Bergslagens Sparbank and Swedbank to establishjointly-held bank in Bergslagen region

Bergslagens Sparbank and Swedbank to establishjointly-held bank in Bergslagen region Bergslagens Sparbank and Swedbank AB have agreed to establish a jointly-held bank in Sweden's Bergslagen region: Bergslagens Sparbank AB. By agreement between the two founding banks, the new bank corporation will be 52% owned by a foundation established by Bergslagens Sparbank, with Swedbank owning the remaining 48%. Establishment of the new bank presupposes approval by Bergslagens Sparbank´s principals and by the relevant regulatory agencies. Ever since the establishment of Swedbank, in 1997, discussions have been under way between it and Bergslagens Sparbank concerning how to handle the duplications of facilities and the new competitive situation that resulted in Bergslagen from the merger of Föreningsbanken and Sparbanken Sverige into Swedbank. That situation will now be solved in a manner favourable to both Swedbank and Bergslagens Sparbank, as well as their customers, through the agreement between those two banks and the resulting formation of the new bank. Plans call for the new bank to begin operating in the beginning of year 2000 and for its purview to comprise current bank activities in the Bergslagen communities of Lindesberg, Fellingsbro, Frövi, Kopparberg, Nora and Storå. Further in accordance with the agreement between Swedbank and Bergslagens Sparbank, and prior to the formation of the new bank, Bergslagens Sparbank will purchase Swedbank´s banking operation in Kopparberg, effective in June 1999. "The agreement concerning the establishment of the new, joint bank in Bergslagen means that we shall be further enhancing our local activity, to the benefit of our customers. At the same time, the proposed establishment of a new savings-bank foundation having the role of majority owner of the new bank corporation, with Bergslagens Sparbank´s current principals as administrators of that foundation, will enable the earnings from the banking operations to be used, via the foundation, to further the economic development of the Bergslagen region", says Rune Nyberg, Bergslagens Sparbank´s CEO. "It is gratifying that we are able in this manner to fortify our joint efforts in the Bergslagen area. Bergslagens Sparbank's powerful local presence and established customer relations, complemented by Swedbank´s product array and international networks, will make the new joint bank, Bergslagens Sparbank AB, a fine example of the "glocal" bank´s strengths, with its combination of "global" competence and "local" presence", comments Reinhold Geijer, Swedbank CEO. Further information: Anders Thorstensson, Chairman, Bergslagens Sparbank, Phone: +46 19 195 752 Rune Nyberg, CEO, Bergslagens Sparbank, Phone: +46 581 880 35 Reinhold Geijer, CEO, Swedbank, Phone: +46 8 585 921 70 Göran Gunnarsson, Deputy-CEO, Swedbank, Phone: +46 8 585 917 47 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/04/21/19990421BIT00280/bit0001.doc http://www.bit.se/bitonline/1999/04/21/19990421BIT00280/bit0002.pdf