Nordea Bank Abp

The stable outlook on Nordea reflects our expectation that the bank will continue to achieve robust operating profitability and cost efficiencies to meet its current financial target of delivering a ROE above 15%. 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 Nordea's 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 targets. Although less

...We expect Nordea's profitability to remain robust given its competitive position and the current interest rate environment. As of first-quarter 2024, Nordea reported a return on equity (ROE) of about 18.1% aided in part by lowered resolution fee costs. More generally, earnings capacity is supported by interest income, which is bolstered by interest rate hedges, solid net fee and commission income, and high operating efficiency. In addition, we expect the cost of risk to remain contained. The acquisition of Danske Bank's Norwegian retail operations is assumed to finalize...

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