OREANDA-NEWS. Swedbank has concluded an agreement with Danske Bank in Lithuania and Latvia on acquiring its retail banking business. The transaction covers personal (except private banking) accounts, loans, deposits, payment cards and securities. At this stage documents will be submitted to the relevant authorities in both countries seeking approval to the transaction.

Earlier this year Danske Bank announced its intention to focus activities in the three Baltic countries on corporate and private banking, while gradually exiting from the mass market personal banking business.

“The sale is part of the execution of our strategy of being a Nordic bank that supports the needs of business customers also when they do business outside the Nordic region,” says Lars Stensgaard M?rch, Head of Business Banking at Danske Bank Group. “We want to develop our business banking operations for local as well as Nordic customers by enhancing the product offering, drawing on Danske Bank’s broad product range and innovative solutions.”

“We have the infrastructure, resources and wide range of professional financial solutions to guarantee high quality banking services for retail customers. This decision also indicates that Swedbank is strongly dedicated to Baltic market and has a long-term business perspective in this region,” says Moris Manoinskis, Head of Swedbank Latvia.

Both parties have committed to ensure smooth transfer of services and all needed assistance to the customers who are subject to this transfer.

After receiving the approval it is expected to transfer services in Q1 2016. Service transfer will affect around 7 000 private Danske Bank customers in Latvia and 120 000 customers in Lithuania. The size of the loan portfolio, subject to this transfer, is approximately 116 MEUR in Latvia and 525 MEUR in Lithuania.

Once formal approvals from respective regulators in both countries are granted, customers will be contacted directly with full details of the transfer process and how this will affect their accounts with Danske. In the meantime, customers need take no action and all products and services will continue as normal until further notice.

ABOUT Danske Bank

Danske Bank is the largest bank in Denmark and one of the Northern Europe’s leading financial institutions. Danske Bank Latvia focuses on serving corporate customers and private individuals related to the business customers.

ABOUT Swedbank

Swedbank Group has the leading position in the home markets Sweden, Estonia, Latvia and Lithuania. We provide households and businesses with everything from basic transaction services to the most advanced advisory services. Swedbank Latvia has a wide infrastructure: 47 branches, 402 ATMs and BNAs; and electronic solutions, very highly evaluated by its customers - by phone, internet bank and mobile application.