Nordic Banks: Nordic growth picks up, but competitive squeeze tightens

Research evidence excerpt

Nordic Banks: Nordic growth picks up, but competitive squeeze tightens

Accessible version

Nordic Banks

Nordic growth picks up, but competitive

squeeze tightens

Price Objective Change

A better growth and rate environment in the Nordics… 14 May 2026

Nordic loan growth continues to improve (Exhibit 12 to Exhibit 14), and management Equity

teams increasingly point to better trends in both households and corporates. Recent Europe

data indicate rising housing transactions and higher prices. Loan rates have started to Banks

move up supported by higher market rates (3m Stibor/Nibor/Euribor up 11bp/28bp/22bp

Tarik El Mejjad >>

YtD). Policy rates have already begun to rise in Norway, and markets are now pricing Research Analyst

hikes in the Eurozone and Sweden as well (Exhibit 15) albeit likely with a lag in Sweden. MLI (UK) +44 20 7996 0014

…but competition is intensifying… tarik.el_mejjad@bofa.com

Ilija Novosselsky >>

While volumes are improving—particularly in Sweden and Norway—competitive pressure Research Analyst

has stepped up. Norwegian savings banks and Swedish challengers remain aggressive in MLI (UK) +44 20 7996 1541

taking share, and a better Swedish/Norwegian corporate environment is drawing in more ilija.novosselsky@bofa.com

cross-border competition. As a result, we expect continued pressure on both margins Lea George >>

and market shares despite a better operating environment year-to-date. ResearchMLI (UK) Analyst

…and consumer and business sentiment remain fragile +44lea.george@bofa.com20 7996 2798

Nordic banks are still highly dependent on market activity and consumer sentiment. We

think ongoing geopolitical pressure, higher energy prices and downward GDP revisions

could further dent confidence.