Nordea's Q4 EPS beats estimates on cost cutting, announces mid-year dividend

Nordea Bank Abp

29/01/2026 05:55

Overview

Nordic financial services group's Q4 EPS beat analyst expectations

Return on equity for Q4 was 14.4%, reflecting strong performance

Company completed EUR 750 mln share buy-back program in Q4

Outlook

Nordea expects 2026 return on equity greater than 15%

Company targets 2026 cost-to-income ratio around 45%

Nordea proposes mid-year dividend in 2026

Result Drivers

NET INTEREST INCOME - Declined by 5% due to policy rate reductions, impacting total income

NET FEE AND COMMISSION INCOME - Increased by 3% due to continued solid growth

COST MANAGEMENT - Costs decreased by 3% due to active cost management and stable investment levels

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 EPS
Beat
EUR 0.34
EUR 0.33 (14 Analysts)
Q4 Net Interest Income
EUR 1.77 bln
Q4 CET 1 Capital Ratio
15.70%
Q4 Net Fee & Commission Income
EUR 853 mln
Q4 ROE
14.40%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "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 €17.50, about 4.5% above its January 28 closing price of €16.75

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

Press Release: ID:nWkr4ngV9f

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.)