Nordea reported a Q2 EPS of EUR 0.06 as a decent quarter on both revenues and costs was marred by a EUR 698m loan loss provision. Looking closer at the loan losses NDA seems to have thrown in the kitchen sink here and set itself up for a more normalized level in H2/20. As such we see ROE improving in the coming quarters, but still at a level where we think medium-term upside remains limited. We reiterate Hold and stick with our SEK 72 target price.
19 Jul 2020
Building a fortress balance sheet
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Building a fortress balance sheet
Nordea reported a Q2 EPS of EUR 0.06 as a decent quarter on both revenues and costs was marred by a EUR 698m loan loss provision. Looking closer at the loan losses NDA seems to have thrown in the kitchen sink here and set itself up for a more normalized level in H2/20. As such we see ROE improving in the coming quarters, but still at a level where we think medium-term upside remains limited. We reiterate Hold and stick with our SEK 72 target price.