Reorganisation of Storebrand Bank and Finansbanken

  • The Boards of Representatives of Storebrand Bank and Storebrand ASA have approved a reorganisation that implies staff reductions of to 64 man-years at Storebrand Bank. For 2002, the effect of these workforce reductions and other measures that have been approved will be NOK 84 million.
  • The employee-appointed members of the Board of Representatives voted in favour of implementing the measures aimed at improving the bottom line, but against cuts in the workforce, under reference to their opposition in principle to potential redundancies.
  • A joint meeting of Finansbanken's Board of Directors and Board of Representatives voted unanimously in favour of gathering the bank's Norwegian activities at the Oslo head office, which implies closing the office in Bergen. This closure means a 10-man-year reduction at Finansbanken.

For Storebrand Bank, the need to improve profitability arose as a result of the difficult market conditions in 2001. Consequently, the bank and its staff instigated a comprehensive improvement process in the second half of 2001. 130 profit-enhancing measures on both cost and income sides were identified. These measures are incorporated into the bank's budget and plans for 2002. In addition, the bank has been reorganised with strong focus on sales and cost-effective operations.

"We are giving a large number of our employees notice of reorganisation, primarily at the head office. This notice of reorganisation does not affect the bank's 170 financial advisers. Positions in the new organisation will be filled during the two-month reorganisation period. Compared to last year, the number of staff will be reduced by up to 64 man-years", says Kai G. Henriksen, Managing Director of Storebrand Bank. The bank employed 417 man-years at the turn of the year 2001/2002. Seen in isolation, the effect of the profit-enhancement measures on an annual basis is NOK 114 million, while the impact on the profit for this year is NOK 84 million.

Against a similar background, Finansbanken has resolved to gather its Norwegian business at the head office in Oslo. This concentration of activities ensures better commercial focus by bringing together management and the professional circles. This will therefore also produce cost savings in both the short and the long term. The change implies that the branch office in Bergen will be closed and the 11 employees will be given notice of reorganisation.

Oslo, 15 January 2002

<br>For further details: <br>Storebrand ASA: Egil Thompson, <br>Director Corporate Communications <br>tel.: + 47 22489586, mobile + 47 93480012 <br> <br>Storebrand Bank: Kai G. Henriksen, <br>Managing Director <br>tel.: + 4722311196, mobile +47 92847820 <br> <br>Finansbanken ASA: Per Kjetil Lilleskare, General Manager <br>tel.: + 47 22474092, mobile +47 41505750 <br>