Handelsbanken Sells Parts of Finnish Operations For Around $1.4 Billion

By Dominic Chopping

STOCKHOLM--Svenska Handelsbanken said Wednesday that it has agreed to sell parts of its Finnish operations to S-Bank, Oma Savings Bank and Fennia Life Insurance Company for around 1.3 billion euros ($1.4 billion).

The private customer, asset management and investment services operations will be sold to S-Bank, who will also take over lease agreements for branch offices, while the small and medium-sized enterprise operations are to be sold to Oma Savings Bank and the life insurance operations will be sold to Fennia Life Insurance Company, it said.

Handelsbanken will receive cash equal to the actual net asset value, which was around EUR1.3 billion as of the first quarter of 2023, plus a maximum premium payment of EUR8.5 million.

The bank said the deal includes lending volumes of around EUR4.1 billion, equal to a risk-weighted exposure amount of EUR1.3 billion, and deposit volumes of around EUR2.8 billion, representing 30% of lending volumes and 50% of risk-weighted exposure in the bank's operations in Finland.

The divestment of the bank's remaining operations in Finland continues as part of a separate process, it added.

The net non-recurring financial effects impacting the group's operating profit are expected to be marginal and the deal is expected to be finalized during the second half of 2024.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

May 31, 2023 01:47 ET (05:47 GMT)

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