Spar Nord Bank A/S acquiring P/F BankNordik’s Danish business

Company announcement no. 26

Spar Nord Bank A/S (“Spar Nord”) and P/F BankNordik (“BankNordik”) have signed a conditional agreement for the acquisition of BankNordik’s Danish business with a total business volume of approximately DKK 25 billion, distributed on some 60,000 customers. The purchase price has been agreed at the carrying amount with the addition of goodwill of DKK 255 million.

The agreement will enable Spar Nord to strengthen its market position in the retail customer segment in the Greater Copenhagen area and in the cities of Aarhus, Odense, Kolding and Haderslev.

As part of the transaction, Spar Nord will take over BankNordik’s 11 branches and employees corresponding to a total of 132 FTEs. In so far as possible, the intention is to maintain all relations between bank advisers and customers, while also maintaing the physical presence in the geographical areas where BankNordik is currently present.

In Spar Nord, BankNordik’s customers will become a part of a well-run, nationwide bank offering a broad and competitive range of financial solutions within financing, investing, pension and insurance products. Spar Nord’s business model is based on having a strong local presence with decision-making powers allocated to the local branches, and the Bank is characterised by high levels of both employee and customer satisfaction.

The agreement will allow Spar Nord to achieve the potential for efficiency enhancement and improved earnings power which arises from the ability to serve a greater number of customers using the same production and support platform. Furthermore, Spar Nord expects to achieve positive synergies from the combination of BankNordik’s branches with Spar Nord’s branches in relevant geographical areas.

Portfolio acquired
Spar Nord is acquiring a well-functioning business with a retail customer business volume totalling about DKK 25 billion distributed on some 60,000 customers. The total business volume breaks down as follows:

• Loans and guarantees – approx. DKK 3.7bn
• Deposits – approx. DKK 5.8bn
• Mortgage loans arranged through Totalkredit – approx. DKK 11.1bn
• Custodianship accounts – approx. DKK 4.8bn

The agreement will make Spar Nord the largest distributor of Totalkredit mortgage loans and the largest distributor of investment solutions from Bankinvest.

Prior to the signing of the agreement, standard due diligence procedures have been performed, on the basis of which Spar Nord assesses that the credit quality of the acquired portfolio is on a level with that of the Bank’s existing customer portfolio.