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New combined Baltic bank of Nordea and DNB aims to become major player in pensions segment

RIGA - The new combined bank Nordea and DNB are planning to launch in the Baltic states wants to become a major player in the pensions segment, the new bank’s CEO Erki Raasuke said in an interview with LETA. 

If we combine the pension fund money currently managed by our banks, it is more than a billion euro already. This is one of the largest saving products on the market. We want to be successful in this segment, said Raasuke. 

He revealed that the bank would be ready to invest the money also in the Baltic economy. Of course, it is necessary to find good investment proportions, but it is vital to work and find good investment opportunities here. We are local players and is not good if we only send local pension fund money away. At the same time, we see very clearly that many investment opportunities still remain undeveloped in the Baltics. We, therefore, have to work with various investment funds, real estate funds and possibly also directly with businesses, Raasuke said. 

Asked about the bank’s leasing business arrangement, Raasuke said that leasing services will be provided by a separate entity like Nordea Finance is doing already now. This company will be supported by DNB, of course, but we will keep a separate enterprise which will operate in all three Baltic states, the CEO of the new bank said. 

The plan to merge the Baltic businesses of Nordea and DNB still have to approve by competition and financial regulators. The combined bank will be the second largest player in the Baltic states with an estimated market share of 20 percent, targeting mainly local businesses and entrepreneurs, Raasuke said. 

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