DnB NOR will establish operations in the Baltic region by opening a bank as a joint venture with Norddeutsche Landesbank (NORD/LB), serving the Danish, Finnish, Estonian, Latvian, Lithuanian and Polish markets. The new bank will be named DnB NORD and be owned 51 per cent by DnB NOR and 49 per cent by NORD/LB. NORD/LB's current presence in the region will form the basis for DnB NORD's operations. DnB NOR will establish operations in the Baltic region by opening a bank as a joint venture with Norddeutsche Landesbank (NORD/LB), serving the Danish, Finnish, Estonian, Latvian, Lithuanian and Polish markets. The new bank will be named DnB NORD and be owned 51 per cent by DnB NOR and 49 per cent by NORD/LB. NORD/LB's current presence in the region will form the basis for DnB NORD's operations. At the same time, DnB NOR will take over NORD/LB's operations in Sweden. 'The establishment of DnB NORD is an important strategic move for us which could be of great significance for DnB NOR's market position as well as for our Nordic customers operating in these rapidly expanding markets. This is consistent with DnB NOR's announced international strategy,' says group chief executive Svein Aaser in DnB NOR. 'We see a great potential for growth and development in one of Europe's most dynamic regions. The countries around the Baltic Sea have a total population of 82 million. The new bank is scheduled to become operative as from January 2006. DnB NORD will have a sound position in the Baltic Sea region from the first day, with 1,450 employees, 111 branch offices, more than 550,000 customers and total assets of EUR 2.7 billion, corresponding to around NOK 21 billion. In Lithuania, the bank is the third largest bank with a 12 per cent market share. The NORD/LB operations in Sweden to be taken over by DnB NOR had extended credits totalling NOK 1,349 million as at 31 December 2004, corresponding to NOK 10.6 billion. DnB NOR will pay EUR 157.5 million, or close to NOK 1,240 million, for 51 per cent of the shares in NORD/LB. 'I am convinced that DnB NORD, backed by the expertise and strength of the two parent banks, can become one of the most attractive providers of financial services to households and businesses throughout the region,' says Svein Aaser. Group chief executive of DnB NOR, Svein Aaser, emphasises that DnB NORD will offer customers a full range of financial products. 'The establishment will complement DnB NOR's network in the Nordic region and will be of major significance with respect to serving current customers and attracting new customers in all the Nordic countries as well as in the Baltic region and in Poland and Germany,' he says. 'NORD/LB has a firm foothold in the various markets in Northeastern Europe and has built a strong infrastructure, while DnB NOR will provide capital and expertise on the product and process side, e.g. within cash management, corporate finance and investment banking. Thus, the two parties supplement each other with few overlapping functions. DnB NORD's chances of succeeding could hardly have been better,' say group chief executives Svein Aaser of DnB NOR and Dr. Hannes Rehm of NORD/LB. Besides the joint venture agreement, NORD/LB and DnB NOR will strengthen their co-operation in their respective home markets. The agreement does not include shipping and financial institutions. The JV agreement regarding the establishment of DnB NORD was signed in Oslo and Hanover today. According to plan, DnB NORD will start up business as from January 2006, conditional on approval by the authorities in the respective countries. Sven Herlyn from NORD/LB will be managing director of DnB NORD and DnB NOR group chief executive Svein Aaser will be chairman of the board. JPMorgan and Citigroup have been financial advisors for DnB NOR and NORD/LB respectively. ---- About NORD/LB Norddeutsche Landesbank NORD/LB Norddeutsche Landesbank is the leading universal bank in Northern Germany with group assets of around EUR 202 billion. As an international commercial bank, NORD/LB maintains a presence in all the major financial and trading centres, such as New York, London and Singapore. Since 1998, Northeastern Europe has become a part of the bank's business strategy. NORD/LB has established a dense network including subsidiaries, branches and representative offices in Norway, Sweden, Finland, Estonia, Latvia, Lithuania and Poland. Norddeutsche Landesbank provides expertise in special financing transactions, especially for ships and aircraft, as well as in corporate and investment banking. In co-operation with the savings banks in Lower Saxony, Saxony-Anhalt and Mecklenburg-Western Pomerania, NORD/LB holds a leading position in retail banking and in corporate banking for SMEs in its home market. http://www.newsweb.no/index.asp?melding_ID=109827
