Nordea Bank Abp
Interim report (Q1 and Q3)
16 October 2025 at 7.30 EET
Summary of the quarter
Return on equity 15.8% – earnings per share EUR 0.36. Nordea’s return on equity was strong at 15.8% in the third quarter, reflecting another solid performance and resilience despite muted sentiment due to ongoing geopolitical tensions. The cost-to-income ratio with amortised resolution fees was 46.1% for the quarter, and earnings per share were EUR 0.36.
Total income resilient. As expected, net interest income was down (-6%) following further policy rate reductions. Net fee and commission income was up 5%, rebounding from the impact of the market volatility seen in the previous quarter. Net insurance result grew by 10%, while net fair value result was down compared with the unusually high level a year ago. Costs were flat, with stable levels of strategic investment. Operating profit was EUR 1.6bn.
Lending growth picking up; continued growth in deposit volumes. Nordic mortgage market growth showed early signs of picking up. Mortgage lending grew by 6% year on year, driven by organic growth in Sweden and the contribution from the recent acquisition in Norway. Corporate lending growth was strong, up 6%, as Nordic companies increasingly adjusted to the new operating environment. Retail and corporate deposit volumes increased by 8% and 1%, respectively. Assets under management increased by 11%, to EUR 456bn, and Nordic net flows continued to be strong in the quarter (EUR 4.4bn).
Continued strong credit quality, with net loan losses well below Nordea’s long-term expectation. Net loan losses and similar net result amounted to a reversal of EUR 19m. Lower provisioning requirements, particularly in the Business Banking portfolio, led to the release of EUR 50m from the management judgement buffer, which now stands at EUR 291m. Excluding the release, net loan losses and similar net result amounted to EUR 31m or 3bp.
Continued strong capital generation; new share buy-back programme. The CET1 ratio was 15.9% at the end of the quarter, 2.3 percentage points above the current regulatory requirement. Nordea’s strong capital position and continued robust capital generation enable the Group to support lending growth and continue its share buy-backs. Nordea will launch a new EUR 250m share buy-back programme on or around 20 October, and expects to complete it before the end of the year, with a related capital deduction of approximately 15bp in the fourth quarter.
Outlook for 2025: well on track to deliver a return on equity of above 15%. Nordea has a strong and resilient business model, with a very well-diversified loan portfolio across the Nordic region. This enables the Group to support its customers and deliver high-quality earnings, with high profitability and low volatility, through the economic cycle. It also enables Nordea to continue to generate capital, seek opportunities to deploy it to drive growth, and distribute excess capital to shareholders in the form of share buy-backs.
(For further viewpoints, see the CEO comment. For definitions, see page 53 in the Q3 2025 report.)
Group quarterly results and key ratios
|
EURm |
Q3 2025 |
Q3 2024 |
Chg % |
Q2 2025 |
Chg % |
Jan-Sep 2025 |
Jan-Sep 2024 |
Chg % |
|---|---|---|---|---|---|---|---|---|
|
Net interest income |
1,775 |
1,882 |
-6 |
1,798 |
-1 |
5,402 |
5,740 |
-6 |
|
Net fee and commission income |
811 |
774 |
5 |
792 |
2 |
2,396 |
2,332 |
3 |
|
Net insurance result |
66 |
60 |
10 |
58 |
14 |
178 |
184 |
-3 |
|
Net fair value result |
245 |
284 |
-14 |
254 |
-4 |
788 |
822 |
-4 |
|
Other income |
13 |
14 |
-7 |
9 |
44 |
31 |
51 |
-39 |
|
Total operating income |
2,910 |
3,014 |
-3 |
2,911 |
0 |
8,795 |
9,129 |
-4 |
|
Total operating expenses excluding regulatory fees |
-1,313 |
-1,311 |
0 |
-1,314 |
0 |
-3,928 |
-3,797 |
3 |
|
Total operating expenses |
-1,332 |
-1,329 |
0 |
-1,333 |
0 |
-4,019 |
-3,896 |
3 |
|
Profit before loan losses |
1,578 |
1,685 |
-6 |
1,578 |
0 |
4,776 |
5,233 |
-9 |
|
Net loan losses and similar net result |
19 |
-51 |
|
21 |
|
27 |
-152 |
|
|
Operating profit |
1,597 |
1,634 |
-2 |
1,599 |
0 |
4,803 |
5,081 |
-5 |
|
|
|
|
|
|
|
|
|
|
|
Cost-to-income ratio excluding regulatory fees, % |
45.1 |
43.5 |
|
45.1 |
|
44.7 |
41.6 |
|
|
Cost-to-income ratio with amortised resolution fees, % |
46.1 |
44.5 |
|
46.1 |
|
45.6 |
42.6 |
|
|
Return on equity with amortised resolution fees, % |
15.8 |
16.7 |
|
16.2 |
|
15.9 |
17.6 |
|
|
Diluted earnings per share, EUR |
0.36 |
0.36 |
0 |
0.35 |
3 |
1.06 |
1.11 |
-5 |
CEO comment
The political shifts and rising global tensions we are seeing today remind us that the world economy is finely balanced and the operating environment can change quickly. Nevertheless, after the turbulent first few months of the year, the third quarter felt more calm and settled.
Some of the uncertainty around tariffs receded when the new EU-US trade agreement was struck. The Nordic economies also continued to benefit from lower inflation and interest rates – conditions that helped lift confidence. During the quarter, Nordic corporates signalled a renewed appetite to invest, which translated into increased demand for lending. Household activity also showed signs of picking up, though was still at muted levels, with our customers’ main focus on saving and strengthening their financial positions.
In the third quarter we delivered higher business volumes and solid results, again demonstrating the strength and quality of our pan-Nordic business. Profitability was high, with return on equity reaching 15.8%, in line with our financial target. We have now delivered a return on equity of above 15% in 10 out of the past 11 quarters.
Mortgage lending increased by 6% year on year, driven by Norway and Sweden. We grew retail deposits by 8%. Corporate lending picked up further, increasing by 6%, and deposits were up by 1%.
Total income amounted to EUR 2.9bn, a year-on-year decrease of 3%, as expected, driven by the reductions in policy rates over the past year. Our net interest income again proved resilient, supported by higher lending and deposit volumes and our deposit hedge. Net fee and commission income recovered during the quarter, rising by 5%, supported by higher capital markets activity after the volatile spring and early summer.
Costs in the third quarter were stable year on year. As planned, our strategic investments have levelled off and we continue to actively manage our costs according to the operating environment as part of our strong cost culture. We expect full-year operating expenses to be around EUR 5.4bn. The third-quarter cost-to-income ratio was 46.1%. Operating profit was EUR 1.6bn.
Credit quality remains exceptionally strong. Net loan losses and similar net result for the quarter amounted to a reversal of EUR 19m. Given the continued strength of our credit portfolio, we released a further EUR 50m from our management judgement buffer, which now stands at EUR 291m.
In Personal Banking we delivered solid business volumes, driven by higher levels of customer activity, especially in savings and investments. Deposits increased by 8% year on year and lending was up 5%. Customers continued to focus on financial planning and actively sought our advice – and we were well equipped to support them. Digital services activity remained high, and we saw a further increase in demand for loan promises. Our standout performance in digital banking earned us the title of best digital bank in the Nordics in Euromoney’s Awards for Excellence and multiple awards from Global Finance, including Best Consumer Digital Bank and Best Mobile Banking App in all the Nordic countries.
In Business Banking we drove solid volume growth, with lending volumes up 5% year on year, primarily in Sweden and Norway. Deposits were up 9%, with growth across all Nordic countries. We continued to enhance our digital offering in support of our ambition to become the leading digital bank for small and medium-sized enterprises. For the third consecutive year, Nordea Business and the mobile app won Global Finance’s awards for Best Corporate Digital Bank and Best Mobile Banking App in each of our four home markets.
In Large Corporates & Institutions we continued to use our Nordic scale and strong balance sheet to support our customers with their investment and growth plans. Lending growth was strong, with volumes up 6% year on year, reflecting increased demand among Nordic businesses. Debt Capital Markets activity remained high. Market conditions for Equity Capital Markets and Mergers & Acquisitions were volatile but gradually improved, with several notable transactions evidencing our broad financing and structuring capabilities.
In Asset & Wealth Management business momentum remained strong in our Nordic channels, with net inflows of EUR 4.4bn, including EUR 1.5bn in Private Banking and EUR 1.2bn in Life & Pension. Net flows in international channels amounted to EUR 0.6bn, with net flows in the wholesale distribution channel continuing to stabilise at EUR 0.4bn and net flows in International Institutions amounting to EUR 0.2bn. We were pleased to see strong interest in our new fund that invests in the drivers of Europe’s transformation: energy resilience, reshoring, and defence and cybersecurity. Assets under management increased by 11% year on year, to EUR 456bn.
Our capital position is strong, supported by robust capital generation. Our CET1 ratio was 15.9% at the end of the third quarter. We will soon launch another EUR 250m share buy-back programme, reaffirming our focus on shareholder returns and an efficient capital structure.
This was another very solid quarter for Nordea, and we remain well on track to deliver a return on equity of above 15% for the full year. Our performance this year clearly highlights the strength of our well-diversified business model and structurally improved profitability. It also reflects the advantages of operating in the strong and stable Nordic markets, home to globally competitive businesses and a powerful entrepreneurial spirit.
We look forward to presenting our plans for the next strategy period at our Capital Markets Day in London on 5 November. We will share the concrete steps we are taking to build on our successful foundation, with continued focus on our four home markets. These will enable us to drive above-market business growth with improved cost efficiency through our Nordic scale, continue delivering market-leading return on equity, and achieve superior earnings per share growth.
Frank Vang-Jensen
President and Group CEO
Outlook (unchanged)
Financial outlook for 2025
Nordea’s financial outlook for 2025 is a return on equity of above 15%.
Capital policy
A management buffer of 150bp above the regulatory CET1 requirement.
Dividend policy
Nordea’s dividend policy stipulates a dividend payout ratio of 60–70%, applicable to profit for the financial year. Nordea will continuously assess the opportunity to use share buy-backs as a tool to distribute excess capital.
Income statement
|
EURm |
Q3 2025 |
Q3 2024 |
Chg % |
Q2 2025 |
Chg % |
Jan-Sep 2025 |
Jan-Sep 2024 |
Chg % |
|---|---|---|---|---|---|---|---|---|
|
Net interest income |
1,775 |
1,882 |
-6 |
1,798 |
-1 |
5,402 |
5,740 |
-6 |
|
Net fee and commission income |
811 |
774 |
5 |
792 |
2 |
2,396 |
2,332 |
3 |
|
Net insurance result |
66 |
60 |
10 |
58 |
14 |
178 |
184 |
-3 |
|
Net result from items at fair value |
245 |
284 |
-14 |
254 |
-4 |
788 |
822 |
-4 |
|
Profit from associated undertakings and joint ventures accounted for under the equity method |
1 |
4 |
-75 |
-1 |
|
-3 |
13 |
|
|
Other operating income |
12 |
10 |
20 |
10 |
20 |
34 |
38 |
-11 |
|
Total operating income |
2,910 |
3,014 |
-3 |
2,911 |
0 |
8,795 |
9,129 |
-4 |
|
Staff costs |
-806 |
-779 |
3 |
-809 |
0 |
-2,407 |
-2,289 |
5 |
|
Other expenses |
-353 |
-380 |
-7 |
-354 |
0 |
-1,066 |
-1,079 |
-1 |
|
Regulatory fees |
-19 |
-18 |
6 |
-19 |
0 |
-92 |
-99 |
-7 |
|
Depreciation, amortisation and impairment charges of tangible and intangible assets |
-154 |
-152 |
1 |
-151 |
2 |
-454 |
-429 |
6 |
|
Total operating expenses |
-1,332 |
-1,329 |
0 |
-1,333 |
0 |
-4,019 |
-3,896 |
3 |
|
Profit before loan losses |
1,578 |
1,685 |
-6 |
1,578 |
0 |
4,776 |
5,233 |
-9 |
|
Net loan losses and similar net result |
19 |
-51 |
|
21 |
|
27 |
-152 |
|
|
Operating profit |
1,597 |
1,634 |
-2 |
1,599 |
0 |
4,803 |
5,081 |
-5 |
|
Income tax expense |
-369 |
-368 |
0 |
-378 |
-2 |
-1,120 |
-1,151 |
-3 |
|
Net profit for the period |
1,228 |
1,266 |
-3 |
1,221 |
1 |
3,683 |
3,930 |
-6 |
Business volumes, key items1
|
EURbn |
30 Sep 2025 |
30 Sep 2024 |
Chg. % |
30 Jun 2025 |
Chg. % |
|---|---|---|---|---|---|
|
Loans to the public |
375.3 |
348.9 |
8 |
368.0 |
2 |
|
Loans to the public, excl. repos/securities borrowing |
339.6 |
319.3 |
6 |
335.2 |
1 |
|
Deposits and borrowings from the public |
226.0 |
222.1 |
2 |
237.2 |
-5 |
|
Deposits from the public, excl. repos/securities lending |
216.0 |
206.9 |
4 |
218.5 |
-1 |
|
Total assets |
647.6 |
617.4 |
5 |
636.8 |
2 |
|
Assets under management |
456.0 |
412.4 |
11 |
437.1 |
4 |
1. End of period.
Ratios and key figures1
|
|
Q3 2025 |
Q3 2024 |
Chg % |
Q2 2025 |
Chg % |
Jan-Sep 2025 |
Jan-Sep 2024 |
Chg % |
|---|---|---|---|---|---|---|---|---|
|
Diluted earnings per share, EUR |
0.36 |
0.36 |
0 |
0.35 |
3 |
1.06 |
1.11 |
-5 |
|
EPS, rolling 12 months up to period end, EUR |
1.39 |
1.42 |
-2 |
1.39 |
0 |
1.39 |
1.42 |
-2 |
|
Share price2, EUR |
13.98 |
10.59 |
32 |
12.61 |
11 |
13.98 |
10.59 |
32 |
|
Equity per share2, EUR |
9.16 |
8.98 |
2 |
8.78 |
4 |
9.16 |
8.98 |
2 |
|
Potential shares outstanding2, million |
3,451 |
3,506 |
-2 |
3,470 |
-1 |
3,451 |
3,506 |
-2 |
|
Weighted average number of diluted shares, million |
3,451 |
3,503 |
-1 |
3,467 |
0 |
3,466 |
3,508 |
-1 |
|
Return on equity with amortised resolution fees, % |
15.8 |
16.7 |
|
16.2 |
|
15.9 |
17.6 |
|
|
Return on equity, % |
15.9 |
16.8 |
|
16.3 |
|
15.8 |
17.5 |
|
|
Return on tangible equity, % |
18.3 |
19.2 |
|
18.8 |
|
18.2 |
20.1 |
|
|
Return on risk exposure amount, % |
3.1 |
3.3 |
|
3.1 |
|
3.1 |
3.4 |
|
|
Cost-to-income ratio excluding regulatory fees, % |
45.1 |
43.5 |
|
45.1 |
|
44.7 |
41.6 |
|
|
Cost-to-income ratio with amortised resolution fees, % |
46.1 |
44.5 |
|
46.1 |
|
45.6 |
42.6 |
|
|
Cost-to-income ratio, % |
45.8 |
44.1 |
|
45.8 |
|
45.7 |
42.7 |
|
|
Net loan loss ratio, incl. loans held at fair value, bp |
-2 |
6 |
|
-2 |
|
-1 |
6 |
|
|
Common Equity Tier 1 capital ratio2,3, % |
15.9 |
15.8 |
|
15.6 |
|
15.9 |
15.8 |
|
|
Tier 1 capital ratio2,3, % |
18.5 |
18.4 |
|
17.5 |
|
18.5 |
18.4 |
|
|
Total capital ratio2,3, % |
21.1 |
20.9 |
|
20.0 |
|
21.1 |
20.9 |
|
|
Tier 1 capital2,3, EURbn |
29.4 |
28.2 |
4 |
27.7 |
6 |
29.4 |
28.2 |
4 |
|
Risk exposure amount2, EURbn |
158.4 |
153.7 |
3 |
158.6 |
0 |
158.4 |
153.7 |
3 |
|
Net interest margin, % |
1.59 |
1.77 |
|
1.63 |
|
1.64 |
1.79 |
|
|
Number of employees (FTEs)2 |
29,386 |
29,895 |
-2 |
29,844 |
-2 |
29,386 |
29,895 |
-2 |
|
Equity2, EURbn |
31.5 |
31.5 |
0 |
30.4 |
4 |
31.5 |
31.5 |
0 |
1. For more detailed information regarding ratios and key figures defined as alternative performance measures, see https://www.nordea.com/en/investor-relations/reports-and-presentations/group-interim-reports
2. End of period.
3. Includes the year-to-date result net of dividend deduction of 70% (the upper range in Nordea´s dividend policy). With the deduction of the share buy-back programme of EUR 250m that was announced by Nordea on 16 October 2025, the Nordea Group´s CET1 ratio for the third quarter of 2025 would be 15.7%.
This release is a summary of Nordea’s Q3 results for 2025. The complete report is attached to this release and can also be found on our website via the link below.
A webcast will be held on 16 October at 11.00 EET (10.00 CET), during which Frank Vang-Jensen, President and Group CEO, will present the results. This will be followed by a Q&A audio session for investors and analysts with Frank Vang-Jensen, Ian Smith, Group CFO, and Ilkka Ottoila, Head of Investor Relations.
The event will be webcast live and the recording and presentation slides will be posted on www.nordea.com/ir.
For further information:
Frank Vang-Jensen, President and Group CEO, +358 503 821 391
Ian Smith, Group CFO, +455 547 8372
Ilkka Ottoila, Head of Investor Relations, +358 953 007 058
Ulrika Romantschuk, Head of Brand, Communication and Marketing, +358 10 416 8023
The information provided in this stock exchange release was submitted for publication, through the agency of the contacts set out above, at 07.30 EET (06.30 CET) on 16 October 2025.
We are a universal bank with a 200-year history of supporting and growing the Nordic economies – enabling dreams and aspirations for a greater good. Every day, we work to support our customers’ financial development, delivering best-in-class omnichannel customer experiences and driving sustainable change. The Nordea share is listed on the Nasdaq Helsinki, Nasdaq Copenhagen and Nasdaq Stockholm exchanges. Read more about us at nordea.com.