Nordea Bank Abp Q2 2023 Earnings Call Transcript

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

Question: Nicolas McBeath - DNB Markets, Research Division - Analyst : So, a couple of questions on costs. So, we see now that cost growth is accelerating a bit and the FTEs are up, I think, 7% year-on-year. So, could you say something about if you expect FTEs to keep increasing at a similar pace over the next few quarters? And more broadly, if you view the improved revenue conditions as having changed your kind of cost budgeting, if you're willing to accept new projects and investments to a greater extent into the likes of tech and risk, as you mentioned, these were cost drivers in Q2?

Question: Nicolas McBeath - DNB Markets, Research Division - Analyst : And then another question related to costs. If you have any update to provide on when you expect to stop paying the resolution fund fee?

Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst : So, just a follow-up on the hedging, please. Would you be able to share with us what the size of your hedge is, and also kind of what the back book yields on this book is? And then, also if everything is invested in euros? And then my second question would be on the LC&I deposits. They fell 21% quarter-on-quarter. You said it was dividends and some exceptional items in Q1, but it looks quite broad-based across the countries apart from Sweden. If you could just elaborate a little bit more here? And then kind of just a follow-up question on the CRE. You mentioned that 2% of your CRE book is the -- kind of there is high-risk customers. How do you define high-risk without junk-rated -- contrary be defined as high-risk, or will it be defined as a low risk or something medium risk? So, if you could just elaborate on how you define high-risk? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 17, 2023 / 8:00AM, NDAFI.HE - Q2 2023 Nordea Bank Abp Earnings Call And then just a very quick final question. One of your Nordic peers had some Polish FX mortgages. Given that you used to have operations in Poland in the past, could you just confirm that you have no FX mortgages in Poland?

Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst : And can I just then ask one more question? You mentioned earlier that you have got a little bit more transaction accounts in Finland and Denmark compared to Sweden and Norway. In Finland, it seems that you're still paying very little in general on kind of savings and term deposit accounts. How do you see the competitive environment for kind of potentially more competition on the deposit side in Finland, or do you think it will be more benign in Finland compared to the other countries? I think you only have the 2.4% flexible saving, or term deposits that you're offering in Finland, but it seems that the rates in Finland are pretty low on the deposit account. So, if you could just elaborate, please?

Question: Jacob Hesslevik - SEB, Research Division - Analyst : I have a question on CRE lending as well. I mean, you have very low exposure in Sweden, as you mentioned before. But I mean, what is your view here? Do you want to grow it? I mean -- or do you have ample capacity to take market shares in this market, or are you more just helping your existing customers?

Question: Jacob Hesslevik - SEB, Research Division - Analyst : And just a follow-up. I mean, you're saying you want to help your existing customers, but I was just wondering, how many good properties are still out there that you're comfortable to take collateral in?

Question: Jacob Hesslevik - SEB, Research Division - Analyst : One may -- one last question, if I may. You mentioned you will come back with updated targets in connection with the Q4 report. Should we expect the same metrics with the higher guidance, or can you say anything about adding or removing certain targets?

Question: Jacob Hesslevik - SEB, Research Division - Analyst : So, we should not expect you to add a cost income target or anything else for 2025?