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Nordea: A major discrepancy between price and value

NDA FIExtensive research12.06.2023, 07.31
Inderes
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Nordea has achieved a convincing performance turnaround in recent years and its profitability has risen close to its peers. The company is currently performing strongly and although we expect the earnings peak to be close, profitability remains strong in our estimates over the next few years as well. There is no doubt that the operating environment is currently subject to uncertainty, but we believe the valuation of the company (2023e: P/E 7.1x and P/B 1.1x) gives an unreasonably pessimistic picture of the earnings outlook for the coming years.

Nordea is a banking company. The company offers a range of financial services, aimed at both private and corporate customers, including traditional asset management, loan financing and pension savings. In addition, it also offers advice and security insurance, as well as currency management. Nordea has the largest operations in the Nordic and Baltic countries. The company was founded in 1997 and its headquarters are located in Helsinki.

Read more on company page

Key Estimate Figures11.06.2023

202223e24e
Operating income9,721.011,770.111,910.2
growth-%1.0 %21.1 %1.2 %
EBIT (adj.)5,299.06,356.36,198.9
EBIT-% (adj.)54.5 %54.0 %52.0 %
EPS (adj.)1.111.371.39
Dividend0.800.920.97
Dividend %8.0 %5.4 %5.7 %
P/E (adj.)9.012.312.2
EV/EBITDA7.99.59.5

Forum discussions

Jyske Bank commented on Nordea today; I am posting the translations below, reversing the order of the paragraphs compared to the original. Jyske...
yesterday
by Koala
14
Surely the banks themselves want the responsibility of investigating to fall on them. Otherwise, authorities would have to be granted access...
11/9/2026, 10:37 PM
by Lord Foobar
12
The amounts of the fines can be found in the directive. Of course, in between, the local financial supervisory authority assesses the severity...
11/9/2026, 3:10 PM
by Taavetti
3
No, by all accounts it was failure to comply with anti-money laundering controls… That’s a different thing. In fact, banks have been complaining...
11/9/2026, 1:38 PM
by Eläkehaaveilija
25
This certainly doesn’t leave a bad taste in the mouth. They tried to milk ridiculous sums over old matters, and now they just have to settle...
11/9/2026, 1:37 PM
by Belfastinbingviini
4
That does leave a bit of a bad taste in the mouth regarding Denmark. It’s more of an American style to first ask for “1982198 billion” and then...
11/9/2026, 1:20 PM
by Torniojaws
9
Nordea seemed to have a provision of €95m, so considering that as well, it sounds like a good outcome.
11/9/2026, 12:44 PM
by KepposSeppo
31