Nordea Bank Luxembourg has reached an agreement with Glitnir Bank Luxembourg to take over the private banking clients of the Icelandic bank, which went into administration in early October. The transaction was approved by the Commission de Surveillance du Secteur Financier (CSSF) on 23 October and clients were duly informed.

Cash balances are, for the moment, not part of this transaction but, when they are released, will be transferred to Nordea on behalf of customers participating in the agreement. Details of the number of customers or total assets involved have not been released by either party. The agreement does not involve any staff transfers.

“At Nordea we have a strong funding position, and are viewed by the market as one of the most solid banks in Europe right now,” explains Jhon Mortensen, Managing Director of Nordea Bank in Luxembourg. “We are pleased the Luxembourg regulators concur and have given the go-ahead for this agreement. Certainly the clients involved are relieved that this unfortunate situation has been resolved.”

Ari Danielsson, Managing Director of Glitnir Bank Luxembourg, says that customers have always been at the forefront of the bank’s focus. “This situation is no different,” he adds. “Nordea has been reporting strong financial results in these extreme circumstances and we feel our clients will be well served by the move.”

Mortensen attributes Nordea’s healthy position in the current crisis to an ambitious long-term vision with customer-oriented values and culture, and a clear growth strategy, at the core. “Nevertheless management has been cautious and prudent when it comes to the use of liquidity and capital, which has resulted in a robust balance sheet,” he adds. “Just a few weeks ago, we presented strong Q3 results which made journalists and analysts praise us for our stability in stormy markets and prudent risk management.”