Nordea Bank Abp

Nordea reported Q2 2026 total income above EUR 3 billion, up 4% year-on-year; EPS was EUR 0.36, up 3% year-on-year; ROE was 15.9%; net fee and commission income rose 11%; AUM increased 16% to EUR 505 billion; net interest income was down 1% year-on-year but up 1% quarter-on-quarter; NIM was 1.54% versus 1.57% in Q1; costs were flat year-on-year excluding FX; net loan losses and similar net result were EUR 61 million, or 6 bps; CET1 was 15.7%. For full-year 2026, management now expects ROE of greater than 15% and a cost-to-income ratio of 44%-45%. They also said they continue to expect net fair value income of roughly EUR 1 billion annually. A mid-year dividend of EUR 0.34 per share will be paid in August, representing about 50% of first-half net profit.

Frank Vang-Jensen described the quarter as strong and said Nordea was “firmly back to year-on-year income growth,” with positive jaws and progress from the 2030 strategy starting to show. He emphasized customer growth, higher savings and investments activity, record AUM, and better income diversity, while noting that Nordic corporates are investing more in areas like technology, energy, defense, and infrastructure. His tone was confident and constructive, with repeated references to Nordea being well-positioned in the Nordic region.

Ian Smith focused on capital discipline, saying the bank prioritizes deploying capital to support profitable growth before buybacks, while still using buybacks if excess capital builds. He said Nordea is currently running about 40 bps above its 150 bps management buffer and that this is a reasonable level to assume, while noting an ongoing review of retail model remediations and no new news on non-retail models. On costs, he said first-half costs were flat year-on-year, but second-half comparatives are tougher; he also flagged a new Norwegian VAT rule that could add around EUR 10 million per quarter. He reiterated the 2026 cost-to-income guidance of 44%-45% and said the group is on track to deliver a 40%-42% cost-to-income ratio by 2030.

Analysts pressed on capital, buybacks, and whether Nordea would hold above the 150 bps management buffer; management said growth remains the priority, buybacks remain a tool, and operating somewhat above the buffer is reasonable. Questions on loan losses in Finland and Sweden were answered by pointing to Q1 management judgment releases, not underlying deterioration, and a Finland mix effect from consumer finance. On Norway NII and mortgage margins, management said the main issue is rate pass-through and a weaker deposit base versus peers, while deposit growth is being improved over time. Analysts also asked about SRTs, ESG outflows, and deposit/fee trends; management said one SRT ended, SRTs remain a small capital tool, the ESG outflow was driven by a single client, and corporate deposits are partly sticky even if some balances are transactional.