The merger of Landsbankinn and Sparisjóður Norðurlands has now been approved by regulators and will formally take effect as of today, 4 September 2015. At its meeting earlier today, the Board of Directors of Landsbankinn agreed to the merger on behalf of the Bank. A meeting of the guarantee capital owners of the savings bank had previously approved the merger.
The merged company will operate under Landsbankinn's name, all employees of the savings bank will be Landsbankinn's employees, all assets and obligations of the savings bank will be consolidated with those of Landsbankinn and Landsbankinn takes over operation of all of the savings bank's service points.
Sparisjóður Norðurlands operates service points and branches in Dalvík, Raufarhöfn, Þórshöfn, Kópasker, Suðureyri and Bolungarvík. No changes will be made to services to customers in the near term, with branches and service points open as usual, account numbers remaining unchanged, payment cards valid and unaltered access to online banking. Customers will at a later date receive information about the changes the merger occasions and Landsbankinn's employees will endeavour to keep the effect on customers at a minimum.
Customers are advised to contact their local branch or Landsbankinn's Customer Service Centre (+354 410 4000, info@landsbankinn.is) or look at answers to frequently asked questions on the Bank's website.
According to the agreement in place, guarantee capital holders in the savings bank will be compensated with shares in Landsbankinn. Such remuneration amounts to a total of ISK 594 million.
Sparisjóður Norðurlands was created with the merger of Sparisjóður Svarfdæla and Sparisjóður Þórshafnar og nágrennis on 4 July 2013, with Sparisjóður Bolungarvíkur consolidated into the savings bank on 30 June 2014. Guarantee capital in the savings bank amounted to ISK 1,008,791 and guarantee capital owners numbered 361. The largest owners were the National Treasury of Iceland (79.2%), the Savings Banks’ Insurance Fund (14.9%), the Central Bank of Iceland's Asset Division (1.7%) and the ÍV UCITS Management Company (1.7%). Other parties owned less than 1%.
On 9 June, uncertainties regarding the savings bank's future prompted its Board of Directors to approach Landsbankinn to gauge interest in the merger. The merger was contingent upon approval by the Financial Supervisory Authority, Iceland (FME), and the Icelandic Competition Authority. These entities have now approved the merger.
For further information contact: Kristján Kristjánsson, pr@landsbankinn.is, +354 410 4011/+354 899 9352.