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Nordea: Convincing performance

NDA FIResearch2023-07-18 09:35
Inderes
Discuss
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Nordea's Q2 was the 10th consecutive quarter in which the bank's earnings level continued to improve and the Q2 result was also stronger than market expectations. Although we expect Nordea's earnings level to be close to its peak, we forecast profitability to remain strong in the coming years (2024-2026e: ROE ~15 %). In our view, the company is still exceptionally cheaply priced and thus the expected return looks attractive.

Nordea is a banking company. The company offers a range of financial services, aimed at both private and corporate customers, including traditional asset management, loan financing and pension savings. In addition, it also offers advice and security insurance, as well as currency management. Nordea has the largest operations in the Nordic and Baltic countries. The company was founded in 1997 and its headquarters are located in Helsinki.

Read more on company page

Key Estimate Figures2023-07-18

202223e24e
Operating income9,721.011,835.411,718.8
growth-%1.0 %21.8 %-1.0 %
EBIT (adj.)5,299.06,527.96,069.4
EBIT-% (adj.)54.5 %55.2 %51.8 %
EPS (adj.)1.111.411.35
Dividend0.800.950.95
Dividend %8.0 %6.2 %6.2 %
P/E (adj.)9.010.811.3
EV/EBITDA7.98.48.8

Forum discussions

Yep. You can also think of it this way: a 3% growth in risk-weighted assets requires a 3% growth in own funds to keep the capital adequacy ratio...
10/22/2026, 7:28 AM
by Kasper Mellas
23
A potential increase in capital adequacy requirements is a so-called one-off item. However, the growth rate of the loan portfolio—assuming that...
10/22/2026, 6:53 AM
by Jussi Koskinen
3
Under the current capital requirements and my growth forecasts, Nordea can distribute around 80% of its earnings and keep its capital adequacy...
10/22/2026, 6:35 AM
by Kasper Mellas
14
Here is Jussi Halme’s video about Nordea Are there hidden risks behind Nordea’s excellent earnings that investors haven’t noticed yet? In this...
10/19/2026, 4:28 PM
by Sijoittaja-alokas
18
Aki wrote his Sunday column about Nordea “Rising interest rates improve bank earnings”. “Rising interest rates weigh on stock prices”. Once ...
10/18/2026, 2:23 PM
by Sijoittaja-alokas
27
Yeah, I know that of course, but I didn’t feel like getting deeper into things here, since that would take half a year (in my own economics ...
10/18/2026, 4:40 AM
by Alvaraallonpoika 27051
3
The Financial Supervisory Authority (FIN-FSA) does not make regulations or laws itself; it merely supervises specific aspects of financial institution...
10/18/2026, 4:04 AM
by Taavetti
0