Jyske Bank A/S has entered into a binding agreement with PFA Holding A/S on the acquisition of 100% of the shares of PFA Bank A/S. As part of the transaction, Jyske Bank has entered into an agreement with PFA Invest on the administration and portfolio management of client assets. According to the agreement, the price totals DKK 245 m, including equity of approx. DKK 120 m at PFA Bank A/S at the closing date.
Jyske Bank will take over approx. 10,000 personal clients and private banking clients, deposits of approx. DKK 1 bn and assets under management totaling DKK 15.5 bn, consisting of DKK 13.2 bn invested in PFA Invest via PFA Bank and other banks as well as DKK 2.3 bn invested in PFA Invest via PFA Pension's "Du investerer".
The acquisition will strengthen Jyske Bank's business volume within asset management and wealth management advice and will only result in minor capital requirements for the Group.
Jyske Bank will match the attractive client packages and access to personal advisory services which PFA Bank has so far offered its clients. In addition, Jyske Bank sees good opportunities of expanding the client relationships to comprise other products and services, for instance via access to the 103 branches of Jyske Bank which has Denmark's largest nationwide branch network.
Lars Stensgaard Mørch, Group Strategy Director, states:
"The acquisition reflects Jyske Bank's ambitions of high-quality growth and underlines the Group's role in market consolidation. Jyske Bank has an attractive value proposition within asset management and wealth management advice, and the Group's private banking clients have over the past seven years been Denmark's most satisfied clients. We are looking forward to welcoming PFA Bank's clients."
As part of the acquisition, Jyske Bank will take over 43 permanent PFA Bank employees, and Jyske Bank aims to retain all employees. Generally, it is expected to be possible to offer attractive job opportunities to the majority of the employees.
The agreement confirms the long-standing business relationship between PFA Pension and Jyske Bank, and both parties are looking forward to a continuing good relationship.
The agreement is conditional on approvals by the authorities and is expected to be completed during the third quarter of 2023. The IT integration of the clients will take place in the course of the first half of 2024 following the migration of Handelsbanken's clients from BEC to Bankdata.
The acquisition is expected to give a positive contribution to Jyske Bank's net profit before one-offs in 2024 and have its full financial impact as from 2025 after the completion of the IT migration. In 2024, one-offs of approx. DKK 50 m are expected to be recognized.
Jyske Bank's expectations of earnings per share are unchanged in the range of DKK 65-75 for 2023. Depending on the development of the capital position, the Supervisory Board will still endeavour to resume capital distribution to shareholders in the second half of 2023.
Yours faithfully,
Jyske Bank
Contact persons:
Lars Stensgaard Mørch, Group Strategy Director, tel. +45 89 89 20 01
Birger Krøgh Nielsen, CFO, tel. +45 89 89 64 44
