The European Banking Authority (EBA) released the results of its EU-wide stress test on August 1, 2025. The assessment was carried out in collaboration with the European Systemic Risk Board, the European Central Bank, and the European Commission. The analysis examined how financial institutions could withstand negative economic conditions over the period from 2025 to 2027.
According to Nordea, the exercise confirms that it has a well-managed risk profile and resilient capital position. The EBA’s methodology and scenario assumptions for 2025 are described as relatively severe for Nordea’s main Nordic markets.
Under these stress conditions, 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% by year-end 2025. As of the second quarter of 2025, Nordea reported a CET1 capital ratio of 15.6%.
The test also included an analysis based on a fully implemented CRR3 capital regime, which uses a full standardized approach as outlined in Nordea’s Capital and Risk Management Report for Q1 2025. In this scenario, Nordea’s CET1 ratio would decrease from 12.8% at January 1, 2025 to 10.2% at year-end.
Nordea stated: “Nordea views the outcome of the 2025 exercise as a conservative outcome compared to its overall risk position.”
The bank does not expect any changes to its business strategy, risk management or capital strategy as a result of this stress test: “The 2025 EBA stress test is not expected to result in changes to Nordea’s business strategy, risk management or capital strategy.”
Further details about the scenarios and methodologies used in this year’s exercise can be found on the website of the European Banking Authority.
For more information, Ilkka Ottoila is listed as Head of Investor Relations at Nordea.
