All Danske Bank private customers, their accounts, loans, deposits, bankcards, and securities in Latvia and Lithuania will be transferred to Swedbank. In the near future, the two banks will turn to the banking supervisory authorities in both countries to clear the deal, as Danske Bank said in a statement to the media.
The deal will concern approximately 7,000 private customers of Danske Bank in Latvia and 120,000 in Lithuania. The amount of loans transferred from Danske Bank to Swedbank is approximately EUR 116 million in Latvia and EUR 525 million in Lithuania.
As soon as the banks' deal is approved by banking supervisory authorities in both countries, customers will receive detailed information about the transfer process and how it will affect the banking services they currently use.
Danske Bank announced at the beginning of the year that it would concentrate on corporate customers in the three Baltic countries, and gradually exit the personal customer business.
Danske Bank is the largest bank in Denmark. The bank's branch in Latvia focuses on corporate customers.
As reported, Danske Bank in Latvia operated with EUR 464,000 in net profit in the first six months of the year. The bank's core activity deposit portfolio grew 21 percent to EUR 206.4 million. The bank expanded its loan portfolio for core segment customers to EUR 248.4 million at the end of June, while the business loan portfolio rose to EUR 243 million.
According to the Association of Commercial Banks of Latvia, Danske Bank branch in Latvia had 3,889 active customers at the end of June, including 3,157 private individuals and 732 legal entities. Swedbank had 949,022 active customers at the end of June, including 877,913 private individuals and 71,109 legal entities.
At the end of June, Swedbank was the largest bank in Latvia in terms of assets, worth EUR 5.15 billion. The Latvian branch of Danske Bank was ranked 14th with assets worth EUR 526.7 million.
