STOCKHOLM, Sweden, June 26, 2002 (PRIMEZONE) --Nordea today announced that the current IT operations in all four Nordic countries will be merged into a common IT platform to support increased productivity and higher cost efficiency
Consolidation of IT production is a major initiative in the ongoing second wave of integration programme. The aim of the programme is to simplify, unify, speed up and re-engineer internal processes and to consolidate and share group infrastructure across borders and business areas in order to benefit from the scale of Nordea.
The IT production currently comprising some 1050 employees and a cost base in 2002 of around EUR 330m will be consolidated and incorporated with contractual obligations of delivery, quality etc to the customers in the business areas and group functions. A reduced number of technological platforms each of which consolidated into one single location, standardized network and desktops will have a significant impact on the Group's future cost development.
The committed cost saving potential is approximately 20 per cent of the future overall production costs without executing the planned consolidation process. The effect will be gradually increasing with full- year sustainable effect after 4 years estimated at EUR 70m. The largest cost reductions emerge from centralized and standardized hardware and software and reduced costs for licences. Downsizing by around 250 employees is expected. Expected investments of EUR 60m will be accounted for in 2002-2004 resulting in a positive cash flow from 2004.
The in-house solution will a create large costs saving effect while maintaining control and future flexibility and has been chosen following thorough analyses of several possible solutions including outsourcing.
For further information: Erik Evren, Head of Group Media Relations, +46 8 614 86 11
Nordea is the leading financial services group in the Nordic and BalticSea region and operates through four business areas: Retail Banking,Corporate and Institutional Banking, Asset Management & Life and GeneralInsurance. The Nordea Group has nearly 11 million customers, 1,245 bankbranches and 125 insurance service centres in 22 countries. The NordeaGroup is a world leader in Internet banking, with 3 million e-customers.The Nordea share is listed in Stockholm, Helsinki and Copenhagen.
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