Fourth-quarter and full-year results 2025

Nordea Bank Abp
Financial Statement Release
29 January 2026 at 7.45 EET

Summary of the quarter

Return on equity 14.4% – earnings per share EUR 0.34. Nordea’s return on equity for the quarter was 14.4%, compared with 14.3% a year ago, reflecting resilient and strong performance despite muted consumer sentiment due to ongoing geopolitical tensions. The cost-to-income ratio excluding regulatory fees was 46.2% for the quarter, improving from 47.9% a year ago. Earnings per share were EUR 0.34, up from EUR 0.32 a year ago.

Total income resilient. As expected, net interest income was down (-5%) following policy rate reductions. Net fee and commission income was up 3%, continuing the solid growth seen in the previous quarter. Net fair value result was up 28% due to higher customer activity and stronger market making result. Costs were down 3% with stable strategic investment levels and active cost management. Operating profit was up 3% at EUR 1.5bn.

Business volume growth. Mortgage lending grew by 1% year on year, driven by growth in Sweden and Norway. Corporate lending growth was strong, up 8%. Retail and corporate deposit volumes increased by 6% and 1%, respectively. Assets under management increased by 13%, to EUR 478bn, and Nordic net flows continued to be strong in the quarter (EUR 4.8bn).

Strong credit quality, with net loan losses below Nordea’s long term expectation. Net loan losses and similar net result amounted to EUR 49m (5bp), including a EUR 17m reduction in the management judgement buffer, which now stands at EUR 276m. Excluding the reduction, net loan losses and similar net result amounted to EUR 66m (7bp).

Continued strong capital generation and share buy-backs. The CET1 ratio was 15.7% at the end of the quarter, 1.9 percentage points above the current regulatory requirement. Nordea’s strong capital position and continued robust capital generation enabled the Group to support lending growth and continue share buy-backs. During the fourth quarter Nordea launched and completed one share buy-back programme and launched another, in total EUR 750m, with related capital deductions amounting to approximately 45bp. Nordea’s Board of Directors has proposed a dividend of EUR 0.96 per share for 2025, compared with EUR 0.94 per share for 2024. Additionally, the Board has proposed the distribution of a mid-year dividend in 2026, corresponding to approximately 50% of the net profit for the first half of 2026.

Outlook for 2026: a return on equity of greater than 15% and a cost-to-income ratio excluding regulatory fees of around 45%. Nordea has a strong and resilient business model, with a very well-diversified 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 Q4 2025 report.)

Group quarterly results and key ratios

CEO comment

Once again, Nordea delivered strong results. We finished 2025 well, with solid fourth-quarter profitability supported by growth in business volumes and lower costs. Return on equity for the full year 2025 was 15.5%, in line with the commitment we made three years ago and making this the third year in a row that we have exceeded 15%.

Our performance reflects the momentum we have built since we set out to reshape the business in the autumn of 2019. We have significantly improved customer experience, strengthened our performance and delivered consistently high-quality results, in both good and more challenging times. We closed our strategy period on a high note for customer satisfaction: scores are now 4–10 index points higher than in 2019 in all business areas, and our performance relative to peers has improved. The past six years have also seen us create significant shareholder value: total shareholder return amounts to 322% or 26% per annum.

By many measures, Nordea is stronger than it has ever been. This leaves us well positioned to support our customers in this period of broader global uncertainty and ongoing geopolitical tensions. During the fourth quarter consumer confidence across our four Nordic home markets remained understandably muted. Nevertheless, we drove an increase in customer activity among both households and corporates. Mortgage lending increased by 1% year on year. As in previous quarters, households continued to strengthen their financial positions, with a clear focus on savings and investments. Retail deposits were up 6%.

The strongest pickup in activity was again among corporates. Despite risks to global economic growth, we are clearly seeing the beneficial effects of a more stable inflation and interest rate environment in the Nordic countries, which has improved visibility and enabled businesses to plan with greater confidence. Consequently, we grew corporate lending by 8% year on year, further picking up from the third quarter. Corporate deposits were up 1%.

Total income for the quarter was EUR 2.9bn, in line with the fourth quarter of 2024. Our net interest income continues to hold up well, supported by higher business volumes and our deposit hedge. Operating expenses decreased by 3%, in line with our plan, reflecting continued active cost management and stable investment levels. Our cost-to-income ratio improved to 46.2% from 47.9% a year ago. Return on equity was 14.4%, while operating profit increased by 3% year on year, to EUR 1.5bn.

Credit quality is strong. Net loan losses and similar net result for the quarter amounted to EUR 49m or 5bp – well below our long term expectation of 10bp. We reduced our management judgement buffer by a further EUR 17m, bringing the total to EUR 276m.

In Personal Banking we delivered continued growth in business volumes and net flows into retail funds while advancing our digital capabilities for an enhanced customer experience. Deposits increased by 5% year on year and lending was up 1%. Customers continued to focus on financial planning and actively sought our advice, while housing markets showed further signs of improvement. Customer use of our digital platforms increased again this quarter: app users and logins were up 3% and 5%, respectively, year on year, and 69% of investments into funds were made through digital channels.

In Business Banking we drove strong volume growth. Nordic SMEs continued to adapt well to the operating environment, with stable interest rates supporting higher demand for lending. Lending volumes increased by 6% year on year, led by Sweden, with growth across all Nordic countries. Deposits were up 5%. To deliver an even better experience, we are making onboarding easier through simplified processes and a new digital tool, enabling our customers to get started faster.

In Large Corporates & Institutions we continued to support our customers, drawing on our strong balance sheet and leading advisory capabilities. We achieved record-high customer satisfaction and substantial growth in lending volumes and ancillary income. Lending volumes were up 10% year on year, with particularly strong growth – 20% – in Sweden. Debt Capital Markets activity remained high: during the quarter we arranged close to 140 transactions for a broad range of issuers. Our secondary equities business income grew by 26% year on year. Nordea Markets delivered strong results, driven by solid trading performance and increased client activity compared with a year ago.

In Asset & Wealth Management the good momentum continued in our Nordic channels, with net inflows at EUR 4.8bn, mainly contributed by retail funds and Private Banking. Net flows in international channels amounted to EUR 1.7bn, and net flows in the wholesale distribution channel continued to stabilise, totalling EUR 0.8bn for the quarter. One of our new exchange-traded funds (ETFs) – a BetaPlus solution launched in June 2025 – is already the largest actively managed sustainable ETF in Europe, demonstrating strong demand for sustainable investing and confidence in our approach. Assets under management increased by 13% year on year, to a record high of EUR 478bn.

Our capital position is strong, supported by robust capital generation. At the end of the year our CET1 ratio was 15.7%. This followed the launch and completion of a EUR 250m share buy-back programme and the launch of a new EUR 500m programme during the fourth quarter. Given our strong 2025 performance, our Board of Directors has proposed a dividend of EUR 0.96 per share for 2025, compared with EUR 0.94 per share for 2024.

We have now concluded our 2022–25 strategy period, having delivered on our priorities and financial targets – and are setting the stage for the next chapter of growth with our new strategic plan, launched at our Capital Markets Day in November. Our priorities are clear: drive above-market business growth, further strengthen our customer offering, and unlock the full potential of our unique Nordic scale.

We are targeting a return on equity of greater than 15% for each year through to 2030, and significantly higher in 2030. We are also targeting a cost-to-income ratio of 40–42% in 2030. Accordingly, we expect to deliver a return on equity of greater than 15% for the full year 2026, and expect our cost-to-income ratio excluding regulatory fees to be around 45%.

You can be assured that we will execute our plan with the same rigor and focus we have applied over the past two strategy periods. We do what we say. That commitment is reflected in our new vision: we aim to be the best-performing financial services group in the Nordics.

Frank Vang-Jensen
President and Group CEO

Outlook

Financial targets for 2030

Nordea targets a return on equity of greater than 15% throughout the period, and significantly higher in 2030, and a cost-to-income ratio excluding regulatory fees of 40–42% in 2030. These targets will be supported by an annual net loan loss ratio of around 10bp and the continuation of Nordea’s well-established capital and dividend policies.

Financial outlook for 2026 (new)

Nordea expects a return on equity of greater than 15% and a cost-to-income ratio excluding regulatory fees of around 45%.

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.

Dividend proposal

On 31 December 2025 Nordea Bank Abp’s distributable earnings, including profit for the financial year and after subtracting capitalised development expenses, were EUR 21,482m. Other unrestricted equity, consisting of invested unrestricted equity, amounted to EUR 1,077m.

Nordea’s Board of Directors has decided to propose that the Annual General Meeting (AGM) of 24 March 2026 decide on a dividend payment of EUR 0.96 per share. This corresponds to approximately 68% of the net profit for the year. The Board of Directors has also decided to propose that the AGM authorise it to decide on the distribution of a mid-year dividend in 2026. The mid-year dividend amount is intended to be set at a level corresponding to approximately 50% of the Nordea Group’s net profit for the six-month period ending 30 June 2026, while being subject to a maximum total amount of EUR 3bn. The mid-year dividend is considered to form the first part of the total dividend distribution to be paid for the financial year 2026 under the company’s dividend policy. The mid-year dividend will be paid based on the annual accounts to be adopted for the financial year ended 31 December 2025. The intention is for the Group Board to decide on the mid-year dividend in conjunction with the interim report for the second quarter. Dividends will not be paid for shares held by Nordea on the dividend record dates.

Income statement

Business volumes, key items¹

1. End of period. 

Ratios and key figures¹

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. Including the result for the period.
4. 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%.

2025 publications

Nordea’s Annual Report for the financial year 2025, which includes the audited financial statements, the Board of Directors’ Report, the Corporate Governance Statement and the Sustainability Statement, will be published in week 9, at the latest, by way of a stock exchange release and will also be available at www.nordea.com.

This release is a summary of Nordea’s fourth-quarter and full-year results for 2025. The complete report is attached to this release and can also be found on our website via the link below.

Nordea Group Q4 2025 Report

A webcast will be held on 29 January at 11.15 EET (10.15 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 07.45 EET (06.45 CET) on 29 January 2026.

Nordea is a leading Nordic financial services group and the preferred choice for millions of customers across the region. For more than 200 years, we have proudly served as a trusted financial partner for individuals, families and businesses – enabling dreams and aspirations for a greater good. Our vision is to be the best-performing financial services group in the Nordics, accelerating through our scale, people and technology. The Nordea share is listed on the Nasdaq Helsinki, Nasdaq Copenhagen and Nasdaq Stockholm exchanges.

Documents

• Q4 2025 Interim Report EN
• Q4 2025 Investor presentation for Web