Danske Bank to close Russian subsidiary

Danske Bank has taken the decision to close its Russian subsidiary within the next 12 months.

During recent years, Danske Bank has taken a wide range of initiatives to strengthen the position in the Nordic core markets. Our current strategy further reinforces this focus and therefore we have conducted a review of Danske Bank’s footprint outside the Nordics to ensure that we are present in the markets, which matters the most for the customers.  

“For some time now, we have seen that the overall demand for our services in Russia is declining. At the same time, there is an increasing complexity, which means that we look into a future of higher costs and a need for significant investments in Russia, including in new IT infrastructure. This puts profitability under pressure to an extent where we cannot defend a continued presence, and therefore we have taken the decision to wind down and close our operation in Russia,” says Jakob Groot, Head of Corporates and Institutions in Danske Bank.

Danske Bank has 74 employees in Russia, primarily operating out of Saint Petersburg and with a small representational office in Moscow. Danske Bank serves app. 230 customers in Russia. The majority of the customers are Nordic corporates and businesses, besides a few international corporates with a solid Nordic footprint.

All affected customers will be informed today and Danske Bank will continue to service the customers until further arrangements are in place. The transition period will expectedly last up to 12 months.

You may find the Company Announcement here