NORDEA BANK ABP Nordea Bank reports income in line with expectations in the third quarter. Operating profit was higher than expected.
"We continued to perform well in the third quarter. Profitability remained at a good level and our return on equity has clearly exceeded 15% for the last eight quarters. Business volumes were stable and customer activity was good, contributing to an increase in revenue compared to the same quarter last year," says CEO Frank Vang-Jensen.
Total revenue amounted to EUR 3,014 million (2,952), which was in line with analyst consensus from Bloomberg.
Net interest income amounted to EUR 1,882 million (1,909), compared to EUR 1,877 million expected.
Net fee and commission income amounted to EUR 774 million (742), compared to EUR 779 million expected.
Net trading income amounted to EUR 284 million (225), consensus EUR 237 million.
Operating expenses amounted to EUR 1,329 million (1,194), analyst consensus was EUR 1,309 million. Operating expenses increased by 9%, excluding EUR 32 million related to the settlement with a US government agency. The increase was mainly due to continued
investments in technology, data and AI and other key capabilities.
"The cost increase for the full year 2025 will be significantly lower than this," said Nordea's CEO.
Loan losses amounted to EUR 51 million, compared to EUR 33 million last year. Loan losses of EUR 74 million were expected.
"In light of the positive macroeconomic outlook, we reversed an additional EUR 30 million from our buffer as estimated by management, which now amounts to EUR 435 million," says Frank Vang-Jensen.
Operating profit amounted to EUR 1,634m (1,725), compared to EUR 1,575m expected.
Nordea updates its outlook for 2024 in light of the strong performance during the year, and Nordea now expects a return on equity above 16% (previously forecast above 15%).
"Since our repositioning in 2019, we have taken Nordea to a new level through sustained efficiency improvements and focused, profitable growth. We believe that our structurally improved profitability will help us consolidate our position as one of the best performing full-service banks in Europe. Therefore, we remain confident in our ability to deliver a return on equity above 15% for 2025", says Frank Vang-Jensen
| Nordea, MEUR | Q3-2024 | Consensus | Change from consensus | Q3-2023 | Change from consensus |
| Revenues | 3 014 | 2 973 | 1,4% | 2 952 | 2,1% |
| Net interest income | 1 882 | 1 877 | 0,3% | 1 909 | -1,4% |
| Net commission income | 774 | 779 | -0,6% | 742 | 4,3% |
| Net trading income | 284 | 237 | 19,8% | 225 | 26,2% |
| Operating expenses | -1 329 | -1 309 | -1 194 | ||
| Loan losses | -51 | -74 | -33 | ||
| Operating result | 1 634 | 1 575 | 3,7% | 1 725 | -5,3% |
