Nordea Bank Abp

S&P Global Ratings acknowledges a high degree of uncertainty about the extent, outcome, and consequences of the military conflict between Russia and Ukraine. Irrespective of the duration of military hostilities, sanctions and related political risks are likely to remain in place for some time. Potential effects could include dislocated commodities markets--notably for oil and gas--supply chain disruptions, inflationary pressures, weaker growth, and capital market volatility. As the situation evolves, we will update our assumptions and estimates accordingly. See our macroeconomic and credit updates here: Russia-Ukraine Macro, Market,&Credit Risks. Note that the timing of publication for rating decisions on European issuers is subject to European regulatory requirements. The stable outlook on Nordea reflects our expectation that the bank will

...Having achieved its 2022 targets early, Nordea is aiming higher, with a revised 2025 profitability target. After several years of subdued revenue and profits because of investments in digitalization, regulatory compliance, and organizational streamlining, the bank performed strongly in 2021. It met its 2022 financial targets (return on equity [ROE] above 10% and cost-to-income ratio of 50%) one year early, with ROE of 11.2% and cost-to-income ratio of 48% as of year-end 2021. With this success, the bank has set an ambitious target for 2025 as per its new strategy: ROE...

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