trending Market Intelligence /marketintelligence/en/news-insights/trending/FK-wnjXwwp7ytlPU0HKNyA2 content esgSubNav
In This List

Nordea expects higher savings from moving HQ to Finland

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Nordea expects higher savings from moving HQ to Finland

Nordea Bank AB (publ) on Dec. 14 published a document containing detailed information on its decision to redomicile the group's parent company to Finland from Sweden, noting that it raised its estimate of the net present value of savings arising from the move.

Nordea said it expects the net present value of the savings related to resolution fees, deposit guarantees and other transitional effects to be approximately €1.1 billion to €1.3 billion, up from an estimated €1.0 billion to €1.1 billion when the move was announced in September.

The lender also said the move will affect its capital and liquidity requirements to some degree, especially its bank-specific Pillar 2 requirements, but that it remains too early to determine how the change will affect total group capital requirements.

Shares in Nordea's Finnish entity will be listed on the stock exchanges of Stockholm, Helsinki and Copenhagen, while the Swedish shares will be delisted on or around the date of redomiciliation.

The move will be carried out through a downstream cross-border merger, through which Nordea Sweden is planned to be transferred to Finland as of Oct. 1, 2018, and is subject to regulatory and shareholder approval.

The merger plan is set to be presented at Nordea's annual general meeting of shareholders, scheduled for March 15, 2018.