Nordea in Q2: strong performance in a volatile period

The second quarter saw the most volatile markets for some time. Concerns over higher trade tariffs and increasing geopolitical tensions resulted in significant financial market turmoil. Despite the external pressures, overall sentiment among Nordic households and businesses remained calm, with customer activity increasing in most areas as the quarter progressed.

Global trade volatility clearly presents risks. However, the Nordic countries are better positioned than many to manage through periods of turmoil. That advantage is rooted in our region’s strong economies and fiscal positions, and our globally competitive businesses. We also expect the lower inflation and interest rates to further support increasing activity levels as confidence returns.

In this extraordinary environment, Nordea delivered another strong performance. We grew business volumes and achieved high profitability, with a return on equity of 16.2%. The result underlines our position as a resilient, market-leading financial services group. 

Second-quarter mortgage lending was up 6% year on year, driven by both Norway and Sweden. With an exceptionally good performance in June, we further strengthened our position in Sweden, taking more share of the mortgage market. During the quarter, demand for loan promises in the Nordics grew once again.

Retail deposits increased by 8%, supported by higher savings and investments activity among households. Nordea’s total assets under management were up 9%, to EUR 437bn, helped by good momentum in our private banking business.

The corporate segment also grew strongly. Lending and deposits were both up 5% year on year. This development indicates continued optimism among Nordic businesses, despite the uncertain environment and the otherwise overall subdued corporate financing market.

In summary, this was another solid quarter for Nordea. 

Our performance so far this year clearly highlights the strength of our well-diversified business model and structurally improved profitability. We remain firmly on track to deliver a return on equity of above 15% for the full year. 

/Frank