Our 'BBB+' long-term rating on Norwegian savings bank Haugesund Sparebank and the stable outlook on the rating are unchanged following the announcement on 4 Mar. 2025 of a revised merger deal with Tysnes Sparebank. We expect the merger to occur by 1 Sep. 2025.
The merger between Haugesund Sparebank and Tysnes Sparebank was announced in November 2023, with plans to finalise it by the end of 2024. However, in early September 2024, the merger was postponed due to a significant rise in loss provisions at Tysnes Sparebank (see Related publications below). A press release in November indicated that the merger would likely take place in Q2 or Q3 2025.
In the latest press release, the banks outline the proposed ownership terms in an updated merger plan, with ownership divided as 83.06% for Haugesund Sparebank and 16.94% for Tysnes Sparebank. We note that these terms might change if additional loss provisions on individual exposures in Tysnes Sparebank arise after year-end 2024. On 10 Apr. 2025, the banks' annual general meeting and board of trustees meeting will vote on the merger plan. The Norwegian regulator must also approve the changes, which we consider likely.
The banks expect the merger to be finalised by 1 Sep. 2025 or earlier, and at the latest before the end of Q3 2025. We believe this is likely, barring any significant new developments. While NCR's rating on Haugesund Sparebank is assigned to the stand-alone bank, it takes into account the expected merger. We consider the increase in loss provisions in Tysnes Sparebank during the second half of 2024 to be reflected in our assessment. The merger delay does not materially impact our assessment.
Related publications
i) NCR Comments: Haugesund Sparebank 'BBB+' rating and outlook unchanged by postponement of merger, 4 Sep. 2025
ii) Haugesund Sparebank assigned 'BBB+' long-term issuer rating; Outlook stable, 28 Jun. 2024
This commentary does not constitute a rating action.
Contacts:
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com
Christian Yssen, analyst, +4740019900, christian.yssen@nordiccreditrating.com