Nordea Bank Abp

Nordea Bank is a financial services group based in Sweden. Co. has three business areas: retail banking, wholesale banking, and wealth management. Retail banking conducts a full service banking operation and serves household and corporate customers in the Nordic markets as well as the Baltic countries. Wholesale banking provides banking and other financial solutions to large Nordic and international corporate, institutional and public companies. Wealth management provides investment, savings and risk management products. It also manages customers' assets and provides financial advice to individuals and institutional investors.
  • TickerNDA DKK
  • ISINSE0000427361
  • CountrySweden

Analysts

Christer Magnergård ...
  • Håkon Astrup
  • Jimi Lehtonen
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Martin Hoang Nguyen
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Nicolas McBeath

Nordea (Buy, TP: SEK82.00) - Efficiency efforts set to release value

Our main takeaway from Nordea’s CMD was a strategic shift in the Wholesale Banking division, which Nordea expects to release EUR15bn in capital while also reducing costs more than revenues. We forecast a 2021 ROE of 9.4% adjusted for excess capital, supporting our new target price of SEK82 (79). Our recommendation remains BUY.

Eivind Sars Veddeng ...
  • Frank Maaø
  • Håkon Astrup
  • Joachim Gunell
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Martin Hoang Nguyen
  • Martin Huseby Karlsen
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen
  • Stefan Gauffin
  • Tomi Railo

Northern Lights

Nicolas McBeath

Nordea (Buy, TP: SEK79.00) - 10% ROE target looks achievable

We have raised our 2020–2021e EPS by 1%, and reiterate our BUY and SEK79 target price. We believe the underlying performance in Q3 was a step in the right direction towards a ROE recovery, noting healthy lending and savings volume trends, and abating pressure on lending margins. Nordea’s new 10% ROE target appears achievable, and if reached should prompt a re-rating of the shares to at least 1.0x book value, or roughly 20% above the current multiple.

Nicolas McBeath

Costs and capital set to weigh on ROE

We expect our sector top pick, SEB (BUY), to be the only one to report improving profitability in Q3, backed by continued healthy volume growth and solid cost control. We see an easing of mortgage margin pressure in Sweden in Q3 being short-lived, noting signs of intensifying competition already in Q4, explaining our neutral view on Swedbank (HOLD) and cautious view on Handelsbanken (SELL).

Moody's has rated Nordea Bank AB's junior senior debt at (P)Baa1

Moody's Investors Service (Moody's) has rated junior senior debt issued under the MTN programme of Nordea Bank AB (Nordea) at (P)Baa1. This announcement follows the bank's updated MTN programme under which Nordea plans to issue non-preferred senior debt (junior senior) on a contractual basis. A ...

Moody's has rated Nordea Bank AB's junior senior debt at (P)Baa1

Moody's Investors Service (Moody's) has rated junior senior debt issued under the MTN programme of Nordea Bank AB (Nordea) at (P)Baa1. This announcement follows the bank's updated MTN programme under which Nordea plans to issue non-preferred senior debt (junior senior) on a contractual basis...

Nordea Bank AB: Update to credit analysis following affirmation of LT deposit and senior debt ratings

Our credit view of Nordea's reflects solid capital, good asset quality and the dependence on market funding.

Nordea Bank AB: Update following Q417 report

Our credit view of Nordea's reflects solid capital, good asset quality and the dependence on market funding.

Moody's: No rating impact on Nordea Bank AB's subordinated debt and AT1 notes, following draft amendments to terms and conditions

Announcement: Moody's: No rating impact on Nordea Bank AB's subordinated debt and AT1 notes, following draft amendments to terms and conditions. Global Credit Research- 07 Nov 2017. London, 07 November 2017-- Moody's Investors Service announced today that the proposed amendments to Nordea Bank AB's terms and conditions for 12 subordinated debt and Additional Tier 1 capital instruments, as announced today, would not, in and of itself and as of this time, result in a change of the...

Nicolas McBeath

Nordea (Buy, TP: SEK82.00) - Efficiency efforts set to release value

Our main takeaway from Nordea’s CMD was a strategic shift in the Wholesale Banking division, which Nordea expects to release EUR15bn in capital while also reducing costs more than revenues. We forecast a 2021 ROE of 9.4% adjusted for excess capital, supporting our new target price of SEK82 (79). Our recommendation remains BUY.

Nicolas McBeath

Nordea (Buy, TP: SEK79.00) - 10% ROE target looks achievable

We have raised our 2020–2021e EPS by 1%, and reiterate our BUY and SEK79 target price. We believe the underlying performance in Q3 was a step in the right direction towards a ROE recovery, noting healthy lending and savings volume trends, and abating pressure on lending margins. Nordea’s new 10% ROE target appears achievable, and if reached should prompt a re-rating of the shares to at least 1.0x book value, or roughly 20% above the current multiple.

Nicolas McBeath

Costs and capital set to weigh on ROE

We expect our sector top pick, SEB (BUY), to be the only one to report improving profitability in Q3, backed by continued healthy volume growth and solid cost control. We see an easing of mortgage margin pressure in Sweden in Q3 being short-lived, noting signs of intensifying competition already in Q4, explaining our neutral view on Swedbank (HOLD) and cautious view on Handelsbanken (SELL).

Nicolas McBeath

Climate opportunity could trump risk

With c80% of lending to real estate, with relatively lower energy transition risks, we see climate risks as currently limited for Swedbank. Instead, its most acute ESG driver is AML, where the risk of sanctions for historical breaches likely contributed to its reduced dividend policy earlier this year and aggravated the bank’s ROE decline. We reiterate our HOLD and SEK147 target price, seeing downside risk to consensus on earnings, but believe the market has also priced in AML fines to a too large extent.

Nicolas McBeath

Nordea (Buy, TP: SEK81.00) - Revenue momentum still subdued

Nordea (NDA SS, Buy) - Revenue momentum still subdued (12 pages)

A director bought 5,020 shares at 9.965EUR and

A director at Nordea Bank Ab bought 5,020 shares at 9.965EUR and the significance rating of the trade was 55/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board...

Christer Magnergård ...
  • Håkon Astrup
  • Jimi Lehtonen
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Martin Hoang Nguyen
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Eivind Sars Veddeng ...
  • Frank Maaø
  • Håkon Astrup
  • Joachim Gunell
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Martin Hoang Nguyen
  • Martin Huseby Karlsen
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen
  • Stefan Gauffin
  • Tomi Railo

Northern Lights

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Håkon Astrup
  • Jon Berggren
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Stefan Gauffin
  • Tomi Railo

Weak report across the board

Christoffer Wang Bjørnsen ...
  • Jon Masdal
  • Mattias Holmberg
  • Nicolas McBeath
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Rune Majlund Dahl
  • Simen Mortensen

Northern Lights

Antti Kansanen ...
  • Eivind Sars Veddeng
  • Håkon Astrup
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Marius Knudssøn
  • Martin Arnell
  • Martin Huseby Karlsen
  • Mattias Montgomery
  • Niclas Gehin
  • Nicolas McBeath
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Rune Majlund Dahl
  • Simen Mortensen
  • Stefan Gauffin

Northern Lights

Ibrahim Firdaus

Nordea

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Ibrahim Firdaus

Nordea

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Ibrahim Firdaus

Nordea

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Ibrahim Firdaus

Nordea

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Ibrahim Firdaus

Nordea

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ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier
  • Suvi Platerink Kosonen

Coffee, Croissants & Credit/Casino, Danske Bank and Nordea

Following earlier announcements, Casino (COFP) announced today that it has completed the disposal of a total of 67 Monoprix real estate assets for a sum of €742m and annual rent of €35.4m. This takes the total disposal amount to €1.1bn, exceeding the initial target set back in June. Casino also confirmed all its 2018 objectives and went on to say that retail trading operating profit is expected to grow at the same pace as in 2018, including the effect of additional rents.

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier
  • Suvi Platerink Kosonen

Coffee, Croissants & Credit/Nordea, Rabobank, TOTAL and EDF

Financials: • Nordea (NDASS) is planning to match its 2018 issuance speed and issue at least €20bn in debt in 2019 including covered bonds, preferred senior unsecured and non-preferred senior unsecured according to the bank's head of long-term funding Ola Littorin as cited by Bloomberg. Moreover, the issuance volumes of preferred senior notes are guided to be “slightly” down next year. The NDASS0.875 6/23 NPS has widened by 12bp over the last month, opening some performance potential versus similarly rated RABOBK0.75 8/23 that has remained relatively stable widening only 4bp over the last mont...

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier
  • Suvi Platerink Kosonen

Coffee, Croissants & Credit/Nordea & RBS drop off G-SIB list; Telecom Italia

• FSB made several changes to its list of global systematically important banks (G-SIBs) on Friday. The 2018 G-SIB list includes 13 European names. Deutsche Bank (DB) and HSBC (HSBC) remained in the 2% G-SIB surcharge category, while Barclays (BACR) and BNP Paribas (BNP) remained in the 1.5% surcharge bucket. BPCE (BPCEGP) was added to the 2018 list, whereas both Nordea (NDASS) and RBS (RBS) were removed from the list. These banks continue to be domestically important, diminishing any effect of the change.

ING
Suvi Platerink Kosonen

European banks/The weak and the strong

EBA published the 2018 stress test results for European banks today (2 November). Altogether 48 financial institutions covering around 70% of the total banking assets across the region were tested. The weakest banks based on stressed capital ratios were in the UK, Italy, Germany and France. The strongest banking sectors were found in Norway, Finland and Poland.

ING
Suvi Platerink Kosonen

Nordic banks/Sizing up the NPS needs

Swedish banks reported solid earnings for 2Q18, while Danske Bank was a negative outlier. Nordea improved mainly due to lower costs. Nordic banks have started to build their MREL buffers with Nordea and Danske Bank issuing bonds in the new non-preferred senior unsecured format. The other Swedish banks are yet to start. We expect the bulk of the upcoming issuance over the next 3-4 years to come in the form of refinancing the outstanding senior maturities with non-preferred senior paper. We prefer Nordea over Danske in NPS, and SEB over Danske in callable Tier 2. Although suffering from company-...

Expert Corporate Governance Service (ECGS)

Nordea Bank, March 28 2019

In general, Nordea is in compliance with the Finnish regulations relating to the organisation and procedures of the AGM. In October 2018, Nordea completed a re-domiciliation of the parent company to Finland, by means of a cross-border reversed merger. As a consequence, the overall supervisory responsibility of the Company moved to the European Central Bank (ECB). Under ITEM 9, discharge of the board of directors & CEO is sought. ECGS notes that the relevant supervisory authorities have conducted ongoing investigations (among others) regarding Nordea's compliance with anti-money laundering (A...

Nordea Bank – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

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