Q2 2026 Nordea Bank Abp Earnings Call Transcript
Key Points
- Nordea Bank Abp (NRDBY) reported strong income growth, with total income exceeding EUR3 billion, marking a return to year-on-year income growth.
- The bank achieved a robust return on equity of 15.9% and increased earnings per share by 3% year-on-year.
- Assets under management reached a record high of EUR505 billion, driven by strong demand for savings and investment products.
- Net interest income showed positive development, with corporate lending and deposits both increasing by 9%.
- The bank maintained strong credit quality, with net loan losses well below long-term expectations, and a solid capital position with a CET1 ratio of 15.7%.
- The global economic environment remains uncertain, with risks from the Middle East conflict and higher energy costs impacting the market.
- Net interest margin slightly decreased to 1.54% from 1.57% in the previous quarter.
- The bank faces competitive pressures in the mortgage market, leading to some margin compression.
- International channels experienced outflows amid geopolitical uncertainty and rising interest rates.
- The cost-to-income ratio, while improved, still faces challenges from wage inflation and new VAT rules in Norway.
Good morning. and welcome to Nordea's second quarter 2026 results. I'm Ilkka Ottoila, Head of Investor Relations. As usual, we'll start with the presentation by Group CEO, Frank Vang-Jensen followed by a Q&A session with Frank and Group CFO, Ian Smith. (Operator Instructions)
With that, Frank, please go ahead.
Good morning. Today, we have published our results for the second quarter of 2026. This was again a strong quarter for Nordea. We drove good momentum across business. We attracted new customers and deepened existing relationships and we achieved strong growth in savings and investments.
All of this ensured we were firmly back to year-on-year income growth for the quarter. In fact, total income exceeded EUR3 billion, and we are -- we were last there in 2024 at the peak of the higher rate environment. This highlights not only the strength of our diversified business model, but also our focused growth
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