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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
$52.92B
Dividend Yield6.5%
Average Volume (3M)15.60K
Price to Earnings (P/E)10.2
Beta (1Y)0.48
Revenue Growth-15.06%
EPS GrowthN/A
CountryUS
Employees30,343
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)N/A
Shares Outstanding3,464,092,000
10 Day Avg. Volume0
30 Day Avg. Volume15,598
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 Cap1.38
Enterprise Value/Revenue5.08
Enterprise Value/Gross Profit6.17
Enterprise Value/Ebitda41.89
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 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: 5.87%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
Nordea demonstrated strong performance in the second quarter of 2025, with significant growth in key areas such as mortgage lending, assets under management, and profitability. The bank maintained a robust capital position and displayed exceptional asset quality. However, challenges such as a decline in net interest income and market volatility impacting certain income streams were noted. Overall, the bank remains well-positioned to meet its full-year guidance despite a challenging market environment.Q2-2025 Updates
Positive Updates
Strong Profitability and Growth in Key Metrics
Nordea delivered a strong performance with a return on equity of 16.2% and earnings per share of EUR 0.35. Mortgage lending increased by 6% and retail deposits were up 8%. Corporate lending and deposits grew by 5% year-on-year. Assets under management grew by 9% to EUR 437 billion.
Exceptional Asset and Credit Quality
Net loan losses and similar net result amounted to a net reversal of EUR 21 million, indicating exceptionally strong credit quality. A further EUR 60 million was released from the management judgment buffer.
Strong Capital Position
CET1 ratio stood at 15.6%, which is 1.9 percentage points above the current regulatory requirement. Nordea continues to generate capital from profits to support lending growth and buyback programs.
Positive Developments in Personal and Business Banking
Mortgage lending in Personal Banking was up 6%, driven by strong growth in Sweden. Business Banking saw lending volume growth of 4%, mainly driven by Sweden and Norway, with deposits up 10% year-on-year.
Successful Integration of Norwegian Acquisition
The Norwegian acquisition has been successfully integrated, contributing to strong growth in Norway with cross-selling revenue synergies kicking in.
Negative Updates
Decline in Net Interest Income
Net interest income decreased by 6% year-on-year and by 2% quarter-on-quarter, driven by the declining interest rate environment and competition, particularly in the corporate space.
Market Volatility Impact
Financial market turmoil impacted net fee and commission income, which was stable year-on-year but affected by lower corporate finance and debt capital markets activity. Equity markets activity was subdued due to macroeconomic uncertainty.
Challenges in Specific Segments
Large Corporates & Institutions saw total income down 8%, driven by lower rates and market volatility affecting equity capital markets and M&A. Retail deposits in Denmark and Business Banking in Denmark faced competitive pressures.
Company Guidance
In the second quarter of 2025, Nordea demonstrated strong financial performance despite challenging market conditions. The bank achieved a return on equity of 16.2% and earnings per share of EUR 0.35, with mortgage lending increasing by 6% and retail deposits rising by 8%. Corporate lending and deposits also grew by 5% year-on-year. Assets under management increased by 9% to EUR 437 billion. Despite a 6% year-on-year decline in net interest income due to lower interest rates, net fee and commission income remained stable. Operating profit was EUR 1.6 billion, while the cost-to-income ratio stood at 46.1%. Credit quality remained strong, with net loan losses resulting in a net reversal of EUR 21 million. The CET1 ratio was 15.6%, 1.9 percentage points above the regulatory requirement. Nordea remains on track to achieve its full-year guidance of a return on equity above 15%, supported by strategic investments and strong capital generation.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 | 14.42B | 12.07B | 11.74B | 9.75B | 9.68B | 8.49B |
| Gross Profit | 11.87B | 12.07B | 11.90B | 9.75B | 9.68B | 8.49B |
| EBITDA | 1.75B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 4.85B | 5.06B | 4.93B | 3.59B | 3.83B | 2.27B |
Balance Sheet | ||||||
| Total Assets | 636.81B | 623.36B | 584.70B | 594.84B | 570.35B | 552.16B |
| Cash, Cash Equivalents and Short-Term Investments | 44.04B | 50.64B | 51.36B | 62.70B | 49.89B | 39.20B |
| Total Debt | 200.54B | 120.58B | 188.27B | 190.28B | 183.66B | 182.48B |
| Total Liabilities | 606.44B | 590.92B | 553.48B | 563.44B | 536.85B | 518.42B |
| Stockholders Equity | 30.37B | 32.44B | 31.23B | 31.40B | 33.49B | 33.73B |
Cash Flow | ||||||
| Free Cash Flow | 4.66B | 383.00M | -6.97B | 21.57B | 17.17B | -1.83B |
| Operating Cash Flow | 5.31B | 906.00M | -6.47B | 21.98B | 17.59B | -1.34B |
| Investing Cash Flow | -2.94B | -2.92B | -535.00M | -629.00M | -380.00M | -1.01B |
| Financing Cash Flow | -3.73B | -2.35B | -4.01B | 17.86B | -4.93B | -2.65B |
Nordea Bank Abp Technical Analysis
Positive
15.33
Price Trends
14.62
Positive
13.98
Positive
12.74
Positive
Market Momentum
0.13
Negative
64.19
Neutral
100.36
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 15.33 is above the 20-day moving average (MA) of 14.66, above the 50-day MA of 14.62, and above the 200-day MA of 12.74, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 64.19 is Neutral, neither overbought nor oversold. The STOCH value of 100.36 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $74.72B | 12.96 | 11.19% | 3.43% | 3.60% | 22.68% | |
76 Outperform | $69.36B | 9.72 | 20.49% | 6.36% | 5.44% | 2.81% | |
73 Outperform | $52.92B | 10.18 | 15.58% | 6.50% | -15.06% | ― | |
72 Outperform | $64.84B | 12.69 | 10.06% | 3.85% | 3.47% | -8.90% | |
69 Neutral | $69.81B | 10.74 | 11.64% | 4.46% | 1.10% | 32.55% | |
67 Neutral | $17.26B | 11.31 | 10.36% | 3.95% | 10.54% | 1.63% | |
65 Neutral | $77.34B | 13.25 | 8.69% | 2.51% | -2.22% | 24.37% |
* Financial Sector Average
Performance Comparison
NRDBY
Nordea Bank Abp
15.33
4.34
39.49%
ITUB
Itau Unibanco
6.86
1.55
29.19%
LYG
Lloyds Banking
4.40
1.67
61.17%
MFG
Mizuho Financial
6.26
2.43
63.45%
PNC
PNC Financial
189.74
28.56
17.72%
USB
US Bancorp
44.86
5.19
13.08%
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.