Latest news with #NordeaBank
Yahoo
4 days ago
- Business
- Yahoo
Nordea Bank Abp (NRDBY) Q2 2025 Earnings Call Highlights: Strong ROE and Asset Growth Amidst ...
Return on Equity: 16.2%. Earnings Per Share: EUR0.35. Mortgage Lending Growth: 6% increase. Retail Deposits Growth: 8% increase. Corporate Lending and Deposits Growth: 5% increase year-on-year. Assets Under Management: 9% increase to EUR437 billion. Net Interest Income: Decreased by 6% year-on-year and 2% quarter-on-quarter. Operating Profit: EUR1.6 billion, stable quarter-on-quarter. Cost Increase: 3% excluding foreign exchange effects. Cost-to-Income Ratio: 46.1%. Net Loan Losses: Net reversal of EUR21 million. CET1 Ratio: 15.6%, 1.9 percentage points above regulatory requirement. Net Flows in Private Banking: EUR2 billion. Gross Written Premiums: EUR3 billion. Warning! GuruFocus has detected 4 Warning Sign with NRDBY. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive 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. Negative Points 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. Q & A Highlights Q: You maintain your guidance of more than 15% ROE for the year and your cost guidance. Given the current rate environment, how do you see the outlook for the various P&L items for the remainder of the year? A: Ian Smith, CFO, explained that despite market volatility and lower activity levels, especially in equity and corporate finance, Nordea finished the first half strongly. The expectation is for a quieter Q3 due to usual seasonality and cautious customer behavior, but momentum is expected to build into Q4. Net interest income (NII) is expected to be lower but resilient, with some pressure on lending margins due to competition. Fee income is expected to slow in Q3, and net fair value is anticipated to be smaller in the second half. Cost guidance remains at 2% to 2.5% growth for the full year. Q: You reduced your management judgment buffer by EUR60 million. Can we expect further reductions in H2? Also, how close can you realistically get to your 1.5% management buffer target? A: Ian Smith confirmed that Nordea expects to either use or release the management judgment buffer, with releases likely due to strong credit quality. On capital, Nordea maintains a substantial excess over the regulatory requirement and the 1.5% management buffer, providing flexibility for buybacks and capital distribution. Q: Regarding NII sensitivity to interest rate changes, how significant would the impact be if rates fall further in the Nordic countries? A: Ian Smith noted that Nordea's sensitivity range accounts for rate path uncertainties. While there is an expectation of a rate cut in Norway, the sensitivity remains towards the upper end of the range. In Norway, NII compression is due to internal factors rather than rate cuts, and in Denmark, competitive pressures are affecting margins. Q: Could you provide an update on the Norwegian business after the integration of the acquisition from Danske? A: Frank Vang-Jensen, CEO, stated that the integration is progressing well, with positive customer engagement and cross-selling opportunities. The business case is aligned with or slightly better than planned, with strong ancillary and cross-sell metrics in Norway compared to Sweden. Q: What are the main themes for the upcoming Capital Markets Day? A: Frank Vang-Jensen mentioned that the focus will be on building on Nordea's strong foundation, growing income above market rates, leveraging Nordic scale, and maintaining market-leading returns and superior EPS growth. The aim is to demonstrate how Nordea will achieve these goals. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
5 days ago
- Business
- Yahoo
Nordea Bank results fall in Q2 amid tariff turmoil, global tensions
Nordic financial services group Nordea Bank reported a second-quarter fall in profit on Thursday, impacted by lower net interest income and higher operating expenses. Concerns over higher trade tariffs and increasing geopolitical tensions, leading to financial market turmoil, had an effect on the quarterly results, the company added. However, Nordea Bank reaffirmed its outlook for fiscal year 2025. The Helsinki-based financial services group posted second-quarter profit of €1.22 billion ($1.41 billion) or €0.35 per share, down 6% from €1.30 billion or €0.37 per share in the same period last year. The company's operating profit came in at €1.60 billion in the second quarter, a 5% decline from €1.68 billion recorded in the year-ago period. During the three-month period, net interest income fell 6% to €1.80 billion from €1.90 billion in the second quarter of 2024. Net fee and commission income declined slightly to €792 million from €795 million last year. The company's total operating income was €2.91 billion in the second quarter, a 4% drop from €3.03 billion reported in the prior-year period. Operating expenses widened 4% during the quarter to -€1.33 billion from -€1.28 billion in the same period a year ago. Nordea Bank said that it launched a new €250 million share buy-back programme on June 16, and it is expected to be completed by September 30. Looking ahead, the company said that the guidance of return on equity of more than 15% for fiscal 2025 remains unchanged. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Nordea Earnings Meet Estimates as Lending Income Drop Continues
Nordea Bank Abp income from lending fell for a fifth consecutive quarter after continued interest-rate cuts by central banks dented second-quarter earnings. The Helsinki-based lender reported a net interest income that decreased 6% from a year earlier to €1.80 billion ($2.1 billion), in line with the average analyst estimates of €1.81 billion.
Reuters
6 days ago
- Business
- Reuters
Finland's Nordea slightly beats earnings estimates in 2nd quarter
July 17 (Reuters) - Nordea Bank ( opens new tab, the Nordic region's biggest lender, reported second-quarter operating earnings slightly above market estimates on Thursday, but said net interest income was lower due to declining interest rates. The Helsinki-listed bank's operating profit fell 5% year-on-year to 1.60 billion euros ($1.86 billion), ahead of the average estimate of 1.58 billion euros from analysts polled by LSEG. Net interest income, a key metric measuring banks' income from lending and deposits, fell 6% to 1.80 billion euros, versus analysts' forecast of 1.81 billion euros. ($1 = 0.8605 euros)
Yahoo
14-07-2025
- Business
- Yahoo
Siili Solutions Plc: Share Repurchase 14.7.2025
Siili Solutions Plc Announcement 14.7.2025 Siili Solutions Plc: Share Repurchase 14.7.2025 In the Helsinki Stock Exchange Trade date 14.7.2025 Bourse trade Buy Share SIILI Amount 900 Shares Average price/ share 6,6000 EUR Total cost 5 940,00 EUR Siili Solutions Plc now holds a total of 29 128 shares including the shares repurchased on 14.7.2025 The share buybacks are executed in compliance with Regulation No. 596/2014 of the European Parliament and Council (MAR) Article 5 and the Commission Delegated Regulation (EU) 2016/1052. On behalf of Siili Solutions Plc Nordea Bank Oyj Sami Huttunen Ilari Isomäki Further information: CFO Aleksi Kankainen Email: Tel. +358 50 584 2029 Attachment SIILI 14.7.2025 TradesError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
