Luxembourg-based Danske Bank International to be acquired by UBP

Danske Bank has agreed to sell its international private banking activities in Luxembourg operating as Danske Bank International (DBI) to Switzerland-based Union Bancaire Privée (UBP).

The Danish banking group expects the sale to give it a one-off gain of nearly DKK 250 million ($39.89 million).

Danske Bank said that the transaction represents its efforts to simplify its business. Furthermore, it backs its strategy of focusing on its footprint in geographical markets, which are important for serving its customers or which are otherwise important strategically for customers or home markets in the Nordics region.

The Danish organization added that it will now focus on its private banking activities in the Nordics.

Danske Bank International has nearly 70 employees and caters to approximately 1,000 personal customers, who mainly reside outside the Nordic countries. The bank has been operating in Luxembourg since 1976.

Luxembourg-based Danske Bank International to be acquired by UBP. Photo courtesy of Danske Bank A/S.

Glenn Söderholm – Head of Personal and Business Customers, Danske Bank, said: “As a bank we want to focus our efforts around our core markets in the Nordics and this decision is a part of that strategy. It is, however, not a decision we take lightly as we have a strong relationship with and feel a big responsibility for our customers and employees in Luxembourg.

“With UBP, we are confident that we have found the right partner for our customers, a partner who will continue to meet the customers individual needs with the highest possible quality, and at the same time be a good employer for our skilled and dedicated employees. We will continue to focus on further developing the best private banking solutions for our customers residing in the Nordic countries.”

UBP has been operating in Luxembourg since 2002 via its subsidiaries Union Bancaire Privée (Europe), which is engaged in wealth management, and UBP Asset Management (Europe).

Guy de Picciotto – CEO of UBP said: “This transaction confirms our ambition to increase our footprint in Luxembourg, which became UBP’s European hub a few years ago. It is undoubtedly an opportunity to strengthen our growth strategy on the Nordics with a seasoned team of bankers and investment professionals, and to further enhance our local leadership team.”

The deal, which is subject to regulatory approvals, is anticipated to close in Q4 2021.