Nordea Q3/2026 Business Review

Introduction

Nordea delivered a solid Q3 2026 with resilient profitability despite seasonally softer customer activity and unusually volatile interest-rate markets. The bank continued executing its 2030 strategy, including further investments in technology, data and AI, while also making management changes and combining Group Risk and Group Compliance to improve coordination and efficiency. Capital remained strong, although Nordea paused share buybacks pending greater clarity on future risk-weighted asset effects from model and regulatory developments. The market backdrop was mixed: customer volumes in lending, deposits and assets under management stayed supportive, but market-making income was pressured by sharp rate moves. 2 15 18 30

Key Metrics

Cost/income ratio was 45.0% in Q3 2026 versus 45.1% in Q3 2025, while return on equity was 15.1% versus 15.8%. 2

Change for loan losses is not meaningful because the comparison period was a net release rather than a charge.

Key Observations

• Profitability stayed strong, but earnings softened slightly. Q3 2026 return on equity was 15.1%, earnings per share were EUR 0.35, and the cost/income ratio was 45.0%, broadly stable year on year. However, operating profit declined 4% to EUR 1,541 million as weaker fair-value income and higher credit losses offset revenue growth. 2 33

• Revenue mix improved toward more recurring fees. Total operating income rose 2% year on year to EUR 2,968 million. Net fee and commission income increased 9% to EUR 880 million, helped especially by savings income, which rose 14% year on year due to higher assets under management. 2 10

• Net interest income was resilient despite margin pressure. Net interest income increased 1% year on year and quarter on quarter to EUR 1,799 million, supported by higher business volumes but partly offset by lower lending margins. This suggests Nordea’s balance-sheet growth is still compensating for pricing headwinds. 2

• Market volatility hurt trading-related income. Net result from items at fair value fell 19% year on year to EUR 198 million, mainly because of unusually unstable interest-rate conditions. This had a particularly visible effect in Large Corporates & Institutions, where market-making activity was negatively affected and segment operating profit fell 23% to EUR 267 million. 30

• Credit quality remained solid overall, but losses normalized upward. Loan losses and similar net result were a charge of EUR 74 million in Q3 2026, equal to 7 basis points and still below Nordea’s long-term expectation of around 10 basis points. The increase was mainly linked to individual provisions on a few corporate customers and a modest rise in model-based provisions. 2

• Volumes were strong across lending, deposits and wealth. Corporate lending and deposits both showed strong year-on-year growth, mortgages rose 2%, and private deposits increased 4%. Assets under management reached a record EUR 509.4 billion, up from EUR 452.4 billion a year earlier, with positive net flows of EUR 1.4 billion in Q3 2026. 2 10

• Capital position remained robust. Nordea generated capital during the quarter, but paused buybacks until the impact of risk-weighted asset developments becomes clearer. 2 15

• Strategic execution continued through organizational and digital initiatives. Nordea announced leadership changes in Personal Banking and Business Banking and decided to combine Group Risk and Group Compliance from January 2027. In business operations, the bank highlighted process simplification, digital onboarding expansion for SMEs, and increased use of AI, especially in Large Corporates & Institutions. 18 27 30

Outlook

For 2026, Nordea kept its guidance unchanged and expects return on equity above 15% and a cost/income ratio of 44%–45%. Near term, the bank appears positioned for continued solid revenue support from volume growth, savings income and a diversified Nordic loan book, while profitability may still be influenced by market-related fair-value volatility and somewhat higher credit losses than last year’s unusually low level. Overall, the outlook remains for stable growth and strong profitability rather than major acceleration. 2 4

Sources

1. Nordea Bank Abp · Rapport för tredje kvartalet (cont.) · 2026 · p. 2

2. Nordea Bank Abp · Kärnprimärkapitalrelation1, förändringar under kvartalet · 2026 · p. 15

3. Nordea Bank Abp · Övrig information · 2026 · p. 18

4. Nordea Bank Abp · Large Corporates & Institutions · 2026 · p. 30

5. Nordea Bank Abp · Resultaträkning · 2026 · p. 33

6. Nordea Bank Abp · Koncernens resultat och utveckling Tredje kvartalet 2026 (cont.) · p. 10

7. Nordea Bank Abp · Business Banking · 2026 · p. 27

8. Nordea Bank Abp · Utsikter (oförändrade) · 2026 · p. 4