Nordea has finalized the acquisition of Danske Bank's personal customer and private banking business in Norway. This move, which was initially announced on July 19, 2023, aims to bolster Nordea's market position among household customers in Norway. The integration process was completed over the weekend, bringing 235,000 new customers into Nordea's fold.
The acquisition aligns with Nordea’s strategy to expand its presence in the Nordic region through both organic growth and strategic acquisitions. It is expected to increase Nordea’s mortgage market share in Norway from 11% to approximately 15%. "We are very pleased to finalise 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," stated Frank Vang-Jensen, President and Group CEO of Nordea.
The transaction involves a transfer of assets and liabilities at fair value. It includes around 235,000 customers, lending volumes of EUR 9 billion, deposit volumes of EUR 3 billion, and approximately EUR 1.2 billion of assets under management. Additionally, five outstanding covered bonds will be transferred to Nordea Eiendomskreditt's cover pool with an expected Aaa rating by Moody's.
This acquisition is projected to enhance the cost-to-income ratio and return on allocated equity for Nordea’s Personal Banking Norway business by generating slightly more than EUR 100 million in annual income at a marginal additional cost. It will also decrease the CET1 ratio by about 40 basis points while positively impacting earnings per share and return on equity for the Nordea Group.