Nordea aims for leadership beyond 2030

Nordea, the largest bank in the Nordics, is positioning itself for continued success and market leadership beyond 2030. CEO Frank Vang-Jensen outlined the bank's long-term strategic objectives and ongoing investments in technology and efficiency at the BNP Paribas CEO Conference in Paris earlier this month.

Vang-Jensen acknowledged global uncertainties but emphasized Nordea's strong position and performance. He described the financial services sector as currently attractive, with economies undergoing an investment cycle where banks play a crucial role in facilitating progress. Nordea's 2030 Strategy aims to ensure the bank's sustained outperformance throughout the next decade. The bank targets a consistent return on equity exceeding 15% and is working to improve cost efficiency, aiming for a cost-income ratio of 40-42%.

Growth prospects in the Nordics remain supportive, particularly for corporate clients. Companies are continuing to invest despite an uncertain environment, reflected in the bank's 11% loan growth in the first quarter. The outlook for net interest income has improved with stabilizing interest rates, and Vang-Jensen believes the first quarter marked the bottom for these earnings.

The bank is undergoing significant transformation through technology and data. Nordea aims to reduce complexity and enhance efficiency with a more integrated Nordic operating model. Artificial intelligence is being strategically leveraged to reshape business processes, moving beyond incremental use cases. For instance, the bank aims to automate 90% of mortgage promise processes by 2030.

Vang-Jensen stressed that continuous digital investments provide Nordea with a competitive advantage. Banks failing to modernize their operating models risk losing market share to digital challengers. Nordea seeks to win this competition by strengthening its digital capabilities and investing heavily in technology for the long term.