Nordea, the largest bank in the Nordic region, reported a fourth-quarter profit that missed expectations, but it anticipates achieving a return on equity (RoE) surpassing 15 percent for both 2024 and 2025, aligning with its regional competitors. CEO Frank Vang-Jensen attributed the revised 2025 goal to significant structural improvements made over the past four years, enhancing the generation of high-quality earnings characterized by elevated profitability and reduced volatility.
Nordea, alongside peers like SEB and Swedbank, has garnered substantial profits in recent years, primarily driven by increasing interest rates. The bank targets an RoE of over 15 percent in 2024 and has raised its 2025 target from 13 percent to 15 percent.
In 2023, Nordea reported a full-year RoE of 16.9 percent, up from 13.8 percent in 2022. However, its fourth-quarter operating profit stood at €1.42 billion ($1.53 billion), a decline from €1.61 billion the previous year and below the analysts’ average prediction of €1.64 billion.
The board proposed a €0.92 per share dividend for 2023, reflecting a 15 percent increase from the previous year but falling below the analysts’ average prediction of €0.95 per share.
