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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

Meet

EUR 0.35

EUR 0.35 (8 Analysts)

Q3 Net Interest Income

Meet

EUR 1.80 bln

EUR 1.80 bln (5 Analysts)

Q3 Operating Profit

Miss

EUR 1.54 bln

EUR 1.63 bln (8 Analysts)

Q3 CET 1 Capital Ratio

15.80%

Q3 Net Fee & Commission Income

EUR 880 mln

Q3 ROE

15.10%


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

  • Oct 14 - Wall Street banks see robust deal pipeline despite market volatility

  • Oct 13 - Norway's ABG Sundal Q3 revenue rises on strong M&A, capital markets performance

  • Oct 13 - Banking watchdogs ramp up AI scrutiny as stability fears mount, sources say


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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