London Stock Exchange
Date 23 June 2021
Correction: Re-release of company announcement - now under the category Inside Information
Takeover of client portfolio from BIL Danmark (branch of Banque Internationale à Luxembourg S.A., Luxembourg)
We are pleased to advise that Ringkjøbing Landbobank has entered into a conditional agreement with Banque Internationale à Luxembourg S.A., of Luxembourg, regarding takeover of all BIL Danmark’s clients.
The client portfolio is a good match with Ringkjøbing Landbobank’s Private Banking expertise. At the same time, we can significantly expand the range of products offered to the clients taken over.
BIL Danmark has branches in both Copenhagen and Aarhus. The clients taken over will be attached to Ringkjøbing Landbobank’s Private Banking branches in either Holte or Aarhus with the possibility of attachment to one of our Private Banking branches in Ringkøbing, Vejle, Aalborg or Herning.
Ringkjøbing Landbobank will take over the client portfolio on 1 July 2021 in accordance with section 204 of the Danish Financial Business Act. The agreement is subject to approval of the transaction from the Danish FSA.
The takeover comprises
Loans of DKK 1.2 billion
Deposits of DKK 0.9 billion
Assets under management and custody account holdings of DKK 6.0 billion
distributed across approximately 500 families and companies.
In connection with the transaction, 9 employees will move from BIL Danmark to Ringkjøbing Landbobank.
The clients will be transferred to Ringkjøbing Landbobank during the third quarter of 2021. They will continue to be served by BIL Danmark until then.
Payment for the client portfolio will take the form of an earn-out, based on earnings over a two-year period. In this connection, intangible assets in the form of client relationships equivalent to DKK 45 million will be capitalised on the bank’s balance sheet.
The transaction is expected to have a positive, but limited, effect on the net profit for 2021, and does not result in a change to the announced expectations for core earnings in the DKK 1,300-1,500 million range and profit before tax in the DKK 1,200-1,500 million range in 2021.
The transaction’s effect on the bank’s capital ratios will be approximately -0.2 percentage point.