Nordea Bank has sold its Polish operations, including Nordea Finance Polska, to PKO Bank Polski for 694m.
In a statement, Nordea Bank said the sale was part of the group’s strategy to concentrate on markets where it can deliver "significant scale benefits based on a leading market position".
Go deeper with GlobalData
The sale leaves Nordea Finance present in the four Nordic countries – Denmark, Sweden, Norway and Finland – and the three Baltic markets – Latvia, Estonia and Lithuania.
Speaking exclusively to Leasing Life, Jukka Salonen, chief executive of Nordea Finance, said the leasing and factoring business’s strategy was "very much aligned" with the Nordea Bank Group and the added Nordea Bank is "at home" in the Nordic and Baltic markets.
Salonen added the Polish leasing market had been "extremely resilient" in the last few years due in part to large infrastructure investment but is likely to see growth slow this year and next. He said the outlook for Nordea Finance in the Nordics and Baltics was positive.
Christian Clausen, president and chief executive of Nordea Bank Group, said the sale, of Nordea Bank Polska, Nordea Finance Polska and Nordea Polska Towarzystwo Ubezpieczen na Zycie – the firm’s life insurance and pensions division, was a "rational structural change for all parties involved".
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHe said: "This transaction is a part of the execution of Nordea’s strategy.
"We remain committed to shaping the future relationship bank, built on the stability that can only be created by top league return on equity, a solid capital base and low volatility.
"The divestment is well aligned with the implementation of the plan to deliver strong profitability in all areas, units and segments of the bank."
Clausen added stricter governance and operational practices imposed on Polish banks made it "increasingly challenging to pursue Nordea’s uniform operating model which is used across all other markets" and said it would take "significant investments" to reach the necessary scale in the consolidating Polish banking market.
Subject to regulatory approvals, the transaction is expected to be completed before the end of the year with customers serviced by Nordea until then.
The transaction is expected to lead to a minor capital gain and profit and loss effect and have a positive impact on the Nordea Bank
Group’s core tier 1 ratio of approximately 50 basis points, of which approximately half is expected to be realised immediately on closing of the transaction.
A full interview with Jukka Salonen will appear in the August issue of Leasing Life
