Research Update: Pan-Nordic Nordea Bank Outlook Revised To Stable On Expected Firm Delivery On 2022 Targets; Affirmed At 'AA-/A-1+'

We believe Nordea is now on track to sustainably strengthen its earnings and to meet its key financial targets for 2022. This stems from improved pre-provision income in 2020 thanks to sound business volume growth and pronounced cost reductions. We believe the bank's robust capital, even considering the planned share buybacks, will counter possible credit losses or deterioration in asset quality, even if metrics weaken more than our base-case assumptions. We are therefore revising the outlook to stable from negative and affirming its 'AA-/A-1+' ratings. The stable outlook on Nordea reflects our expectation that it will demonstrate operating profitability more in line with peers and that its balance sheet will remain resilient despite COVID-19-related pressure. We are raising our ratings

...- We believe Nordea is now on track to sustainably strengthen its earnings and to meet its key financial targets for 2022. This stems from improved pre-provision income in 2020 thanks to sound business volume growth and pronounced cost reductions. - We believe the bank's robust capital, even considering the planned share buybacks, will counter possible credit losses or deterioration in asset quality, even if metrics weaken more than our base-case assumptions. - We are therefore revising the outlook to stable from negative and affirming its '##-/A-1+' ratings. - The stable outlook on Nordea reflects our expectation that it will demonstrate operating profitability more in line with peers and that its balance sheet will remain resilient despite COVID-19-related pressure. - We are raising our ratings on Nordea Direct Bank ASA and Nordea Direct Boligkreditt AS to '##-/A-1+' from 'A+/A-1' on their increased integration in Nordea and their strategic importance to group strategy. The outlook is...

Research Update