21.57B | 17.17B | -1.83B | Operating Cash Flow |
| -1.34B | 906.00M | -6.47B | 21.98B | 17.59B | -1.34B | Investing Cash Flow |
| -1.01B | -2.92B | -535.00M | -629.00M | -380.00M | -1.01B | Financing Cash Flow |
| -2.68B | -2.35B | -4.01B | 17.86B | -4.93B | -2.65B |
Nordea Bank Abp Technical Analysis
Neutral
14.18
Price Trends
13.83
Positive
13.20
Positive
12.13
Positive
Market Momentum
0.13
Positive
50.38
Neutral
31.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRDBY, the sentiment is Neutral. The current price of 14.18 is below the 20-day moving average (MA) of 14.47, above the 50-day MA of 13.83, and above the 200-day MA of 12.13, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 31.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NRDBY.
Nordea Bank Abp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $69.33B | 12.37 | 11.15% | 3.65% | 3.07% | 19.01% | |
74 Outperform | $67.59B | 9.50 | 20.65% | 8.15% | -6.74% | 5.13% | |
73 Outperform | $49.10B | 9.48 | 16.85% | 7.40% | 4.26% | -3.82% | |
72 Outperform | $61.16B | 13.02 | 8.73% | 4.96% | -2.65% | -14.84% | |
70 Outperform | $67.42B | 10.71 | 11.50% | 4.62% | 2.19% | 34.00% | |
65 Neutral | $68.54B | 11.95 | 8.45% | 2.33% | 13.63% | 27.77% | |
64 Neutral | $12.73B | 9.92 | 7.90% | 78.88% | 12.06% | -7.95% |
* Financial Sector Average
Performance Comparison
NRDBY
Nordea Bank Abp
14.18
2.38
20.17%
ITUB
Itau Unibanco
6.63
1.54
30.26%
LYG
Lloyds Banking
4.10
1.44
54.14%
MFG
Mizuho Financial
5.45
1.50
37.97%
PNC
PNC Financial
177.39
28.03
18.77%
USB
US Bancorp
43.29
4.56
11.77%
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.