Finance
Finland's Nordea Tops Profit Estimates Helped by Fees and Commissions
Published by Global Banking & Finance Review®
Posted on April 22, 2026
2 min readLast updated: April 22, 2026
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Nordea Bank’s Q1 2026 operating profit beat expectations, largely driven by a 6% rise in fee and commission income and a €99 million reversal in loan loss provisions, offsetting a 4% drop in net interest income amid rate cuts (citations: turn0search1, turn0search0).
Nordea Bank Surpasses Q1 Profit Estimates on Strong Fee and Commission Income
Nordea Bank's First-Quarter 2024 Financial Performance
Operating Earnings Exceed Expectations
April 22 (Reuters) - Finland's Nordea Bank reported first-quarter operating earnings above market expectations on Wednesday, as higher fee and commission income and a reversal of loan losses helped offset effects of lower interest rates.
The Nordic region's biggest lender's operating profit rose 2% from a year ago to 1.63 billion euros ($1.91 billion), exceeding analysts' average forecast of 1.42 billion euros, according to LSEG's I/B/E/S data.
Net Interest Income and Market Impact
Net interest income, a key metric for measuring banks' income from lending and deposits, fell 4% to 1.76 billion euros, slightly above market expectations, following several central bank rate cuts last year, Nordea said.
Growth in Fee and Commission Income
Net fee and commission income grew 6% in the quarter, continuing the solid growth seen in past quarters despite being impacted by market volatility in March, it said. Provisions for net loan losses and similar net result showed a reversal of 99 million euros.
Macroeconomic Factors and Outlook
Impact of Geopolitical Events
The European Central Bank warned in March that the U.S.-Israeli war with Iran was clouding the outlook for growth and inflation in the euro zone by pushing up the cost of energy. Were this to result in a shift toward higher interest rates, Nordea and other banks operating in the euro zone would stand to benefit.
Full-Year Outlook
Return on Equity and Cost-to-Income Ratio
The Finnish bank reiterated its full-year outlook for a return on equity of greater than 15% and a cost-to-income ratio of around 45%.
($1 = 0.8518 euros)
(Reporting by Elviira Luoma in Gdansk, editing by Milla Nissi-Prussak)
Key Takeaways
- •Operating profit rose 2% year‑on‑year to €1.63 billion, surpassing consensus expectations of around €1.42 billion (citations: turn0search1, turn0search10).
- •Net fee and commission income grew 6%, supporting revenue despite a 4% decline in net interest income due to lower interest rates (citations: turn0search1, turn0search1).
- •A €99 million reversal in loan‑loss provisions provided an additional boost, helping offset weak fair‑value trading results amid market volatility (citations: turn0search1, turn0search10).
Frequently Asked Questions about Finland's Nordea tops profit estimates helped by fees and commissions
1What helped Nordea Bank surpass profit estimates in Q1?
Higher fee and commission income along with a reversal of loan losses helped Nordea Bank surpass Q1 profit estimates.
2How much did Nordea's operating profit rise in the first quarter?
Nordea's operating profit rose 2% year-on-year to 1.63 billion euros in the first quarter.
3What was Nordea's net interest income in Q1 and how did it compare to expectations?
Nordea's net interest income fell 4% to 1.76 billion euros but still came in slightly above market expectations.
4What effect did the reversal of loan losses have on Nordea's earnings?
The reversal of 99 million euros in loan losses contributed positively to Nordea's first quarter earnings.
5What is Nordea's outlook for its full-year return on equity?
Nordea reiterated its full-year outlook for a return on equity of greater than 15%.
