#Finland #earnings report #Helsinki #quarterly results #Nordea Bank

Nordea Bank Abp Reports Third-Quarter Results for 2026

Nordea Bank Abp has announced its financial results for the third quarter of 2026, reflecting a notably solid return on equity of 15.1% and earnings per share reaching EUR 0.35. This performance highlights the bank's resilience amid fluctuating seasonal activity levels and ongoing economic uncertainties.

Financial Highlights

The summary for the quarter reveals the following key points:

• - Return on Equity: 15.1%
• - Earnings Per Share: EUR 0.35
• - Cost-to-Income Ratio: 45.0%
• - Total Income Growth: Up by 2% year-on-year

Income Performance

Nordea's strong financial footing is underscored by a total income increase of 2%, with net interest income rising by 1% both quarter-on-quarter and year-on-year. The bank enjoyed a notable boost in net fee and commission income which saw an increase of 9% year-on-year, primarily driven by a 14% growth in savings income. However, it is important to note that the net fair value result experienced a decline of 19% attributed to significant interest rate volatility.

Costs remained stable when adjusted for foreign exchange movements, contributing to an operating profit of EUR 1.5 billion, although this figure is 4% lower than the previous year.

Lending and Deposit Growth

Nordea witnessed a robust growth trajectory in both lending and deposits. Corporate lending increased by 8%, while deposits saw a 7% uptick compared to the same period last year. The bank's mortgage lending also rose by 2%, primarily influenced by steady growth in Sweden and Norway. Retail deposits increased by 4%, with total assets under management (AuM) reaching a record high of EUR 509 billion, marking a 13% increase year-on-year.

Credit Quality and Capital Generation

Nordea's credit quality remains strong, with reported net loan losses at EUR 74 million for the quarter, a figure that aligns well within the company’s long-term expectations. The Common Equity Tier 1 (CET1) ratio was reported at 15.8%, significantly surpassing regulatory requirements, showcasing the bank's robust capital position and ongoing capital generation capabilities.

Strategic Outlook

Looking ahead, Nordea maintains its optimistic outlook for 2026, with expectations for a return on equity greater than 15% and a cost-to-income ratio between 44% and 45%. The bank's strong and diverse business model across the Nordic region positions it well to support its customer base and deliver sustained profitability throughout varying economic conditions.

CEO Frank Vang-Jensen remarked on the bank's ongoing strategic progress and resilience, noting the growth in total income and the expansion of customer relationships. Nordea's continued investment in digital solutions and efficiency measures underscores its commitment to enhancing customer satisfaction and service delivery.

In summary, Nordea Bank Abp's Q3 2026 results illustrate a solid performance characterized by stable income growth, enhanced lending, and deposits, alongside strong credit quality and a robust capital base. As the bank progresses with its 2030 strategy, it remains well-positioned to navigate economic challenges while meeting its growth targets confidently.

For further insights and details on the financial results, a comprehensive report is available on Nordea’s corporate website. Stakeholders can look forward to a webcast scheduled for October 15, where the leadership team will delve deeper into these results and future strategies.