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Nordea cautious on Swedish mortgage market, CEO says

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Nordea cautious on Swedish mortgage market, CEO says

Nordea Bank AB (publ) will be more cautious in its approach to the Swedish mortgage market, CEO Casper von Koskull told Bloomberg News.

"Because of the competitive scene, we will grow less than the market," Von Koskull said, adding: "We think we will be more cautious and we will not go into that price competition."

In November, the country's central bank, Sveriges Riksbank, urged the government to implement stricter mortgage repayment rules, citing rising household debt as the greatest threat to the Swedish economy. However, Von Koskull said Nordea Bank — which is relocating its headquarters to Finland — has de-risked itself "in real estate" along with other sectors, "in Russia, shipping and offshore."

The Swedish housing market is undergoing a cooling phase, Von Koskull said, adding, however, that "you will not see any major drastic downward movement because you actually have an underlying healthy economic climate and an underlying healthy demand picture," Bloomberg reported.