Nordea Bank Abp (NASDAQ:NRDBY) said on Tuesday that it will book restructuring expenses of €190 million in Q1 2026 as part of the implementation of its 2030 strategy to improve structural efficiency.
The announced initiatives concentrate on changing workforce composition. Once the program is completed, Nordea expects the measures to generate an annual cost reduction of at least €150 million from the full year 2028.
About 1,500 employees across the Group are expected to be affected during 2026 and 2027, subject to relevant union negotiation and consultation processes. The bank said the costs primarily relate to adjustments in workforce composition and include skill shifts that will reduce the overall number of employees.
Nordea committed to supporting impacted staff through reskilling, upskilling and offering internal opportunities where appropriate.
Accounting and outlook treatment
The restructuring expenses will be treated as an item affecting comparability and will be excluded from Nordea's 2026 financial outlook. For 2026 the bank is targeting a return on equity of greater than 15% and a cost-to-income ratio of around 45%, excluding regulatory fees.
How this fits with Nordea's 2030 targets
The planned restructuring is intended to support delivery of the financial targets Nordea set out for 2030. Technology, data and AI form a central part of the bank's strategy to convert local customer processes into Nordic-wide value chains and to reduce, simplify and modernise technology systems and infrastructure.
Nordea has set a target to deliver at least €600 million of annual gross cost take-out by 2030 through initiatives that exploit Nordic scale. Over the period 2026-2030 the bank is targeting a return on equity of greater than 15%, with a materially higher return in 2030, and a cost-to-income ratio of 40-42% in 2030.
Execution and employee measures
The bank specified that the announced charge relates largely to workforce composition adjustments and associated skill shifts. Nordea emphasised it will provide reskilling and upskilling and will consider internal opportunities for employees affected by the programme.
Subject to negotiation and consultation processes with unions, the headcount changes are expected to be implemented during 2026 and 2027.
Summary of numbers and targets
- Restructuring charge to be booked: €190 million in Q1 2026
- Estimated employees impacted: approximately 1,500 across 2026 and 2027
- Expected annual cost reduction: at least €150 million from full year 2028
- 2030 annual gross cost take-out target: at least €600 million
- 2026 financial outlook (excluding restructuring): return on equity >15%; cost-to-income ratio around 45% (excluding regulatory fees)
- 2030 targets: return on equity >15% throughout 2026-2030 and significantly higher in 2030; cost-to-income ratio of 40-42% in 2030