Nordea to cut 100 jobs in Denmark

The bank released strong quarterly results on Thursday but its overall savings plan is likely to eliminate Danish jobs.

Nordea to cut 100 jobs in Denmark
Nordea CEO Christian Clausen. Photo: Thomas Lekfeldt/Scanpix
Nordea bank will eliminate up to 100 jobs in Denmark, it announced in conjunction with its quarterly results on Thursday.
The Stockholm-based bank announced that its second quarter results were up over the same period last year, but Ritzau Finans reported that despite the positive result over 100 employees in Denmark can expect to lose their jobs as part of cost-cutting measures. 
A bank spokesperson told Ritzau that it has an overall plan to eliminate five percent of its total positions, with the majority of the cuts happening through natural attrition or by placing employees in other jobs within the company.  
“The process is still ongoing and we expect that the final number will be lower once the job matching process continues after the summer,” the bank representative said. 
Nordea’s CEO, Christian Clausen, said he was pleased with the bank’s quarterly performance.
“The second quarter of 2014 was characterised by a continued inflow of customers and strong activity, particularly in our savings area and corporate advisory business,” he said in a press release. 
Nordea is the largest financial services group in Northern Europe and has over 31,000 employees. 

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Millionaires to be hit by negative interest rate at Danish bank

Jyske Bank is set to become the first major lender in Denmark to apply negative interest to customers’ savings accounts.

Millionaires to be hit by negative interest rate at Danish bank
File photo: Mads Claus Rasmussen/Ritzau Scanpix

But only customers with savings of more than 7.5 million kroner (1 million euros) will be affected by the change—initially, at least.

The bank confirmed the new conditions as it announced results for the first six months of 2019.

Interest rates of 0 percent will be applied to the first 7.5 million kroner of all customers’ savings, with -0.6 percent applied thereafter unless alternative terms and conditions have been agreed, Jyske Bank said.

Most customers will therefore be unaffected by the change initially, but others may be encompassed further down the line, according to CEO Anders Dam.

“I hope (it won’t happen), but I can’t promise. It depends what happens in future, including whether there are further drops in interest rates,” Dam told financial newspaper Børsen.

The CEO said the bank’s decision has been made based on negative interest rates in Denmark in recent years, effectively costing Jyske money to hold customers’ savings.

“The prevailing negative interests that have characterized the Danish market since 2012—broken only in 2014—seem to have become more permanent in character,” Dam, said.

“Market forecasts project that negative interests will prevail for several years,” he added.

The new Jyske Bank terms mean that, for example, a customer with 10 million kroner in savings will pay 15,000 kroner annually to keep them at the Danish bank.

But the bank is also open to negotiating rates with customers, Dam added.

Only a small number of customers will in fact end up paying negative interest, according to the assessment of economist Per Hansen of investment firm Nordnet.

“It requires you to have more than 7.5 million kroner – not many do, after all,” Hansen said.

“Additionally, you would need to have no other business with the bank, and therefore no special arrangements, for negative interest to apply,” he said.

Although the negative interest is the first to be applied to customers, businesses in the country have already experienced the unfavourable terms.

Jyske Bank introduced negative interest for businesses under broad terms in 2016, according to Finanswatch.

READ ALSO: Can you really get paid for borrowing money in Denmark?