The integration of recently acquired National Irish Bank and Northern Ireland’s Northern Bank has proved extremely lucrative for Danske Bank, which last year reported a very healthy 38% net profit growth and an 18.5% RoE.
The integration of the two banks’ IT systems and business platforms was also successful and allowed the acquired institutions to work on a state-of-the-art IT platform. The acquired banks have launched a range of new products and service offerings, such as full range internet banking and 24/7 call centres, improving the banks’ competitive edge in their respective markets.
Danske Bank’s expansion plans continued this year. The acquisition of Finland’s Sampo Bank last month will strengthen Danske’s position in the Nordic region and will give access to Estonia, Latvia, Lithuania and Russia, thanks to Sampo’s extensive branch network and foreign subsidiaries. The deal, which was agreed when the Irish banks had just been integrated, highlights Danske Bank’s determination to expand its presence internationally, and will give it a foothold in the Baltic region, which is increasingly important to Nordic banks as a growth market.
