Nordea Reports First Half 2025 Results

Nordea Bank Abp announced its financial results for the first half of 2025 on July 17, 2025, highlighting strong profitability amidst global uncertainties. The bank's return on equity for the second quarter reached 16.2%, and the diluted earnings per share for the first half of the year stood at EUR 0.70, demonstrating resilience against trade tariffs and geopolitical tensions.

Total income saw a 4% decrease year-on-year, primarily due to a projected 6% drop in net interest income following policy rate reductions. However, this was offset by stable net fee and commission income, alongside solid net insurance and fair value results. Operating expenses rose by 4% as planned, driven by strategic investments, inflation, and annual salary increases, resulting in an operating profit of EUR 1.6 billion.

Lending volumes showed growth, with mortgage lending up 6% and corporate lending increasing by 5%. Deposits also strengthened, with retail and corporate deposit volumes rising by 8% and 5%, respectively. Assets under management grew by 9% to EUR 437 billion. Credit quality remained exceptionally strong, with net loan losses amounting to a reversal of EUR 21 million, significantly below long-term expectations.

The bank maintained a robust capital position, with a CET1 ratio of 15.6%. Nordea launched a new share buy-back program of EUR 250 million, expected to conclude by September 30, 2025. The bank confirmed its full-year outlook, anticipating a return on equity above 15%.