Nordea Bank posted net profit of €1.234 billion in the first quarter of 2025, a decline of 9% compared with the same period a year earlier, as lower deposit margins weighed on net interest income across the Nordic lender's core markets. The bank, which is headquartered in Helsinki and operates principally across Finland, Sweden, Denmark, and Norway, reported earnings per share of €0.35, down from €0.38 in Q1 2024, in results published on 16 April 2025.
Net interest income for the quarter came in at €1.829 billion, a 6% year-on-year decrease, reflecting the impact of declining deposit margins as interest rates across the Nordic region ease from their recent highs.
FEE INCOME, COSTS AND CREDIT
Despite the pressure on net interest income, Nordea's net fee income rose 4% year-on-year to €793 million, as higher savings income outweighed slow capital markets activity. Operating profit for the quarter reached €1.607 billion, down 9% year-on-year but up 10% on the final quarter of 2024.
The bank's cost-to-income ratio stood at 44.6%, within the bank's 44–46% target range. Costs rose 5% year-on-year, four percentage points of which reflected strategic investments in technology, data and AI, digital services and cyber security; Nordea expects full-year cost growth of 2.0–2.5%. Loan losses were €13 million for the quarter.
RETURN ON EQUITY AND FULL-YEAR GUIDANCE
Return on equity for the first quarter was 15.7%, against the bank's guidance of above 15% for the full year 2025. Nordea confirmed that this guidance remains in place.