Jyske Bank merges with BRF Kredit, announces profits

The group will have a total customer base of about 900,000 customers

Denmark’s third largest bank, Jyske Bank, has announced that it has merged with mortgage credit institution BRF Kredit.

Jyske Bank will assume all of the BRF Holding stock while issuing 237.6 million kroner worth of new shares, about 25 percent of its share capital.

The deal, which the two parties described as a good match, is worth an estimated 7.4 billion kroner, with Jyske Bank becoming the parent company in the deal.

"The merger of BRF Kredit and Jyske Bank is a pro-active merger of two strong and well-consolidated financial groups,” Jyske Bank wrote in a press release. “Strategically and financially, they complement one another well and create a fully-integrated bank and mortgage credit institution in Denmark.”

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Solid profits unveiled
The bank will also pay 100 million kroner to BRF Holding – the fourth largest mortgage credit institution in the nation – which will become the biggest shareholder in Jyske Bank.

The group will have a total customer base of about 900,000 customers, 149 departments and about 4,600 employees. It will have a balance of about 480 billion kroner, including loans of around 335 billion kroner and equity of 27.8 billion kroner.

It was a busy day for Jyske Bank, which also revealed its financial results for 2013, showing profits of 2.3 billion kroner before tax. The results were the best for the bank since 2006 and more than double its 849 million kroner profits for 2012.