Nordea CEO: No Need For Loss Provisions in Second Half

The transcript discusses the financial institution's strong credit quality and significant provisions for loan losses, with a buffer of €650 million. It covers the impact of lockdowns on fees and commission income, which is expected to improve. The low return on equity is attributed to substantial provisions, while the capital base remains strong. The institution is confident in its ability to pay dividends, pending ECB recommendations. The regional economic outlook is cautiously optimistic, with Nordic economies showing signs of recovery.

What is the main reason for building a buffer of €650 million?

• To expand into new markets

• To cover future loan losses

• To increase profit margins

• To reduce operational costs

What is the expected full-year provision for net loan losses?

• Above €1 billion

• Below €1 billion

• Exactly €1 billion

• No provision is expected

How did the lockdowns primarily affect fees and commission income?

• Decreased payment-related fees

• Increased advisory fees

• Increased management fees

• Decreased mortgage fees

What is the impact of improved trading activities on net interest income?

• Decreased by 12%

• Increased by 2%

• Increased by 12%

• Decreased by 2%

What is the main factor contributing to the low return on equity?

• Decreased trading activities

• Low interest rates

• Substantial provisions for loan losses

• High operational costs

What is the company's stance on dividend payments?

• They have no capacity to pay dividends

• They have a strong capacity but will follow ECB recommendations

• They will increase dividend payments significantly

• They will not pay dividends this year

What is the economic outlook for the Nordic region according to the transcript?

• The economies are declining rapidly

• The economies are facing severe recession

• The economies are picking up again

• The economies are stagnant