Nordea Bank (NDA-SE) Investor presentation summary

Strategy update

• Exceeded 2022–25 targets: return on equity 15.5%, cost-to-income ratio 46%, CET1 ratio 15.7%, and €17.4bn in shareholder distributions.

• 2030 targets: maintain ROE >15%, cost-to-income ratio 40–42%, and deliver EPS of ~€2.0.

• Growth driven by market momentum, targeted expansion in Sweden and Norway, and efficiency from Nordic scale.

• Structural cost efficiencies to keep cost growth below inflation, with digitalisation and AI-enabled processes.

• Loan losses expected to remain at or below 10bp, supported by robust credit quality.

Quarterly update

• Q4 2025 ROE at 14.4%, EPS €0.34, and CET1 ratio 15.7%, 1.9pp above regulatory requirement.

• Corporate lending up 8% y/y, mortgage lending up 1%, retail deposits up 6%, AuM up 13%.

• Net interest income down 5% y/y due to lower margins, but fee and commission income up 3%.

• Expenses down 3% y/y, reflecting cost discipline and stabilised investment levels.

• Net loan losses at €49m (5bp), well below long-term expectations.

Credit quality

• Credit portfolio diversified across Nordic countries and sectors, with 49% in mortgages.

• Stage 3 loans at 1.04% of total, coverage ratio for stage 3 stable at 31%.

• Real estate management lending mainly to low-risk, modern properties; 91% of exposure low PD.

• 85% of real estate exposures have LTV below 60%; average ICR 2.5x, 95% occupancy.

• Provision levels strong at €1.5bn, with high collateral coverage.