Nordea Bank AB

Half-year results 2025

Nordea Bank Abp

Half year financial report

17 July 2025 at 7.30 EET

Summary of the quarter

Strong profitability; earnings per share EUR 0.35. Nordea remains highly

profitable, with a second-quarter return on equity of 16.2% reflecting strong

performance and resilience despite continued uncertainty from trade tariffs and

increasing geopolitical tensions. The cost-to-income ratio with amortised

resolution fees was 46.1% for the quarter. Earnings per share were EUR 0.35.

Total income resilient. As expected, net interest income was down (-6%)

following policy rate reductions. Net fee and commission income was stable after

being significantly impacted by market volatility at the start of the quarter,

which had a dampening effect on confidence and activity levels. Net insurance

result and net fair value result were solid. Costs increased by 4%, in line with

Nordea's plan, driven by strategic investments, inflation, annual salary

increases, and foreign exchange effects. Operating profit was EUR 1.6bn.

Lending volumes up and strong growth in deposits. 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 organic growth in Sweden and the contribution from the

recent acquisition in Norway. Corporate lending was strong, up 5%, as Nordic

companies started to adjust to the new operating environment. Retail and

corporate deposit volumes increased by 8% and 5%, respectively. Assets under

management increased by 9%, to EUR 437bn, and Nordic net flows showed continued

strong performance (EUR 4.5bn) in the quarter.

Exceptionally strong credit quality, with net loan losses again well below

Nordea's long-term expectation. Net loan losses and similar net result amounted

to a reversal of EUR 21m. Lower provisioning requirements led to a EUR 60m

release from the management judgement buffer, which now stands at EUR 341m.

Excluding the release, net loan losses and similar net result amounted to EUR

39m or 4bp.

Continued strong capital generation; new share buy-back programme launched. The

CET1 ratio was 15.6% at the end of the quarter, 1.9 percentage points above the

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 launched a new EUR 250m share buy-back programme on 16

June, and expects to complete it by 30 September 2025 at the latest.

Outlook for 2025 unchanged: on track to deliver 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 on page 2. For definitions, see

page 53 in the Q2 2025 report.)

Group quarterly results and key ratios

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

| EURm | Q2 | Q2 |Chg| Q1 |Chg| Jan | Jan |Chg %|

| | 2025 | 2024 | % | 2025 | % | -Jun | -Jun | |

| | | | | | | 2025 | 2024 | |

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

|Net interest income |1,798 |1,904 |-6 |1,829 |-2 |3,627 |3,858 |-6 |

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

|Net fee and commission |792 |795 |0 |793 |0 |1,585 |1,558 |2 |

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

|Net insurance result |58 |63 |-8 |54 |7 |112 |124 |-10 |

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

|Net fair value result |254 |247 |3 |289 |-12|543 |538 |1 |

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

|Other income |9 |21 |-57|9 |0 |18 |37 |-51 |

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

|Total operating income |2,911 |3,030 |-4 |2,974 |-2 |5,885 |6,115 |-4 |

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

|Total operating expenses |-1,314|-1,260|4 |-1,300|1 |-2,614|-2,486|5 |

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

|Total operating expenses |-1,333|-1,278|4 |-1,354|-2 |-2,687|-2,567|5 |

| | | | | | | | | |

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

|Profit before loan losses |1,578 |1,752 |-10|1,620 |-3 |3,198 |3,548 |-10 |

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

|Net loan losses and similar|21 |-68 | |-13 | |8 |-101 | |

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

|Operating profit |1,599 |1,684 |-5 |1,607 |0 |3,206 |3,447 |-7 |

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

| | | | | | | | | |

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

|Cost-to-income ratio |45.1 |41.6 | |43.7 | |44.4 |40.7 | |

|% | | | | | | | | |

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

|Cost-to-income ratio with |46.1 |42.6 | |44.6 | |45.4 |41.6 | |

|% | | | | | | | | |

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

|Return on equity with |16.2 |17.9 | |15.7 | |15.9 |18.0 | |

|% | | | | | | | | |

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

|Diluted earnings per share,|0.35 |0.37 |-5 |0.35 |0 |0.70 |0.75 |-7 |

|EUR | | | | | | | | |

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

CEO comment

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 economies

are better positioned than many to manage through periods of turmoil. We also

expect the lower inflation and interest rates to further support increasing

activity levels as confidence returns.

In this 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. It also keeps us firmly on track to meet our full-year

guidance.

Total income in the quarter was EUR 2.9 billion, a year-on-year decrease of 4%.

As expected, net interest income was lower in the declining interest rate

environment, but was otherwise resilient, supported by higher lending and

deposit volumes as well as our deposit hedge contribution. Net fee and

commission income growth slowed, impacted by the financial market turmoil early

in the quarter.

Mortgage lending increased by 6% year on year, driven by Norway and Sweden. We

grew retail deposits by 8%, including the contribution from our acquisition in

Norway. Corporate lending and deposits also saw strong growth, with both up 5%

year on year.

Costs increased by 4%, in line with our plan. We continued our strategic

investments in key areas - including technology, data and AI - that will support

future income growth, profitability and overall resilience. We don't plan to

increase investment levels this year, and therefore expect year-on-year cost

growth to slow significantly after the summer, and full-year costs to grow by no

more than 2% to 2.5%, excluding foreign exchange effects. Our cost-to-income

ratio for the second quarter was 46.1%. Operating profit was EUR 1.6bn, stable

quarter on quarter.

Our credit quality remains exceptionally strong. Net loan losses and similar net

result for the quarter amounted to a reversal of EUR 21m. Given the continued

strength of our credit portfolio, we released a further EUR 60m from our

management judgement buffer, which now stands at EUR 341m.

In Personal Banking we delivered solid growth in lending and deposit volumes.

With an exceptionally good performance in June, we further strengthened our

position in Sweden, where we also took more share of the mortgage market. App

users and mobile logins were up 7% and 6%, respectively, year on year. We also

launched new digital features, including a financial health check in the app to

help customers improve their financial well-being.

In Business Banking we grew lending volumes by 4%, primarily in Sweden and

Norway, with indications of higher activity levels. Deposit growth was strong,

10% year on year, with solid contributions across all Nordic countries.

Supporting our ambition to become the leading digital bank for small and medium

-sized enterprises, we enhanced our digital services with new tools and piloted

our new Business Insights solution to support daily banking.

In Large Corporates & Institutions we drove strong lending growth, with volumes

up 4% year on year, or 6% when adjusted for foreign exchange effects, pointing

to optimism among Nordic businesses in the uncertain environment. We were active

in supporting customers with equity financing and debt issuance, while the

overall corporate financing market remained subdued, with volatility and

uncertainty postponing deal-making. We also saw an increase in demand for

shorter-term liquidity financing as corporates continued to focus on retaining

financial flexibility.

In Asset & Wealth Management business momentum remained strong in our Nordic

channels. We had net inflows of EUR 2.0bn in Private Banking and EUR 1.2bn in

Life & Pension. Net flows from international institutions were lower following

two strong quarters with inflows from larger mandates, and wholesale

distribution net flows continued to stabilise. Assets under management increased

by 9% year on year, to EUR 437bn, while asset management fees were lower in the

quarter, impacted by the financial market volatility in April. In Denmark, we

were named Commercial Pension Company of the Year by EY and FinansWatch.

Our capital position remains strong, supported by robust capital generation. Our

CET1 ratio stood at 15.6% at the end of the second quarter, down slightly on the

first quarter after deductions for the latest share buy-back programme.

In summary, this was another solid quarter for Nordea, and we remain on track to

deliver a return on equity of above 15%, consistent with the target we set three

years ago. Our performance so far 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 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 foundation, 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 | Q2 | Q2 |Chg| Q1 |Chg| Jan | Jan |Chg|

| | 2025 | 2024 | % | 2025 | % | -Jun | -Jun | % |

| | | | | | | 2025 | 2024 | |

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

|Net interest income |1,798 |1,904 |-6 |1,829 |-2 |3,627 |3,858 |-6 |

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

|Net fee and commission |792 |795 |0 |793 |0 |1,585 |1,558 |2 |

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

|Net insurance result |58 |63 |-8 |54 |7 |112 |124 |-10|

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

|Net result from items |254 |247 |3 |289 |-12|543 |538 |1 |

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

|Profit from associated |-1 |2 | |-3 | |-4 |9 | |

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

|Other operating income |10 |19 |-47|12 |-17|22 |28 |-21|

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

|Total operating income |2,911 |3,030 |-4 |2,974 |-2 |5,885 |6,115 |-4 |

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

|Staff costs |-809 |-761 |6 |-792 |2 |-1,601|-1,510|6 |

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

|Other expenses |-354 |-361 |-2 |-359 |-1 |-713 |-699 |2 |

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

|Regulatory fees |-19 |-18 |6 |-54 |-65|-73 |-81 |-10|

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

|Depreciation, |-151 |-138 |9 |-149 |1 |-300 |-277 |8 |

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

|Total operating |-1,333|-1,278|4 |-1,354|-2 |-2,687|-2,567|5 |

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

|Profit before loan |1,578 |1,752 |-10|1,620 |-3 |3,198 |3,548 |-10|

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

|Net loan losses and |21 |-68 | |-13 | |8 |-101 | |

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

|Operating profit |1,599 |1,684 |-5 |1,607 |0 |3,206 |3,447 |-7 |

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

|Income tax expense |-378 |-381 |-1 |-373 |1 |-751 |-783 |-4 |

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

|Net profit for the |1,221 |1,303 |-6 |1,234 |-1 |2,455 |2,664 |-8 |

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

Business volumes, key items1

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

| EURbn |30 Jun 2025|30 Jun 2024|Chg. %|31 Mar 2024|Chg. %|

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

|Loans to the public |368.0 |346.9 |6 |366.8 |0 |

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

|Loans to the public, excl. |335.2 |319.7 |5 |335.7 |0 |

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

|Deposits and borrowings from|237.2 |223.8 |6 |240.0 |-1 |

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

|Deposits from the public, |218.5 |208.1 |5 |221.2 |-1 |

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

|Total assets |636.8 |606.8 |5 |641.4 |-1 |

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

|Assets under management |437.1 |400.3 |9 |425.2 |3 |

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

1. End of period.

Ratios and key figures1

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

| | Q2 | Q2 |Chg| Q1 |Chg| Jan | Jan |Chg %|

| | 2025 | 2024 | % | 2025 | % | -Jun | -Jun | |

| | | | | | | 2025 | 2024 | |

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

|Diluted earnings per share,|0.35 |0.37 |-5 |0.35 |0 |0.70 |0.75 |-7 |

|EUR | | | | | | | | |

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

|EPS, rolling 12 months up |1.39 |1.44 |-3 |1.41 |-1 |1.39 |1.44 |-3 |

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

|Share price2, EUR |12.61 |11.12 |13 |11.77 |7 |12.61 |11.12 |13 |

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

|Equity per share2, EUR |8.78 |8.67 |1 |8.55 |3 |8.78 |8.67 |1 |

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

|Potential shares |3,470 |3,506 |-1 |3,491 |-1 |3,470 |3,506 |-1 |

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

|Weighted average number of |3,467 |3,502 |-1 |3,483 |0 |3,473 |3,506 |-1 |

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

|Return on equity with |16.2 |17.9 | |15.7 | |15.9 |18.0 | |

|% | | | | | | | | |

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

|Return on equity, % |16.3 |18.0 | |15.4 | |15.8 |17.9 | |

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

|Return on tangible equity, |18.8 |20.8 | |17.6 | |18.2 |20.6 | |

|% | | | | | | | | |

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

|Return on risk exposure |3.1 |3.7 | |3.1 | |3.1 |3.8 | |

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

|Cost-to-income ratio |45.1 |41.6 | |43.7 | |44.4 |40.7 | |

|% | | | | | | | | |

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

|Cost-to-income ratio with |46.1 |42.6 | |44.6 | |45.4 |41.6 | |

|% | | | | | | | | |

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

|Cost-to-income ratio, % |45.8 |42.2 | |45.5 | |45.7 |42.0 | |

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

|Net loan loss ratio, incl. |-2 |8 | |1 | |0 |6 | |

|bp | | | | | | | | |

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

|Common Equity Tier 1 |15.6 |17.5 | |15.7 | |15.6 |17.5 | |

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

|Tier 1 capital ratio2,3, % |17.5 |19.8 | |17.6 | |17.5 |19.8 | |

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

|Total capital ratio2,3, % |20.0 |23.0 | |20.2 | |20.0 |23.0 | |

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

|Tier 1 capital2,3, EURbn |27.7 |27.6 |0 |28.1 |-2 |27.7 |27.6 |0 |

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

|Risk exposure amount2, |158.6 |139.3 |14 |159.7 |-1 |158.6 |139.3 |14 |

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

|Net interest margin, % |1.63 |1.83 | |1.70 | |1.66 |1.83 | |

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

|Number of employees (FTEs)2|29,844|29,680|1 |30,343|-2 |29,844|29,680|1 |

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

|Equity2, EURbn |30.4 |30.4 |0 |29.7 |2 |30.4 |30.4 |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. Including the result for the period.

This release is a summary of Nordea's Q2 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 Q2 2025 Report (https://www.nordea.com/en/investor

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

A webcast will be held on 17 July 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 17 July 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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