Hansabank successfully completes Kvest Bank acquisition
2005-03-11 Back
Hansabank successfully completed the acquisition of the Moscow-based OAO Kvest bank in Russia. Both banks' representatives signed the final documentation on 11th of March. Hansabank pays 3.4 million US dollars (2.5 million euros) for 100% of Kvest bank's shares.
Indrek Neivelt, CEO, Hansabank Group: "We started this process half a year ago and everything has gone according to our plans. Entering the Russian banking market is an important strategic step for Hansabank Group. We are a rapidly developing organisation and see many growth opportunities in the Russian financial sector. I am very happy with the developments and the excellent job that our Russian team has done."
Druvis Murmanis, Managing Director, Russia: "Acquisition of Kvest bank allows us to offer our customers a complete range of corporate banking services in Russia. We have already completed most of the preparatory work for opening our first bank branch and in a few months will be ready to offer our customers in Russia the same high-quality service that they have become used to in our other banks."
The Group's strategy in Russia is to offer corporate banking and trade finance services in Moscow, St. Petersburg and Kaliningrad regions. The Group will concentrate on serving Baltic, Scandinavian and existing Russian corporate customers. Hansabank has already leasing offices in all three regions. The first bank branch will be opened in Moscow in April-May of this year. Branches in St. Petersburg and Kaliningrad will be opened later during the year. The Group currently employs 45 people in Russia and is planning on increasing the number to 190 by the end of the year.
Kvest bank has been focussing on serving corporate customers in the Moscow region. The bank's total assets amounted to EUR 2.9 million and shareholders' equity to EUR 1.3 million on 28.02.05. The Group will increase the bank's equity to EUR 81 million after completing the acquisition.
Hansabank is the largest financial group in the Baltic countries. Hansabank is listed on the Tallinn stock exchange; the largest shareholder Swedish Swedbank owns 60% of the bank.
Hansabank has 6,000 employees and close to 4 million customers, including 1.3 million e-banking customers. Established in 1991, the Group today has total assets close to 8.5 billion euros and controls 1/3 of the Baltic banking market.
In 2002 the Group expanded its operations to Russia, concentrating on serving the Group's Baltic, Scandinavian and Russian corporate customers. The Group's Russian credit portfolio amounted to 0.2 billion euros at the end of 2004. According to Hansabank's strategy, the Group's Russian business unit should grow to 10% of the Group's total risk weighted assets in the medium-term.
