Finland's Nordea Q1 EPS beats estimates; net interest income hit by rate cuts

Nordea Bank Abp

22/04/2026 05:44

Overview

Finland-based financial services group's Q1 EPS rose yr/yr, beating analyst expectations

Return on equity for Q1 was 15.4%, slightly down from a year ago

Net interest income fell 4% yr/yr due to policy rate reductions

Outlook

Nordea says outlook for 2026 is unchanged despite market volatility

Nordea expects 2026 return on equity of greater than 15%

Company sees 2026 cost-to-income ratio of around 45%

Result Drivers

RATE CUTS - Net interest income fell 4% yr/yr due to policy rate reductions

MARKET VOLATILITY - Net fair value result dropped 22% due to lower market making income, driven by sharp increases in EUR and SEK interest rate expectations

FEE INCOME - Net fee and commission income rose 6% yr/yr, continuing solid growth despite market volatility

Company press release: ID:nWkr692Jrm

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
Beat
EUR 0.36
EUR 0.30 (9 Analysts)
Q1 Net Interest Income
EUR 1.76 bln
end Q1 CET 1 Capital Ratio
15.7%
Q1 Net Fee & Commission Income
EUR 842 mln
Q1 ROE
15.4%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Nordea Bank Abp is €16.75, about 5.3% above its April 21 closing price of €15.90

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)