Nordea Bank Abp

Strong Q3 performance; guidance unchanged - ROE: 15.1% (solid despite seasonally slower activity); EPS €0.35 broadly flat YoY. - Total income +2% YoY, driven by net fee & commission income +9% YoY (especially savings income +14% YoY). - Costs flat YoY (excluding FX); Q3 cost-to-income 45% with expectation to meet FY25/26 target 44–45%. - Full-year 2026 guidance unchanged: ROE >15% and cost-to-income 44–45%.

NII and volumes: steady improvement but margin pressure - Net interest income +1% YoY and +1% QoQ, helped by strong volumes: - Corporate lending +8% YoY, deposits +7% YoY - Household mortgages +2% YoY, deposits +4% YoY - Net interest margin (NIM) 1.53% vs 1.59% a year ago and 1.54% Q3 last year → margin compression still visible. - Mortgage competition (Sweden/Norway) remains intense, and Denmark had a price reduction in July impacting retail NII.

Savings/investment momentum is a key “good” surprise - Assets under management (AUM) +13% YoY to €590bn (record high), driven by strong net flows and market performance. - Net fair value down 19% YoY (negative): impacted by extraordinary interest-rate volatility late in the quarter affecting market making/asset values. - Business momentum supported by continued demand for savings & investment products, and private banking net flows €0.9bn.