Nordea CEO: There Will Be Higher Provisions for Loan Losses

The video discusses the impact of the COVID-19 crisis on loan loss provisions, highlighting the strong initial position of the bank and the need for higher provisions due to economic uncertainty. It examines sector exposure, particularly in oil and energy, and the potential risks involved. The demand for corporate loans and the possibility of increased impairments in the second quarter are also addressed. The video concludes with a discussion on future lending standards and risk management strategies, emphasizing the bank's strong credit culture and past de-risking efforts.

What is the primary reason for the bank's higher loan loss provisions in Q1?

• Increased customer defaults

• Uncertain economic outlook

• Regulatory changes

• Rising interest rates

Which sector is NOT mentioned as being significantly impacted by the crisis?

• Transportation

• Oil and gas

• Retail trade

• Technology

What is the total allowance for covering loan losses mentioned in the transcript?

• €4.8 billion

• €1.2 billion

• €2.4 billion

• €3.6 billion

What percentage increase in corporate meetings did the bank experience in the quarter?

• 10%

• 40%

• 20%

• 30%

What is the bank's approach to lending standards during the crisis?

• Expand into new markets

• Increase interest rates

• Maintain existing credit policies

• Tighten lending standards

How has the bank prepared for potential risks in recent years?

• Reduced customer base

• Hired more risk analysts

• De-risked by exiting non-Nordic markets

• Increased investments in technology

What is the bank's track record on credit losses described as?

• Weak

• Moderate

• Strong

• Uncertain