Oma Savings Bank Plc (OmaSp), a Finnish savings bank, said that it has started talks to acquire the bank business of Liedon Säästöpankki (Liedon Savings Bank) and merge it into its fold.
The merger is likely to take place during the coming 12 months, said Oma Savings Bank, which mainly focuses on retail banking through its 35 branch offices and digital service channels.
According to Oma Savings Bank, Liedon Savings Bank will continue to be run as a major regional Savings Bank Foundation as well as a non-profit operator.
Jouni Niuro — Liedon Savings Bank CEO said: “Joining forces in the Turku economic area is a really important and significant thing for us. Upon completion, the merger will ensure the continuity of personal service and take the operations of Liedon Savings Bank to the next level.
“Liedon Savings Bank Foundation would continue its long regional bank history, and with its significant assets, it would be an important regional influencer and promoter of thrift, economic education and research.”
Liedon Savings Bank has a balance sheet of around €1.3 billion and the number of private and corporate customers it serves is around 55,000.
The combined operating profit of the two Finnish savings banks during last year was nearly €95.6 million, of which the share of Oma Savings Bank is €83.3 million.
Final decisions on the merger will be taken in in late 2022 by the board of directors of Oma Savings Bank and the Board of Trustees of Liedon Savings Bank.
Pasi Sydänlammi — Oma Savings Bank CEO said: “The acquisition would significantly strengthen our bank’s market position and business volumes in the important Turku economic area and complement our service network throughout Southwest Finland.
“Upon completion, the planned acquisition of the business is the largest in the history of OmaSp. Growing business volumes would further improve OmaSp’s cost efficiency and business profitability, and the transaction would have a significant positive impact on earnings.”
Oma Savings Bank begins negotiations to acquire Liedon Savings Bank added by Pallavi Madhiraju on
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