Danske Bank wants large slice of Finnish corporate financing market

Price war expected

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The Danish Danske Bank, which bought the Finnish Sampo Bank last year, has big plans for Finland. Chief Financial Officer Tonny Thierry Andersen says that the Danish company plans an upheaval in the Finnish corporate financing market.
      "Finnish companies contacted us immediately when the deal was made public. I know that we will do well both in pricing and in services", Andersen says from the Danske Bank headquarters in the centre of Copenhagen.
     
Nordea is the overwhelming leader in corporate financing in Finland at the moment. It is followed by the OP Group, and Sampo Bank - although the ranking depends on who is asked.
      "In Finland we see possibilities for growth specifically in corporate financing. We will get all of Sampo Bank in the shape that we want it sometime in 2008, but we will not wait that long with large companies. A price war is in store, but first, we will mainly fight over the best customers", Andersen says.
      So far, only the Nordic bank Nordea has had the resources to meet the needs of all large Finnish companies. Now the situation is changing, because Danske, Denmark’s largest bank, is about the size of Nordea.
      The first priority is to name a successor for Sampo Bank CEO Mika Ihamuotila, who will stay with the Sampo Concern, which will remain under Finnish ownership.
      Danske Bank CEO Peter Staarup says that the name of Ihamuotila's replacement will be made public once the deal is finalised. However, he gives the impression that the Danes have already made their choice.
      "I believe that the majority of the present management of Sampo Bank will continue. I see no reason why they should leave."
      Staarup himself plans to head the Board of Directors, which is expected to include two Finnish members.
     
Staarup is aware that the OP Group is marketing itself on the basis of its Finnishness. He points out that Danske Bank has previously bought banks in the Republic of Ireland, Northern Ireland, Norway, and Sweden, and nationality was never a major issue in those deals.
      "I hope that we will get new customers on the basis of our products", Staarup says.
      From the outside, Sampo Bank will continue to look Finnish, because its name will remain unchanged.
      Sampo’s network of branch offices will also remain more or less as it is, and no personnel cuts are planned - at least for now.
      Danske Bank CFO Andersen says that corporate clients will be offered new products for saving and borrowing, but only after over a year. For now, plans are to go through the existing products of Danske Bank and to decide which of them are appropriate for the Finnish market.
      Andersen says that he is very interested in the Internet operations of Sampo Bank. Danske Bank has four times more clients than Sampo Bank, but the two banks have an equal number of Internet contacts.
      "We are proud of our own Internet bank, but it is clear already now that we can learn from Finland."


Previously in HS International Edition:
  Sampo Bank´s rivals expect intense competiton over large clients (10.11.2006)
  Finnish Sampo Bank Group to be sold to Danish Danske Bank for EUR 4.05 billion (9.11.2006)

Links:
  Danske Bank - Sampo Bank acquisition

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