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February 17, 2012updated 04 Apr 2017 3:43pm

AUM net inflow dips sharply at Nordea

Nordeas Nordic private banking business generated a net inflow of 100m ($131.8m) in assets under management for 2011 representing a fall of 96.3% compared to 2010 Overall, Nordeas Nordic Private Banking assets under management (AuM) stood at 51.4bn in 2011 compared to 57.3bn in 2010, which is a fall of 10.3 %

By Thomas McMahon

Nordea’s Nordic private banking business generated a net inflow of €100m ($131.8m) in assets under management for 2011 – representing a fall of 96.3% compared to 2010.

The bank said financial market volatility in 2011 challenged its investment performance.

Overall, Nordea’s Nordic Private Banking assets under management (AuM) stood at €51.4bn in 2011 compared to €57.3bn in 2010, which is a fall of 10.3 %.

The bank noticed customers deleveraging and shifting to deposit products to reduce risk.

The increase in its customer base also slowed, with only 2,400 new clients accepted compared to 5,600 in 2010.

Efficiency drive

Nordea said it embarked on an efficiency drive in 2011, whereby it has been transferring customers from the Small Private banking category to retail banking to make room for higher net worth clients.

The bank has also enhanced its discretionary offering and the share of its AuM managed on a discretionary basis rose to 7%.

Nordea’s Nordic Private Banking business employs 971 people and serves 95,200 customers from 95 branches in the Nordic countries.

International Private Banking

Nordea’s International Private Banking business reported a decrease in AuM in 2011 to €9.6bn AuM compared to  €10bn in 2010.

Located in Luxembourg and Switzerland with offices in Spain and Singapore it serves around 12,000 clients, with the majority of its Nordic HNW individuals resident in Europe.

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