OTCPK:NBNK.F

Stock Analysis Report

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

Fundamentals

Established 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: NBNK.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

n/a

NBNK.F

-1.5%

US Banks

0.2%

US Market


1 Year Return

n/a

NBNK.F

8.3%

US Banks

12.2%

US Market

Return vs Industry: Insufficient data to determine how NBNK.F performed against the US Banks industry.

Return vs Market: Insufficient data to determine how NBNK.F performed against the US Market.


Shareholder returns

NBNK.FIndustryMarket
7 Dayn/a-1.5%0.2%
30 Day1.3%6.4%3.5%
90 Day21.0%16.1%6.3%
1 Yearn/a11.6%8.3%14.7%12.2%
3 Year-29.9%-29.9%39.0%29.3%47.8%38.3%
5 Year-41.1%-41.1%72.1%53.1%62.1%44.1%

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

No news available

Valuation

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

21.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NBNK.F ($7.26) is trading above our estimate of fair value ($5.84)

Significantly Below Fair Value: NBNK.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NBNK.F is poor value based on its PE Ratio (21.3x) compared to the Banks industry average (12.6x).

PE vs Market: NBNK.F is poor value based on its PE Ratio (21.3x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: NBNK.F is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: NBNK.F is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Nordea Bank Abp forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

26.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NBNK.F's forecast earnings growth (26.7% per year) is above the savings rate (2.7%).

Earnings vs Market: NBNK.F's earnings (26.7% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NBNK.F's revenue (2.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NBNK.F's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NBNK.F's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

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

-7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NBNK.F has large one-off items impacting its financial results.

Growing Profit Margin: NBNK.F's current net profit margins (16.4%) are lower than last year (36.4%).


Past Earnings Growth Analysis

Earnings Trend: NBNK.F's earnings have declined by -7.7% per year over the past 5 years.

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

Earnings vs Industry: NBNK.F had negative earnings growth (-59.4%) over the past year, making it difficult to compare to the Banks industry average (27.4%).


Return on Equity

High ROE: NBNK.F's Return on Equity (4.2%) 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: NBNK.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: NBNK.F's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: NBNK.F's level of assets compared to its equity is moderate.

Allowance for Bad Loans: NBNK.F has a low allowance for bad loans.

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

Loan Level: NBNK.F has an acceptable proportion of non-loan assets held.

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

Level of Bad Loans: NBNK.F has an appropriate level of bad loans (0.77%)


Next Steps

Dividend

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

10.37%

Current Dividend Yield


Dividend Yield vs Market

company10.4%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Years6.6%

Current dividend yield vs market & industry

Notable Dividend: NBNK.F's dividend (10.37%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: NBNK.F's dividend (10.37%) is in the top 25% of dividend payers in the US market (3.65%)


Stability and Growth of Payments

Stable Dividend: NBNK.F's dividends per share have been stable in the past 10 years.

Growing Dividend: NBNK.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (220.7%), NBNK.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Nordea Bank Abp's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Frank Vang-Jensen (52yo)

0.2yrs

Tenure

0

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 ...


Management Age and Tenure

1.2yrs

Average Tenure

52.5yo

Average Age

Experienced Management: NBNK.F's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.7yrs

Average Tenure

56.5yo

Average Age

Experienced Board: NBNK.F's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 2.6%.


Management Team

  • Jouko Helomaa

    Principal

    • Tenure: 0yrs
  • Frank Vang-Jensen (52yo)

    President & Group CEO

    • Tenure: 0.2yrs
  • Eady Elderfield (53yo)

    Chief Risk Officer and Head of Group Risk & Compliance

    • Tenure: 0.8yrs
  • Rodney Alfvén

    Head of Investor Relations

    • Tenure: 10yrs
  • Sara Helweg-Larsen

    Head of Group Communication & Branding

    • Tenure: 2.5yrs
  • Casper von Koskull (59yo)

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: €2.43m
  • Helene Jepson

    Chief Compliance Officer & Head of Group Compliance

    • Tenure: 0.2yrs
  • Chris Rees (47yo)

    Group CFO

    • Tenure: 1.7yrs
  • Paul Bari

    Group CIO and Head of Group Technology

    • Tenure: 2.8yrs
  • Jussi Koskinen

    Chief Legal Officer

    • Tenure: 1.2yrs

Board Members

  • Kari Alpo Jordan (63yo)

    Independent Vice Chairman

    • Tenure: 0.8yrs
  • Birger Steen (53yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: €140.47k
  • Torbjörn Magnusson (56yo)

    Independent Chairman

    • Tenure: 0.7yrs
    • Compensation: €91.55k
  • Pernille Erenbjerg (52yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: €121.43k
  • Sarah Russell (57yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: €140.47k
  • Robin Lawther (58yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: €127.88k
  • Hans Krogh Riise (58yo)

    Employee Representative Director

    • Tenure: 6.8yrs
  • Kari Ahola (59yo)

    Employee Representative Director

    • Tenure: 13.8yrs
  • Gerhard Olsson (41yo)

    Employee Representative Director

    • Tenure: 1.8yrs
  • Nigel Hinshelwood (53yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: €120.82k

Company Information

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


Key Information

  • Name: Nordea Bank Abp
  • Ticker: NBNK.F
  • Exchange: OTCPK
  • Founded: 1820
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr287.133b
  • Listing Market Cap: kr29.591b
  • 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

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 00:46
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.