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February 3, 2021

Nordea Bank plans restructure of $390bn wealth unit to streamline operations

By Amala Johney

Nordea Bank is reportedly revamping its wealth and asset management business as part of a year-long programme that looks to streamline the lender’s operations.

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Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

The move will see the bank combining its private banking units and investment and securities advisory operations into single wealth management units across its four key Nordic markets, according to Bloomberg Quint.

Nordea Bank spokesman Tuomas Forsell told the new agency that the ‘simplified’ organisation will bring Nordea ‘closer to customers’.

The revamp measures will not involve job cuts while the positions of Nordic private banking head and Nordic investment head and security advisory services will no longer exist, Forsell said in an emailed reply.

Nordea Bank CEO Frank Vang-Jensen is trying to make the bank more efficient and increase profits due to pressure from the shareholders, added the report.

Additional changes

Nordea Bank is making more changes to its business, with the appointment of Philip Asp as the head of the newly combined investment banking and equities unit.

The ‘more holistic view’ of the ‘full equities value chain’ will enable the bank to ‘direct resources more efficiently and also act quicker and more cohesively,’ Asp told Bloomberg in an e-mail.

The Helsinki-based lender was met with obstacles in its attempt to cut costs. Most recently, its plan to outsource IT jobs from India received a backlash from the unions.

In 2017, Nordea had announced plans to slash at least 6,000 employees in order to reduce costs and boost competitiveness.

This move came shortly after the banking group decided to relocate its headquarters from Stockholm to Helsinki the previous month.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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