BankNordik's Board of Directors has taken the final step in its declared focused strategy for its banking operations. At its meeting today, the Board resolved to put BankNordik's corporate banking business in Denmark up for sale. Earlier this year, the bank announced that it was putting its Icelandic insurance company, Vørður Insurance Company, up for sale. Negotiations are currently ongoing, the outcome of which is expected to be announced by the end of the year.
It is the Board's intention to refocus BankNordik. Size is very important in personal banking, and based on its position as the largest player in the Faroe Islands, its 20% market share in Greenland and its rapidly growing market share in Denmark, BankNordik aims to be an attractive player in these markets. Synergies in the fields of processes and product offerings have yet to be realised across the geographical markets, and the goal is to achieve that over the next few years.
In corporate banking, a bank like BankNordik needs to reduce its exposure due to the new, upcoming supervisory regulations. Instead, the Board intends to further specialise and tailor the bank's skill sets to the North Atlantic region, where specialist knowledge about corporate structures and socio-economic conditions offer a synergy potential in support of the bank's credit policy.
A new CEO will be needed to head up this strategy. Janus Petersen agrees with this conclusion, and he and the Board have therefore agreed to part ways. Árni Ellefsen, the current CFO, has agreed to act as interim CEO.
“Our bank needs to apply its resources in a way that creates the most value for our customers and our shareholders. This is the guiding principle of our refocusing efforts,” said BankNordik Chair Stine Bosse, while expressing her appreciation of Janus Petersen's efforts during his ten years as CEO and total of 21 years with the bank.
BankNordik aims to continue to contribute to the positive economic developments currently taking place in the North Atlantic region. BankNordik intends to serve corporate customers and personal customers in the Faroe Islands and in Greenland and to be a supportive partner to customers developing their operations, including in international markets where many customers and clients already operate or are about to become active. BankNordik will provide these services both on its own books and in collaboration with larger banks.
As previously announced, BankNordik expects to distribute extraordinary dividends to its shareholders when the strategy has been fully implemented. The change of business strategy in Denmark away from corporate banking to exclusively targeting personal banking is not expected to involve any redundancies.
The new strategic decisions will not change the current guidance provided at the release of BankNordik's interim report for the first six months of 2015.
Further information:
Stine Bosse, Chairman of the Board of Directors:
Phone (+45) 21 23 24 25