Half Year 2025 Nordea Bank Abp Earnings Call Transcript
Key Points
- Nordea Bank Abp (NRDBY) delivered a strong return on equity of 16.2% for Q2 2025, highlighting its structural improved profitability.
- Mortgage lending increased by 6% and retail deposits were up 8%, driven by strong performance in Norway and Sweden.
- Assets under management grew by 9% to EUR437 billion, demonstrating resilience in turbulent markets.
- The bank maintained a strong capital position with a CET1 ratio of 15.6%, which is 1.9 percentage points above the regulatory requirement.
- Nordea Bank Abp (NRDBY) continued significant investments in technology, digital capabilities, data and AI, and cybersecurity to support future growth and resilience.
- Net interest income decreased by 6% year-on-year due to the declining interest rate environment.
- Operating profit was slightly down at EUR1.6 billion compared to EUR1.7 billion a year ago.
- Cost increased by 3% excluding foreign exchange effects, driven by strategic investments including the Norwegian acquisition.
- Net fee and commission income was stable year-on-year but impacted by financial market turmoil.
- The equity capital markets and mergers and acquisitions activities remained challenging with volatility and uncertainty postponing transactions.
Good morning and welcome to Nordea's second quarter 2025 results presentation. I'm Ilkka Ottoila, Head of Investor Relations.
Here in Helsinki, I'm joined by our President and CEO, Frank Vang-Jensen; and our Group CFO, Ian Smith. As usual, we'll start with the presentation by Frank, followed by a Q&A session. (Operator Instructions)
With that, let's get going. Over to you, Frank.
Good morning. Today we have published our results for the second quarter of 2025.It was a quarter marked by high uncertainty and the most volatile market conditions for some time. Concerns over higher US trade tariffs and increase in geopolitical tensions resulted in significant financial market turmoil. Despite the external pressures, all sentiment among Nordic households and businesses remained calm, with customer activity increasing in most areas as the quarter
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