Nordea Bank Abp Capital Markets Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst : Sofie Peterzens from JPMorgan. So my first question would be on the bolt-on acquisitions. How do you define a bolt on acquisition in terms of (inaudible) equity Tier 1 impact? Should we assume that it's less than 100 basis points or less than 50 basis points? How should we think or what is really a bolt-on acquisition. So that would be my first question. My second question would be on cost growth. You guide for 1% to 2% cost growth, but could you just talk a little bit about how you see underlying wage inflation? Should we expect any cost saved form the -- kind of for decommissioning the old legacy IT systems. So if you could just give a little bit more details around kind of underlying cost inflation and kind of the investment plan.

Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst : Yes. Here is Sofie from JPMorgan again. So just a follow-up on Basel IV and the capital targets. So the capital target of 15% to 16% under your plan, is that kind of a Basel IV basis? Do you expect any -- you didn't expect basically any relief in your core equity Tier 1 target post moving to Basel IV? So that would be my first question. And then my second question would be on kind of growth opportunities in pension and life. I guess this is one of the areas where we could potentially see the best growth opportunities. So if you could talk a little bit more about the pension and life market and where you see the best opportunities here?

Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst : Yes. So I guess the expectation is that in some cases, we could deliver kind of core equity Tier 1 requirement in Europe once we move to Basel IV. So I mean, 15% to 16% core equity Tier 1 under Basel IV seems quite high to me. So I was just wondering how you think about that potentially?

Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst : That's very clear. And in terms of M&A, would you consider kind of M&A in the Life & Pension side? Or is the bolt-ons more on the banking side?