Nordea Bank meets Q3 profit estimates on growth in savings and investments

Overview

• Nordic financial services group's Q3 EPS met analyst expectations; operating profit missed estimates

• Q3 total income rose 2% yr/yr, with net fee and commission income up 9%

• Company saw strong lending and deposit growth; assets under management hit record EUR 509 bln

Outlook

• Nordea expects 2026 return on equity of greater than 15%

• Company sees 2026 cost-to-income ratio of 44–45%

• Nordea notes recent sharp rises in forward interest rates may affect consumer confidence

Result Drivers

• SAVINGS INCOME - Net fee and commission income rose 9% yr/yr, driven by 14% growth in savings income

• CORPORATE LENDING AND DEPOSITS - Corporate lending and deposit growth were strong, up 8% and 7% yr/yr

• INTEREST RATE VOLATILITY - Net fair value result fell 19% due to extraordinary interest rate volatility

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Nordea Bank Abp is €19.93, about 17.4% above its October 14 closing price of €16.98

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)