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Nordea Bank Abp
(OTC:NRDBY)
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Rating:61Neutral
Price Target:
$18.50
▼(-9.22% Downside)
Action:Reiterated
Date:10/18/26
The score is anchored by solid profitability and reiterated guidance with strong capital and credit quality, plus supportive valuation (P/E 11.5 and ~8.5% yield). These positives are meaningfully offset by weak technicals (price below key moving averages with negative momentum/oversold readings) and fundamental risk flags including declining revenue, rising leverage, and historically volatile cash flow.
Positive Factors
Fee and Wealth Growth
Strong growth in fee income, savings products and assets under management diversifies earnings beyond lending spreads. Recurring customer flows and a larger wealth platform can support durable revenue generation and reduce reliance on interest-rate-sensitive net interest income.
Negative Factors
Rising Leverage
Higher leverage increases the balance sheet’s sensitivity to funding conditions and financial stress, even though Nordea continues to generate solid returns on equity. The expanding debt burden may constrain flexibility if credit conditions weaken or capital needs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Fee and Wealth Growth
Strong growth in fee income, savings products and assets under management diversifies earnings beyond lending spreads. Recurring customer flows and a larger wealth platform can support durable revenue generation and reduce reliance on interest-rate-sensitive net interest income.
Read all positive factors
Nordea Bank Abp (NRDBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.99B
Dividend Yield8.67%
Average Volume (3M)16.68K
Price to Earnings (P/E)11.4
Beta (1Y)0.75
Revenue Growth8.70%
EPS Growth4.38%
CountryUS
Employees28,989
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.37
Shares Outstanding3,402,799,000
10 Day Avg. Volume0
30 Day Avg. Volume16,683
Financial Highlights & Ratios
PEG Ratio-3.34
Price to Book (P/B)1.72
Price to Sales (P/S)2.56
P/FCF Ratio-14.71
Enterprise Value/Market Cap5.22
Enterprise Value/Revenue16.29
Enterprise Value/Gross Profit26.18
Enterprise Value/Ebitda46.91
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.61
Revenue Forecast (FY)$13.47B
Nordea Bank Abp Business Overview & Revenue Model
Company Description
Nordea Bank Abp is a financial institution offering a comprehensive suite of banking products and services. The bank operates across Sweden, Finland, Norway, and Denmark, maintaining an international footprint. Its business is structured into four...
How the Company Makes Money
Nordea makes money primarily by providing banking and financial services and earning revenue from interest-based income, fee-based services, and financial market activities. A major driver is net interest income: Nordea collects interest on loans ...
Nordea Bank Abp Earnings Call Summary
Earnings Call Date:Oct 15, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was broadly positive: Nordea reported solid profitability, income growth, strong savings and lending momentum, robust credit quality, effective cost control and a strong capital position, while maintaining its financial guidance and strategic targets. The main negative factors were the unquantified potential increase in risk exposure amounts from the ECB corporate model review, the resulting pause in share buybacks, margin pressure, interest-rate volatility affecting net fair value, and slower wholesale and Finnish corporate activity.Positive Updates
Solid Group Performance and Maintained Guidance
Nordea performed well in the third quarter, with total income up 2% year-on-year, return on equity of 15.1%, and earnings per share of EUR 0.35, broadly stable year-on-year. Full-year 2026 guidance was unchanged, with expected return on equity greater than 15% and a cost-to-income ratio of 44% to 45%.
Negative Updates
ECB Model Review Creates REA Uncertainty
Recent discussions with the European Central Bank indicated that additional conservatism will be required in Nordea's corporate IRB model outputs. This changes the bank's previous expectation of a capital-neutral outcome to an expected increase in risk exposure amounts, although the timing and impact remain subject to ongoing discussions and no supervisory decision is expected before 2027.
Read all updates
Q3-2026 Updates
Positive
Negative
Solid Group Performance and Maintained Guidance
Nordea performed well in the third quarter, with total income up 2% year-on-year, return on equity of 15.1%, and earnings per share of EUR 0.35, broadly stable year-on-year. Full-year 2026 guidance was unchanged, with expected return on equity greater than 15% and a cost-to-income ratio of 44% to 45%.
Read all positive updates
Company Guidance
For full year 2026, Nordea reiterated guidance of a return on equity of greater than 15% and a cost-to-income ratio of 44% to 45%; net interest income was previously guided as flat to slightly up for net interest income on 2026, but lending margin pressure probably means it will be more at the flat to the slightly up end of that, while costs are expected to land around EUR 5.5 billion for the year. Net fair value is expected to be a lower-than-normal result for the full year, and loan losses remain well within the group's long-term guidance of 10 basis points, with the long-term expectation of around 10 basis points. Nordea said there is no change to its financial guidance, targets or capital policy, business plans include profitable growth, and pausing buybacks is pending clarity on the REA impact; no decisions are expected before 2027.Nordea Bank Abp Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.91B | 21.83B | 25.55B | 24.02B | 12.83B | 10.41B |
| Gross Profit | 11.77B | 11.74B | 12.07B | 11.74B | 9.68B | 9.66B |
| EBITDA | 6.57B | 6.93B | 0.00 | 6.95B | 5.35B | 5.54B |
| Net Income | 4.66B | 4.84B | 5.06B | 4.93B | 3.59B | 3.83B |
Balance Sheet | ||||||
| Total Assets | 716.56B | 654.35B | 623.36B | 584.70B | 594.59B | 570.35B |
| Cash, Cash Equivalents and Short-Term Investments | 44.36B | 45.15B | 50.64B | 52.53B | 62.70B | 47.90B |
| Total Debt | 259.79B | 205.09B | 197.31B | 191.05B | 190.28B | 183.79B |
| Total Liabilities | 684.74B | 621.93B | 590.92B | 553.48B | 563.88B | 536.85B |
| Stockholders Equity | 31.82B | 32.42B | 32.44B | 31.23B | 30.84B | 33.49B |
Cash Flow | ||||||
| Free Cash Flow | 12.10B | -3.79B | 383.00M | -6.97B | 21.57B | 17.17B |
| Operating Cash Flow | 12.50B | -3.16B | 906.00M | -6.47B | 21.98B | 17.59B |
| Investing Cash Flow | -522.76M | -579.00M | -2.92B | -535.00M | -629.00M | -380.00M |
| Financing Cash Flow | -6.21B | -3.34B | -2.35B | -4.01B | -6.58B | -4.93B |
Nordea Bank Abp Technical Analysis
Negative
20.38
Price Trends
19.61
Negative
19.41
Negative
18.84
Negative
Market Momentum
-0.72
Positive
31.05
Neutral
5.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRDBY, the sentiment is Negative. The current price of 20.38 is above the 20-day moving average (MA) of 18.44, above the 50-day MA of 19.61, and above the 200-day MA of 18.84, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 31.05 is Neutral, neither overbought nor oversold. The STOCH value of 5.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NRDBY.
Nordea Bank Abp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $67.94B | 6.78 | 16.16% | 5.52% | 6.60% | 29.61% | |
71 Outperform | $89.66B | 12.01 | 12.61% | 3.28% | 7.11% | 21.33% | |
68 Neutral | $59.75B | 12.45 | 8.14% | 4.25% | -5.73% | 4.01% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $60.82B | 17.01 | 30.26% | ― | 53.50% | 55.50% | |
62 Neutral | $78.24B | 12.72 | 11.05% | 3.97% | -13.48% | 25.29% | |
61 Neutral | $58.99B | 11.36 | 14.95% | 8.67% | 8.70% | 4.38% |
* Financial Sector Average
NRDBY
Nordea Bank Abp
17.40
0.93
5.64%
TFC
Truist Financial
48.91
6.40
15.06%
LYG
Lloyds Banking
5.42
0.91
20.10%
PNC
PNC Financial
225.84
48.83
27.59%
NWG
NatWest Group
17.09
2.38
16.18%
NU
Nu Holdings
12.59
-3.34
-20.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.