Nordea Bank Abp

NDA-FI.HEFinancial Services

Sentinellis Health Score

2.1/10

Significant risks

Market Cap

EUR 53.8B

Revenue

EUR 21.8B

P/E Ratio

11.7x

AI Summary

Nordea provides everyday banking services (checking accounts, loans, mortgages, cards) to consumers and small businesses, and also offers corporate lending, investment banking, asset management, and life insurance products across four Nordic countries [Yahoo Finance]. The bank operates through branches, mobile apps, and online platforms, earning revenue primarily from net interest income (the spread between loan rates and deposit rates) and fees for wealth management and transaction services.

Nordea Bank Abp is one of the largest banks in Northern Europe, serving individuals and businesses across Sweden, Finland, Norway, and Denmark with traditional banking, asset management, and investment services [Yahoo Finance]. The stock has doubled over the past three years but faces structural financial risks: revenue declined 14.5% year-over-year, free cash flow is deeply negative at EUR -3.2B, and the company earned a health score of just 2.1/10 with an Altman Z-score of -0.2, indicating significant distress risk [Yahoo Finance]. The bank's profitability depends heavily on interest rate levels and European banking regulation, both of which are outside management's control [Simply Wall St].

Nordea shows severe financial stress: negative free cash flow, extremely high leverage, and a failing Altman Z-score despite strong operating margins.

Confidence6/10