Leading pan-Nordic bank with diversified business model by geography and business line. Strong risk-adjusted capitalization combined with significant financial flexibility. Nordea Bank Abp's simplification program and investments in digitalization, which will protect from disruption and contribute to cost efficiency. Scope to improve profitability and efficiency metrics relative to some other highly rated banks. Reliance on wholesale funding, exposing the group to confidence sensitivity. The negative outlook on Nordea Bank reflects the increased execution risks for the bank's strategic initiatives aimed at improving profitability and operating efficiency by 2022. It also reflects our view that the bank's earnings are under increasing pressure due to the weakening operating environment following the outbreak of COVID-19, and heightened risks in its lending portfolio and
