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.