Nordea Reports Q1 2025 Results: Profit Down, But Returns and Growth Hold Strong
Nordea Bank Abp announced its first-quarter 2025 results. Loan and deposit volumes increased, but interest income declined due to lower rates. Despite this, return on equity and fees remained robust.
Helsinki – Nordea Bank Abp reported its first-quarter 2025 financial results on Tuesday. The bank's total income decreased by 4% year-on-year to EUR 3.0 billion, primarily due to policy rate reductions that lowered net interest income by 6%.
Business Growth and Profitability Maintained Despite lower interest income, the bank maintained strong profitability driven by growth in fees and commissions, and stable business volumes. Return on equity stood at 15.7%, with earnings per share at EUR 0.35. Operating profit saw a 9% year-on-year decrease but improved by 10% from the previous quarter.
Loan and Deposit Volumes Rise Mortgage lending grew by 6% year-on-year, supported by the acquisition of Danske Bank's Norwegian personal and private banking business. Retail and corporate deposit volumes increased by 7% and 11% respectively. Credit quality remained strong, with net loan losses well below expectations.
Strategic Investments and Capital Strength Operating expenses rose by 5%, with 4 percentage points attributed to strategic investments. Assets under management increased by 9%. Nordea maintained robust capital levels and continued its share buy-back program. The bank reaffirmed its outlook for 2025, expecting a return on equity above 15%.