Nordea continues solid performance in Q1; the Nordics well equipped to navigate global shifts

The world today looks different from a few months ago. Trade tensions and geopolitical challenges have increased uncertainty considerably. 

The Nordic countries are better positioned than many to manage through periods of volatility and turmoil. Our region has long stood out for its fiscal strength and highly competitive business environment, shaped by centuries of trade and commerce. 

Nordic entrepreneurial spirit has given us some of the world’s most successful companies. These success stories share many characteristics deeply rooted in the region's DNA, particularly their focus on quality, innovation and agility. It's these distinctive features that explain why Nordic companies have outperformed global peers over the past two decades. They're also a key reason why the Nordics will continue to thrive in the future, even in an era of increased protectionism.

Our view is that the Nordic economies face lower risks from US tariffs than many other regions. Nordic exports are well diversified, with those to the US comprising only a small portion of GDP. We also believe that European and Nordic governments are responding to the tariffs in a balanced and appropriate manner.

Stability provides a foundation from which to manage change effectively, and the Nordics offer it in abundance. The region’s resilience is bolstered by good public finances, strong social protections and structurally low unemployment rates. 

Additionally, Nordic households maintain healthy financial positions, while our region's large enterprises are generally well-positioned and adequately capitalised. In the present environment, many of our customers have understandably chosen to reinforce those positions – with households focusing on savings and corporates strengthening their balance sheets. 

Nordea in Q1: solid start to the year

This morning, we published our results for the first quarter of 2025. Despite the uncertainty, Nordea performed well, delivering growth in business volumes and continued high profitability: return on equity for the quarter was 15.7%, consistent with our financial target set three years ago.

Mortgage lending grew by 6% year on year. The increase was driven mostly by our recent acquisition in Norway but further supported by the gradual recovery in the Nordic housing markets. Corporate lending remained stable compared with last year.

With customers prioritising financial resilience, demand for deposits was high, both among households and corporates. Assets under management meanwhile grew by 9% year on year, to 425 billion euros, supported by good momentum in our private banking business.

All in all, this was a solid quarter for Nordea, and another demonstration of the strength of our franchise and well-diversified business model.

Looking ahead, we remain on track to deliver a return on equity of above 15% for the full year.                                                                                                                                       

Given all the uncertainty over tariffs, in the short term there is little doubt this will bring increased volatility and dampen growth. Still, we continue to see lower inflation and interest rates, which should support higher lending and investment activity when confidence returns.

Our focus in this environment will be the same as always: staying close to our customers. We’ll do so with the confidence of a financial services group that’s both in strong shape and operating in a region uniquely positioned to adapt to global changes.