Parts of the business relating to private clients, asset management and investment services will be sold to S-Banken, which will also handle leases for the banks’ offices. The business, which includes small and medium-sized businesses, is being sold to Oma Sparbank. Life insurance business sold to Fennia Liv. On the transfer date, the Bank will receive cash compensation corresponding to the net asset value (approximately €1,300 million as of March 2023) plus an annuity payment of a maximum of €8.5 million. The transaction is expected to be completed in the second half of 2024. This was stated in a press release.
The transaction includes a lending volume of approximately €4.1 billion corresponding to a risk-weighted exposure of approximately €1.3 billion and a deposit volume of approximately €2.8 billion, based on balances as of March 2023. The transaction corresponds to approximately 30 per cent of the lending volume and approximately 50 per cent cent of the risk-weighted exposure from the bank’s operations in Finland.
The sale of the Bank’s remaining operations in Finland continues in a separate transaction.
On the transfer date, the value of the assets will be reduced by an amount corresponding to the liabilities incurred by the purchasers—essentially deposits from the public. The remaining amount shall be paid in cash plus a maximum net premium of 8.5 million euros.
Overall, the one-off impacts associated with the deal are expected to have a marginal impact on the Group’s results.
The sale is subject to the usual regulatory approvals and the relevant trade unions have been notified.
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