Further consolidation announced in Denmark’s savings bank sector

The boards of Danish local savings banks Sparekassen Bredebro and Vorbasse-Hejnsvig Sparekasse have agreed a merger, subject to agreements being voted on at extraordinary meetings on 20 August.

“A merger will make it possible for us to create an even stronger, more solid and independent savings bank in southern Denmark. We want to increase our competitiveness, broaden our areas of growth, and create better earnings,” said the banks’ chairmen Søren Clausen and Erik Møberg

Existing customers are unlikely to notice any big changes, as both banks wish to maintain as far as possible the “local character” of their current servcies, they said.

Sparekassen Bredebro and Vorbasse-Hejnsvig Sparekasse recorded solvency ratios of 18.7% and 16.6% respectively as of December 2011, but their relative size indicates the challenge facing the smallest players in the Danish financial services sector. They have only 3 and 8 branches respectively.

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