Nordea Bank AB

First-quarter results 2025

Nordea Bank Abp

Interim report (Q1 and Q3)

16 April 2025 at 7.30 EET

Summary of the quarter

Continued growth in fees and commissions; total income resilient. Net interest

income was down 6% following policy rate reductions. Net fee and commission

income continued to grow, and was up 4%. Net insurance result and net fair value

result were both solid. Total income was down 4% year on year, but up 1% quarter

on quarter. Costs increased by 5%, of which 4 percentage points was driven by

strategic investments. Operating profit decreased by 9% year on year, but was up

10% quarter on quarter, amounting to EUR 1.6bn.

Return on equity 15.7%; earnings per share EUR 0.35. Nordea's return on equity

remained strong at 15.7% in the first quarter, reflecting resilience and

continued high performance. The first-quarter cost-to-income ratio with

amortised resolution fees was 44.6%, well within the target range of 44-46%.

Earnings per share were EUR 0.35, compared with EUR 0.38 a year ago.

Mortgage lending and deposit volumes up. Nordic mortgage markets remained muted,

though there were further signs of a gradual recovery, with demand for new loan

promises continuing to increase. Mortgage lending grew by 6% year on year,

driven by the acquisition of Danske Bank's personal customer and private banking

business in Norway. Excluding this, mortgage lending was stable. Corporate

lending was stable, with markets remaining muted. Retail and corporate deposit

volumes increased by 7% and 11%, respectively. Assets under management increased

by 9% and Nordic net flows amounted to EUR 2.7bn in the quarter.

Strong credit quality, with net loan losses well below Nordea's long-term

expectation. Net loan losses and similar net result amounted to EUR 13m or 1bp.

EUR 20m was released from the management judgement buffer, which now stands at

EUR 397m.

Continued strong capital generation; share buy-backs ongoing. The CET1 ratio was

15.7% at the end of the quarter, 2.0 percentage points above the regulatory

requirement, as strong capital generation partly offset the impacts of the share

buy-back deduction and regulatory updates, including Basel IV. Nordea launched a

new EUR 250m share buy-back programme on 10 March, and expects to complete the

programme by 13 June 2025.

Outlook for 2025 unchanged: return on equity of above 15%. Nordea has a strong

and resilient business model, with a well-diversified loan portfolio across the

Nordic region. This enables Nordea 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 Q1 2025 report.)

Group quarterly results and key ratios

+---------------------------+-------+-------+-----+-------+-----+

| EURm |Q1 2025|Q1 2024|Chg %|Q4 2024|Chg %|

+---------------------------+-------+-------+-----+-------+-----+

|Net interest income |1,829 |1,954 |-6 |1,854 |-1 |

+---------------------------+-------+-------+-----+-------+-----+

|Net fee and commission |793 |763 |4 |825 |-4 |

+---------------------------+-------+-------+-----+-------+-----+

|Net insurance result |54 |61 |-11 |69 |-22 |

+---------------------------+-------+-------+-----+-------+-----+

|Net fair value result |289 |291 |-1 |201 |44 |

+---------------------------+-------+-------+-----+-------+-----+

|Other income |9 |16 |-44 |6 |50 |

+---------------------------+-------+-------+-----+-------+-----+

|Total operating income |2,974 |3,085 |-4 |2,955 |1 |

+---------------------------+-------+-------+-----+-------+-----+

|Total operating expenses |-1,300 |-1,226 |6 |-1,416 |-8 |

+---------------------------+-------+-------+-----+-------+-----+

|Total operating expenses |-1,354 |-1,289 |5 |-1,434 |-6 |

+---------------------------+-------+-------+-----+-------+-----+

|Profit before loan losses |1,620 |1,796 |-10 |1,521 |7 |

+---------------------------+-------+-------+-----+-------+-----+

|Net loan losses and similar|-13 |-33 | |-54 | |

+---------------------------+-------+-------+-----+-------+-----+

|Operating profit |1,607 |1,763 |-9 |1,467 |10 |

+---------------------------+-------+-------+-----+-------+-----+

| | | | | | |

+---------------------------+-------+-------+-----+-------+-----+

|Cost-to-income ratio |43.7 |39.7 | |47.9 | |

|% | | | | | |

+---------------------------+-------+-------+-----+-------+-----+

|Cost-to-income ratio with |44.6 |40.7 | |48.9 | |

|% | | | | | |

+---------------------------+-------+-------+-----+-------+-----+

|Return on equity with |15.7 |18.1 | |14.3 | |

|% | | | | | |

+---------------------------+-------+-------+-----+-------+-----+

|Diluted earnings per share,|0.35 |0.38 |-8 |0.32 |9 |

|EUR | | | | | |

+---------------------------+-------+-------+-----+-------+-----+

CEO comment

The world today looks different from a few months ago. Trade tensions and

geopolitical challenges have increased uncertainty considerably. While tariffs

are not helpful, the Nordic countries - recognised for their fiscal strength and

globally competitive businesses - are better positioned than many to manage

through periods of volatility and turmoil. In the present environment, many of

our customers have been choosing to retain financial flexibility, with

households focusing on saving and corporates strengthening their balance sheets

- and delaying major financial decisions as a result. Still, we continue to see

lower inflation and interest rates, which should support higher lending and

investment activity when confidence returns.

Despite the uncertainty, Nordea performed well in the first quarter, delivering

growth in business volumes and continued high profitability. Return on equity

was 15.7%, consistent with our financial target set three years ago. Our

structurally improved profitability reinforces Nordea's position as a strong,

resilient and market-leading financial services group.

Total income decreased by 4% year on year, to EUR 3.0bn, driven by lower policy

rates. Despite this, our net interest income showed continued resilience,

amounting to EUR 1.8bn for the quarter, supported by higher business volumes,

disciplined pricing and a positive deposit hedge contribution. Meanwhile, we

delivered solid growth in net fee and commission income, with higher savings

income offsetting overall slow capital markets activity.

Mortgage lending volumes grew by 6% year on year. This was driven by our recent

acquisition of Danske Bank's Norwegian personal customer and private banking

business and further supported by the gradual recovery in the Nordic housing

markets. Customer demand for loan promises continued to grow and retail deposits

were up 7%. Corporate lending was stable, while corporate deposits grew by 11%.

Costs increased by 5% year on year, reflecting our strategic investments in

several areas, including technology, data and AI, digital services and cyber

security. These investments will support income and profit growth and help us

build a stronger and even more resilient financial services group. They are also

key to unlocking the benefits of our unique Nordic scale, enabling us to further

improve customer experience, drive business growth and increase efficiency. Our

investment levels have stabilised after peaking during the second half of last

year, and we expect full-year cost growth to be 2.0-2.5%. Our cost-to-income

ratio with amortised resolution fees was 44.6% for the first quarter. Operating

profit was EUR 1.6bn, compared with EUR 1.8bn a year ago, but was up 10% quarter

on quarter.

Our credit and asset quality remain strong. Individual provisions were low, and

we released a further EUR 20m from our management judgement buffer. As a result,

our first-quarter net loan losses and similar net result amounted to EUR 13m.

The buffer now stands at EUR 397m.

In Personal Banking we delivered higher lending and deposit volumes, supported

by our acquisition in Norway and higher customer activity. Compared with a year

ago, customers started more savings plans, increased their monthly savings, made

more loan applications and increased their digital activity. App users and

logins were up by 7% and 8%, respectively, year on year. Our new customers in

Norway are settling in well, and we are actively developing these new

relationships through our digital channels and advisers.

In Business Banking we had a 1% increase in lending volumes, driven by Sweden

and Finland, and we facilitated more bond financing. Deposits increased by 6%,

growing in all our home markets. Five years ago, we launched a strategic

initiative to transform our customer offering and regain a leading position in

Sweden by strengthening our digital and advisory services and enhancing customer

experience. Our success is reflected in growth and market share gains, and in

the latest annual survey by Prospera, the recognised industry benchmark for

customer satisfaction. There, we ranked first in Sweden for both small and mid

-sized corporates, receiving the highest scores in all ten categories in both

segments.

In Large Corporates & Institutions demand for our risk management and hedging

solutions was very strong, though there was reduced appetite for bank financing.

Lending volumes decreased by 1% year on year as customers continued to favour

bond issuance for raising money. Debt capital markets activity was high among

both corporate and institutional customers. Conditions were more muted in equity

capital markets and mergers and acquisitions. During the quarter we were named

Best Investment Bank in all four of our home markets in the Global Finance

Awards for 2025.

In Asset & Wealth Management we kept up the good momentum in our private banking

business, welcoming new customers and growing in all our home markets. Nordic

net flows for the quarter were positive at EUR 2.7bn. In our international

channels we had net inflows of EUR 3.9bn as we regained momentum in the

institutional segment and onboarded several large mandates, supported by our

strong track record in sustainable investment strategies. Assets under

management grew by 9% year on year, to EUR 425bn.

Our capital position remains strong, supported by continued robust capital

generation. At the end of the first quarter our CET1 ratio was 15.7% after

deductions for the new share buy-back programme launched in March and regulatory

updates, including Basel IV.

This was a solid quarter for Nordea and we remain on track to deliver a return

on equity of above 15% for the full year. Our strength is supported by the long

-standing financial stability, competitiveness and entrepreneurial spirit of the

Nordic societies. Few countries are better equipped than our home markets to

navigate the current global shifts.

As this is the final year of our current strategy period, we look forward to

presenting our strategy for 2026 and beyond at our Capital Markets Day in London

on 5 November. We will share the concrete steps we are taking to build on our

successful recipe, with continued focus on our four home markets. This will

enable us to outgrow the market, 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 | Q1 | Q1 |Chg %|Q4 2024|Chg

| | 2025 | 2024 | | |

+----------------------------------------------+------+------+-----+-------+----

|Net interest income |1,829 |1,954 |-6 |1,854 |-1

+----------------------------------------------+------+------+-----+-------+----

|Net fee and commission income |793 |763 |4 |825 |-4

+----------------------------------------------+------+------+-----+-------+----

|Net insurance result |54 |61 |-11 |69 |-22

+----------------------------------------------+------+------+-----+-------+----

|Net result from items at fair value |289 |291 |-1 |201 |44

+----------------------------------------------+------+------+-----+-------+----

|Profit from associated undertakings and joint |-3 |7 | |-3 |0

|ventures accounted for under the equity method| | | | |

+----------------------------------------------+------+------+-----+-------+----

|Other operating income |12 |9 |33 |9 |33

+----------------------------------------------+------+------+-----+-------+----

|Total operating income |2,974 |3,085 |-4 |2,955 |1

+----------------------------------------------+------+------+-----+-------+----

|Staff costs |-792 |-749 |6 |-817 |-3

+----------------------------------------------+------+------+-----+-------+----

|Other expenses |-359 |-338 |6 |-451 |-20

+----------------------------------------------+------+------+-----+-------+----

|Regulatory fees |-54 |-63 |-14 |-18 |

+----------------------------------------------+------+------+-----+-------+----

|Depreciation, amortisation and impairment |-149 |-139 |7 |-148 |1

|charges of tangible and intangible assets | | | | |

+----------------------------------------------+------+------+-----+-------+----

|Total operating expenses |-1,354|-1,289|5 |-1,434 |-6

| | | | | |

+----------------------------------------------+------+------+-----+-------+----

|Profit before loan losses |1,620 |1,796 |-10 |1,521 |7

+----------------------------------------------+------+------+-----+-------+----

|Net loan losses and similar net result |-13 |-33 |-61 |-54 |-76

+----------------------------------------------+------+------+-----+-------+----

|Operating profit |1,607 |1,763 |-9 |1,467 |10

+----------------------------------------------+------+------+-----+-------+----

|Income tax expense |-373 |-402 |-7 |-338 |10

+----------------------------------------------+------+------+-----+-------+----

|Net profit for the period |1,234 |1,361 |-9 |1,129 |9

+----------------------------------------------+------+------+-----+-------+----

Business volumes, key items1

+----------------------------+-----------+-----------+------+-----------+------+

| EURbn |31 Mar 2025|31 Mar 2024|Chg. %|31 Dec 2024|Chg. %|

+----------------------------+-----------+-----------+------+-----------+------+

|Loans to the public |366.8 |346.2 |6 |357.6 |3 |

+----------------------------+-----------+-----------+------+-----------+------+

|Loans to the public, excl. |335.7 |319.8 |5 |329.0 |2 |

+----------------------------+-----------+-----------+------+-----------+------+

|Deposits and borrowings from|240.0 |216.0 |11 |232.4 |3 |

+----------------------------+-----------+-----------+------+-----------+------+

|Deposits from the public, |221.2 |200.3 |10 |215.4 |3 |

+----------------------------+-----------+-----------+------+-----------+------+

|Total assets |641.4 |604.9 |6 |623.4 |3 |

+----------------------------+-----------+-----------+------+-----------+------+

|Assets under management |425.2 |391.2 |9 |422.0 |1 |

+----------------------------+-----------+-----------+------+-----------+------+

1. End of period.

Ratios and key figures1

+---------------------------+-------+-------+-----+-------+-----+

| |Q1 2025|Q1 2024|Chg %|Q4 2024|Chg %|

+---------------------------+-------+-------+-----+-------+-----+

|Diluted earnings per share,|0.35 |0.38 |-8 |0.32 |9 |

|EUR | | | | | |

+---------------------------+-------+-------+-----+-------+-----+

|EPS, rolling 12 months up |1.41 |1.44 |-2 |1.44 |-2 |

+---------------------------+-------+-------+-----+-------+-----+

|Share price2, EUR |11.77 |10.47 |12 |10.50 |12 |

+---------------------------+-------+-------+-----+-------+-----+

|Equity per share2, EUR |8.55 |8.25 |4 |9.30 |-8 |

+---------------------------+-------+-------+-----+-------+-----+

|Potential shares |3,491 |3,506 |0 |3,503 |0 |

+---------------------------+-------+-------+-----+-------+-----+

|Weighted average number of |3,483 |3,508 |-1 |3,493 |0 |

+---------------------------+-------+-------+-----+-------+-----+

|Return on equity with |15.7 |18.1 | |14.3 | |

|% | | | | | |

+---------------------------+-------+-------+-----+-------+-----+

|Return on equity, % |15.4 |17.8 | |14.4 | |

+---------------------------+-------+-------+-----+-------+-----+

|Return on tangible equity, |17.6 |20.3 | |16.5 | |

|% | | | | | |

+---------------------------+-------+-------+-----+-------+-----+

|Return on risk exposure |3.1 |3.9 | |2.9 | |

+---------------------------+-------+-------+-----+-------+-----+

|Cost-to-income ratio |43.7 |39.7 | |47.9 | |

|% | | | | | |

+---------------------------+-------+-------+-----+-------+-----+

|Cost-to-income ratio with |44.6 |40.7 | |48.9 | |

|% | | | | | |

+---------------------------+-------+-------+-----+-------+-----+

|Cost-to-income ratio, % |45.5 |41.8 | |48.5 | |

+---------------------------+-------+-------+-----+-------+-----+

|Net loan loss ratio, incl. |1 |4 | |6 | |

|bp | | | | | |

+---------------------------+-------+-------+-----+-------+-----+

|Common Equity Tier 1 |15.7 |17.2 | |15.8 | |

+---------------------------+-------+-------+-----+-------+-----+

|Tier 1 capital ratio2,3, % |17.6 |19.5 | |18.4 | |

+---------------------------+-------+-------+-----+-------+-----+

|Total capital ratio2,3, % |20.2 |22.4 | |21.0 | |

+---------------------------+-------+-------+-----+-------+-----+

|Tier 1 capital2,3, EURbn |28.1 |27.1 |4 |28.7 |-2 |

+---------------------------+-------+-------+-----+-------+-----+

|Risk exposure amount2, |159.7 |138.6 |15 |155.9 |2 |

+---------------------------+-------+-------+-----+-------+-----+

|Net interest margin, % |1.70 |1.83 | |1.73 | |

+---------------------------+-------+-------+-----+-------+-----+

|Number of employees (FTEs)2|30,343 |29,478 |3 |30,157 |1 |

+---------------------------+-------+-------+-----+-------+-----+

|Equity2, EURbn |29.7 |28.9 |3 |32.4 |-8 |

+---------------------------+-------+-------+-----+-------+-----+

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.

This release is a summary of Nordea's first-quarter 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 Q1 2025 Report (https://www.nordea.com/en/investor

-relations/reports-and-presentations/latest-interim-results/)

A webcast will be held on 16 April 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 821391

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 April 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.

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