Nordea takes over Danske Bank’s private customers in Norway
Danish bank Nordea is to take over private customers in Norway from Danske Bank after buying out a section of its rival’s operations.
The takeover, which will affect around 285,000 customers in Norway, was announced by Nordea in a press statement on Wednesday and means many of the customers could see their mortgage provider change.
“We are very happy to be able to announce this buyout, which is an important step in executing our Nordic strategy,” Nordea CEO Frank Vang-Jensen said in the statement.
“It will extend our Person Banking business in Norway significantly,” he added.
Danske Bank announced in June plans to leave the private customer market in Norway, stating it intended to focus on business and institutional customers in the country.
Private customers with Danske Bank in Norway represent around 144 billion Danish kroner in loans and 37 billion kroner in deposits, according to several media reports.
The sale of its private customer business will release around 5.5 billion kroner in capital according to Danske Bank.
The bank also said it had decided to sell its private customer operations in Norway because major investment would be needed to “strengthen the bank’s market position and increase profitability in private customer business in Norway”.
It will continue to run private customer operations in Denmark, Sweden and Finland.
The sale is expected to be finalised by the end of the year.
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The takeover, which will affect around 285,000 customers in Norway, was announced by Nordea in a press statement on Wednesday and means many of the customers could see their mortgage provider change.
“We are very happy to be able to announce this buyout, which is an important step in executing our Nordic strategy,” Nordea CEO Frank Vang-Jensen said in the statement.
“It will extend our Person Banking business in Norway significantly,” he added.
Danske Bank announced in June plans to leave the private customer market in Norway, stating it intended to focus on business and institutional customers in the country.
Private customers with Danske Bank in Norway represent around 144 billion Danish kroner in loans and 37 billion kroner in deposits, according to several media reports.
The sale of its private customer business will release around 5.5 billion kroner in capital according to Danske Bank.
The bank also said it had decided to sell its private customer operations in Norway because major investment would be needed to “strengthen the bank’s market position and increase profitability in private customer business in Norway”.
It will continue to run private customer operations in Denmark, Sweden and Finland.
The sale is expected to be finalised by the end of the year.
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