Swedish lender Swedbank has agreed to acquire Danske Bank’s retail banking operations in Lithuania and Latvia.
The purchase will impact nearly 120,000 private customers in Lithuania with about EUR525m of loans as well as 7,000 private customers in Latvia with about EUR116m of loans.
Danske Bank said that the move will not have any material effect on its future earnings or the guidance for full-year 2015.
The deal, which is subject to regulatory approval in Lithuania and Latvia, is scheduled to close in the first quarter of 2016.
Swedbank head of Baltic banking Priit Perens said: "I welcome all new customers and feel confident that they will appreciate Swedbank’s availability and wide range of digital services. We aim to make them as satisfied as the rest of our Baltic customers."
Swedbank has more than seven million retail customers and nearly 600 000 corporate customers and organisations with 296 branches in Sweden and 149 branches in the Baltic countries. The group is also present in other Nordic countries, the US and China.