Nordea continues to deliver good results

Frank Vang-Jensen

19-10-2023 06:31

The third quarter of 2023 was – yet again – characterised by a fragile macroeconomic and geopolitical environment. Nordic societies have so far weathered the challenging conditions well, but we have now entered a period with more subdued economic activity.

We must all be prepared for interest rates normalising above what we have seen during the past ten years, and consequently asset prices and investment opportunities need to adapt to a new reality. This tests the resilience of both households and corporates. We need to live with prolonged uncertainty, but I’m encouraged to think that the Nordic economies are in a good position to stand the test of time.

Despite the challenging circumstances, Nordea performed strongly in the third quarter, with high-quality earnings growth and steady business volumes. Our return on equity was 17.9%. Our income grew by 19% year on year, driven primarily by net interest income, despite the negative effects of the weaker Norwegian and Swedish currencies. Operating profit increased by 34% year on year.

In recent years, we have consistently improved our business performance and profitability. Our franchise continues to deliver good results. This demonstrates the enduring strength and resilience of our pan-Nordic business model. 

The financial industry turbulence in the spring showed how crucial it is to have a strong, safe and profitable banking sector. Strong banks support customers, economic growth and societies in all economic cycles. In this environment, we continue to fulfil our role and responsibility. For one, we ensure that credit is provided to viable business projects and households with the right balance between savings and borrowing. 

We are also investing significantly to further strengthen the bank. The development of our technology and risk management capabilities has been a key focus. And our strong capital position has given us the investment capacity to grow our business. The latest acquisitions – of Topdanmark Life and Danske Bank’s personal customer business in Norway – are good examples.

Looking forward, our direction and position are clear even amid the continued uncertainty: we have a stable, strong and resilient business model with high-quality earnings and a well-diversified loan portfolio across the Nordic region. We remain committed to delivering great omnichannel customer experiences, driving focused and profitable growth, and improving operational and capital efficiency.

All this will help us in continuing to deliver strong support to our customers, high profitability and market-leading shareholder returns.

Interim result
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