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{{Short description|Nordic financial institution}}

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SSE160271{{OMXNDA DK}}}}| foundation = 1820 as Sparekassen for Kjøbenhavn og OmegnHans DalborgNORDEAS TIDIGARE STYRELSEORDFöRANDE HANS DALBORG äR DöD ACCESS-DATE=2023-07-06 LANGUAGE=SV, Helsinki, FinlandHTTPS://WWW.BLOOMBERG.COM/NEWS/ARTICLES/2018-09-30/A-MEGA-BANK-JUST-JOINED-THE-EURO-ZONE-AND-IT-S-TOO-BIG-TO-FAILWEBSITE=BLOOMBERG.COMACCESS-DATE=1 OCTOBER 2018, {{ILLsv}} (chair (official)) > {{ILLsv}} (President and CEO)Styrelsens ledamöter Nordea.com. Retrieved 2020-10-22}}| parent = retail banking, investment management>asset managementgetValue P2137 qual=P585 ALL}}} noicon={{{noiconmaxvals=1 }}} {{#if:{{{equity_year ({{{equity_year}}})}} }}getValue P4103 qual=P585 ALL}}} noicon={{{noiconmaxvals=1 }}} {{#if:{{{aum_year ({{{aum_year}}})}} }}| ratio = 17.0%| rating = AA (Fitch Ratings)weblink}}}}(File:Nordea old logo.svg|thumb|Nordea old logo (2000–2016))Nordea Bank Abp,WEB,weblink Nordea Bank Abp, Business Information System, 6 June 2019, WEB,weblink Supplement to prospectus on merger between Nordea Bank AB (publ) and Nordea Bank Abp, Nordea.com, 12 September 2018, commonly referred to as Nordea, is a NordicWEB, Who we are,weblink 2023-04-15, Nordea, en, NEWS, 2020-07-06, Nordea buys Norway's Frende occupational pension portfolio, en, Reuters,weblink 2023-04-15, financial services group operating in northern Europe with headquarters in Helsinki, Finland.WEB,weblink Nordea's re-domiciliation is completed, 2018-10-01, www.nordea.com, en, 2018-10-01, The name is a blend of the words "Nordic" and "idea".WEB, Our History,weblink Nordea, The bank is the result of the successive mergers and acquisitions of the Finnish, Swedish, Danish, and Norwegian banks of Merita Bank, Nordbanken, Unidanmark, and Christiania Bank og Kreditkasse that took place between 1997 and 2001. The Nordic countries are considered Nordea's home market, having finalised the sales of their Polish bank in 2014, Baltic operations in 2019WEB, Nordea Annual Report 2019,weblink Nordea Group Annual Reports, and completed the exit from Russia in early 2022 following a 2019 decision to close the business there.WEB, Solid performance in turbulent times,weblink 2024-01-13, Nordea, en, Nordea is listed on Nasdaq Nordic exchanges in Helsinki, Copenhagen, and Stockholm and Nordea ADR is listed in the US.Nordea serves 9.3 million private and 530,000 active corporate customers, including 2,650 large corporates and institutions. Nordea's credit portfolio is distributed across Finland (21%), Denmark (26%), Norway (21%), and Sweden (30%). There are four Business Areas (BAs) at Nordea, Personal Banking, Business Banking, Large Corporates & Institutions, and Asset & Wealth Management. Assets under Management (AUM) were €411 billion in December 2021.WEB,weblink Nordea annual Report 2021, Nordea.com, 28 March 2022, Nordea has been designated as a Significant Institution since the entry into force of European Banking Supervision in late 2014, first as the Finnish arm of the Stockholm-based group and since 2017 as a financial holding company. As a consequence, it is directly supervised by the European Central Bank.WEB, European Central Bank, The list of significant supervised entities and the list of less significant institutions,weblink {{date, 2014/09/04, }}WEB, European Central Bank, List of supervised entities, {{date, 2023/01/01, |url=https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.listofsupervisedentities202302.en.pdf }}

History

Nordea's roots date to 1820 and Sparekassen for Kjøbenhavn og Omegn in Denmark, and a complete family tree of around 300 banks including some of the oldest banks in the Nordic region. This includes Wermlandsbanken of Sweden (founded 1832), Christiania Kreditkasse of Norway (founded 1848) and Union Bank of Finland (UBF) of Finland (founded 1862). Between 1997 and 2001, the Finnish, Swedish, Danish, and Norwegian banks of Merita Bank, Nordbanken, Unidanmark, and Christiania Bank og Kreditkasse merged into the present day Nordea.Merita Group was formed in 1995, when UBF and Kansallis-Osake-Pankki (KOP) merged.WEB, 1995, Merita-konsernin vuosikertomus 1995,weblink Aalto University Library, UBF was established, in 1862, at a time when there were no Limited Liability Companies Act or banking laws in Finland.WEB, Bank Museum,weblink Nordea, Therefore, it was modelled after banking standards in other countries. UBF eventually merged with rivals Nordiska Aktiebanken in 1919 and Helsingin Osakepankki (HOP) in 1986. KOP was originally founded in 1890 with its first branch at Aleksanterinkatu 17, in Helsinki. By 1913, KOP had become the second largest commercial bank in Finland. The two banks, KOP and UBF, competed for the title of the largest bank in Finland for decades. KOP suffered large credit losses as a result of the Finnish banking crisis in the early 1990s. On 1 April 1995 it became a subsidiary (51%) of Merita Group in a direct share issue.Nordbanken was formed in 1986 by a merger of two smaller private local banks, Uplandsbanken and Sundsvallsbanken, though it was the product of numerous original institutions.BOOK, International Directory of Company Histories, St. James Press, 2001, 155862886X, The oldest of the original Nordbanken constituent banks was Wermlandsbanken, which was founded in 1832. Nordbanken came under Swedish government control in 1992, following the Swedish banking crisis in the early 1990s, with the sale of its non-performing loans to the Swedish government and significant reduction in personnel.WEB, Jonung, Lars, 2009, The Swedish model for resolving the banking crisis of 1991-93: Seven reasons why it was successful,weblink European Commission, Bad debts were transferred to the asset-management company Securum, which sold off the assets. At the time, the approach of establishing "good" and "bad" banks composed of corresponding assets was a novel resolution approach.Merita Group merged with Nordbanken in 1997 forming MeritaNordbanken.WEB, 1997, Merita Group Annual Report 1997,weblink Aalto University Library, The Solo internet-based banking operation of MeritaNordbanken was a global pioneer and leader providing mobile and internet banking access in 1999.WEB, 1999, MeritaNordbanken Group launches the world's first WAP banking services,weblink Cision, The bank reached 1 million internet banking customers during 1999 with 3 million log-ins and 3.7 million payments per month.WEB, 1999, MeritaNordbanken Group Annual Report 1999,weblink Nordea, Housing loans via Solo were introduced in 1999. MeritaNordbanken agreed to buy Unidanmark, Denmark's second-largest bank, in early 2000 creating the Nordic region's biggest financial institution with €186 billion in assets.WEB, 2000, Nordic bank giant created,weblink CNN Money, The merged group had a banking market share of 20% in Sweden, 25% in Denmark and 40% in Finland and a combined workforce of 28,050. By end 2000, MeritaNordbanken had further merged with Christiania Bank og Kreditkasse of Norway, a process started in 1999 and changed its name to Nordea. Christiania Bank had also been impacted severely during the banking crisis in the early 1990s, with Nordea acquiring the bank from the Norwegian Government Bank Investment Fund with a 35% share.WEB, 2000, Nordea Group Annual Report 2000,weblink Nordea, Nordea expanded into Poland, the Baltics and Russia in the early 2000s, with 2% of total revenues from the Poland and Baltics region.WEB, 2004, Nordea Annual Report 2004,weblink Nordea, Nordea divested its Polish banking operations in 2013, with the sale to PKO Bank Polski for €694 million but retains a presence in Poland via operations and IT units supporting the Nordic banks.WEB, 2014, Nordea Annual Report 2014,weblink Nordea, WEB, 2013, Nordea divests its Polish banking, life and financing businesses to PKO Bank Polski,weblink Nordea, By end 2014, lending in the Baltics was €8.2 billion and in Russia €4.5 billion. During the period 2013-2017 exposure to the Russian market was reduced by 63%.WEB, 2018, Nordea Annual Report 2018,weblink Nordea, In 2016, Luminor was formed by a merger of Nordea's and DNB's operations in Estonia, Latvia and Lithuania creating the third largest Baltic regional bank with assets of €15 billion and a market share of 16.4%.WEB, 2018, Nordea, DNB sell Baltic bank stake to Blackstone in $1.2 billion deal,weblink Reuters, WEB, 2019, Blackstone completes the acquisition of €1 billion majority stake in Luminor,weblink Blackstone, Luminor was sold to Blackstone, with Nordea and DNB retaining each initially a 20% share. However, the full divestment was completed in 2019. Exit from the Russian, Baltic and Polish markets were part of Nordea's de-risking strategy, which also included reduced exposures to some sectors (e.g. Shipping, Oil & Offshore and Agriculture in Denmark).WEB, 2000, Debt Investor Presentation Q1 2020,weblink Nordea, Nordea was one of the Nordic banks, including Danske Bank, SEB and Swedbank, allegedly involved in the money laundering scandal, involving ex-Soviet states, that emerged in 2017.WEB, Charlie, Duxbury, 2020, Scandinavia seeks to launder its dirty-money image,weblink Politico, Nordea announced plans to move its corporate headquarters from Stockholm, Sweden to Helsinki, Finland in September 2017.WEB, 2020, Nordea's re-domiciliation of the parent company (2017-2018),weblink Nordea, The re-domiciliation of Nordea to Finland put it within the supervision of the European Central Bank and within the European Union's banking union.WEB, 2020, List of supervised entities,weblink European Central Bank, In October 2018, Nordea completed the move of its corporate headquarters to Helsinki, Finland.WEB, 1 October 2018, Nordea's re-domiciliation is completed,weblink 2019-07-28, www.nordea.com, {| class="wikitable sortable mw-collapsible"|+Historical performance, ratios and key figures for Nordea 1999-2019!Year!Share Price (YE)!Total Assets (€ billion)!Return on Equity (%)!Tier 1 Capital Ratio (%)!Common Equity Tier 1 capital ratio (%), excluding Basel 1 floor|1999|5.84|186|18.0|9.0||2000|8.10|224|16.1|6.8||2001|5.97|242|13.8|7.3||2002|4.20|250|7.5|7.1||2003|5.95|262|12.3|7.3||2004|7.43|276|15.7|7.3||2005|8.79|326|18.0|6.8||2006|11.67|347|22.9|7.1||2007|11.42|389|19.7|7.0|7.5|2008|5.00|474|15.3|7.4|8.5|2009|7.10|508|11.3|10.2|10.3|2010|8.16|580|11.5|9.8|10.3|2011|5.98|716|11.1|10.1|11.2|2012|7.24|677|11.6|11.2|13.1|2013|9.78|630|11.0||14.9|2014|9.68|669|11.5||15.7|2015|10.15|647|12.2||16.5|2016|10.60|616|12.3||18.4|2017|10.09|582|9.5||19.5|2018|7.27|551|9.7||15.5|2019|7.24|555|5.0||16.4

Performance and ownership

Market capitalisation of Nordea was €29.3 billion at year end 2019, making it the seventh largest Nordic company and among the 10 largest European financial groups. Since the merger of MeritaNordbanken and Unidanmark in 2000, the share price of Nordea has appreciated 79% with a clear outperformance to the STOXX Europe 600 Banks Index (-57.4%). With approximately 580,000 registered shareholders at the end of 2019, Nordea has one of the largest shareholding bases of any Nordic company. The largest shareholding group is institutions, with approximately 22.2% Non-Nordic shareholders are 31% as of end 2019. Nordea's 10 largest shareholders are:WEB, Associated Company Nordea Bank Abp,weblink Sampo Group,

1. Nordea Fonden, 3.9%
2. Blackrock, 2.9%
3. Alecta, 2.8%
4. Vanguard Funds, 2.7%
5. Cevian Capital, 2.3%
6. Swedbank Robur Funds, 2.0%
7. Varma Mutual Pension Insurance Company, 1.5%
8. Nordea Funds, 1.1%
9. Norwegian Petroleum Fund, 1.0%

Business areas

There are four Business Areas (BAs) at Nordea, Personal Banking, Business Banking, Large Corporates & Institutions, and Asset & Wealth Management.

Scandals

Nordea was the subject of an online phishing scam in 2007. The company estimated 8 million kr ($1.1 million) was stolen.WEB, 2012-06-29, Swedish bank hit by 'biggest ever' online heist - CNET News,weblink dead,weblink" title="archive.today/20120629075315weblink">weblink 2012-06-29, 2019-09-19, archive.is, Customers were targeted over a period of 15 months with phishing emails containing a trojan horse.NEWS, 2007-01-19, Bank loses $1.1m to online fraud, en-GB,weblink 2019-09-19, Nordea refunded affected customers.The largest financial group in the Nordic region, Nordea was, despite warnings from the Swedish Financial Supervisory Authority (FI) active in using offshore companies in tax havens according to the Panama papers.WEB, Nordea grundade hundratals skatteparadisbolag Ã¥t kunder,weblink 4 April 2016, Svenska Yle, Other Swedish banks were mentioned in the documents, but mention of Nordea occurred 10,902 times and the second-most mentioned bank has 764 matches.WEB, Frida Svensson, Detta behöver du veta om Panamaläckan,weblink 28 December 2017, Svd.se, 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. 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.WEB, The International Consortium of Investigative Journalists - Paradise Papers,weblink 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 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. The Swedish Financial Supervisory Authority (FI) pointed out that there are "serious deficiencies" in how Nordea monitors money laundering, and gave the bank two warnings. In 2015, Nordea paid the largest possible fine - over 5 million EUR. Stefan Löfven, Prime Minister of Sweden, said in 2016 that he was very critical of the conduct of Nordea and its role, and said: "They are on the list of shame too".WEB, Löfven: Nordea pÃ¥ skämslistan,weblink dead,weblink 5 April 2016, 28 December 2017, Gp.se, The Swedish minister of Finance Magdalena Andersson characterized the conduct of Nordea as "a crime" and "totally unacceptable".WEB, Nordea bank investigated over tax haven scandal,weblink The Local (Sweden), 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., WEB, Monday's papers,weblink YLE, 4 April 2016, 4 April 2016, 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. Nordea CEO Casper von Koskull stated that he was disappointed with the shortcomings within Nordea's operating principles, saying that "this cannot be tolerated".WEB,weblink Nordea failed to implement operating principles, finds internal inquiry, Aleksi, Teivainen, Helsinkitimes.fi, 28 December 2017, In March 2019, public service broadcasting company, Yle, aired a program that revealed money laundering allegations against Nordea.NEWS, 2019-03-04, Nordea handled about $790 million in suspicious transactions: Finnish TV, en, Reuters,weblink 2019-09-20, The company was the biggest Nordic lender allegedly involved in the multi-million-dollar money laundering scheme, according to Bloomberg.WEB, Pohjanpalo, Kati, Hoikkala, Hanna, Nordea Sinks as Investors Fear More Money Laundering Allegations,weblink 2019-09-20, www.bloomberg.com,

Subsidiaries

File:Nordea stockholm building (24856762545).jpg|thumb|Nordea's Swedish HQ in Stockholm, SwedenSwedenFile:Nordea, Mariehamn, 2019 (01).jpg|thumb|Nordea's office in Mariehamn, Ã…landÃ…land

• Nordea Bank Danmark A/S
• Nordea Bank Finland Abp / Nordea Pankki Suomi Oyj
• Nordea Bank Norge ASA
• Nordea Bank Polska S.A. (Sold in 2013)
• Nordea Bank Latvia (Sold in 2017)
• Nordea Bank Lithuania (Sold in 2017)
• (:ru:Нордеа банк|Nordea Bank Russia) (closed in 2021)WEB,weblink ЦБ аннулировал лицензию Нордеа Банка, ru, 2021-04-16, banki.ru,

See also

• PlusGirot – open clearing system in Sweden owned by Nordea
• Inter-Alpha Group of Banks
• Kansallis-Osake-Pankki
• List of oldest companies, as Nordea is the oldest bank in Sweden, with roots from 1820.
• List of investors in Bernard L. Madoff Securities

Nordic headquarters

File:PK-huset 2009b.jpg|Swedish headquarters in StockholmFile:Nordea København.jpg|Danish headquarters in Copenhagenfile:Hovedinngang_i_mørke.jpg|Norwegian headquarters in Oslo File:Nordea M17 new part 3jun2006.JPG|The former Norwegian headquarters in Oslo

References

{{Reflist}}

External links

{{Commons category|Nordea}}

• {{official websiteweblink}}
• Yahoo! – Nordea Bank AB Company Profile

{{Banks of Sweden}}{{Euro Stoxx 50 Companies}}{{OMX Helsinki 25 companies}}{{OMX Copenhagen 20 companies}}{{OMX Stockholm 30 companies}}{{Nasdaq Helsinki}}{{Members of Euro Banking Association}}{{Investment banks}}{{Authority control}}