Swedbank has signed an agreement with Danske Bank to acquire its retail banking business in Lithuania and Latvia.
Terms of the deal have not been disclosed.
Swedbank Baltic Banking head Priit Perens said: "I welcome all new customers and feel confident that they will appreciate Swedbank’s availability and wide range of digital services."
The acquired business includes around 120,000 private customers in Lithuania with approximately €525m of loans and about 7,000 private customers in Latvia with approximately €116m of loans.
According to Danske Bank, the deal does not include its banking customer business in Lithuania. Danske Bank carries out operations in Estonia, in addition to Lithuania and Latvia.
Danske Bank Group business banking head Lars Stensgaard Mørch said: "The sale is part of the execution of our strategy of being a Nordic bank that supports the needs of business customers also when they do business outside the Nordic region.
"We want to develop our business banking operations for local as well as Nordic customers by enhancing the product offering, drawing on Danske Bank’s broad product range and innovative solutions."
Subject to approval from the regulatory authorities in both Lithuania and Latvia, the deal is expected to complete in the first quarter of 2016.
In May 2014, NCR extended its partnership with Swedbank to help in implementation of the lender’s multi-channel banking strategy across the Baltic states of Estonia, Latvia and Lithuania.
Image: Central building of Swedbank in Riga. Photo: courtesy of Atisgailis.