Siauliu Bankas AB

01/09/2020 | Press release | Distributed by Public on 01/09/2020 08:21

Šiaulių bankas intends to purchase Danske Bank’s private customers credit portfolio in Lithuania

Šiaulių bankas has signed an agreement with Danske Bank A/S Lithuanian branch regarding the acquisition of Danske Bank's retail credit portfolio with a value of 125 million EUR. The transaction is expected to be completed within four months after signing the agreement.

Šiaulių Bankas will acquire the retail loan portfolio including it's liabilities of the Lithuanian branch of Danske Bank A/S. Most of the portfolio consist of the mortgage loans.

The terms of the credit agreements will remain unchanged after the transaction for customers of the Danske Bank A/S Lithuania Branch. Bank customers affected will be notified of the transfer procedures and receive further instructions in a separate notice.

'This transaction will give Šiaulių bankas additional momentum in the housing financing market - the takeover of Danske Bank's private customers business will more than double our mortgage portfolio. We seek to take advantage of the favourable housing financing environment and become an active player in the mortgage market by offering attractive credit terms to our clients', said Vytautas Sinius, Head of Administration of Šiaulių bankas.

Šiaulių Bankas increased its activity in the mortgage segment last year - new automated processes were implemented and the team of employees was strengthened, therefore this transaction is a consistent step with the Bank's plan to become an active participant in the mortgage market.

'In February 2019, we announced the closing of all our banking activities in the Baltics. Today's agreement marks another important step towards this goal and represents a good solution for our private customers in Lithuania,' says Frederik Bjørn, Head of the Baltics and Russia, Danske Bank.