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Nordea to save more than expected after HQ moves to Finland

Nordic banking giant Nordea says that its plans to move its headquarters from Sweden to Finland will save them even more money than they first expected when they publicly announced the plans in September.

Pankkikonserni Nordean konttori Helsingissä.
Image: Mauritz Antin / EPA

In a memo issued on Thursday, Nordea said it expects some 1.1 to 1.3 billion euros in savings on resolution fees and deposit guarantees related to the relocation of the bank's head office to Finland.

In September, however, the bank issued a press release that said the planned move from Stockholm to Helsinki would garner less than that, some 1 to 1.1 billion euros in savings.

"Nordea expects the net present value (NPV) of the savings related to resolution fees, deposit guarantees and other transitional effects discussed below arising from the re-domiciliation to Finland to be approximately 1.1 to 1.3 billion, compared to remaining domiciled in Sweden," the bank stated in Thursday's 20-page memo.

The bank said that the expected savings estimates were larger than previously communicated in September.

"This difference is primarily attributable to lower-than-expected costs of consent solicitation related to outstanding capital instruments discussed below and lower payments and longer payments periods under resolution and deposit guarantee schemes compared to Nordea’s earlier calculations," the memo said.

In October the institution announced that it would trim 6,000 jobs from the payroll globally. Nordea said that in the first of four rounds of restructuring it plans to cut about 420 jobs in Finland and shift 50 other positions at the bank to Estonia and Poland.

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