Nordea, DNB Combine Operations In Three Countries

Robbie Lawther

3 October 2017

Scandinavian bank have entered into an agreement to combine their operations in Estonia, Latvia and Lithuania to create an independent financial services provider in the Baltics. Nordea told this publication that wealth management and private banking segments will be included within the new partnership.

The new operation, which is subject to regulatory approval, will be named Luminor, both firms said in a statement.

Luminor will be comprised of Nordea’s approximately 350,000 and DNB’s 930,000 customers across the three markets. The operations will have approximately 3,000 employees and approximately €15 billion ($17.7 billion) in assets.

Nordea will hold 56 per cent of the economic rights and 50 per cent of the voting rights of the new company. In Nordea’s results, Luminor will be accounted for using the equity method from Q4 2017.

The financial terms of the deal were not disclosed.