• Sweden's news in English
 
app_header_v3
Sweden's ultra-low interest rate pushes bank online
Nordea CEO Casper von Koskull. Photo: Vilhelm Stokstad/TT

Sweden's ultra-low interest rate pushes bank online

AFP/The Local · 27 Jan 2016, 14:27

Published: 27 Jan 2016 14:27 GMT+01:00

Net profit for the year climbed by 10 percent to 3.66 billion euros ($3.97 billion, 34 billion kronor), enabling Nordea to offer shareholders a dividend of 0.64 euros per share, up from 0.62 euros a year ago.

But the Nordea share shed 4.28 percent in midday trading on the Stockholm exchange, alongside Swedish telecom giant Ericsson which saw its share plummet almost five percent, as analysts had forecast stronger performance in the final quarter.

Last year "was a challenging year with exceptionally low interest rates, geopolitical tensions and market turmoil. Under these market conditions we are pleased to report an increase in the income level of three percent in local currencies", Nordea's chief executive Casper von Koskull said in a statement.

The central banks in Sweden and Norway have slashed their key rates to record low levels, while the bank is also active in Finland and the Baltic states which use the euro and interest rates are near zero.

The group said it would devote the next three years to transitioning into "a truly digital bank", reducing its real estate costs.

Those efforts began in the fourth quarter, when net profit slid by three percent to 848 million euros, weighed down by a restructuring charge of 263 million euros "related to staff, premises and some international units".

Nordea explained it was financing the "shift from physical to digital distribution and establishing e-branches". During 2016-2017, the aim is to "decrease the number of head office locations and to relocate to head office premises outside of the central business districts". That was supposed to enable it to book savings "already in late 2016".

Story continues below…

It also wants to simplify its global legal structure, centralizing further around the Swedish parent group. Last year the bank registered a drop in net interest income – down four percent in local currency – despite rising lending volumes.

Nordea remains one of Europe's best capitalized banks and able to withstand shocks with a common equity "Tier 1" ratio of 16.5 percent at the end of the year, up 0.8 percentage points from a year earlier.

For more news from Sweden, join us on Facebook and Twitter.

AFP/The Local (news@thelocal.se)

Today's headlines
Sweden to sizzle in the sun for a few more days
The beach at Båstad on Saturday. Photo: TT

The heatwave that hit most of Sweden last week is set to continue until Wednesday at least, according to Swedish weather forecaster, SMHI.

Swedish ex-prime minister Thorbjorn Fälldin dead at 90
Fälldin in 1981. Photo: TT/FLT-PICA

Thorbjorn Fälldin, the former farmer who became prime minister in Sweden's first non-Social Democratic government since World War II, has died at the age of 90.

Swedish police fear serial rapist on loose in Malmö
The attacker is thought to be in his mid-twenties and had been seen riding his bike in the area prior to the incident. Photo:TT

The rape of a 14-year-old girl in Malmö has led police to conjecture that there may be a serial rapist operating in the southern Swedish city.

Stockholm Pokémon hunter impaled on metal fence spike
Another Swede playing Pokémon Go in Stockholm. Photo: Izabelle Nordfjell/TT

He tried to climb a fence to find more Pokémon.

Video
When Alicia Vikander taught us to put our pen in the bottle
Swedish actress Alicia Vikander and US talkshow host Jimmy Fallon. Photo: Tonight Show/NBC/Screenshot

We're not even sure if that's a euphemism or not.

Muslim man fired for not shaking women's hands
File photo of people shaking hands. Photo: Anders Wiklund/TT

A man is suing a local council in Sweden after he lost his job for refusing to shake hands with female colleagues.

Swedish bus driver who hit asylum seeker: 'I'm not racist'
The story has grabbed global headlines. Photo: Nobina

A Swedish bus driver caught on camera beating and kicking an asylum seeker has for the first time spoken to media.

Stay out, the water's filthy! Germs ruin Swedes' swims
Seagulls only.

Fancy a dip? If so, you might want to keep your mouth shut.

Man kicked off flight from Sweden over 'Isis tattoo'
A Norwegian plane at Stockholm Arlanda Airport. Photo: Johan Nilsson/TT

A flight from Stockholm was delayed on Thursday after it was claimed that one of the passengers had an Isis flag tattooed on his arm.

Homes
In pictures: Are Swedes falling in love with colour at last?
What happened to the Swedish greyscale? Photo: Linda Åhman

Antonia Wiklund of Houzz.se investigates why the Swedes are abandoning their sleek and clean interior design for vibrant colours.

Sponsored Article
Gran Canaria: Where Swedes go to work (and play)
National
Watch this Swedish weather host leave his fly open... on live TV
Sponsored Article
Why you should attend an international job fair
The Local Voices
'I fled war in Syria. I never expected to be beaten in Sweden'
National
WATCH: Asylum seeker brutally beaten by Swedish bus driver
Blog updates

14 July

Boris Johnson: why Britain’s new foreign minister is cordially loathed (Globally Local) »

"There are lots of things to say about Boris Johnson, Britain’s new foreign secretary. He is…" READ »

 

11 July

Swedish quizzes (The Swedish Teacher) »

"Hej! I have created some quizzes you can take online to test your Swedish skills. Here…" READ »

 
 
 
Sponsored Article
5 reasons you should try dating with The Inner Circle
Technology
Why everyone is talking about Sweden's GTA pride parade
Sponsored Article
Why Swiss hospitality graduates are in demand
National
EU hits truck cartel with record price fixing fine
Society
OPINION: Why Sweden is the most extreme country in the world
The Local Voices
'There is equality in accommodation in Sweden: Everyone is suffering'
Sponsored Article
What can newcomers learn about Sweden at Almedalen?
Gallery
Property of the week: Gräsö, Östhammar
Sponsored Article
Five easy ways to travel more often
Gallery
People-watching: July 15th-17th
National
How to make sure you're not caught out by Sweden's old bank notes
Sponsored Article
Why expats choose international health insurance
Business & Money
Why Sweden has been named the most innovative country in Europe
Sponsored Article
'Sweden's Lauryn Hill' touches the country's musical soul
National
Terror attack: what should you do?
National
French expat on the moment he was assaulted by a Stockholm bouncer
Technology
Gunman? Nah, smartphone Swede
Sponsored Article
Five things Americans should know about voting abroad
The Local Voices
'If the war in Syria ended today, would you go back?'
Sponsored Article
Avoid hidden fees when sending money overseas
The Local Voices
‘I feel like I’m living in a grave!’
Sponsored Article
Local guide: the best of Berlin
Gallery
IN PICTURES: Sweden's Princess Victoria celebrates 39th birthday
Sponsored Article
Why you need a EuroBonus American Express Card
Gallery
People-watching: July 13th
National
Swedes discover surprise mountain
Politics
What Sweden's home secretary thinks of Britain's new PM
Gallery
Property of the week: Smedjebacken, Dalarna
The Local Voices
'Even xenophobic Swedes can be polite’
Politics
WATCH: A very Swedish take on Brexit...
National
Swede's fury at Daily Mail's Bråvalla 'lies'
Gallery
People-watching: July 8th-10th
National
Sweden and Denmark trolled each other on Twitter and it's hilarious
The Local Voices
'The best time to be smuggled to Europe is August 20th, 2015'
National
ANALYSIS: Why Swedes are talking more about immigration than before
National
Watch Icelanders cheer their Swedish hero coach
The Local Voices
Swedes: Stop obsessing over your material life and start talking to strangers
3,336
jobs available