BankNordik sells its Danish operations

BankNordik has sold its BankNordik Denmark operations to Danish bank Spar Nord at its book value plus DKK 255 million in goodwill.

Goodwill in this context is the difference between the selling price and value of the acquired assets.

BankNordik CEO Árni Ellefsen reckons the total sale price will be in the region of DKK 600-700 million, with estimated net profits of DKK 70-90 million.

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The sale, involving 11 bank branches, 132 staff members and some 60,000 customers, is a result of increasing capital demands that limit the bank’s competitiveness in Denmark, says Ellefsen.

BankNordik’s operations in Greenland will not be affected by the sale, which is conditional on approval by the Faroese Financial Supervisory Authority and the Faroese Competition Council and is expected to be completed on 1 March next year.