The European Banking Authority (EBA) has released the results of its EU-wide stress test, which examined how banks would respond to severe economic shocks between 2025 and 2027. The analysis was conducted in cooperation with the European Systemic Risk Board, the European Central Bank, and the European Commission.
The results show that Nordea’s risk profile and capital position remain resilient despite challenging scenario assumptions for the Nordic region. According to the EBA’s stress scenario, Nordea’s Common Equity Tier 1 (CET1) capital ratio is projected to fall from 15.8% at the end of 2024 to a low point of 12.2% at the end of 2025. The bank reported a CET1 capital ratio of 15.6% at the end of the second quarter in 2025.
The exercise also included an assessment under a fully implemented CRR3 capital regime using a full standardized approach for risk exposure amount calculations. In this scenario, Nordea’s CET1 ratio would decrease from 12.8% on January 1, 2025, to 10.2% by year-end.
Nordea commented on these findings: “The exercise confirms Nordea’s well-managed risk profile and resilient capital position.” The bank added: “Nordea views the outcome of the 2025 exercise as a conservative outcome compared to its overall risk position.”
Regarding future plans, Nordea stated: “The 2025 EBA stress test is not expected to result in changes to Nordea’s business strategy, risk management or capital strategy.”
Full details about the stress test methodology and scenarios are available on the European Banking Authority website.
For more information, Ilkka Ottoila, Head of Investor Relations at Nordea, can be contacted at +358 9 5300 7058.