“I can not be a ‘quarter bankers’”, says Nordea’s new CEO Casper von Koskull apropos Exchange’s sour reaction to the quarterly report. Photo: Magnus Hjalmarsson Neideman
While Nordea’s new CEO Casper von Koskull gladly presented the interim report during a press conference at the Bank’s premises, at the Master Samuelsgatan in Stockholm, there was feverish activity on the stock exchange. The market pushed the Nordea share properly, by 5-6 percent.
– I have not yet seen the stock market reaction, says Casper von Koskull during the interview with SvD Business and turns curiously the press officer, who announces that the shares are down.
How do you see it?
– I can not be a “quarterly banker,” we would not make these investments over the next three years if we were to think of quarters, ‘he says, referring to the investment in compliance and IT, which is now expanding.
– I think it’s good to do as we are doing now in terms of a bid to become a robust banking and what rules apply and it. It builds a better bank and it takes time. And while we do that, I promise also a fairly robust dividend.
Do you care about the stock market reaction?
– No, honestly, I do not do it . You can see it in three to four years.
The stock market seems to primarily have focused on quarter operating profit of 1.027 billion euros, equivalent to approximately 9.54 billion, which was worse than analysts expected – about than over the corresponding period last year.
Loan losses in the fourth the quarter rose to 142 million euros, from 129 million euros a year earlier.
– Given the This environment, particularly in terms of oil and oil exploration, so we wanted to make a larger outlets, says Casper von Koskull.
Something that stands out in the accounts for 2015 as presented together with the quarterly report is the increased bonuses. In the financial statements shows that the bonus provisions increased to EUR 182 million in the bank, equivalent to SEK 1.7 billion.
This is an increase from 150 million euros the year before. It represents Sweden EUR 58 million, an increase of 43 million.
But it’s not all in the bank as it goes equally well, even though the provision to the joint profit-sharing sharing program also increased.
– the areas where we pay the bonus, as treasury, asset management and markets, as we increase. But where we have made very good results. I am very pleased that we made the right way, says von Koskull but points out that the total salaries and bonuses have been reduced in the bank.
The report shows just that the so-called wage ratio, staff costs including fixed salaries and bonuses in relation to the revenues have fallen to 14.4 per cent, compared with close to 21 percent the year before. “Nordea has thus remained significantly lower wage rates than most international competitors,” appears in the report. In other words, the large pay gap in the bank.
– Yes, it may happen that there will be some major differences, says Casper von Koskull.
The big focus before the report was for the dividend, it was in line with expectations, EUR 0.64 per share. This corresponds to SEK 24 billion in total dividends to shareholders. At the same time introduces a new dividend policy that promises higher dividend each year. But von Koskull underlined sure that the dividend shall be made within the framework of a well capitalized bank.
He complained that Nordea will focus more on counseling and then the bank needs at the same time did not hold the same capital.
– I think I can manage to increase the dividend. Now I promise no growth to my owner, in principle, I promise that there will be a robust banking, he says and continues:
– the other end of this transformation, I promise to investors and customers to have a more modern and efficient banking. During that period, I may not see high increase in earnings. But I can maintain a high dividend.
But are not you worried about the new regulatory requirements?
– Sure! Therefore I say that we should take that into consideration. Given where we believe that the regulations will be as we have the height for it.
Nordea’s result
Profit in Q4 (quarter 4, 2014)
Operating profit: 1.027 billion euros (1.157 billion euros)
Net interest income: 1.241 billion euros (1.356 billion euros)
Fee – and commission income: EUR 768 million (EUR 763 million)
Credit: -142 million euros (-129 million euros)
Article collection: the change of CEO in Nordea
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