December 2, 2021

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Nordea, DNB |  Nordea raps Sbanken DNB customers:

Nordea, DNB | Nordea raps Sbanken DNB customers:

Nordea is still receiving an influx of old customers who have switched to Sbanken, but they are now unsure of what is happening to the bank.

DNB CEO Kjerstin Braathen Nettavisen told that they It did not set market shares as a separate target, and experience that DNB is attractive and competitive. When asked how important it is for Nordea Norway to gain market share, CEO Snorre Storset replied:

We have the ambition to grow in Norway, which is an important market for Nordea. Shows that the The acquisition of Gjensidige Bank And SG Finans is paying off well and we depend on working with customer satisfaction.

When it comes to mortgages, we still have the ambition to grow with the market. In savings, the ambition is to grow more than the market.

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Unsafe customers

During the third quarter, Nordea welcomed 12,300 new private customers. At the end of the quarter, total Norwegian private and corporate lending was NOK 742 billion. This is an 8 percent increase from the third quarter of 2020.

– Who do you take clients from?

– We have brought back a number of customers from Sbanken, who are a little unsure of what is happening to the bank. Otherwise, the usual competitors, such as savings banks and DNB, answers Storset.

DNB will acquire Sbanken, but the Norwegian competition authority has objections. The final decision will be made on October 28.

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Corporate Market Winner

Mortgages in Nordea Norway rose 6.2 percent in the third quarter, reversing year-over-year growth. Total private market lending now totals NOK 379 billion, an increase of NOK 13 billion from last year. Nordea has just over 12 percent of the market share in retail lending.

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Retail manager Randy Marjama says market shares fluctuate slightly from quarter to quarter.

In the third quarter, Nordea Norway achieved 9.8 percent year-over-year growth in the corporate market. Here the big bank takes market shares. In the private market, according to Storset, growth is more in line with the total market.

According to the bank’s in-depth accounting information, DNB has consistently lost market share in loans to the retail market since 2012. Nordea Norway does not publish such information as a subsidiary of Nordea Group.

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increase margins

While the listed DNB provides a great deal of information about earnings and margins, we don’t learn much about earnings in the Nordea Norway retail market. The main issue is whether banks are increasing customer margins now when Norges Bank raises the key policy rate.

– We raised our mortgage rates by 0.25 percentage points and deposit rates by 0.20-0.25 percentage points and we still have 0 in the transaction account, says Marjam.

– So you raise the interest margin?

“But we never lowered deposit rates to the same extent when interest rates fell last year,” the retail market manager defends.

Margins in the retail market are characterized by healthy and healthy competition that benefits customers, and they are constantly under pressure, Marjima continues.

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Self service, serve yourself

More traditional banks focus on providing advice, but in recent years these banks have launched fully automated self-service banks with a standard price list for clients. Examples of this Boulder Bank (Sparebanken Vest) and Himla Banktjenester (Fana Sparebank).

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– We invested early in delegating advisors within the savings, and every year these advisors are provided with expertise, but also in an area such as sustainability. In addition, we take advantage of our availability.

We are a personal advice bank with a nationwide presence. In addition, we have cooperation offices with the company Privatmegleren.

50 percent of the dialogue with customers is done online, and 50 percent of customers want to make physical contact with the bank. It hasn’t changed much in recent years, says Marjama.


hit the youth

Mortgage Regulations was a topic below Housing Conference Tuesday Under the auspices of Finans Norge and Eiendom Norge. Many pointed out that regulations have a socially skewed effect, and that they are a major interference with individuals’ borrowing opportunities. Mortgage regulations must now be evaluated every two years.

– Do we still need these regulations?

– It is very similar to the credit policy that we have in Nordea, but it is good that there is a flexible quota in which we can deviate from the requirements. Then we can help those who are in a rather difficult situation. Unfortunately, those who are missing are the young people who want to enter the market, Merjia added.

– Would Nordea have loaned much more without mortgage regulations?

– It helped us to get a good framework, but the important thing in the dialogue with the client is to find the right loan. Overall, banks have seen lower mortgage losses, and with the debt track established, there has been more cautious growth.

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be careful

Do you fear that families will be hit in the future as a result of high interest rates and record electricity prices?

– No, I don’t do that. Electricity prices vary over time, and interest rate changes are well announced. But that’s clearly a topic in the conversation we’re having with clients about how they organize their money and what fixed costs they have.

– I don’t see a surprise to our customers from the announced interest rate increases. The retail market manager replies that during the pandemic, many have also put in reserve and can rely a bit on that capital.

Nordea Group has held the equivalent of NOK 6 billion to cover unexpected losses.


Low bankruptcy rates

– We can get setbacks and repercussions from the corona that we do not know. But in Norway, we see nothing in the behavior of our customers that will give us major challenges in the future. We know that the level of bankruptcy was very low during the Corona epidemic, and it actually went down last year.

– This trend has continued so far this year, although the level rose slightly in September. Gross domestic product may be at a higher level than it was before the pandemic began, and unemployment has fallen, Storst says.

According to Nordea CEO, the biggest challenge for companies is the shortage of manpower.