The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Nicolas McBeath - DNB Markets, Research Division - Analyst
: So one question on the volume outlook. This is in the corporate segment. And yes, there was a decline also Q-on-Q in the lending in the LC&I
division. Does this -- is that a reflection of you getting more cautious in some segments? And what do you see in terms of volume growth for the
next 2 quarters in corporate?
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JULY 17, 2020 / 7:30AM, NDASE.ST - Q2 2020 Nordea Bank Abp Earnings Call
Question: Nicolas McBeath - DNB Markets, Research Division - Analyst
: Okay. And then taking a couple of steps back to the Capital Markets Day you had in October last year regarding the repositioning of the Wholesale
Banking or the LC&I division. You mentioned EUR 8 billion in REA reductions from the repositioning. If you could please update on the progress
here. How much of those have been taken up by now?
Question: Nicolas McBeath - DNB Markets, Research Division - Analyst
: Okay. And how much of the reduction have you taken out at this point? Is the EUR 8 billion gross reduction you're targeting then, is that still valid?
And how much of that has been taken out?
Question: Nicolas McBeath - DNB Markets, Research Division - Analyst
: Okay. And then a final question, just also on the financial targets. If you could reflect a bit on those 10% ROE and 50% cost-to-income ratio by 2022.
If the -- or how has the outlook to reaching these targets been impacted since then on the back of COVID-19 and potentially also other effects such
as changes to your capital requirements since then? If you could just elaborate on that, please?
Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst
: Here is Sofie from JPMorgan. Just a question on your -- I know you usually don't guide on kind of beyond this year on the (inaudible), but you guide
for EUR 1 billion of loan loss I think 2020. But how should we think about kind of bankruptcies, nonperforming loans, problems within your customer
base next year? Do you think that's the year where we will potentially see NPLs kind of reach their peak? Or how do you think about kind of the
development in 2021?
Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst
: Okay. And in terms of kind of your NPLs for Stage 3 loans, do you expect them to peak in 2021? Or do you already see a peak in 2020?
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JULY 17, 2020 / 7:30AM, NDASE.ST - Q2 2020 Nordea Bank Abp Earnings Call
Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst
: Okay. And just going back on the buyback question. You've mentioned a couple of times on the goal that you plan to do buybacks. What's the
timeframe? Can you, hypothetically speaking, already do buy backs in 2020 if you would get the green light from ECB to pay dividends? Or are
there any constraints on -- or doing buybacks in 2021?
Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst
: Okay. The buybacks would be more a 2021 thing than in 2020?
Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst
: Okay. That's clear. And then my final question would be, could you just remind us how much the benefit would be from the IT intangibles that is
expected to come now from -- or yes, the IT software intangible benefits that we expect from the ECB now in the third quarter?
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