Nordea Bank (NDA-SE) Pre-close call summary

Executive summary

• Q2 2026 pre-close call focused on Q1 results, macro trends, and public data as of June 17, with Q2 report to be published July 16 and silent period starting July 6.

• Only questions on already disclosed or public information were addressed; script to be published online.

Trading performance and revenue trends

• Interest rate hikes of 25bps occurred in Norway, ECB, and Denmark during Q2, with interbank rates rising, especially NIBOR up 32bps versus Q1.

• FX movements had minimal P&L impact; SEK down 2% and NOK up 4% versus euro, broadly offsetting each other.

• Q1 net interest income (NII) was €1.759bn; lending margin pressure offset lending volume gains, and margin pressure is expected to persist in Q2.

• Deposit margins to benefit from rate hikes, but Q2 impact limited due to timing of hikes and notification periods, especially in Norway.

• Technical items: day count adds €19m to NII; AT1 call adds a minor positive; negative seasonality from equity margin post-dividend.

• Net fee and commission income in Q1 was €842m; Q2 benefits from semi-annual fees and higher day count.

• Net fair value in Q1 was €226m, impacted by March volatility; Q2 expected to improve and align with regular run rate.

Profitability and margins

• Q1 included €190m restructuring costs (excluded from outlook); adjusted Q1 costs were €1.375bn.

• Q2 costs expected to be stable quarter-on-quarter, with increases from salary adjustments and regulatory fees.

• Loan losses expected to rise to long-term average of 10bps as management buffer is fully deployed.

• Tax rate in Q1 was 23.9%, expected to remain at similar levels.