Gjensidige Bank acquires Citi’s Norwegian Consumer Finance business.

As agreed on October 8th this year, Gjensidige Bank has acquired Citi’s Norwegian consumer finance business.

Through the acquisition Gjensidige Bank’s gross lending will increase by NOK 2.7 billion, boosting the loan portfolio by roughly one third. The acquired portfolio consists solely of consumer loans, in which market Citi has been one of the major players in Norway.

“With this acquisition, Gjensidige Bank becomes one of the leading banks in the consumer loans market in Norway,” says Jan Kaare Hellevang, CEO of Gjensidige Bank.

Before the acquisition, Gjensidige Banks loan portfolio has consisted mainly of mortgages. A broadening of the product portfolio has been a strategic goal. As a result of the acquisition, the number of employees will more than double. The new and bigger organization will be more forceful and thus facilitate further growth. Coordination of IT systems and purchasing agreements will result in substantial savings. Considerable opportunities are expected for cross sales and further product development.

Customers will be notified that their loan contracts are transferred to Gjensidige Bank, but will for all practical purposes not be affected by the acquisition.

The parties have agreed not to disclose the terms of the deal.

Contact details:
Christian H. Haraldsen, Information Manager, +47 907 87 449

About Gjensidige Bank ASA
Founded in January 2007, Gjensidige Bank is part of the Gjensidige Group. In the third quarter of 2009 the bank had 54 employees, and total assets amounted to NOK 9.3 billion. The banks lending consisted mainly of adjustable-rate home mortgages. The bank lends only to consumer and agricultural customers. The core capital ratio was 17,1 per cent.