Nordea's results exceeded expectations – and its vision remains unchanged

Nordea Bank's operating profit clearly beats expectations. The company has kept its outlook unchanged and expects return on equity to be above 15 percent this year.

Nordic Net interest income in the first part of 1954 was EUR million, which was higher than expected. A consensus of analyst forecasts compiled by information service FactSet expected Nordea's net interest income to be EUR 1931 million in the January-March period. In the same period last year, net interest income was 1,765 million euros.

Operating profit was higher than expected. It was €1,763 million in January-March. Analysts expected operating profit to be 1,577 million euros in the first quarter, compared to 1,480 million euros in the comparable period. Estimates are 1457-1651 million euros.

“We continued to improve our digital services and serve our customers more actively: there were more service negotiations than a year ago. So our model is working. Although home sales are still slow in the Nordic countries, mortgage loan volumes were stable in the first quarter, and we “We have maintained our market share. We have strengthened our position in corporate loans, the volume of which has increased by two percent compared to a year ago,” the group CEO Frank Wang-Jensen The notice said.

Nordea's return on equity was 18.1 percent, compared with 17.1 percent in the same period a year ago. When official charges were not taken into account, the cost/income ratio remained constant and 40 percent. Earnings per share improved from EUR 0.31 to EUR 0.38.

Net commission income in the first quarter was 763 million euros, compared to 765 million euros last year. Analyst consensus expects net income of 770 million euros from the company.

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The net amount of loan losses and other similar items was EUR 33 million. Analysts had expected a loan loss of 84 million euros. The loan loss provision buffer remained unchanged at the discretion of management. The main solution is 17.2 percent.

“Our loan portfolio is spread across various industries and markets and is supported by our conservative risk profile,” says Vang-Jensen, CEO of the group.

The company has kept its outlook for the current year unchanged, with a return on equity of over 15 percent.

“With the help of our well-diversified business model, we will aim for a better result in the market in the future by focusing on profitable growth and increasing capital utilization. We expect our return on equity to be over 15 percent for the full year 2024, and we are aiming for equally strong profitability in 2025. “

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