Nordea’s valuation remains low, with a P/E ratio of 8–9. The bank’s performance in 2024 has been strong, and it expects a return on equity exceeding 16%. Despite the slight impact of declining interest rates on its earnings, Nordea has maintained solid profitability.
The Norwegian retail banking portfolio acquired from Danske Bank brings additional revenue with minimal costs. The bank has distributed capital through dividends and share buybacks, with a 2024 dividend yield forecast of 8.2%. Finnish bank OP predicts Nordea will launch a new buyback program before summer and maintains a buy recommendation with a target price of €13. Nordea will release its fourth-quarter results on January 30.