Today Norway-based savings bank Skue Sparebank announced that it will be the acquiring bank in a possible merger with Hjartdal og Gransherad Sparebank. If negotiations between the banks succeed and Finanstilsynet approves, the banks expect to execute the merger in the third quarter of 2024. The acquisition would strengthen Skue Sparebank's position in the growing Kongsberg-region and extend Skue Sparebank's core market into Vestfold og Telemark county, to the west of its historical core market in Buskerud county.
The merger would increase Skue Sparebank's total assets to NOK 25bn from NOK 16bn based on third quarter 2023 figures. The merging banks have relatively similar historical credit metrics and are both members of the Eika Alliance, which simplifies the merger. The banks estimate that they will achieve annual synergies of approximately NOK 30m over three years and improve the bank's earnings profile.
Our 'A-' issuer and issue ratings on Skue Sparebank are unchanged.
Related publications:
(i) Norwegian savings banks face margin squeeze in 2024, 11 Dec. 2023.
(ii) Norwegian mid-size savings banks maintain growth in a competitive market,
20 Nov. 2023.
(iii) Skue Sparebank assigned 'A-' long-term issuer rating; Outlook stable, 11 Nov. 2023.
This commentary does not constitute a rating action.
Contacts:
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com
Christian Yssen, analyst, +4740019900, christian.yssen@nordiccreditrating.com