Nordea Bank (OTC) (NRDBY)
OTHER OTC:NRDBY
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Nordea Bank Abp
(OTC:NRDBY)
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Rating:70Outperform
Price Target:
$18.50
▼(-3.19% Downside)
Action:ReiteratedDate:01/31/26
The score is driven primarily by resilient profitability and supportive earnings-call guidance/capital returns, offset by inconsistent cash-flow generation and high leverage risk. Technicals are moderately positive, and valuation looks favorable with a mid-range P/E and high dividend yield.
Positive Factors
Return on Equity and Profitability
Sustained ROE at 15.5% and management guidance to keep ROE >15% indicate durable earnings power and capital efficiency. A consistent ROE target supports reinvestment, dividend capacity and strategic planning, improving predictability of core profitability over the medium term.
Negative Factors
Volatile Cash Generation
Repeated swings to negative operating and free cash flow undermine cash conversion reliability. This variability raises uncertainty around internal funding for dividends, buybacks and restructuring, increasing reliance on deposit or wholesale funding and reducing financial flexibility in stressed scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Return on Equity and Profitability
Sustained ROE at 15.5% and management guidance to keep ROE >15% indicate durable earnings power and capital efficiency. A consistent ROE target supports reinvestment, dividend capacity and strategic planning, improving predictability of core profitability over the medium term.
Read all positive factors
Nordea Bank Abp (NRDBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.38B
Dividend Yield5.3%
Average Volume (3M)289.61K
Price to Earnings (P/E)11.8
Beta (1Y)0.68
Revenue Growth-4.15%
EPS Growth-1.27%
CountryUS
Employees30,343
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.41
Shares Outstanding3,411,734,600
10 Day Avg. Volume230,960
30 Day Avg. Volume289,613
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 Cap3.42
Enterprise Value/Revenue10.55
Enterprise Value/Gross Profit24.14
Enterprise Value/Ebitda44.10
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.65
Revenue Forecast (FY)$13.93B
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 and net fee and commission income. Net interest income is generated from the spread between interest earned on interest-earning assets (such as mortgages, consumer loans, corporate loans, and...
Nordea Bank Abp Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: the bank delivered strong full-year profitability (ROE 15.5%), record AUM (+13% to EUR 478bn) and robust net inflows (EUR 6.5bn), continued cost discipline, very low credit losses (5 bps) and solid capital metrics (CET1 15.7%). Challenges include pressure on net interest income and margins from rate cuts and competition (notably in Norway), some country-specific credit and impaired asset movements, and near-term uncertainty around NII and a yet-to-be-quantified restructuring charge. On balance the achievements and strategic positioning materially outweigh the headwinds, with management maintaining constructive 2026 and 2030 targets.Positive Updates
Strong Full-Year Profitability and ROE Target Delivered
Full-year 2025 return on equity of 15.5%, meeting the multi-year commitment and above the initial target (>13% then lifted to >15%). Q4 ROE was 14.4% (14.3% a year earlier).
Negative Updates
Net Interest Income Pressure
Net interest income decreased 5% year-on-year and 1% quarter-on-quarter as policy rate reductions in Sweden and Norway took effect. Group net interest margin was 1.57% in Q4 (1.59% prior quarter). Management expects Q1 2026 to be a quarterly trough and full-year NII flat to slightly down.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Profitability and ROE Target Delivered
Full-year 2025 return on equity of 15.5%, meeting the multi-year commitment and above the initial target (>13% then lifted to >15%). Q4 ROE was 14.4% (14.3% a year earlier).
Read all positive updates
Company Guidance
Nordea guided to a full‑year 2026 return on equity of greater than 15% and a cost‑to‑income ratio (excluding regulatory fees) of around 45% (FY2025 C/I excl. fees: 45%, Q4: 46.2%), while reiterating medium‑term targets to 2030 of ROE >15% each year (and “significantly higher” in 2030) and a C/I (excl. fees) of 40–42% by 2030. Management also signalled Q1‑2026 may be the quarterly NII trough (full‑year NII expected flat to slightly down), fee income upside if activity holds, cost growth of roughly 2–3% (FY2025 operating expenses €5.4bn), a restructuring charge to be booked in 2026 but “not material” (and below the 2019 provision, excluded from KPI guidance), CET1 at 15.7% (1.9pp above requirements), proposed dividend €0.96/share for 2025 plus a midyear 2026 dividend ≈50% of H1 net profit, a €500m buyback (to be completed by 8 May), and continued strong credit guidance (long‑term net loan losses ≈10bps; Q4 2025 was 5bps / €49m; management buffer now ~€276m).Nordea Bank Abp Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.83B | 12.07B | 24.02B | 12.83B | 10.41B |
| Gross Profit | 11.74B | 12.07B | 11.74B | 9.68B | 9.66B |
| EBITDA | 6.28B | 0.00 | 6.95B | 5.35B | 5.54B |
| Net Income | 4.84B | 5.06B | 4.93B | 3.59B | 3.83B |
Balance Sheet | |||||
| Total Assets | 654.35B | 623.36B | 584.70B | 594.84B | 570.35B |
| Cash, Cash Equivalents and Short-Term Investments | 45.15B | 50.64B | 52.53B | 62.70B | 47.90B |
| Total Debt | 205.09B | 197.31B | 191.05B | 190.28B | 183.79B |
| Total Liabilities | 621.93B | 590.92B | 553.48B | 563.44B | 536.85B |
| Stockholders Equity | 32.42B | 32.44B | 31.23B | 31.40B | 33.49B |
Cash Flow | |||||
| Free Cash Flow | -3.79B | 383.00M | -6.97B | 21.57B | 17.17B |
| Operating Cash Flow | -3.16B | 906.00M | -6.47B | 21.98B | 17.59B |
| Investing Cash Flow | -579.00M | -2.92B | -535.00M | -629.00M | -380.00M |
| Financing Cash Flow | -3.34B | -2.35B | -4.01B | -6.58B | -4.93B |
Nordea Bank Abp Technical Analysis
Neutral
19.11
Price Trends
18.21
Negative
17.98
Negative
16.60
Positive
Market Momentum
-0.25
Negative
47.50
Neutral
74.64
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 19.11 is above the 20-day moving average (MA) of 17.27, above the 50-day MA of 18.21, and above the 200-day MA of 16.60, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 47.50 is Neutral, neither overbought nor oversold. The STOCH value of 74.64 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $96.78B | 9.08 | 21.64% | 9.77% | 11.82% | 3.41% | |
72 Outperform | $89.08B | 10.18 | 11.88% | 3.11% | 1.79% | 30.93% | |
70 Outperform | $62.38B | 11.85 | 15.61% | 5.30% | -4.15% | -1.27% | |
69 Neutral | $83.43B | 10.95 | 12.12% | 3.77% | 2.91% | 33.77% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $80.02B | 12.62 | 9.93% | 3.19% | -20.94% | -18.71% | |
57 Neutral | $108.75B | 10.79 | 9.73% | 2.31% | -2.84% | 25.48% |
* Financial Sector Average
NRDBY
Nordea Bank Abp
18.39
7.58
70.04%
ITUB
Itau Unibanco
8.82
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77.64%
LYG
Lloyds Banking
5.55
2.10
61.01%
MFG
Mizuho Financial
8.80
4.00
83.33%
PNC
PNC Financial
220.76
66.16
42.80%
USB
US Bancorp
55.36
17.66
46.84%
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.