Nordea Completes Acquisition of Danske Bank’s Norway Business
-
Loading... - Addison Chapman
- 05 Dec 2024
- 66 Views
- 0 Like
- 0 Comment
Nordea, a leading Nordic financial services company, has successfully concluded the acquisition of Danske Bank’s personal customer and private banking business in Norway. This strategic move is expected to significantly enhance Nordea's presence in the Norwegian market, particularly among household customers.
The acquisition aligns with Nordea’s growth strategy in the Nordic region and is projected to increase its mortgage market share in Norway from the current 11% to an estimated 15%. This expansion is seen as a vital step in solidifying Nordea's competitive position in the Norwegian banking landscape.
In July 2023, Nordea announced its agreement to acquire Danske Bank’s Norwegian personal customer and private banking business, which also includes associated asset management portfolios. Following the acquisition, the business will be integrated and operated under the Nordea brand.
The transaction was structured as an asset and liability transfer at “fair value.” At the time of the transfer, the acquired business comprised approximately 235,000 customers, with lending and deposit volumes of €9 billion ($9.5 billion) and €3 billion ($3.16 billion), respectively. Additionally, the business included around €1.2 billion ($1.26 billion) in assets under management.
As part of the acquisition, five outstanding covered bonds will also be transferred to Nordea, which will be included in the cover pool of Nordea Eiendomskreditt.
Frank Vang-Jensen, CEO and President of Nordea Group, expressed enthusiasm about the acquisition, stating, “We are very pleased to finalize the acquisition and welcome our new customers and colleagues to Nordea. We look forward to serving our new customers and meeting all their financial needs with Nordea’s broad offering.”
This acquisition marks a significant milestone for Nordea as it seeks to expand its footprint in Norway and enhance its service offerings to personal and private banking customers. With a strong focus on customer needs and a comprehensive range of financial products, Nordea aims to build lasting relationships with its newly acquired clientele.
