Nordic region: an opportunity for Europe?
29.04.2019 | Group
BNP Paribas is strengthening its position as the leading European bank in Northern Europe—now a priority region in its strategy—through a series of new appointments. The Group plans to develop its CIB activities and continue its expansion in the region. Learn more about Northern Europe’s banking sector, as well as the Group’s activities and opportunities in the region.
Nordic region—a promising region brimming with new opportunities
Many opportunities for corporate and institutional banking lie on the horizon in the Nordics. Mergers and acquisitions in Northern Europe reached a record level in 2017 and 2018, with 1,132 and close to 1,200 transactions totaling €104 billion and €85 billion respectively. This momentum arose mainly from technology with payment services, e-commerce, autonomous vehicles, as well as telecommunications with data, IoT and AI.
These dynamic technology innovations are also largely supported by Nordic startups. The region’s FinTechs are notably seeing a boom—in 2017 alone, more than €450 million was invested into Nordic FinTechs. The region’s financial market is also one of the most advanced, thanks to widespread mobile banking services and some of the world’s largest digital payment companies, such as Klarna and Izettle. Stockholm is also one of Europe’s FinTech capitals, with nearly €700 million invested in this area since 2012. This strong dynamic of innovation has a positive impact on banking activities related to derivatives, as well as venture capital and investment capital.
A strong and historic presence
BNP Paribas has set high ambitions in the Nordic countries (Denmark, Finland, Norway and Sweden)—especially since the Group is now the biggest international bank in the region. In Northern Europe, BNP Paribas has developed solutions designed for its corporate and institutional customers, as well as a line of offers in automobile fleet management, leasing, factoring, asset management, insurance and consumer credit for individuals. First established in Norway in 1985, BNP Paribas has developed a strong presence in the region ever since, with a full line of banking services and close relationships with the country’s top companies and institutions.
BNP Paribas in the Nordic region
Renewed ambitions for the Group
The Group’s ambitions in Northern Europe are two-fold. First, to become the leading European bank with international reach for customers in the region, and secondly, to rank among the top five banks in each market segment. That is why the Group decided to consolidate its positions in the region, notably through several strategic appointments announced in January 2019. The Group is strengthening its teams across every CIB business in the Nordics, as well as in support and oversight functions like legal and compliance.
“ We have pursued a profound and long-term commitment in these countries. We have made considerable investments in the region, both in terms of capital and staff, and we will continue to become the leading European bank with international reach for clients in the region ”
CEO for BNP Paribas Group Nordic Region and Head of CIB Nordics
Strong positions in capital markets
The Group has already served as a stakeholder in several major bond issues in early 2019—Telia Company for a total of €500 million in the telecoms sector, the Republic of Finland for €3 billion, and Fortum for €2.5 billion in the clean energy sector to name a few. Finally, the zero-carbon economy offers strong potential and also represents a key challenge for citizens in the region, while aligning with the Group’s own commitments. BNP Paribas thus introduced two green products on Nasdaq Stockholm. These prospects are even more promising as BNP Paribas is the only global bank with a neutral carbon footprint.
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