By Jesus Calero and Elviira Luoma
(Reuters) – Nordea has seen aggressive pricing behaviour among Nordic banks, especially in Sweden, as they compete for customers amid softening loan demand, the CEO of the region’s biggest lender said on Thursday.
Competition in Nordea’s key markets is intensifying, with lenders chasing market share in both retail and corporate banking as the economy stagnates.
“There is a bloody fight on the small volume growth in the markets,” Nordea CEO Frank Vang-Jensen said in a post-earnings call with analysts.
He added this was mostly happening in Sweden where banks were pushing down margins to gain some traction.
Meanwhile, Norway’s banking sector has prioritised volume growth, benefiting Nordea’s growth prospects in the country, Vang-Jensen said.
Nordea last year expanded its operations in Norway through the acquisition of rival Danske Bank’s customer business there.
The European Central Bank is widely expected to lower interest rates again on Thursday, a move that may also influence monetary policy decisions in the Nordics.
Nordea’s shares were trading 5.5% higher ahead of the decision, expected at 1215 GMT, after it announced a new share buyback and raised its 2024 forecast.
They were supporting a more than 1% rise in the pan-European banking index, with Nordic peers Swedbank, SEB and Danske Bank also rising between 1.4% and 2.7%.
(Reporting by Jesus Calero and Elviira Luoma in Gdansk; editing by Milla Nissi)
