OM:NDA SE

Stock Analysis Report

Nordea Bank Abp

Executive Summary

Nordea Bank Abp provides various banking products and services for personal customers, small and medium businesses, and corporates and financial institutions in Europe.


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Nordea Bank Abp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NDA SE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.08%

NDA SE

2.5%

SE Banks

1.4%

SE Market


1 Year Return

4.7%

NDA SE

6.4%

SE Banks

24.1%

SE Market

Return vs Industry: NDA SE matched the Swedish Banks industry which returned 6.4% over the past year.

Return vs Market: NDA SE underperformed the Swedish Market which returned 24.1% over the past year.


Shareholder returns

NDA SEIndustryMarket
7 Day-0.08%2.5%1.4%
30 Day12.6%13.4%4.0%
90 Day23.2%25.7%12.1%
1 Year15.2%4.7%16.4%6.4%29.0%24.1%
3 Year0.9%-19.6%2.1%-17.8%39.8%18.7%
5 Year7.8%-23.8%-4.0%-27.8%48.2%16.8%

Price Volatility Vs. Market

How volatile is Nordea Bank Abp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nordea Bank Abp undervalued compared to its fair value and its price relative to the market?

21.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NDA SE (SEK86.38) is trading above our estimate of fair value (SEK68.99)

Significantly Below Fair Value: NDA SE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NDA SE is poor value based on its PE Ratio (21.4x) compared to the Banks industry average (9.5x).

PE vs Market: NDA SE is poor value based on its PE Ratio (21.4x) compared to the Swedish market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: NDA SE is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: NDA SE is good value based on its PB Ratio (1x) compared to the SE Banks industry average (1.3x).


Next Steps

Future Growth

How is Nordea Bank Abp forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDA SE's forecast earnings growth (19.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: NDA SE's earnings (19.1% per year) are forecast to grow faster than the Swedish market (8.2% per year).

High Growth Earnings: NDA SE's earnings are forecast to grow, but not significantly.

Revenue vs Market: NDA SE's revenue (4.2% per year) is forecast to grow slower than the Swedish market (4.7% per year).

High Growth Revenue: NDA SE's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NDA SE's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has Nordea Bank Abp performed over the past 5 years?

-10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NDA SE has a large one-off loss of €612.0M impacting its December 31 2019 financial results.

Growing Profit Margin: NDA SE's current net profit margins (19.4%) are lower than last year (35.1%).


Past Earnings Growth Analysis

Earnings Trend: NDA SE's earnings have declined by -10.7% per year over the past 5 years.

Accelerating Growth: NDA SE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NDA SE had negative earnings growth (-49.8%) over the past year, making it difficult to compare to the Banks industry average (7.8%).


Return on Equity

High ROE: NDA SE's Return on Equity (4.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nordea Bank Abp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NDA SE has a low level of unsold assets or inventory.

Debt Coverage by Assets: NDA SE's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: NDA SE's level of assets compared to its equity is moderate.

Allowance for Bad Loans: NDA SE has a low allowance for bad loans.

Low Risk Liabilities: NDA SE's liabilities are made up of primarily higher risk sources of funding.

Loan Level: NDA SE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NDA SE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: NDA SE has an appropriate level of bad loans (0.72%)


Next Steps

Dividend

What is Nordea Bank Abp's current dividend yield, its reliability and sustainability?

4.93%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 22 2020Ex Dividend DateMar 26 2020Dividend Pay DateApr 03 20208 days from Ex DividendBuy in the next 33 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: NDA SE's dividend (4.91%) is higher than the bottom 25% of dividend payers in the Swedish market (1.59%).

High Dividend: NDA SE's dividend (4.91%) is in the top 25% of dividend payers in the Swedish market (4.14%)


Stability and Growth of Payments

Stable Dividend: NDA SE's dividend payments have been volatile in the past 10 years.

Growing Dividend: NDA SE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (105.3%), NDA SE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NDA SE's dividends in 3 years are forecast to be covered by earnings (67.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Frank Vang-Jensen (52yo)

0.4yrs

Tenure

Mr. Frank Vang-Jensen has been President and Group Chief Executive Officer at Nordea Henkivakuutus Suomi Oy since 2019. He is CEO & President at at Nordea Bank Abp since September 2019. He served as Head o ...


Leadership Team

NamePositionTenureCompensationOwnership
Casper von Koskull
Executive Officer0.4yrs€2.43m0.0069% 23.7m
Frank Vang-Jensen
President & Group CEO0.4yrsno data0.000060% 207.6k
Christopher Rees
Group CFO1.9yrsno datano data
Paul Bari
Group CIO and Head of Group Technology3yrsno datano data
Rodney Alfvén
Head of Investor Relations10.3yrsno datano data
Matthew Elderfield
Chief Risk Officer and Head of Group Risk & Compliance1.1yrsno datano data
Jussi Koskinen
Chief Legal Officer1.4yrsno datano data
Helene Jepson
Chief Compliance Officer & Head of Group Compliance0.4yrsno datano data
Sara Helweg-Larsen
Head of Group Communication & Branding2.8yrsno datano data
Christina Gadeberg
Chief People Officer & Head of Group People0.2yrsno datano data

1.3yrs

Average Tenure

52yo

Average Age

Experienced Management: NDA SE's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kari Alpo Jordan
Independent Vice Chairman1.1yrsno datano data
Birger Steen
Independent Director4.9yrs€140.47kno data
Torbjörn Magnusson
Independent Chairman0.9yrs€91.55k0.00010% 346.0k
Pernille Erenbjerg
Independent Director2.9yrs€121.43kno data
Sarah Russell
Independent Director9.9yrs€140.47kno data
Robin Lawther
Independent Director5.9yrs€127.88k0.0012% 4.3m
Hans Krogh Riise
Employee Representative Director7.1yrsno datano data
Kari Ahola
Employee Representative Director14.1yrsno datano data
Gerhard Olsson
Employee Representative Director2.1yrsno datano data
Nigel Hinshelwood
Independent Director1.9yrs€120.82kno data

3.9yrs

Average Tenure

56.5yo

Average Age

Experienced Board: NDA SE's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nordea Bank Abp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nordea Bank Abp
  • Ticker: NDA SE
  • Exchange: OM
  • Founded: 1820
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr346.034b
  • Shares outstanding: 4.04b
  • Website: https://www.nordea.com

Number of Employees


Location

  • Nordea Bank Abp
  • Satamaradankatu 5
  • Nordea
  • Helsinki
  • Uusimaa
  • 20
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NDA DKCPSE (OMX Nordic Exchange Copenhagen)YesNew Ordinary SharesDKDKKDec 1997
NDA SEOM (OMX Nordic Exchange Stockholm)YesNew Ordinary SharesSESEKDec 1997
NDA FIHLSE (OMX Nordic Exchange Helsinki)YesNew Ordinary SharesFIEURDec 1997
NDBSWX (SIX Swiss Exchange)YesNew Ordinary SharesCHCHFDec 1997
NDACBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBEURDec 1997
0N4TLSE (London Stock Exchange)YesNew Ordinary SharesGBSEKDec 1997
NBNK.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDDec 1997
NDA NBMV (Bolsa Mexicana de Valores)YesNew Ordinary SharesMXMXNDec 1997
NRDB.YOTCPK (Pink Sheets LLC)SPONSORED ADSUSUSDOct 2008
BEAR OMXS X3 NDOB (Oslo Bors)BEAR OMXS X3 NDNONOKSep 2016
BULL OMXS X5 NDOB (Oslo Bors)BULL OMXS X5 NDNONOKSep 2016
BEAR OBX X8 NDOB (Oslo Bors)NORDEA BANKNONOKSep 2016
BULL OBX X8 NDOB (Oslo Bors)FUND ETN NODEANONOKSep 2016

Biography

Nordea Bank Abp provides various banking products and services for personal customers, small and medium businesses, and corporates and financial institutions in Europe. It operates through Personal Banking, Commercial & Business Banking, Wholesale Banking, and Wealth Management segments. It offers personal banking products comprising corporate and household deposits; and household mortgage and consumer loans, as well as loans to corporates. The company also provides business banking services; transaction banking services consisting of cards, trade finance, cash management, and mobile- and ecommerce; and investment credits, working capital, and consumer credits. In addition, it offers a range of financing, cash management and payment services, investment banking, capital markets products, and securities services; manages customers’ assets and provides financial advice to high net worth individuals and institutional investors; and provides a range of pension, endowment, and risk products. Further, the company offers trade finance services; and online and mobile banking services. It operates approximately 450 branches. The company was founded in 1820 and is headquartered in Helsinki, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:12
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.