Norwegian Family Economy released today its annual ranking of Norway’s best total banks.
A striking finding is the absence of large banks in the top of the list.
– Just two years ago were four of large banks in the top 30. And in 2011 won the Nordea whole pageant, with DNB 2nd.
– We are surprised that they do not take up the fight with the cheapest banks, nor bearable respectively. 52. and 40. place, says chief economist Reid Krohn-Pettersen Norwegian Family Economy.
Large Banks far behind
Banks are surveyed ranked by annual earnings (net expenditure ).
This result is obtained by the interest income on BSU / high interest account is deducted from expenditure on housing loan (two million) and use the account.
We also note that the quoted rates are average rates for the whole 2014, here not talking about a snapshot.
In Norway’s best total bank, Skagerrak Direct Bank, came result in at 63.548 million.
To put the big banks themselves
33. SpareBank 1 SR-Bank: 70.418 million
40. DNB: 70.495
43. Danske Bank: 71.003
48. SpareBank 1 SMN: 71.250
52. Nordea: 71,472
63. SpareBank 1 Nord-Norway: 72.156
83. Sparebanken Vest: 73,516
We see that Sparebanken Vest cost 10,000 dollars more than the best bank in 2014.
Read also: These banks are Norway’s best – and worst
Read also: These banks are the cheapest on the mortgage
S jeføkonom Reid Krohn-Pettersen Norwegian Family Economy is our guest today in HegnarTV Trygve OBI 15:30 on www.hegnar.no.
– Tough competition? Just nonsense
Krohn-Pettersen is particularly disappointed on behalf of customers in the large Norwegian banks.
– Norwegian banks protested in 2014 over tough competition in the lending market. That’s just nonsense.
– As there are large banks that gladly get the cheapest borrowing, we expect that they will fight in the top range to offer the best conditions for their customers, says chief economist.
Most banks lowered mortgage rates several times in 2014, and the trend has continued in the beginning of the new year.
– Academics bank switching (from DNB to Danske Bank) seems to have created a hint of competition at the start of 2015. Let’s just hope it continues, says Krohn-Pettersen.
– Deposits Customers pay
chief economist in Norwegian Family Economy still think 2014 will go into history as a record year for banks.
– The interest rate reductions are largely funded by deposits customers who have gotten poorer interest on their savings. In addition, we know that funding costs for banks are low, so that margins are maintained, says Krohn-Pettersen.
– In October borrowed DNB itself into around 1.70 percentage points, while the bank’s average lending rate in 2014 was 3.77 percent. It gives them a net interest margin of more than two percentage points, he said.
DNB: – Interest set individually
DNB vice Even Westerveld is not satisfied with a 40. place in competition,
– Naturally we are not happy with this. The study is based on average prices last year, so it says something about the past.
– We have said that we should be competitive over time, also on price. It shows we are now, in that we in January cut borrowing rates sharply and have very competitive prices for the time, he says to Hegnar.no.
Westerveld also think it’s important to get that loan interest rates set individually, and that this study is based on price lists.
– It is much more than the price that matters to customers, and we know that many appreciate that DNB is Norway’s most accessible bank and advisors who have time to chat and give good advice.
– We are experiencing a large influx of new customers for the time, and it shows that DNB is competitive, says Westerveld on.
– Not so easy to calculate margin
At the same time he denies that the bank margins at the level Krohn-Pettersen mentions.
– The interest margin our considered not out as simple as Krohn-Pettersen samples. We have included a contribution coverage of over 60 percent, which is an important part of our funding.
– Banks margins are historically very low now, and interest rates in general are also historically low, continue Westerveld.
– Best customer does not get the best interest rate
In addition to the margins, irritates chief economist Krohn-Pettersen Norwegian Family Economy over both large banks and small, local banks have long had a culture where the best customers are the ones who get the best rate.
Instead favored gladly banks youngest customers. In several press releases on rate cuts, this year, we have been able to read that young homebuyers get the Bank’s best interest.
– This is obviously because banks know that if they scoop the young customers, they will probably be a good earnings for the bank for years – because we are so bad at switching bank.
– We see it very clearly including DNB. While ordinary mortgage customers must pay 3.36 percent interest rate, customers under 34 years rate of 3.00 percent.
– For a mortgage on two million, this represents over 7,000 million less in annual interest costs, says Krohn -Pettersen.
DNB: – premises does not
Should the best customers of DNB therefore feel cheated? And by the youth are getting the best rate, you speculate that they are bad at switching bank and will give you good earnings for a long time?
– The premises in question is not true. Good customers with superior economics get the best terms, in both DNB and most other banks. With us we call it SAGA, which is a customer program for good customers, with very good conditions, says DNB vice Westerveld.
That young borrowers get good terms, according to the Director important because this is a group who are struggling to get into the housing market.
– This is partly due to high house prices and the government’s equity requirements. That there are different prices for different customers, partly because no customers are equal and that everyone has different security, income and ability to pay, he explains further.
SR-Bank divides least
Figures from Norwegian Family Economy shows that SR-Bank is the only one among large banks that have approximately the same rate on loyal / profitable customers (“SR-Bank Annual”: 3.08 percent) and customers under 34 years (“SR -Bank young “: 3.01 percent).
The other big banks maintain distinction.
In Nordea differences as large as DNB. Here were ordinary mortgage customers last year an average interest rate of 3.36 percent, while the young got 2.99 percent.
In Danske Bank got ordinary customers 3.25 per cent, 2.94 per cent young.
– Bjerke provokes me
Finally Norwegian Familieøkonomis chief economist provoked the DNB chief executive Rune Bjerke asking customers come to the branch’s to negotiate a better rate than the one has in day.
– Have not the bank adequate systems to capture my long affiliation, my profitability and loyalty?
– Should it be so every time I will refuel, so I must enter the kiosk at the gas station and ask for a cheaper price, then the on the sign along the road can be negotiated down? concludes Krohn-Pettersen.
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