Nordic banks record sharpest deposit growth among large European banks in Q1

Three of the biggest banks in the Nordic region registered double-digit sequential increases in deposit flows during the first three months of 2025.

In a sample of 26 large European banks, Sweden-based Skandinaviska Enskilda Banken AB (publ) recorded the highest deposit growth of 21.7% in the first quarter. Deposits at domestic peer Svenska Handelsbanken AB (publ) ticked up by nearly 15%, while new inflows at Norway's DNB Bank ASA exceeded 13%, according to S&P Global Market Intelligence data.

SEB said the increase in deposit volumes was mainly due to seasonal patterns in overnight deposits, whereas Handelsbanken noted the higher-than-expected volume growth in deposits and assets under management versus lending in Norway. DNB saw considerable growth in deposits in savings accounts, which it said are now at the same level as the recent peak in 2020 during the pandemic.

Regional heavyweight Nordea Bank Abp, meanwhile, logged a 2.7% uptick in deposits for the quarter, as clients hold off on spending amid the global economic uncertainty induced by planned US tariffs, CEO Frank Vang-Jensen said during the bank's earnings call. On a yearly basis, Nordea logged the sharpest deposit increase of 10.5%.

Banks in Benelux also registered modest upticks in deposits. Dutch banks ING Groep NV and ABN Amro Bank NV logged increases of 6.1% and 3.9%, while Belgium-based KBC booked a 4.8% uplift.

The deposit trend comes as the region braces for further monetary policy loosening on the horizon amid potential economic headwinds triggered by the global trade friction. In April, the European Central Bank cut rates by a quarter point, a move mirrored by policymakers in Denmark. More recently, the Bank of England recently slashed interest rates to 4.25% from 4.5% and said future rate cuts were likely to be "gradual and careful." Meanwhile, the central banks of Sweden and Norway kept their rates steady as they assess the economic impact of US tariffs, but both hinted at future policy easing.

In contrast, Swiss bank UBS Group AG booked the steepest deposit outflow of 4.3%, followed by UK-headquartered HSBC Holdings PLC with a 3.5% decline. France's Société Générale SA, Italy's UniCredit SpA and Intesa Sanpaolo SpA, and British peer NatWest Group PLC posted smaller drops ranging from 0.9% to 1.6%.

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In aggregate, deposits at monetary financial institutions in the Nordic region grew the most at 8.3% in the year to March-end. Monetary financial institutions (MFIs) in Benelux and Spain recorded increases of 4.8% each, while MFIs logged upticks of 3.2% in France and 2.0% in Germany. Deposits at Italian MFIs, meanwhile, dipped slightly by 0.4%.

In terms of credit, Nordic MFIs also recorded the highest increase of 4% over the same period, followed by those in Benelux with a loan growth of 3.0% and in Spain with 2.2%. Lending ticked up by 0.1% in France but slipped by 0.9% in Italy and 0.6% in Germany.

The first-quarter aggregate loan-to-deposit ratio of banks in the sample — excluding Commerzbank AG due to a lack of granular loan data — dipped to 98.92% from 99.06% a year earlier.

In line with previous quarters, Nordic banks sit on top of the list, with Danske Bank A/S posting a ratio of 184.11%, followed by Nordea Bank, Handelsbanken and DNB Bank with ratios of between 146% and 166%. Spain's Banco Santander SA and Italian peer Intesa also had ratios above 100%.

At the bottom of the list are British banks HSBC, Standard Chartered PLC and Barclays PLC with ratios ranging from 56% to 61%.