Financial Data and Key Metrics Changes - Record profitability was achieved in the first nine months of 2025, with revenues at €24.4 billion, aligning with the full-year goal of around €32 billion before FX effects [3] - Post-tax return on tangible equity reached 10.9%, meeting the target of above 10%, while the cost-income ratio stood at 63%, consistent with the target of below 65% [3] - Pre-provision profit increased to €9 billion, up nearly 50% year on year, or nearly 30% when adjusted for Postbank litigation impacts [3][4] Business Line Data and Key Metrics Changes - Net commission and fee income rose by 5% year on year, while net interest income across key banking segments remained stable [4] - The Corporate Bank delivered strong fee growth of 5% and was recognized as the best trade finance bank [6] - The Private Bank saw profits increase by 71%, and assets under management grew by €40 billion year to date with net inflows of €25 billion [7] Market Data and Key Metrics Changes - Loans grew by €3 billion adjusted for FX effects during the third quarter, with strong underlying quality [9] - Deposit growth was pronounced in the Private Bank, with an increase of €10 billion during the third quarter [10][11] - The liquidity coverage ratio was managed to 140% at quarter end, demonstrating the strength of the balance sheet [12] Company Strategy and Development Direction - The company is on track to meet or exceed all 2025 strategy goals, with a compound annual revenue growth rate since 2021 of 6% [5] - Operational efficiencies of €2.4 billion have been delivered or are expected, achieving 95% of the €2.5 billion goal [5] - A second share buyback program of €250 million was launched, bringing cumulative distributions since 2022 to €5.6 billion [5] Management's Comments on Operating Environment and Future Outlook - Management anticipates lower provisioning levels in the second half of the year despite uncertainties in the commercial real estate sector [17] - The company expects lending in the core bank to benefit from fiscal stimulus in Germany, with a strong outlook in FICC [10] - Geopolitical risks are continuously monitored, with stress testing for potential events being an ongoing focus [24] Other Important Information - The CET1 ratio increased to 14.5%, with a surplus above regulatory requirements [12][14] - The company has reached the lower end of its full-year issuance guidance with €15.1 billion issued year-to-date [16] Q&A Session Summary Question: Future Return on Tangible Equity - Management believes that a 10% return on tangible equity could be a reasonable floor for future performance, indicating structural profitability has improved [20][22] Question: Private Credit and Commercial Real Estate Exposures - Management noted that private credit is not a concern, while commercial real estate remains a watch item, particularly in California and Washington State [20][24] Question: Receivables Financing Exposure - The company has some exposure in trade finance and supply chain financing, but it is not considered significant [27][29] Question: Sustainability Competitive Disadvantage - Management does not view the sustainability landscape in Europe as a competitive disadvantage, highlighting progress in their sustainability agenda [27][30] Question: Tier 2 Capital Stack - The company maintains a Tier 2 deficit offset by a surplus in AT1, with no immediate changes expected in the capital stack approach [27][32] Question: Commercial Real Estate Issues - Concentration of credit loss provisions has been primarily in West Coast exposures, with ongoing efforts to manage and restructure troubled loans [34][36] Question: Off-Balance Sheet Positions - Off-balance sheet positions primarily consist of derivatives and committed facilities, with a significant bias towards stages one and two [34][39]

Financial Data and Key Metrics Changes - Record profitability was achieved in the first nine months of 2025, with revenues at €24.4 billion, aligning with the full-year goal of around €32 billion before FX effects [3] - Post-tax return on tangible equity reached 10.9%, meeting the full-year target of above 10%, while the cost-income ratio stood at 63%, consistent with the target of below 65% [3][4] - Pre-provision profit was €9 billion, up nearly 50% year on year, or nearly 30% when adjusted for Postbank litigation impacts [3][4] Business Line Data and Key Metrics Changes - Net commission and fee income increased by 5% year on year, while net interest income across key banking book segments remained stable [4] - The Corporate Bank reported strong fee growth of 5% and was recognized as the best trade finance bank [6] - The Private Bank saw profits increase by 71% year to date, with assets under management growing by €40 billion and net inflows of €25 billion [6][7] Market Data and Key Metrics Changes - Loans grew by €3 billion in the third quarter, adjusted for FX effects, with strong underlying quality [9] - Deposit growth was pronounced in the private bank, with an increase of €10 billion during the third quarter [10][11] - The liquidity coverage ratio was managed to 140% at quarter end, demonstrating the strength of the balance sheet [12] Company Strategy and Development Direction - The company is on track to meet or exceed all 2025 strategy goals, with a compound annual revenue growth rate since 2021 of 6% [5] - Operational efficiencies of €2.4 billion have been delivered or are expected, achieving 95% of the €2.5 billion goal [5] - A second share buyback program of €250 million was launched, bringing cumulative distributions since 2022 to €5.6 billion [5] Management's Comments on Operating Environment and Future Outlook - Management anticipates lower provisioning levels in the second half of the year despite uncertainties in commercial real estate and the macroeconomic environment [17] - The company expects lending in the core bank to benefit from fiscal stimulus in Germany, with a strong outlook in FICC [10][17] - Management remains confident in achieving a return on tangible equity above 10% and a cost-income ratio below 65% for the full year [17] Other Important Information - The CET1 ratio increased to 14.5%, with a surplus above regulatory requirements [12][13] - The company has maintained a high-quality liquidity buffer, holding about 95% of HQLA in cash and Level 1 securities [12] Q&A Session Summary Question: Future Return on Tangible Equity - Management believes that a 10% return on tangible equity could be a reasonable floor for future performance, indicating structural profitability has improved [20][21] Question: Private Credit and Commercial Real Estate Exposures - Management noted that private credit is not a concern but remains a watch item, while commercial real estate continues to be a soft spot, particularly in California and Washington State [23][39] Question: Receivables Financing Exposure - The company engages in trade finance and supply chain financing, but it does not consider receivables financing to be a significant exposure [29] Question: Sustainability and Competitive Disadvantage - Management does not view the sustainability landscape in Europe as a competitive disadvantage, citing progress in their sustainability agenda and improved ESG ratings [30] Question: Tier 2 Capital Stack - The company maintains a Tier 2 deficit offset by a surplus in AT1, with no immediate plans to change this approach [34]

Summary of Nordea Bank FY Conference Call - September 08, 2025 Company Overview - **Company**: Nordea Bank (OTCPK:NBNK.F) Key Industry Insights - **Bank Taxation**: No significant political pressure for new bank taxes in Nordic countries, despite existing taxes in Sweden and higher corporate tax rates in Denmark and Norway [3][3] - **Net Interest Income**: Resilience observed in net interest margin, expected to stabilize around 2% in the coming years. Further rate cuts could be damaging [5][5] - **Customer Behavior**: Increased interest in deposits and asset management products as rates decline, indicating a shift in customer preferences [8][8] Financial Performance and Targets - **2025 Targets**: Confident in achieving above 15% Return on Equity (ROE) and a cost-income ratio of 44% to 46% [4][4] - **Loan and Deposit Growth**: Strong competition in lending, with market share gains in Sweden, but challenges in Denmark due to aggressive competitors [6][6][36][36] Cost Management - **IT Expenses**: Elevated IT expenses due to significant investments in technology and risk management, with a commitment to cap cost growth at 2% to 2.5% for 2025 [14][15][19][19] - **Employee Reduction**: Anticipated reduction in full-time employees due to technology investments and automation in financial crime prevention [16][18][18] Asset Quality and Risk Management - **Asset Quality**: Robust asset quality with low incidence of specific provisions; no major areas of concern identified [20][20] - **Regulatory Risks**: Ongoing Danish AML court case expected to take nearly a year for resolution, with adequate provisions in place [22][22] Capital Strategy - **M&A Activity**: Interest in bolt-on acquisitions remains, particularly in banking portfolios and life insurance, but no acquisitions announced for the year [25][25][26][26] - **Capital Returns**: Focus on returning excess capital to shareholders through buybacks if no suitable investment opportunities arise [26][26] Future Outlook - **Financial Targets**: Upcoming Capital Markets Day expected to provide updates on financial targets and growth strategies [31][31][32][32] - **Market Share Gains**: Strongest performance in Sweden, with efforts to regain ground in Denmark and maintain growth in Finland and Norway [36][36][37][37] Conclusion - **Overall Sentiment**: Nordea Bank expresses confidence in meeting financial targets, maintaining asset quality, and strategically managing costs while exploring growth opportunities through acquisitions and market share expansion.