Nordea Bank Abp

The stable outlook on Nordea reflects our expectation that the bank will continue to work on generating income growth, operating profitability, and cost efficiencies to meet its current financial target of delivering a ROE above 13%. We therefore consider the bank will maintain performance indicators in line with those of highly rated peers over the next 12-24 months. We expect its strengthened position in its home markets, agility in terms of digital customer offerings, and strong financial position will underpin the bank's lending capacity and earnings generation. We could take a negative rating action in the next 12-24 months if Nordea is unable to maintain sustainable business generation and its performance trajectory at a level to meet its key financial

...Nordea Bank Abp (Nordea) is well positioned to deliver robust profitability, aided in part by the higher interest rate environment and capital optimization. The management of the Nordic region's largest bank by assets has indicated that a revised strategic plan for 2023-2025 will likely include a higher financial target. Nordea's current goal is to reach a return on equity (ROE) above 13% over the next two years; the outlook for full-year 2023 is for a ROE of above 15%. S&P Global Ratings expects earnings to be about 4.2 billion annually over the coming two years, driven primarily by...

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