NBNKF - Nordea: Resilient Earnings Leaves Shares Undervalued

2024-04-24 22:21:30 ET

Summary

• Nordic banking giant Nordea continues to enjoy the benefits of higher interest rates and sound asset quality, posting a very strong 20% return on tangible equity in Q1.
• While earnings are at their peak, resilient net interest income and credit quality can keep profits elevated at attractive levels.
• Nordea continues to sit on surplus capital, pointing to supplemental buybacks alongside the ordinary payout policy.
• At the stock's current multiple of tangible book value, this can power attractive medium-term returns.

Nordic banking giant Nordea ( OTCQX:NRDBY )( OTCQX:NBNKF ) has been a fairly quiet performer over the past 12 months, underperforming both wider European financials ( EUFN ) and most of its close Scandinavian peers on the back of a circa 12% return for the ADSs....

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