Banks, Estonia, EU – Baltic States, Financial Services, Lithuania

Swedbank is said to have paid EUR 340 million to the Estonian subsidiary for the deal.

Swedbank announced plans to take over its subsidiaries last summer, saying that it would improve the management of funds and efficiency of the activities, reports LETA.

The accounting gain of AS Swedbank from selling its Latvian and Lithuanian subsidiaries to the parent company of the group was 336 million euros, Äripäev reports.

Considering the book value of the Latvian and Lithuanian subsidiary banks, AS Swedbank earned 109 million euros, said Swedbank’s spokesman Mart Siilivask.

The results of the Estonian unit of Swedbank that were made public yesterday show the bank’s operating results in Estonia. They do not reflect the revenues from selling Latvian and Lithuanian subsidiary banks’ shares but since the transaction is reflected in the results of Swedbank as a legal entity, it is included in Eesti Pank statistics.

Former head of Hansapank Priit Põldoja expressed an opinion that separating the Latvian and Lithuanian unit from Swedbank Estonia was a purely pragmatic step and the bank just simplified technically the management of financing its subsidiaries.