Nordea acquires Danske Bank’s Norwegian personal customer and private banking business
Scandinavian bank Nordea is set to acquire the Norwegian personal customer and private banking business of Copenhagen-headquartered Danske Bank.
Nordea makes new acquisition from Danske Bank
Nordea intends for the acquisition to organically strengthen its market position among household customers in Norway. The firm will also snap up “associated asset management portfolios” as part of the deal.
At present, the company’s mortgage market share in Norway currently sits at 11%, but is expected to rise to 16% following the completion of the deal.
Frank Vang-Jensen, president and group CEO of Nordea, describes the agreement as “an important step in executing our Nordic strategy”, stating that it will add “significant scale” to its personal banking business in Norway and offer value creation opportunities through “clear revenue and cost synergies”.
The agreement is set to bring approximately 285,000 new customers to Nordea, and will include lending and deposit volumes of €18 billion and €4 billion, respectively, and a total of €2 billion in assets under management.
Randi Marjamaa, head of Nordea personal banking in Norway, says the transaction will generate access to a wider range of digital offerings for customers, including personal financial advice.
Nordea is continuing to expand its presence in the Nordic market following its acquisitions of Norway’s Gjensidige Bank, SG Finans and Topdanmark Life.
On top of this, it has also continued to explore the integration of digital services within its own operations, as was the case with its November 2022 partnership with Boost.ai.
While still subject to regulatory approvals, the transaction is expected to close late next year.
