(Source: Bloomberg By Adam Ewing) – Swedish banks may follow Nordea Bank AB (NDA), the country’s biggest lender, in shedding jobs to lower costs as a slowing economy and stricter capital rules curb profit growth.“In an environment where it will become increasingly difficult to grow revenues, efforts by the banks to reduce costs will be one key factor to deliver earnings growth and therefore we expect several of the other banks to report similar programs,” said Andreas Hakansson, an analyst at Exane BNP Paribas in Stockholm.
Nordea, the Nordic region’s biggest bank, said yesterday it plans to cut a total of 2,000 staff, or 5.9 percent of its workforce, this year and in 2012 to trim costs and boost profit. The company said it would eliminate 500 to 600 workers each in Denmark, Finland and Sweden, while as many as 300 would be axed in Norway.
Source: Bloomberg By Adam Ewing
Aug 30, 2011 1:51 AM PT
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