Nordea Asset Management’s inflow impacted by €3.7bn Danish pension business divestment

Nordea Asset Management‘s inflow was impacted by a €3.7bn outflow in relation to its divestment of Nordea Life & Pensions Denmark in 2018.

Publishing its interim results, in total, it attracted €0.9bn in net flows in the second quarter of 2021, of which €0.3bn were delivered through its internal channels. Net outflows from institutional and third-party fund distribution channels amounts to €2.2bn as well as the €3.7bn outflow in connection to the Danish pension business.

In regards to its remaining Life & Pension business, the company attracted net flows of €1bn in the second quarter, an increase of €0.5bn on the same period last year.

“We continue to grow our occupational pension business in Norway and Sweden, focusing on relationship management, pipeline management and sales. Environmental, social and governance (ESG) remains a priority area for Life & Pension, a co-founder of the UN’s Net-Zero Asset Owner Alliance,” it said.

“In May the Alliance announced interim climate targets for 2025 requiring asset managers to set net zero carbon emission targets by 2024 at the latest. With our improved digital distribution capabilities, we are progressing towards becoming the leading bancassurer in the Nordics. We are focusing in particular on digitalising sales within Life & Pension.”

Overall, Nordea Asset Management’s operating profit increased to €1,338m from €306m in the same period last year, driven by a significant increase in total operating income, strong cost control and low loan losses. Net interest income grew by 13 per cent and net fee and commission income increased by 30 per cent. Net fair value result was solid and at a more normalised level than in the first quarter.

“Nordea is entering the post-pandemic environment in a position of strength. We are well on track to meet our financial targets for 2022. We are delivering smoother and better customer experiences, developing advanced digital capabilities, and keeping sustainability at the centre of our customer offerings and operations,” Nordea president and group CEO, Frank Vang-Jensen, said.

“Our focus remains on our three key priorities: to create great customer experiences, drive income growth initiatives and optimise operational efficiency. We are determined to continuously improve our performance and do things a bit better every single day. That is our way forward. For the benefit of our customers, business, shareholders and society at large.”

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