Nordea (NDAFI.HE): Thoughts Post Conference Call - Sustained Execution Continues

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Nordea (NDAFI.HE): Thoughts Post Conference Call - Sustained Execution Continues

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16 Jul 2026 08:33:12 ET │ 11 pages

Nordea (NDAFI.HE)

Thoughts Post Conference Call - Sustained Execution Continues

CITI'S TAKE

Buy Nordea is a consistent compounder with upside to consensus earnings

(on our numbers) largely concentrated in the outer years, where we see the Price (15 Jul 26 18:30) €16.89

compounding effects of market share gains across products and Target price €18.10

geographies. Corporate loan growth is picking up and Nordea continues to Expected share price return 7.2%

take share; this is similarly true in Private Banking and Life & Pension. Expected dividend yield 5.8%

While the company therefore does not have the most upside to consensus Expected total return 13.0%

numbers near-term of the stocks we cover, it is run by a high-quality

Market Cap €57,473M management team and provides some defensive exposure with growth

US$65,729M characteristics. Buy.

Capital Optionality – There was some consternation from analysts given the

absence of a buyback announcement from Nordea, having previously commented Shrey SrivastavaAC

on ~€1bn consensus buybacks for FY26 as being reasonable. When questioned, we +44-20-7986-2608

thought the CFO made an interesting observation: that they have seen strong shrey.srivastava@citi.com

lending growth (especially in Large Corporates, where they were +3% qoq) which is Guru Prasad Chowdhary

more profitable and supports EPS growth in the long term (which is a key priority). +91-22-4277-5022

We think this touches on a key issue across the Nordic banks sector: should lending guru.prasad.chowdhary@citi.com

growth pick up materially this would have to come at the expense of capital return,

Andrew Coombs, CFA