- Several residential rate cuts in store – HegnarOnline

– The traditional players are those that challenge us the most and DNB is the one that meets most loans with us, says CEO Finn Haugan at SpareBank 1 SMN (Central Norway), the Finance newspaper.

Friday Tomorrow he met analysts and investors with a recent quarterly report. As the last major bank out in this round, he sums bank winter with continued high income, virtually no losses and a drop in oil prices that still whips up the loan books.

The competition between banks has not led to new developments – despite Danske Bank and DNB’s intransigent struggle since January. The agreement with the organization Akademikerne tightened competition.

– SpareBank 1 Gruppen has agreement with LO. There are 1 million wage earners, and nothing more than the roughly 100,000 Akademikerne. LO agreement we also dentists and Pilots of aircraft – good bank customers, says Haugan Finansavisen.

Pending new rate cuts
Danske Bank, headquartered in Trondheim, announced a lending growth of 19 percent from the first quarter last year. Moreover, management has stated that Danske Bank will grow more than the market in Norway. It has not Haugan put much attention.

– In our own century It still seems as if DNB is the largest competitor spring, with Nordea and Danske Bank after that, says Haugan Finansavisen.

In the corporate market grew lending in the last 12 months of over 13 percent, and it is too much, according to Haugan. Here it is allegedly part inertia, and SMN management expects the corporate portfolio will have a zero growth ahead. It will open up for Danske Bank, but for the time being has not Haugan received reports about it.

– Banks with the same concept as us, is the toughest competition. So far, our performance satisfactory, but competition is increasing and it can go on price, says Haugan.

He stressed according Finansavisen that banks will not return to the times when they had 0.5 percent margin The mortgage, however:

– The competition will follow the funding cost. As old bonds redeemable in favor of new, cost will fall. The fall in deposit rates, we will have room to lower mortgage interest rates.

Read the full story in Saturday’s edition of the Financial newspaper!