The Danish government and the Danish banking sector's contingency association (Det Private Beredskab) have agreed on a guarantee arrangement, which will protect depositors and ordinary creditors of Danish banks against losses not covered by the public Danish depositor guarantee fund or by any other arrangement.
Nordea understands and respects the decision to support the Danish banking system. Nordea is not in a situation where it is necessary to request this guarantee. Nordea's capital and funding position remains strong and well diversified. Being a major and responsible stakeholder in the Danish financial sector Nordea will participate in and contribute to the guarantee.
The net financial effects for Nordea from the guarantee are still highly uncertain and are subject to the finalisation of the agreement. Nordea will underwrite its share, approx 20%, of the DKK 10bn guarantee commitment. Nordea's share of the direct payment to the guarantee scheme is expected to be in the range EUR 200m, per annum, for the two years that the guarantee is planned to be in force.
The net effect on Nordea's income statement in the medium term is more difficult to estimate since it will depend on the compensating effects coming from funding costs, volumes and margins. |
