Nordea reported third-quarter operating profit of €1.54 billion, 4% lower than a year earlier and below the €1.63 billion average analyst estimate compiled by LSEG. Net interest income increased 1% to €1.80 billion despite pressure on lending margins. The Helsinki-listed lender retained its financial targets for 2026. Chief executive Frank Vang-Jensen nevertheless cautioned that recent rises in forward interest rates could weigh on consumer confidence and demand for borrowing.
The bank recorded a 15.1% return on equity and earnings per share of €0.35, both broadly stable year on year. Total income rose 2%, with net fee and commission income increasing 9% while the net fair value result declined 19%. Nordea said total expenses were flat after excluding currency effects, as it continued investing in strategic efficiency and productivity initiatives.
LENDING AND DEPOSITS EXPANDED
Corporate lending grew 8% year on year in constant currencies and corporate deposits increased 7%. Mortgage lending rose 2%, led by Sweden and Norway, while retail deposits advanced 4%. Reuters reported that lending volumes in Nordea’s personal banking unit increased 1% during the quarter.
Assets under management reached a record €509 billion, up 13% from a year earlier. The result showed that customer volumes continued to expand during what Nordea described as a seasonally slower quarter. That growth partly offset the pressure that narrower lending margins placed on the bank’s interest-income performance.
CAPITAL AND OUTLOOK HELD FIRM
Nordea’s common equity tier one ratio was 15.8%, which the bank said was 1.9 percentage points above its current regulatory requirement. Net loan losses and similar net results were €74 million, equivalent to 7 basis points. That remained inside management’s long-term expectation of about 10 basis points.
Nordea maintained its 2026 targets for return on equity above 15% and a cost-to-income ratio of 44% to 45%, excluding regulatory fees. The immediate test will be whether higher market rates lift lending margins without weakening household confidence and loan demand. Investors will next assess management’s commentary during its results webcast and the performance of Nordic peers reporting later in October.