Nordea

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Nordea Bank Abp
Julkinen osakeyhtiö
Traded asNasdaq HelsinkiNDA FI
Nasdaq StockholmNDA SE
Nasdaq CopenhagenNDA DK
IndustryFinancial services
Founded2000; 19 years ago (2000), 1848 as Christiania Bank
HeadquartersHelsinki, Finland[1]
Key people
Björn Wahlroos (Chairman), Casper von Koskull (President and CEO)
ProductsCorporate and retail banking, asset management
RevenueDecrease €9.303 billion (2016)
Decrease €4.625 billion (2016)
Increase €3.766 billion (2016)
Total assetsDecrease $615.659 billion (2016)
Total equityIncrease €32.409 billion (2016)
Number of employees
31,596 (FTE, end 2016)
ParentSampo Group
WebsiteNordea.com
Footnotes / references
[2]
Nordea old logo

Nordea Bank Abp,[3] commonly referred to as Nordea, is a Nordic financial services group operating in northern Europe and based in Helsinki, Finland.[4] The bank is the result of the successive mergers and acquisitions of the Finnish, Danish, Norwegian and Swedish banks of Merita Bank, Unibank, Kreditkassen (Christiania Bank) and Nordbanken that took place between 1997 and 2000. The Baltic states are today also considered part of the home market. The largest shareholder of Nordea is Sampo, a Finnish insurance company with around 20% of the shares. Nordea is listed on the Copenhagen Stock Exchange, Helsinki Stock Exchange and Stockholm Stock Exchange.

Nordea operates across both the Nordic and Baltic regions with over 1,400 branches. The bank is present in 20 countries around the world, operating through full-service branches, subsidiaries and representative offices, although it primarily provides services in Finland, Norway, Denmark, Sweden, Estonia, Latvia and Lithuania.

Nordea serves 11 million private[5] and 700,000 active corporate customers. The group also operates an Internet bank, which has more than 5.9 million online customers and performs more than 260 million payments per year.

History[edit]

Nordea is the result of the successive mergers and acquisitions of the Swedish, Finnish, Danish and Norwegian banks of Nordbanken, Merita Bank, Unibank and Kreditkassen (Christiania Bank og Kreditkasse) that took place between 1997 and 2000.

PK-banken was formed in 1974 by a merger between Postbanken (formed 1884) and Sveriges Kreditbank (formed 1923), both state-owned.

The private Nordbanken was formed in 1986 by a merger of two smaller private local banks, Uplandsbanken and Sundsvallsbanken. The Swedish banking crisis of 1991, resulting from deregulated markets and a housing price bubble, forced the government to nationalise Nordbanken for 64 billion kronor. Bad debts were transferred to the asset-management companies Securum and Retriva, which sold off the assets.

The name Nordea comes from the Swedish bank Nordbanken; this developed from PK-banken (Post och Kreditbanken) which in 1990 purchased the smaller private bank Nordbanken, and picked up that name. The name is also a contraction of the words Nordic and ideas.[6]

Merita Bank was a 1995 merger of the former main rivals in Finland, the originally Svecoman Union Bank of Finland (Suomen Yhdyspankki) founded in 1842 and the Fennoman National Share Bank (Kansallis-Osake-Pankki) founded in 1889.

In August 2017, DNB ASA and Nordea combined their operations in Estonia, Latvia and Lithuania to create Luminor Bank.[7]

Ownership[edit]

Nordea is owned by:

  1. Sampo, 21.3%
  2. Nordea Fonden, 3.9%
  3. Swedbank Robur Funds, 3.3%
  4. AMF Insurance and Funds, 2.1%

Nordea Markets[edit]

Nordea Markets is the international markets operation of Nordea. It handles a broad range of investment banking products and services including fixed income, currencies, commodities, equities, debt capital markets, and corporate finance. It also supplies advisory services and internationally acknowledged economic research and analysis.

There are approximately 2,200 employees including Financial Risk Control and Capital Markets Services. Its main operational centres are in Copenhagen (also the main trading floor), Helsinki, Oslo and Stockholm, and with regional offices also in Brazil (Sao Paulo), China (Beijing and Shanghai), Estonia (Tallinn), Germany (Frankfurt), Latvia (Riga), Lithuania (Vilnius), Luxembourg (Luxembourg City), Poland (Warsaw), Russia (Moscow), Singapore, Switzerland (Zurich), the United Kingdom (London), and United States (New York City).[8]

Online theft[edit]

Nordea was the subject of an online phishing scam in 2007. The amount of money involved was "between seven and eight million SEK".[9] The theft was perpetrated by targeting Nordea customers with phishing emails containing a trojan horse, that was especially made for this robbery. Apparently these emails were sent out over a period of 15 months. According to Nordea, at least 250 people had unwittingly installed the trojan. The thieves evaded detection by limiting their transfers to small sums. Nordea refunded all the victims and has implemented a new security system, Chip Authentication Program[10]

Panama document leak[edit]

The largest financial group in the Nordic region, Nordea has, despite warnings from the Swedish Financial Supervisory Authority (FI) been active in using offshore companies in tax havens according to the Panama papers.[11]

The Nordea section in Luxembourg, between the years 2004 and 2014, founded nearly 400 offshore companies in Panama and the British Virgin Islands for its customers.[11]

The Swedish Financial Supervisory Authority (FI) has pointed out that there are "serious deficiencies" in how Nordea monitors money laundering, and has given the bank two warnings. In 2015, Nordea had to pay the largest possible fine - over 5 million EUR.[11]

In 2012, Nordea asked Mossack Fonseca to change documents retroactively so that three Danish customers power of attorney documents had been in force since 2010.[11]

The director for Nordea Private banking Thorben Sanders admits that before 2009 they did not screen for customers that tried to evade tax. "At the end of 2009 we decided that our bank should not be a means of tax evasion" says Thorben Sanders.[11]

As a consequence of the leaked documents, the Swedish Financial Supervisory Authority (FI) stated on 4 April 2016 that it had started an investigation into the conduct of Nordea, the largest financial group in the Nordic region. The Swedish minister of Finance Magdalena Andersson characterized the conduct of Nordea as "a crime" and "totally unacceptable".[12][13] Nordea CEO Casper von Koskull stated that he was disappointed with the shortcomings within Nordea's operating principles, saying that "this cannot be tolerated".[14]

Other Swedish banks are mentioned in the documents, but mention of Nordea occurs 10,902 times and the second-most mentioned bank has 764 matches.[15]

Stefan Löfven, Prime Minister of Sweden, said in 2016 that he was very critical of the conduct of Nordea and its role, and said "Â- They are on the list of shame too".[16]

Tax evasion and the Paradise Papers[edit]

Nordea bank loaned billions of euros to shipping companies that own vessels in secrecy jurisdictions such as Bermuda, Cyprus, Panama, BVI, the Cayman Islands and the Isle of Man. In the Paradise Papers, Nordea was shown to have lent a significant amount of money to customers based in tax havens.[17]

Drug money laundering[edit]

Nordea was involved in the laundering of drug money in Denmark, by allowing withdrawal of 500 euro note bills despite the Danish police advising against this.[18] Nordea has admitted its involvement in the money laundering, and has claimed it has stopped these activities.[19]

Subsidiaries[edit]

The global headquarters of Nordea is located in Vallila, Helsinki.

See also[edit]

Nordic headquarters[edit]

References[edit]

  1. ^ "A Mega Bank Just Joined the Euro Zone; It's Too Big to Fail". Bloomberg.com. 1 October 2018. Retrieved 1 October 2018.
  2. ^ "Nordea annual Report 2016" (PDF). Nordea.com. Retrieved 28 December 2017.
  3. ^ "Supplement to prospectus on merger between Nordea Bank AB (publ) and Nordea Bank Abp". Nordea.com. Retrieved 12 September 2018.
  4. ^ "Nordea's re-domiciliation is completed". www.nordea.com. 2018-10-01. Retrieved 2018-10-01.
  5. ^ "Archived copy". Archived from the original on 2011-09-15. Retrieved 2011-09-05.CS1 maint: Archived copy as title (link)
  6. ^ "Vores historie". www.nordea.com (in Danish). Retrieved 2018-03-25.
  7. ^ "European Commission clears Blackstone to buy Luminor". ERR. BNS. 2019-01-22. Retrieved 2019-02-06.
  8. ^ "Europe and the world". Nordea.com. Retrieved 28 December 2017.
  9. ^ "Swedish bank hit by 'biggest ever' online heist - CNET News". Archive.is. 29 June 2012. Archived from the original on 29 June 2012. Retrieved 28 December 2017.
  10. ^ "Nordea e-kod". Nordea.se. Retrieved 28 December 2017.
  11. ^ a b c d e "Nordea grundade hundratals skatteparadisbolag åt kunder". Svenska Yle. Retrieved 4 April 2016.
  12. ^ "Nordea bank investigated over tax haven scandal". The Local (Sweden). Retrieved 4 April 2016. Reacting to Nordea's role in the scandal, Sweden's Finance Minister Magdalena Andersson told Swedish reporters: "It is a crime — tax evasion — it is totally unacceptable". Sweden's financial supervisory authority, Finansinspektionen, has said that it will launch an investigation into Nordea's overseas activities.
  13. ^ "Monday's papers". YLE. 4 April 2016. Retrieved 4 April 2016.
  14. ^ Teivainen, Aleksi. "Nordea failed to implement operating principles, finds internal inquiry". Helsinkitimes.fi. Retrieved 28 December 2017.
  15. ^ Frida Svensson. "Detta behöver du veta om Panamaläckan". Svd.se. Retrieved 28 December 2017.
  16. ^ "Löfven: Nordea på skämslistan". Gp.se. Retrieved 28 December 2017.
  17. ^ "The Internation Consortium of Investigative Journalists - Paradise Papers" (PDF).
  18. ^ "Hvad er forbindelsen mellem Nordea-direktøren og narkobossen?".
  19. ^ "Nordea criticised in Operation X".

External links[edit]