Nordea reported a stronger-than-expected Q4 result, driven mainly by solid net interest income and fee income growth. The bank’s earnings exceeded forecasts by about 5%, and it guided for a return on equity above 15% in 2025.
Net interest income declined more slowly than expected, as loan volume growth and hedging measures offset rising deposit costs. Net fee income increased due to strong performance in asset management. Expenses were in line with expectations, and loan losses were lower than estimated.
Earnings per share were €0.32, and the proposed dividend was €0.94. Nordea expects strong profitability in 2025, focusing primarily on revenue growth.
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Nordea published a stronger Q4 result than we expected, which was explained by net interest income decreasing less than forecasted and strongly developed commission income. The forecast changes are moderate, although we revised our estimates for net interest income slightly downward. In light of the relatively stable earnings outlook, we believe the share valuation remains attractive, but we lower our recommendation to Accumulate (was Buy) following the recent share price increase. Our target price remains unchanged at EUR 12.5.
Nordea’s credit losses were nearly nonexistent and overall performance remained stable, but the trade war casts a huge cloud of uncertainty. CFO Ian Smith discusses the company’s resilience in a foggy environment in an interview with inderesTV.
Här är en högkvalitativ och realistisk analys av Nordea. Värt att läsa!
Nordea reported a better-than-expected Q1 result. However, the forecast beat was mainly explained by quarterly fluctuations in fair value, and the decline in net interest income kept the result down as expected. At the same time, increased uncertainty has weakened the outlook for credit demand, which together with lower interest rate forecasts lowered our earnings estimates. In light of the relatively stable earnings outlook, however, the stock’s expected return is still sufficient, so we reiterate our Accumulate recommendation. We are revising our target price down to EUR 12.0 (was EUR 12.5) in line with our lower earnings estimates.
