Swedbank To Merge Baltic Subsidiaries Into The Group

Swedbank plans to merge its Baltic banks that at present are subsidiaries into the parent group. A survey commissioned by Swedbank recently showed that it would be the most economic solution, balticbusinessnews.com reports.

“From the viewpoint of capital management, the most cost-effective solution would be to merge Baltic subsidiaries directly into the parent group Swedbank AB,” Hakan Berg, head of Baltic banking in Swedbank says.

Berg said that the company’s board of directors will make a final decision in this issue by the end of the summer.

At present Swedbank’s banks in Latvia and Lithuania are subsidiaries of Swedbank AS that is incorporated in Estonia.

Hakan Berg himself became the new chairman of the supervisory council of Swedbank AS from May 25. Priit Perens, the bank’s managing director in Estonia, is the chairman of the management board of Swedbank AS.

As part of the restructuring of the group’s management system, Michael Wolf who is CEO of Swedbank Group, left the supervisory council of the Estonian company.

Berg adding that Baltic banking remained a strategic business area for the group and that the objective of the changes was to free the Group CEO from the function of managing and supervision of subsidiaries.

“This will be my job,” he says.

Norwegian DnB NOR will shortly decide if they’re gonna acquire the full 100% of its Baltic subsidiary, DnB NORD,

The Norwegians currently holds a controlling stake of 51% of the Baltic bank.

Related by the Econotwist:

Estonia: Banks Lost USD 23 million in Q1

Morgan Stanley To Buy Bad Baltic Loans?

Swedbank Leaves The State Guarantee Program

Latvia To Split And Sell Nations Leading Bank

The Nordic Superbank Dream

Standard and Poor’s: The Baltic Are Stabilizing

Swedbank Buy Greek Bonds With Estonian Money

Swedbank In Estonia: “Daylight Robbery”

How Sweden sent Estonian economy into free fall

Nordic Central Banks Agree On Baltic Bank Bailout

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