Copenhagen - Saxo Bank in move to strengthen its position in Denmark with branches and new product offers to retail clients
• Based on Saxo Bank’s long term strategy to strengthen and develop the Bank with new platforms and new products, Saxo Bank expects to invest 59 million DKK in Brørup Sparekasse.
• Saxo Bank stands ready to offer at least 150 million DKK more in capital contribution if the terms for transforming Sparekassen, into a joint-stock company are fulfilled. That will position Brørup Sparekasse as one of the more solid financial institutions in Denmark measured by solvency.
• Together with Brørup Sparekasse, Saxo Bank now can include more traditional bank services in its product offering.
Prôvided that Saxo Bank’s investment in Brørup Sparekasse will be completed, Saxo Bank plans not only to let the Sparekasse run as in the past, but wants to make clear that it also will try to launch various improvements not least in the local areas. Saxo Bank’s investment will be a substantial strengthening of the capital base of the Sparekassen.
Should Brørup Sparekasse receive the necessary endorsement from the guarantors to the suggested transformation Saxo Bak will realize a capital contribution of 59 million DKK which is a condition for Brørup Sparekasse to obtain the vital individual state guarantee of 850 million DKK under Bankpakke II. The transformation plan is pre-approved by Finansiel Stabilitet (The Financial Stability Company).
Brørup Sparekasse has a well developed chain of branches, skilled and engaged employees as well as a strong, loyal and stable client base not least thanks to the many guarantors who, in connection with the capital contribution, will benefit from a strengthened capital base with an expected solid solvency surpassing 25 percent.
“In Saxo Bank, we wish to expand our retail business. We have experienced a massive increase in demand from our clients concerning offerings like net banking and debit cards – demands we initially will be able to accommodate together with Brørup Sparekasse. Saxo Bank will continue as a professional investment bank, but we would also like to be a modern bank for retail clients” says Stig Pastwa, the Saxo Bank Director who will take over as the new Chairman of the Board in Brørup Sparekasse if the transformation is completed as planned.
It is furthermore the plan that CFO Karina Deacon and Director Christian Kofoed Jacobsen from Saxo Bank will take seats on the Board of Brørup Sparekasse.
In connection with the transformation of Brørup Sparekasse into a joint-stock company, a new fund named ‘Fonden for Brørup Sparekasse’ is established. If the guarantors of Sparekassen choose to support the recommended transformation, Brørup Sparekasse will be owned by Saxo Bank with at least 90 percent of the stock and the former guarantors and the fund owning up to 10 percent of the stock.
“If the terms for the transformation are met Saxo Bank, is ready to further strengthen the capital base of Sparekassen with a minimum of 150 million thus supporting the continued operation and development at the same time as the guarantors’ are presented with a model in which their capital, as a consequence of Saxo Bank’s aggregated capital contribution of 209 million DKK, is expected to be paid after five years,” says Director Christian Kofoed Jakobsen. “We have been pleased to find support from Sparekassen’s representatives for the new plans combining both tradition and change just as we appreciate the immense goodwill and positive commitment from the management of Sparekassen.” Brørup Sparekasse will keep its name together with the logo etc. and Sparekasse director Gunnar Jessen will continue in his current position.
A joint press briefing by Saxo Bank and Brørup Sparekasse will be held on Friday 17 September 2010 at 1 PM at:
Present at the press briefing will be Stig Patwa and Christian Kofoed Jakobsen from Saxo Bank and Sparekasse Director Gunnar Jessen from Brørup Sparekasse. Following the press briefing, Saxo Bank representatives can be reached at: +45 51 59 52 97.