Nordea Bank Abp Q3 2023 Earnings Call Transcript

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

Question: Jacob Hesslevik - SEB, Research Division - Analyst : So my first question is on lending margin and deposit margins and if you have seen any further migration from deposit to savings accounts in the different countries? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 19, 2023 / 8:00AM, NDAFI.HE - Q3 2023 Nordea Bank Abp Earnings Call

Question: Jacob Hesslevik - SEB, Research Division - Analyst : Okay. So I should think that in Personal Banking division in Norway, we saw for the second consecutive quarter, a decreasing NII. Is that then rather more due to the notice period being increased to 8 weeks from 6 weeks, that is a headwind for you?

Question: Jacob Hesslevik - SEB, Research Division - Analyst : Perfect. And just a last clarification on your NII on Page 17. Do I understand the graph right that you currently miss out on EUR 100 million on 50 bps higher rates due to a hedge that you have in place and that you would gain EUR 400 million while we are on upward trend without the hedges in place?

Question: Jacob Hesslevik - SEB, Research Division - Analyst : It should be quite very good outlook for NII next year then, I guess.

Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst : Yeah, here is Sofie from JPMorgan. I was just wondering if you could elaborate a little bit more on the net interest income improvement that came from your treasury related items like how should we think about this net interest income going forward? And then, just going back to the previous question, if you could also give kind of first fleet of your deposits, how much is now in transaction agents, how much is in savings accounts and also just remind us, are you now being at least 25 basis points in all the different Nordic countries? And then, just a final question would be that I noticed on the CRE slide, you no longer give the ICRs or stressed ICR. Would it be possible to just comment on (inaudible) ICR and really the stressed ICR for commercial real estate would be.

Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst : Well, I would -- yes, sure. So I was just wondering, in the second quarter you mentioned, you had the stress ICR and the current ICR and also like the value, which I don't see defined in the third quarter presentation. So I was just wondering if you could give what the ICR and stress ICRs for your CRE.

Question: Nicolas McBeath - DNB Markets, Research Division - Analyst : So first question, please. If you could comment on what do you think is possible for net fair value results on a normalized basis in the current interest rate environment?

Question: Nicolas McBeath - DNB Markets, Research Division - Analyst : Okay. And then, another follow-up question on the deposit hedge impact. So if I look at the bridge on Slide 4 in the presentation, the year-on-year headwind is EUR 208 million. So that translates into EUR 830 million something million on an annual basis -- annualized basis. And presumably, you would have had some headwinds already before Q3 last year. So is it correct that the current annualized headwind from the deposit hedges should be substantially above EUR 830 million. Is that the way we should think about it?

Question: Nicolas McBeath - DNB Markets, Research Division - Analyst : So could you comment any in any more kind of the explicit where you think the annualized deposit hedge impact is around what level?