Q1 2025 Nordea Bank Abp Earnings Call Transcript
Key Points
- Nordea Bank Abp (NRDBY) reported a strong return on equity of 15.7%, consistent with its financial target.
- The bank's diversified business model across four Nordic markets reduces exposure to any single economy, enhancing stability.
- Net fee and commission income grew by 4% year on year, driven by higher income from savings, payments, and cards.
- Asset under management increased by 9% year on year to EUR425 billion, with positive net flows in both Nordic and international channels.
- The CET1 ratio stood at 15.7%, 2 percentage points above the regulatory requirement, indicating a strong capital position.
- Total income was down 4% year on year, impacted by lower interest rates.
- Operating profit decreased by 9% from a year ago, although it was up 10% quarter on quarter.
- Net interest income decreased by 6% year on year, affected by policy rate reductions.
- The cost-to-income ratio was 44.6%, which, while within the target range, reflects increased costs driven by strategic investments.
- The bank faces high uncertainty and volatility in the global economic outlook, which could impact future growth.
Nordea's first-quarter 2025 results presentation. I'm Ilkka Ottoila, Head of Investor Relations. As usual, we'll start with the presentation by CEO, Frank Vang-jensen, followed by a Q&A session with Frank and CFO, Ian Smith.
Please remember to dial in to the teleconference to ask questions.
With that, Frank, the stage is yours.
Good morning. Today, we have published our results for the first quarter of 2025.
Despite the significant uncertainty that impacted the first quarter and has further escalated in the recent weeks, Nordea performed well, delivering growth in business volumes and continued high profitability. Return on equity was 15.7%, consistent with our financial target set three years ago.
Our results for the quarter reinforce the fact that Nordea is strong, resilient, and predictable. And that feels all the more
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